Leveraging its strategic location, Oman has invested in infrastructure with the goal of becoming a global logistics centre. While the country is less hydrocarbons-rich than its GCC neighbours, diversification efforts are a driving force behind its economic growth. The sultanate’s long-term development strategy, Oman Vision 2020, emphasises industrialisation, privatisation and Omanisation, and resulted in a real GDP growth rate of 3.3% in 2015. At the same time, foreign direct investment inflows have risen from $739m in 2014 to an estimated $822m in 2015.
- Economy: New Prospects – Economic diversification is Oman’s long-term ambition, although hydrocarbons revenues still play a central role in the economy. However, lower petroleum revenues have led the government to cut spending, reform taxation and boost private sector activity in an effort to close the fiscal gap.
- Banking: Solid Performance – While a number of challenges have confronted Oman’s banking sector in recent years, such as increasing competition in the domestic market, the industry has continued to produce robust results, with the total assets of conventional banks increasing by 13.6% to $73bn by the end of 2015.
- Mining: Digging for Growth – With the government targeting 6% annual growth in the sector and major regulatory initiatives attracting increased investor interest, mining’s contribution to the economy is poised to surge in 2017-18, after growing faster than any other non-petroleum industrial activity in 2015.
- Tourism: Developing Clusters – The government looks to build on record numbers of tourists and aims to double international arrivals by 2040. By developing strategic tourism clusters, upgrading airports and better preparing youth for employment in the sector, Oman hopes to become a more inclusive destination for all.
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