Economy
From The Report: Oman 2015
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In 2013 and the first half of 2014 Oman’s economy continued to expand on the back of rising public and private investment, strong oil and gas revenues, and steadily increasing levels of non-oil activity. The sultanate’s GDP rose from $78.3bn in 2012 to $80.57bn in 2013, and while the recent slump in oil prices is a concern, heavy investment in a variety of enhanced oil recovery techniques has boosted output in recent years. Moreover, increasing levels of non-oil activity is high on the agenda with the Oman Vision 2020 long-term development plan aiming to ensure economic and financial stability by boosting private sector participation, diversifying the economy and investing in the Omani workforce. Incoming visitors are increasingly being considered a key source of revenue for Oman with the tourism sector’s contribution to GDP forecast to jump to 8.2% by 2024, from 6.4% in 2013. This chapter contains interviews with Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry; and Tariq Al Farsi, CEO, Al Raffd Fund.

Articles from this Chapter

Overview

The economy is well positioned for long-term expansion
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In 2013 and the first half of 2014 Oman’s economy continued to expand on the back of rising public and private investment, strong oil and gas revenues and steadily increasing levels of non-oil activity. According to data published by the IMF – Oman’s National Centre for Statistics and Information (NCSI) does not regularly release inflation-adjusted GDP numbers – real GDP growth rate in the sultanate was at 5.1% in 2013, a slight increase from 5% in 2012. Growth These figures are in…

Interview

Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry: Interview
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Interview:Ali bin Masoud Al Sunaidy What more needs to be done to achieve the targets set for diversifying the country’s economy? ALI BIN MASOUD AL SUNAIDY: Improving the ease of doing business is our top priority, with three programmes now in motion to achieve this. The first is the so-called One-Stop Shop, an electronic platform that makes company registration easier, consolidating the eight relevant agencies under one roof. This will not only reduce the time it takes to register, but…

Analysis

Encouraging Omani participation and domestic productivity in the oil and gas sector
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While non-oil economic activity has accounted for a steadily increasing percentage of Oman’s GDP in recent years, the oil and gas industry remains a vital component of the sultanate’s economy. Despite the fact that the country’s hydrocarbons reserves are smaller and generally harder to access than in many other nations in the GCC region, the industry is widely regarded as the backbone of Oman’s economy. According to a March 2014 report published by Deutsche Bank, oil and gas revenues account…

Interview

Tariq Al Farsi, CEO, Al Raffd Fund: Interview
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Interview:Tariq Al Farsi What is your assessment of the new quotas to support small and medium-sized enterprises (SMEs), and what more can be done to realise the intended economic benefits of such decisions? TARIQ AL FARSI: Both of these quotas are important to guarantee and encourage SMEs, and I believe that with the proper support systems to facilitate them, the targets are attainable. One of the key outcomes of the SMEs Symposium was the decision to allocate no less than 10% of tenders…

Analysis

The government’s privatisation scheme aims to cut public expenditure and ramp up returns
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In an effort to reduce state expenditure and boost revenues, the government recently announced a plan to sell shares in a wide variety of state-owned entities in the coming years. The privatisation effort, which could eventually result in the transference of a substantial percentage of more than 60 state-held firms to public ownership, is widely expected to have a transformative impact on Oman’s fiscal position, not to mention the capital markets sector, as well as the broader financial system.…