Economy
From The Report: Oman 2018
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Oman’s economy benefits from large oil and gas reserves, including a sizeable new gas field that began production in late 2017. Located between Asia and Africa – and adjacent to major international shipping routes – the sultanate’s geographic location also makes it a natural regional logistics and manufacturing hub. The authorities are seeking to leverage such advantages in order to diversify the economy and reduce its reliance on hydrocarbons production, particularly in light of the fall in the price of oil over the 2014-15 period. The consequent decline in oil revenue negatively affected growth, as well as government accounts and finances. However, the authorities have so far been able to fund the deficit without difficulty through international borrowing. Furthermore, a partial oil price recovery in 2017 and 2018, as well as moves by the government to cut expenditure and boost revenue, are reducing immediate pressure on finances. This chapter contains an interview with Khalifa Al Barwani, CEO, National Centre for Statistics and Information.

Articles from this Chapter

Overview

Balancing act: Rising oil prices and economic diversification initiatives lead to accelerated GDP growth prospects and lower deficits
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Oman’s economy benefits from large oil and gas reserves, including a sizeable new gas field that began production in late 2017. Located between Asia and Africa – and adjacent to major international shipping routes – the sultanate’s geographic location also makes it a natural regional logistics and manufacturing hub. The authorities are seeking to leverage such advantages in order to diversify the economy and reduce its reliance on hydrocarbons production, particularly in light of…

Interview

All connected: Khalifa Al Barwani, CEO, National Centre for Statistics and Information (NCSI), on developing sophisticated data practices
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Interview:Khalifa Al Barwani How is Oman using data-powered services to achieve its development and diversification targets? KHALIFA AL BARWANI: The sultanate is in a transition period defined by moving from simply collecting data to creating services that are powered by it. Like most countries, entities in Oman mostly store their data on collection, but the new global norm is to then add value to it by creating derivative services. In an increasingly digitised world people and businesses…

Analysis

Partners in prosperity: Extension of public-private partnerships to underpin growth
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There are approximately $2bn worth of public-private partnerships (PPPs) in the planning or implementation phase in Oman, according to research by Middle East Economic Digest published in October 2017. The sultanate pioneered the regional development and use of such projects in the utilities sector in particular, and PPPs now account for the bulk of electricity generated in the country and are the preferred model for building new generation capacity throughout the GCC region. Against a backdrop…

Analysis

Back to black: The government is seeking to narrow the budget deficit amid oil price rises and economic diversification efforts
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From the late 1990s until 2014 Oman’s fiscal balance had consistently remained in positive territory, according to IMF figures, with the sole exception of a small deficit of 0.3% of GDP registered in 2009. However, amid a decline in international oil prices towards the end of 2014, public finances moved into the red for the year, to the tune of 1.1% of GDP. As the oil price slide picked up pace in 2015, the deficit grew, hitting 21.6% of GDP the following year. This was accompanied by a…