Major boom expected for economy

@vinot_nair -

The recent World Bank report that the economies of the GCC are recovering is welcome news, especially for small retail businesses that are still struggling to get the cash flow on track.

For retail businesses in Oman, the second and third quarters have been hit by night lockdowns, restrictions on socialising, and poor consumer confidence, among others.

However, the last 15 months also saw the path-breaking transformation as the country quietly ushered in the e-commerce era-home delivery for grocery and food came of age and the widespread use of contactless WIFI debit and credit cards, which will become mandatory from 2021.

“The GCC has done a lot in the last year to contain the effects of the pandemic on their economy, including procuring vaccinations early on’’, said Issam Abousleiman, World Bank Regional Director of the GCC Countries.

“The region needs to strengthen their competition policies to harness the benefits of telecommunications and the digitalisation of economic activity’’, the World Bank said.

Oman’s economy is forecast to recover in 2021 at a moderate 2.5 per cent growth rate as a sizable infrastructure investment programme gains momentum.

Medium-term growth is projected to average 5.3 per cent over the forecast period.

According to retailers, changes in public confidence are evident in the way vaccinated people flocked this year to the Dhofar governorate for the khareef.

The occupancy levels permitted to hotels in Salalah were increased from 50 to 75 per cent recently to meet the increasing demand.

“The fine dining and tourism segments are the ones we can expect to bounce back at the slightest ease of restrictions. People are desperate to travel and spend time outside with families and friends’’, said Mahesh Nair, a senior executive at a UAE-based company that has multiple retail and travel interests.

He added, “We have seen citizens taking chances to time to travel abroad, especially to countries like Georgia, Turkey, and some in Europe that are now welcoming tourists. Pizza, fast food, and some fine dining restaurants have picked up well in the last few months.”

Despite these positive signs, businesses will get a boost only if the economies are free of lockdowns and the daily Covid-19 cases are under control due to vaccines.

“While the new variants continue to give a scare, the fact is that we now have vaccines to offer, compared to 2020, even it is the third dose or boosters’’, said Susan S, who recently retired as senior staff from the healthcare sector.

“The number of people getting admitted to hospitals is on the decline, especially those with critical cases, and that is due to mass vaccination. It has eased the pressure on the system and hopefully, people will have a healthier mind to enjoy and relax’’, she said.

Oman eased visa rules for tourists and business travellers last year, the results of which are expected to be seen in the advent of the new tourism season from October or November.