In the narrative of Oman's economic potential, we often hear about its strategic location, abundant natural resources, and flourishing sectors. However, a critical asset frequently overlooked is the nation's human capital. As Oman charts its course towards a prosperous future, it's time to recognize that our people are not just participants in this journey, but the very engine driving it forward.
Oman stands at a crucial juncture with a population of 5.2 million, of which 56.8% are Omanis. The working-age population, comprising 56% of the total, presents a demographic dividend that, if harnessed effectively, could propel Oman into a new era of economic success. This youthful workforce, coupled with 30% of the population currently in school and 9% under the age of four, represents a golden opportunity for Oman's future.
At the heart of Oman's transformative journey lies Vision 2040, a comprehensive blueprint that places human capital development at its core. This visionary plan sets ambitious targets: increasing Omani representation in the private sector workforce to 40%, elevating Oman's ranking on the Global Innovation Index to the top 20, and ensuring at least five Omani universities are among the top 300 globally. These goals reflect our unwavering commitment to empowering our people and crafting a future where every Omani can thrive and contribute meaningfully to the nation's progress.
The Omani government has made significant strides in investing in its people. The World Bank's Human Capital Index for 2020 places Oman at 0.61, above the global average of 0.58 and ranking fourth among GCC countries. This achievement reflects strategic investments in health and education, while underscoring the vast potential for further growth.
Recent years have seen remarkable progress. The National Training Fund, established in 2021, has already equipped over 10,000 Omanis with valuable skills across various sectors. Higher education enrollment has surged by 15% over the past five years, demonstrating our people's thirst for knowledge and the government's commitment to satisfying it.
Moreover, the establishment of innovation hubs like the Innovation Park Muscat and Knowledge Oasis Muscat has transformed Oman into a magnet for international tech companies. These initiatives are not just creating high-skilled job opportunities; they are fostering a culture of innovation and entrepreneurship that will drive our economy forward.
The impact of these human capital development efforts is evident across various industries:
In the fintech and banking sector, Omani professionals are spearheading a digital revolution. Bank Muscat's award-winning mobile banking app, developed and maintained by talented Omani software engineers.
In the oil and gas sector, traditionally the backbone of Oman's economy, Omani expertise is fueling unprecedented progress. Petroleum Development Oman (PDO) exemplifies successful Omanisation, with over 80% of its workforce comprising Omani nationals in senior technical and managerial positions.
For investors and businesses, Oman's human capital presents unique opportunities. The growing pool of tech-savvy graduates makes Oman an attractive destination for investments in IT, artificial intelligence, and data science. As the nation diversifies its energy sector, there's a rising demand for skills in renewable technologies, particularly in solar and wind power projects.
The healthcare sector, bolstered by well-educated medical professionals, offers potential in medical tourism and pharmaceutical research. Advanced manufacturing, supported by targeted training programmes, is another area ripe for growth.
While progress is evident, challenges persist. A skills mismatch between education outcomes and job market needs remains a concern. Many businesses still view hiring Omanis as a burden rather than an opportunity. Retaining top talent within Oman is an ongoing challenge.
To address these issues, closer collaboration between educational institutions and the private sector is crucial. The government is taking steps in this direction. The recently enacted PPP Law facilitates private sector participation in major infrastructure and development projects, creating opportunities for knowledge transfer and skill development.
Oman's strategic location and educated workforce position it to become a hub for research and development, particularly in areas like renewable energy and emerging technologies in all sectors .
The development of world-class ports and logistics facilities by Asyad Group is positioning Oman as a global trade hub. This, coupled with its educated workforce, could elevate its status in logistics and supply chain management across the region.
A paradigm shift
It's time for a paradigm shift in how we view Oman's assets. Our people are not a liability but our greatest strength. Every investment in an Omani's education, every skill developed, and every job created is a step towards not just individual prosperity, but a leap towards a more prosperous Oman.
The government's efforts to create a favorable environment for FDI are paying off. The implementation of the Foreign Capital Investment Law in 2020, allowing 100% foreign ownership in most sectors, and the establishment of the Public Authority for Special Economic Zones and Free Zones (OPAZ) are testament to Oman's commitment to creating opportunities for both its people and international investors.
The road ahead
As we move forward, let us remember that Oman's journey towards becoming a knowledge-based economy is not just about diversifying away from oil; it's about unleashing the full potential of our greatest resource -- our people. By investing in our human capital, we're not just preparing for the future; we're actively shaping it.
For businesses and investors looking at Oman, the message is clear: you're not just accessing a market or a location; you're tapping into a pool of talent that's eager to contribute, innovate, and grow. The Omani workforce isn't a checkbox for localization quotas; it's a vibrant, educated, and motivated force ready to take on the challenges of the 21st-century economy.
As we stand on the cusp of a new era, let's recognise that Opportunity Oman is, at its heart, about Human Capital. It's about transforming potential into prosperity, challenges into innovations, and aspirations into achievements. The future of Oman is not just bright; it's brilliant -- illuminated by the collective talent, creativity, and determination of its people.
The opportunity is here, the talent is ready. Let's work together to build a prosperous future for Oman, driven by the power of its human resources.
Dr. Yousuf Hamed al Balushi
The author is founder and CEO - Smart Investment Gateway, economists, board adviser & business transformation mentor.
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