Achieving future developmental goals

Oman Vision 2040: Part 7

Oman’s long history of political stability, favourable international trade agreements and special economic zones has ensured strong growth on economic output and export in recent years, however the fall in global oil prices is undoubtedly a concern for the Sultanate.

Nevertheless, the continued focus on diversification schemes and expenditure commitments on big projects should ensure steady future growth. Vision 2040 is a transformative vision. It encompasses how Oman can move to the next developmental stage, capitalising on its competitive and comparative advantages. It acknowledges that the world is rapidly changing and that enthusiasm for change is crucial and is thoroughly developed and precisely formulated in light of wide community consensus and the participation of different stockholders.

The process examines the interdependence of Omani social, economic, financial, and cultural variables with global drivers of change through different scenarios. It considers Oman’s special features in terms of demographic growth, availability of required infrastructure, natural resources, and the aspirations of Omanis for a better future.

The vision outlines Oman’s economic and social development goals. This include economic, fiscal and financial stability and an effective disciplined change in public finance through rationalising expenditure and increasing non-oil revenues. The vision aims to reshape the government’s role in the economy, broaden private sector participation and diversify Oman’s economic base and sources of national income. For a long time, the industrial sector has been the foundation of Oman’s long-term diversification strategy. It is capable of meeting the social development needs and generating more employment opportunities.

Oman’s economy must be more global and improving the education system will upgrade and further develop human resources. Examples of transformation can be improved governance through public inclusion and rigorous follow-up on projects with associated measures, in particular, economic diversification, fiscal sustainability and efficient governance. The fourth industrial revolution (4IR) and improved human resources will also play a major transformative role. Ultimately, all current strategies (health, Industry, energy, environment, tourism, logistics, etc.) will be interlinked and will follow an All-of-Government approach to cover the SDG holistically. The Vision 2040 themes and sub-pillars have all considered SDG and are part of the vision’s objectives.

In economics and economic history, the transition to sustainable development needs strong institutions that put clear policies to facilitate growth and diversification. We have clear vision and national priorities as well as a clear policy to tackle them; however, the challenge lies in walking the talk. One area in need of improvement is the working environment. This entails different players such as the government, governmental companies, the private sector, enterprises and society teaming up and working together as it is essential for development. Furthermore, we need a real paradigm shift, a new philosophy, and a trade model regarding partnership, production and export.

This is not easy, as there will be a need to assess the necessity and level of urgency for such a shift. Oman’s private sector is also in need of reform as it is centred on family businesses, whilst the share of SMEs is very small. According to Richard T Gill, “The point is that economic development is not a mechanical process; it is not a simple adding- up of assorted factors. Ultimately, it is a human enterprise. And like all human enterprises, its outcome will depend finally on the skill, quality and attitudes of the men who undertake.”

(Dr Yousuf Hamed al Balushi Economist at Smart Investment Gateway. E-mail: yousufh@omaninvestgateway.com)