The private sector is a crucial partner in the national economy and a valuable tool for promoting sustainable development. As such, governments provide many facilities and capabilities to the sector and work to adopt policies that align with its aspirations. It is the primary sector for employing national workers. Governments continue to support and reform companies, entrepreneurs, and initiative owners, enabling them to obtain services, loans, support, incentives, and exemptions that enhance the sector’s activities and ensure their sustainability in commercial, industrial, and other businesses.
Today, the private sector in the Sultanate of Oman needs more stimulation, as companies and commercial institutions are facing difficulties due to the lack of facilities and support. People perceive that matters have become more complex in government institutions, exacerbated by bureaucratic delays in daily work, and the high cost of services and fees. These issues negatively impact the real estate sector and the daily sales of commercial institutions. Acknowledging the existence of these problems is crucial to finding necessary solutions so that the national economy can maintain its vitality as it did in previous decades.
We understand that the state is focused on repaying public debt, which has led to a decline in Oman’s credit rating in recent years. This is a sound policy because it will result in a higher credit rating and enable institutions to obtain multiple financial facilities in the future. The government's commitment to social protection disbursements for elderly citizens, children, and various societal groups helps recipients cope with inflation and rising prices. These payments also encourage citizens to save, moving away from reliance on personal loans.
While these measures help citizens manage their monthly expenses, they do not address the problems facing commercial institutions in the country, which are experiencing a business decline. These institutions need ongoing support, incentives, and prompt payment for their work with public government institutions to continue their operations and provide annual job opportunities for citizens. Any decline in commercial activity leads to layoffs of national and expatriate workers, potential bankruptcies, and defaults, further compounding their financial obligations and debt. Recently, several announcements have highlighted the commercial bankruptcies of institutions due to high debt, business decline, swelling inventories, decreased demand for services, and increased indebtedness.
The current period requires better coordination and alignment between government institutions and the private sector to address these issues, promote business, and develop private sector institutions effectively. This need was emphasized by His Majesty Sultan Haitham bin Tarik in his first speech, where he stressed the importance of government institutions providing necessary plans and support for the private sector. Such measures will enable the private sector to thrive, attract more citizens to work in available jobs, increase business activity, realize more projects, and activate partnerships between the public and private sectors.
Oman Observer is now on the WhatsApp channel. Click here
