Fiscal Sustainability Programme to boost competitiveness of financial sector
Published: 02:01 PM,Jan 03,2024 | EDITED : 06:01 PM,Jan 03,2024
Finance Ministry Under-Secretary Abdullah al Harthy addressing local media on Monday.
MUSCAT: The Fiscal Sustainability and Financial Sector Development Programme (Estidama) aims to target six main priorities, according to Abdullah bin Salim bin Abdullah al Harthy,Under-Secretary of the Ministry of Finance.
Speaking at the 2024 State Budget press conference, held earlier this week, Al Harthy said the programme seeks to improve the overall financial position of the state, enhance the readiness of the financial sector, and increase competitiveness and participation within the private financial sector in the country.
“The programme primarily focuses on ensuring the continued improvement of the country's public finances and the sustainability of related initiatives. Additionally, it aims to enhance the readiness of the financial sector to adapt to upcoming transformations in investment and economic sectors, making it a key facilitator in achieving the goals of Oman Vision 2040,” he shared.
“The programme also aims to increase the competitiveness and participation of the private financial sector, supporting it in providing suitable financing options for various categories while expanding the volume of financing,” the Under-Secretary further noted.
The programme’s priorities will include financing small and medium enterprises, supporting economic diversification sectors, green and sustainable financing, boosting local capital, increasing foreign investment flow and improving the insurance sector.
Al Harthy shared that the programme will establish a system to provide necessary funding for SMEs. “The first aspect relates to financing small and medium-sized enterprises by establishing a system to facilitate obtaining the necessary financing or initial capital for establishment and operation.”
“Moreover, the programme, in collaboration with financial institutions, aims to direct financial resources towards economic diversification sectors, focusing on those targeted by Oman Vision 2040,” he added.
The Under-Secretary added that the programme will develop policies and regulations to help the green and sustainable financial industry. “Furthermore, the third aspect is related to green and sustainable financing. The programme proposes a set of policies, legislation and initiatives, in coordination with relevant entities, to promote investments and finance projects that support environmental and social sustainability.”
“Concerning local capital, the programme seeks to enhance liquidity by increasing deposits and encouraging local investors to participate in the stock and local debt markets,” he stated.
“Additionally, the programme targets a fifth priority related to developing the flow of foreign investments by implementing policies and initiatives to attract foreign investments in economic diversification sectors. This includes reclassifying the Muscat Stock Exchange from a solutions market to an emerging market, which would enhance the attractiveness of the Muscat market, alongside securing the development of the insurance sector to support economic activities,” he added.
The national programme is a collaborative effort between the Oman Vision 2040 Implementation Follow-up and the Ministry of Finance and entered its executive stage in the third of 2023. Ministry officials shared that more information will be unveiled this upcoming February.
Speaking at the 2024 State Budget press conference, held earlier this week, Al Harthy said the programme seeks to improve the overall financial position of the state, enhance the readiness of the financial sector, and increase competitiveness and participation within the private financial sector in the country.
“The programme primarily focuses on ensuring the continued improvement of the country's public finances and the sustainability of related initiatives. Additionally, it aims to enhance the readiness of the financial sector to adapt to upcoming transformations in investment and economic sectors, making it a key facilitator in achieving the goals of Oman Vision 2040,” he shared.
“The programme also aims to increase the competitiveness and participation of the private financial sector, supporting it in providing suitable financing options for various categories while expanding the volume of financing,” the Under-Secretary further noted.
The programme’s priorities will include financing small and medium enterprises, supporting economic diversification sectors, green and sustainable financing, boosting local capital, increasing foreign investment flow and improving the insurance sector.
Al Harthy shared that the programme will establish a system to provide necessary funding for SMEs. “The first aspect relates to financing small and medium-sized enterprises by establishing a system to facilitate obtaining the necessary financing or initial capital for establishment and operation.”
“Moreover, the programme, in collaboration with financial institutions, aims to direct financial resources towards economic diversification sectors, focusing on those targeted by Oman Vision 2040,” he added.
The Under-Secretary added that the programme will develop policies and regulations to help the green and sustainable financial industry. “Furthermore, the third aspect is related to green and sustainable financing. The programme proposes a set of policies, legislation and initiatives, in coordination with relevant entities, to promote investments and finance projects that support environmental and social sustainability.”
“Concerning local capital, the programme seeks to enhance liquidity by increasing deposits and encouraging local investors to participate in the stock and local debt markets,” he stated.
“Additionally, the programme targets a fifth priority related to developing the flow of foreign investments by implementing policies and initiatives to attract foreign investments in economic diversification sectors. This includes reclassifying the Muscat Stock Exchange from a solutions market to an emerging market, which would enhance the attractiveness of the Muscat market, alongside securing the development of the insurance sector to support economic activities,” he added.
The national programme is a collaborative effort between the Oman Vision 2040 Implementation Follow-up and the Ministry of Finance and entered its executive stage in the third of 2023. Ministry officials shared that more information will be unveiled this upcoming February.