Oman: 11th 5-year plan to broaden economic diversification
Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialise.
Oman is preparing to launch its Eleventh Five-Year Plan (2026-2030), a pivotal milestone in the journey towards achieving the goals of Oman Vision 2040. This plan follows the Tenth Five-Year Plan, which laid the foundation for economic recovery after challenges posed by the COVID-19 pandemic and declining oil prices.
In this article, we provide an objective and critical analysis of the Tenth Plan's achievements and challenges, examine the preparation process and inclusiveness of the upcoming plan, and discuss the impact of economic diversification on GDP and employment opportunities. Additionally, we will highlight the challenges and opportunities associated with implementing the new plan and conclude with recommendations to enhance its success.
10th Five-Year Plan: Success and Challenges
The Tenth Five-Year Plan (2021-2025) achieved significant economic milestones despite difficult initial conditions. The GDP recorded a stronger-than-expected recovery, with economic growth exceeding targeted levels in the plan sectors. This growth helped maintain economic momentum despite a decline in oil sector contributions, underscoring the success of economic diversification strategies in reducing reliance on oil revenues.
Regarding development initiatives, the Tenth Plan oversaw the implementation of numerous strategic programmes aligned with Oman Vision 2040's priorities.
While several programmes were fully completed, others remain ongoing, and some were merged or canceled to adapt to evolving circumstances. The plan also witnessed developmental spending and a rise in allocated funds for projects. Global economic fluctuations—such as the COVID-19 pandemic, supply chain disruptions, and rising global inflation—placed pressure on the timely implementation of some projects.
Furthermore, Oman's continued reliance on oil revenues remains a structural challenge; for example, a decline in oil production during certain periods led to a notable contraction in oil-related activities, highlighting the economy's vulnerability to energy market shifts. Creating sufficient job opportunities for Omani citizens remains a pressing issue, as workforce development and employment generation require continuous efforts. While economic conditions have improved, sustaining job creation and ensuring adequate employment opportunities for the country's growing youth population remain top priorities.
11th Plan's Preparation and Inclusiveness
The Eleventh Five-Year Plan was designed with a high level of inclusiveness and community participation, ensuring alignment with Oman Vision 2040's economic priorities. The new plan identifies high-value economic sectors that contribute to economic diversification while achieving Oman's long-term vision. The planning process integrated multiple strategic, developmental, and special tracks, ensuring coherence between Oman Vision 2040's long-term strategy, five-year development plans, and annual national and sectoral plans. This holistic approach ensures that the plan remains aligned with the four pillars of Society and People, Economy and Development, Environmental Sustainability, and Governance and Institutional Performance—while fostering balanced growth across these areas.
Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialise.
A notable aspect of the Eleventh Plan's preparation was its emphasis on stakeholder participation. The Ministry of Economy announced that community engagement was a fundamental methodology in shaping the new plan.
Numerous discussion sessions, brainstorming workshops, and stakeholder consultations were conduct extensive participation from government entities, private sector representatives, and civil society institutions. This participatory approach ensured that the plan reflected a shared vision between the government and development, enhancing its practicality and public support. By adopting an inclusive and integrated planning framework, the Eleventh Plan is well-positioned for effective implementation.
GDP and Employment
Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialize. The non-oil sector's contribution to GDP has steadily increased, supporting economic growth even during periods of weak oil sector performance. Data indicates that the average economic growth during the Tenth Plan exceeded the targeted growth rate, driven by robust none-oil activities. Key sectors such as manufacturing, tourism, and logistics have experienced notable growth, strengthening Oman's economic base.
Regarding employment, economic diversification has begun to positively impact job creation by expanding workforce opportunities across various industries. Statistics from the Ministry of Economy indicate that employment in the private sector grew faster than government sector employment by the end of 2022, signifying a shift towards private-sector-led job creation. This reflects the success of policies aimed at empowering the private sector to become the primary driver of employment.
Additionally, the number of small and medium enterprises (SMEs) increased by approximately 46% between 2019 and 2022, indicating a growing entrepreneurial ecosystem and a flourishing startup environment. This SME growth enhances job creation prospects and strengthens economic diversification by broadening the range of business activities in Oman.
Diversification efforts extend beyond traditional industries to high-potential sectors, such as food security and agri-business. The Ministry of Economy highlights promising investment opportunities in food security projects, particularly in Al Najd and Duqm's cold chain logistics projects, which could serve as sustainable employment sources. Additionally, Oman is focusing on transformational industries, such as renewable energy, hydrogen production, and high-value-added manufacturing, which have been prioritized in the Eleventh Plan as long-term economic drivers.
