Country Profile
From The Report: Oman 2023
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Situated at the confluence of the Gulf and Arabian Sea, Oman occupies a strategically important location for trade and logistics. Although it is not on the Gulf, Oman possesses significant oil and natural gas reserves like its GCC neighbours. Since assuming leadership in January 2020, Sultan Haitham bin Tarik Al Said has renewed the country’s diversification efforts to reduce its reliance on the energy sector. Its long-term economic development is guided by Oman Vision 2040, the goals of which include establishing a diversified economy, creating sustainable cities, and facilitating privatisation and Omanisation. The sultanate’s 10th five-year plan (FYP), which covers 2021-25, is the first FYP launched under Vision 2040. The plan continues the country’s drive towards greater social development, fiscal sustainability, economic diversification and the optimal utilisation of its available natural resources.

This chapter contains a viewpoint from Sultan Haitham bin Tarik Al Said; and an interview with Khamis bin Saif Al Jabri, Chairman, Oman Vision 2040 Implementation and Follow-up Unit.

Articles from this Chapter

Overview

Sea change: Institutional changes and various diversification efforts look set to propel the country’s economy forward
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At the confluence of the Gulf and Arabian Sea, Oman occupies a strategically important location for trade and logistics. Although it is not on the Gulf, Oman sits atop significant oil and natural gas reserves like its GCC neighbours. Under the leadership of Sultan Haitham bin Tarik Al Said since January 2020, the country has renewed its diversification efforts to reduce its dependence on the energy trade. Its longterm economic development is guided by Oman Vision 2040, the goals of which include…

Viewpoint

Forward march: Sultan Haitham bin Tarik Al Said, on the course of progress leading towards Oman’s auspicious future
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Viewpoint: Sultan Haitham bin Tarik Al Said Our country is on a march of development into the future, guided by our past. We will utilise all means available to safeguard our gains and accomplishments, and to establish a prosperous future for our young generation in all parts of the country. Guided by Oman Vision 2040, we have implemented social and economic plans and programmes. We have seen gains in economic and fiscal performance as we advance on our march of growth and prosperity. Sustaining…

Analysis

Positive changes: Various reforms undertaken since the new sultan assumed power in 2020 have strengthened oversight
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Following the death of Sultan Qaboos bin Said Al Said in January 2020, Haitham bin Tarik Al Said, an Oxford-educated cousin of the late sultan, was named Oman’s new leader. The new sultan had held various government positions over the previous 30 years, including minister of culture and heritage, secretary-general of foreign affairs and head of the Anglo-Omani society. He also led the committee overseeing Oman Vision 2040, the country’s economic and social development strategy. The peaceful…

Interview

Foundational change: Khamis bin Saif Al Jabri, Chairman, Oman Vision 2040 Implementation and Follow-up Unit, on the progress of national digitalisation and diversification efforts
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Interview: Khamis bin Saif Al Jabri How are economic diversification initiatives working to underpin the growth of strategic sectors? KHAMIS BIN SAIF AL JABRI: The national programme for economic diversification, Tanwea’a, is a continuation of the previous government’s National Programme for Enhancing Economic Diversification, or Tanfeedh, launched in 2016. Formed as part of the ninth five-year plan and consistent with Oman Vision 2040, the programme aimed to ensure that both the public and private…

Analysis

Regional ties: Bilateral trade talks between the UK and the GCC are set to boost renewable energy and food security in the bloc
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As part of plans to expand and diversify its global trade partners and fulfil their respective national development strategies, the GCC has launched negotiations with the UK on a free trade agreement (FTA). This partnership is expected to bolster the bloc’s economy, help attract investment and provide greater opportunities for local businesses. On June 22, 2022 the two parties signed a joint statement and officially launched talks on a comprehensive trade deal, with Anne-Marie Trevelyan, then…

Overview

CEOs in the Gulf Survey
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After registering an expected 6.9% growth rate in 2022, the GCC is set to see GDP expansion moderate – to 2.7% and 2.4% in 2023 and 2024, respectively – as hydrocarbons revenue is constrained by an anticipated global slowdown. For Oman, economic growth is set to ease from 4.4% in 2022 to 4.1% in 2023, before dropping to 1.9% the subsequent year, according to the IMF. Even so, local business sentiment remains robust, with over 60% of GCC-based respondents to OBG’s Global CEO Survey conducted in late 2022 expecting the business climate to improve over the course of 2023. Regional business leaders cited investment in technology and information…

Overview

What CEOs in the Gulf see on: the horizon for 2023 and beyond
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Against a backdrop of high oil and gas prices on international markets, global inflation and enhanced geopolitical risk due to Russia’s invasion of Ukraine in February 2022, CEOs in the Gulf were comparably more optimistic than their global counterparts about the prospects for 2023 in the Global CEO Survey conducted by OBG in late 2022. Buoyed by surging commodity prices, 62% of respondents in the region expected that conditions would either improve or significantly improve. This elevated optimism rating is 22% higher than the average for all regions surveyed and reflects the positive recent economic performance of GCC members, with the IMF…