Encouraging economic data released, earlier this week, by the National Centre for Statistics and Information [NCSI] reaffirm the Sultanate of Oman’s worthwhile policy decisions taken by various ministries under the guidance and wise leadership of His Majesty Sultan Haitham bin Tarik.
Note the trends in the following economic indicators of Oman. The Producer Price Index [PPI] data from a quarterly survey, conducted by the NCSI, shows a rise in the prices of oil, gas, and derivative products. Refined oil products prices are up 50.3 per cent and 48.4 per cent rise in crude oil and natural gas, according to Oman New Agency (ONA) report earlier this week.
The report pegs the increase in non-oil products prices to a 9.4 per cent rise in prices of the converting industries group and a 1.8 per cent rise in the mining, electricity, and water group.
Prices in several subgroups, among converting industries, noted variable increases. Consumer food items prices increased by 15.2 per cent, mineral products, machinery, and equipment by 11.6 per cent and other movables by 5.7 per cent. In food group, prices of fishes, fruits, vegetables, and oils grew by 34.8 per cent, beverages by 8.6 per cent, dairy products by 8.5 per cent, bakery and assorted food products by 3.9 per cent, textiles by 11.7 per cent, footwear items by 2.7 per cent.
In minerals, machinery and equipment group, prices of products made from iron, steel or aluminium grew by 35.7 per cent, vacant compressed cylinder products by 15.4 per cent, crude, iron, steel, and aluminium up by 11.4 per cent and water heater products up by 10.4 per cent, while the prices of power transformers, cables and electrical appliances increased by 6.1 per cent.
In the Movables Group, prices of paints and pharmaceutical items rose by 13 per cent, chemical products by 11.6 per cent, rubber and plastics by 6 per cent, re-melted iron waste by 4.9 per cent and paper products by 1.6 per cent, while the prices of glass products, cement and marble went down by 6.1 per cent.
PPI index is an indicator of performance of a country’s manufacturing industries. The index measures the average change, over a particular period, in selling prices received by domestic producers of goods and services.
Sometimes moderate inflation is good for the economy, but consumers then spend more to buy the same goods. Market prices are subject to demand and supply. They vary depending on consumer habits, preferences, and their buying power. Prices also depend on production costs, availability of raw materials and supply chain stresses. If the supply is less and demand more, sellers increase prices. Regulatory authorities often intervene to ease consumer stress. Governments often subsidise many vital consumables in public interest.
Oman’s other upbeat data comes from Small and Medium Enterprises (SMEs). The ONA report says 1,511 SMEs applied for a plan that would train fresh employees. This plan will help qualified young people of Oman by offering them training while they are on the job.
Oman’s Authority for Small and Medium Enterprises Development scheme is laudable because it empowers small companies as well as young job seekers. The authority has so far approved 627 applications and mulling over 884. The Authority’s plan reaffirms Oman government’s initiative to create jobs for its citizens.
The other good news this week is that a European rankings index group places Muscat among top safe cities of the world. Muscat ranks 17th in the world’s safest cities’ list for the first half of 2022. Abu Dhabi is number one followed by Doha, Qatar in the rankings index released by Numbeo.com, a Serbia-based website often quoted by journalists from BBC, The Independent, The Telegraph, The New York Times and The Washington Post among other leading newspapers of the world.
Creative heads of advertising agencies in Oman would do well to mention this high ranking on the safety index while writing text for tourism sales pitch. Oman has many attractive tourist sites, specifically Salalah in the south. Oman has a vibrant sports and cultural events’ calendar. With the summer season ending and GCC’s peak business months approaching, tourism stakeholders could encash on this high safety ranking.
[Sudeep Sonawane, an India-based journalist, has worked in five countries in the Middle East and Asia. Email: sudeep.sonawane@gmail.com]
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