“Oman vision 2040” is important.

Mar 2

Written By Oman My Beautiful Destination

Introduction

Recent developments on the world stage has lead to increase in prices of crude oil and gas. This is to the advantage of Oman. Prices have been not that high since 2014. It allows Oman all of a sudden to straighten out its budgets and to envision a different future.

That explains why “Oman vision 2040” is so important to Oman.

Diversify economy

One of the main issues in the coming months and years is to diversify its economy, to make other sectors grow, to diminish its dependence on oil and gas revenues.

A plan has been established. Now, it is time for its implementation and further development. One of the major pressing organizational elements is facilitating government procedures.

Oman Vision 2040

The 2040 vision aims to ensure Oman is among the ranks of the world's most developed nations assuring sustained prosperity and security for all. It sets out a vision for the transition of Oman from an oil-based economy towards a more diverse knowledge-based one.

“Oman’s economy was traditionally based on fisheries, agriculture and trade before the discovery and development of its oil and gas reserves.

Overlooking the Strait of Hormuz, the entrance to the Gulf, the source of two-thirds of the world’s oil exports, Oman sits on key East-West trade routes, ensuring easy access to markets in the Middle East, India, South East Asia, Africa and Europe.

While the country’s oil revenues have contributed towards Oman’s rapid economic growth, the government has actively pursued a development plan focused on diversification, industrialisation and privatisation of the economy with the aim of reducing the dependency on the oil industry’s contribution to GDP.

The launch of the Oman 2040 Vision marks an important new phase in the development journey of Oman.

Oman Vision 2040 is the Sultanate’s gateway to overcome challenges, keep pace with regional and global changes, generate and seize opportunities to foster both economic competitiveness and social well-being, while stimulating growth.

Oman has potential in many industries such as tourism, fisheries, logistics, mining, creative and technology services and manufacturing. The Omani government actively encourages foreign direct investment, and has used the proceeds from oil and gas to develop the country’s infrastructure and human resources.

The government has consciously fostered the country’s growth while preserving its culture and heritage, developed the national economy on the principles of justice and free market, and is investing heavily in growing the country’s business base.

Through significant investments in infrastructure and ensuring easy access to both domestic and international markets, Oman continues to attract new businesses operating in a variety of sectors.

The sharp fall in oil prices since 2014 has however been a burden on government finances, directly increasing the gap between government revenues and expenditures leading to large annual deficits.

In light of these fiscal challenges, a Medium Term Fiscal Plan (MTFP) for the years 2020-2024 has been developed to achieve fiscal balance in the medium term.

The implementation of this plan will be carried out alongside economic programmes to improve the business environment and stimulate investment, and the launch of a social safety net that will reduce the impact of fiscal measures on vulnerable sections of society.”

Source: fm.gov.om/about-oman/state/economy