As part of the Sultanate of Oman’s National Day celebrations, the Omani people reflect on the significant strategic achievements and advancements made in recent years, particularly in sustainable development and local governance. These initiatives align with Oman’s commitment to promoting decentralization and empowering local administrations, following the guidance of His Majesty Sultan Haitham bin Tarik.
This direction embodies a long-term strategic vision aimed at ensuring balanced development across all governorates, in accordance with Oman Vision 2040 and the tenth five-year plan. Royal directives prioritize developing sustainable governorates and cities, highlighted by an increase in financial allocations for development programmes from 10 million to 20 million Omani riyals per governorate. Additionally, an extra 650 million Omani riyals has been allocated for other development projects within this five-year period, along with a 200 million Omani riyals boost to the state’s development budget, bringing total allocations to approximately 1.1 billion Omani riyals. This reflects the government’s commitment to sustainability and economic growth throughout the governorates.
Simultaneously, Oman is focusing on enhancing the role of these governorates in the labour market, particularly as the population has surpassed five million, with around 1.4 million residents in Muscat and about 3.6 million in the other governorates. The government aims to generate job opportunities by encouraging private sector investment, which currently accounts for approximately 190,000 jobs outside the capital, representing about 68% of the total private sector job offerings for Omanis.
Administrative decentralization also plays a critical role in fostering economic diversification, enabling governorates to emerge as dynamic hubs for growth. Economic activity, especially in tourism and other sectors, is concentrated in proactive governorates such as North Al Batinah, Dhofar, and Ad Dakhiliyah, creating further opportunities for local employment and Omanization.
In alignment with Oman Vision 2040, efforts to develop the governorates are accelerating through various strategies aimed at promoting economic diversification and boosting growth rates. Last year, ten strategic projects worth 750 million Omani riyals were announced, with the current budget allocating an additional 200 million Omani riyals for impactful development initiatives.
Oman’s efforts to attract significant foreign investments are ongoing, especially in industrial cities and free zones, seeking to provide the necessary incentives to both local and international investors. The expansion of free zones to include eight new areas, particularly the integrated economic zone in Al Dhahirah Governorate, aims to further enhance the governorates’ roles in driving the national economy.
Total investments in Oman’s industrial cities and free zones have surpassed 15 billion Omani riyals, with an ambitious goal of achieving a foreign direct investment rate of 10% of the gross domestic product. New strategic ventures in green hydrogen and renewable energy are anticipated to further attract foreign investments and bolster development across all governorates.
To strengthen decentralized local governance, His Majesty Sultan Haitham bin Tarik issued Royal Decree No. 36/2022 in 2022, aimed at reinforcing the powers of the governorates in developmental decision-making. This initiative supports the broader objective of empowering governorates to optimize their resources, enhance local services, and stimulate investments.
The Royal Academy of Administration, in partnership with the Ministry of Interior and local governorates, has initiated the “National Initiative for the Development of Local Administration,” designed to improve governance skills and best practices in local administration, thereby enhancing the efficiency and competitiveness of the governorates.
On National Day, Oman reaffirms its dedication to pursuing sustainable and comprehensive economic development across all governorates. The focus on administrative decentralization and governorate development plays a crucial role in realizing Oman Vision 2040, striving to build a brighter future for both current and future generations.
This National Day celebration serves as a reminder of the significant progress made and highlights the commitment of wise leadership towards achieving sustainable development, ultimately benefiting the Omani citizen and positioning Oman as a premier investment destination in the region.
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