Despite a general contraction in demand, the agriculture and fisheries sector grew by a solid pace of 6.1 per cent in 2019.
The sector contributed 3.4 per cent of non-hydrocarbon GDP and 2.4 per cent of aggregate GDP in 2019, though the trend moderated from an average annual growth of 7.5 for the previous three years 2016-2018.
“As food security has become a more important area for development in the Sultanate, initiatives and projects driven by new technologies have already started to yield results,” points out the 2019 annual report of the Central Bank of Oman.
The report reveals that the state-owned Oman Food Investment Holding Company is considering establishing three more projects to promote food security: an integrated fruit and vegetable marketing company, an improved logistics programme and a food technopark.
Yet the report points out that with the exception of a few crops, agriculture has a limited scope in the Sultanate due to natural constraints, such as scanty rainfall and very limited underground water”.
“As a result, Oman largely depends on imports for consumption needs of food grains and other agricultural products. Consequently, the price situation in Oman is mostly influenced by international commodity prices which on the other hand lead to imported inflation”, the report said.
On the other hand, points out the report, the fisheries sector has immense potential with large marine endowments of over 3,000 KM coastline and accordingly, it was part of the ninth Five-Year Development Plan and the Tanfeedh programme.
Projects and initiatives for the development of the sector include development of dedicated fishing ports, farming of shrimp and abalone, and the revision of national aquaculture heath management regulations. The ninth Five-Year Development Plan had set a target of an average annual growth rate of 6.5 per cent for fishing activities to increase its share in GDP to 0.6 per cent by 2020.
Oman Observer is now on the WhatsApp channel. Click here
