The government is setting up new companies, structuring certain sectors or restructuring them. This is being done keeping in mind the requirements of the economic development in the country. Such companies also help in increasing the gross domestic product (GDP). This is because such companies are supporting the government’s policy to diversify the sources of national income and lessen dependence on oil. These companies would work as investment arms for the implementation of the strategies and plans of the government. Through its investments, these companies have created work for the private sector. These initiatives which are taken to expedite the process of diversification of the economy has caused confusion and misunderstanding among economic and business circles of the country.
This is why it is important to clarify the fact that the Sultanate is one of the very few countries in the world which has supported private sector. It made plans, policies and strategies to increase its role in the national economy. It is for the owners of the private sector companies to be thankful for the support they have got. The strategies of the government and its five year plans as well as its annual budgets have never ignored the private sector.
In early seventies or eighties, the government set up companies of communication, flour mills, cement, hotels, fisheries and national transport to provide public service then. After a certain period, it sold these companies or stakes of them to the private sector. However, it continued to have major shares in companies which had national value or dimension. Oman Air was nationalised and the government purchased all its shares to make it grow as a national carrier and emerge as major player in the tourism sector.
When the government saw that the investment of the private sector in certain areas was not satisfactory, it felt that it was its responsibility to expedite the process of diversification of the economy. It required setting up of economic and investment entities. Therefore, the government went ahead with its plans to set up new companies and structure certain sectors. There is no way out but the government has to play crucial role in strategic sectors like tourism, oil and gas, logistics, aviation and communication as the private sector cannot handle it all alone.
There are many government companies which are working as investment arms in the sectors like oil, tourism, logistics and aviation. These companies work for attracting investments to the country as they are the companies which enjoy government guarantees and create confidence among foreign investors and partners. That is why the private sector cannot attract much foreign investments required for qualitative transformation. Therefore, it is natural that the government would come into action to deal with the situation.
The private sector has vast and open space continuously available for it. It is not right to say that the government is competing with the private sector. We should not compare our private sector with those of the United States and Europe. We need time and gradual process to grow. The private sector has to continue its efforts with confidence.
The government-owned companies have used national human resources in the areas where private sector is still dependent on expatriates. The private sector has achieved Omanisation not more than 13 per cent. But the Omanisation in the government companies has crossed 95 per cent.
We should remove such confusion and misunderstanding. The idea about the role of government companies, its nature and responsibilities which they are imparting should be clear in our minds. This would help in working in positive environment and move ahead.
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