Business in Oman
Oman's government policy is to create a national economy based on private enterprise in a competitive environment devoid of monopolistic practices. A stage has now been reached where the basic physical infrastructure of the country is in place and in order to further the soci-economic development of Oman, it is essential to build up a strong, efficient and competitive private sector with the help of Government incentives, and some financial assistance where necessary, in order to stimulate rapid growth, particularly in areas of production and commerce hitherto unknown in Oman.
The Government has embarked on a policy of economic diversification with an emphasis on agriculture, fisheries, tourism, mining, light industry, and now, petrochemicals and other heavy industries. The Government has announced an ambitious privatization plan. New laws and regulations were introduced to promote the diversification of the economy and the involvement of the private and foreign capital. The Government strategy for economic development has been based on a series of five-year development plans. An international conference, Economic Vision 2020, was held in June 1995, to outline Oman's developmental priorities. The Government has stated that the development effort of the next 25 years is expected to be characterized by: the objective of doubling per capita income, balanced Government finances, development of human resources and upgrading Omani skills to keep abreast of technological progress, utilization of advanced technology, a free and diversified economy with a vibrant private sector, economic development that is carried out in an ecologically sound way.
A fundamental requisite sought for by countries which hope to ascend to the same level of the progressive countries in diversification of income sources.1 Realizing this fact our rightly guided Government has been giving support and encouragement to the industrial sector due to its essential role in accelerating development wheel. This issuance of the Royal Decree No. 1/79 on Organization and encouragement of Industry was the beginning of actual Industrial release. In addition to the quick development processes witnessed by this sector, they came the Royal Decree No. 17.97 with regard to the financial support to the private sector in the fields of Industry, Tourism, Health, Education, Heritage and Agriculture.
The Fundamental Goals of the Omani Economy: 2020 1. To develop and upgrade Omani human resources in order to cope with technological progress and attain international competitiveness. 2. To develop a private sector capable of optimum use of human and natural resources in an efficient and ecologically- sound way, in close collaboration with the government. 3. To utilize the geo-strategic location of the Sultanate, optimize the use of its natural resources and promote economic diversification. 4. To distribute the fruits of development among all regions and all citizens. 5. To preserve, safeguard and develop the achievements accomplished in the past twenty-five years.
Projections for the Vision for Oman's Economy Oman 2020
Main Economic Indicators as a % of GDP
(Base Year 1988=100)
|Total Government Revenue
Total Goverment Expenditure
|Total Final Consumption
-Non Oil Exports
Current Account (Balance)
|Public External Debt
State General Reserve Fund Balance
ANNUAL AVERAGE GROWTH RATE(%)
|Gross Domestic Product
Non Oil GDP
GDP Per Capita
The Sectoral Relative Shares to
Gross Domestic Product (%)
|Mining & Quarrying||0.6||0.6||2.0|
|Electricity & Water||1.7||4.3||2.0|
|Building, Construction & Real Estate||3.2||6.9||10.0|
|Trade & Tourism||14.1||17.8||18.0|
|Transportation & Communication||7.0||8.6||8.0|
|Banks, Insurance and Financial Services||7.9||4.3||8.0|
|Other Private Services*||8.3||3.2||5.0|
|Gross Domestic Product||100.0||100.0||100.0|