Challenges and Opportunities
As Oman transitions to the Eleventh Five-Year Plan, several challenges must be addressed to ensure successful implementation. A primary challenge is sustaining economic diversification momentum. Despite progress, the oil sector remains the dominant revenue source, making Oman susceptible to global energy price fluctuations. To mitigate this dependency, non-oil sector contributions must be further expanded, with a focus on improving productivity and competitiveness.
Another key challenge is maintaining a steady pace of job creation to meet the needs of the growing workforce. As more Omanis enter the labour market annually, the government must attract quality investments that generate sufficient employment opportunities. This requires aligning education and training programmes with emerging industries to ensure that Oman's youth are equipped with the necessary skills.
Additionally, global economic uncertainties—including slowing economic growth in key markets, supply chain disruptions, and rising financing costs—may impact foreign direct investment inflows. Strong institutional coordination and effective governance will be critical to overcoming these external challenges and ensuring smooth implementation of development projects.
On the other hand, the Eleventh Plan presents significant opportunities, particularly in emerging economic sectors such as green energy and hydrogen production, which Oman is actively developing. The diversification strategy also includes enhancing food security and industrial development, as well as positioning Oman as a regional logistics hub through integrated port, airport, and road infrastructure.
Furthermore, strengthening public-private partnerships and foreign investment in priority sectors will unlock new growth avenues and accelerate economic transformation.
To enhance the successful implementation of the Eleventh Five-Year Plan, the following recommendations are proposed:
• Strengthen execution and governance mechanisms by ensuring rigorous project tracking, clear key performance indicators (KPIs), and periodic evaluations.
• Empower the private sector through regulatory reforms and investment incentives to boost foreign and domestic investments in targeted sectors.
• Align education and workforce development with emerging industries to equip Omanis with future-ready skills.
• Maintain financial stability by diversifying government revenue sources and adopting prudent fiscal policies.
• Expand economic diversification initiatives by sustaining SME growth, developing high-value industries, and capitalizing on Oman's geographical advantages.
Conclusion
The Eleventh Five-Year Plan represents a crucial step in Oman's economic transformation. While the Tenth Plan successfully set the foundation for diversification and recovery, the next phase must build upon its achievements and address existing challenges. Oman's strategic planning, commitment to economic reforms, and emphasis on stakeholder collaboration create a strong foundation for success. However, translating plans into tangible results will require efficient execution, proactive governance, and continuous innovation. If properly implemented, the Eleventh Plan will pave the way for a more diversified, sustainable, and resilient economy, reinforcing Oman's long-term vision for prosperity.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Broadcast Pro
4 days ago
- Broadcast Pro
Intelsat and iKOMG expand Faith broadcasting via Galaxy 19
To further enhance its service offering, Intelsat has recently introduced audience measurement capabilities to its upgraded VideoNow electronic program guide (EPG) on G-19. Intelsat has announced the expansion of its partnership with iKO Media Group (iKOMG), strengthening efforts to deliver faith-based content to global audiences through the Faith Beyond initiative. The collaboration is centred around Intelsats Galaxy 19 (G-19) satellite, a cornerstone of free-to-air broadcasting across North America. Faith Beyond, developed by iKOMG, offers a fully integrated distribution platform tailored for religious broadcasters aiming to expand their global footprint and engage with followers more deeply. The all-in-one solution includes satellite broadcasting, OTT streaming, cloud-native playout, live event support, and metadata managementall delivered via the high-capacity Galaxy 19 satellite. Rashmin Abhani, SVP Presale & Satellite Resource Management at iKOMG, said: 'Faith Beyond emphasises our commitment to empowering faith-based broadcasters with the tools they need to thrive in a competitive media landscape. Combined with the unmatched reach and reliability of Galaxy 19, Faith Beyond enables ministries to effortlessly expand and engage with their audience. Our collaboration with Intelsat is built on a shared dedication to excellence, accessibility and scalable growth, delivering solutions broadcasters can trust.' Rhys Morgan, RVP EMEA region, Intelsat, added: 'The iKOMG dedication to providing high-quality religious content globally aligns perfectly with Intelsats mission to support and grow new opportunities for content providers. This renewal underscores the enduring relevance of linear TV and free-to-air platforms such as Galaxy 19, demonstrating its continued importance for North American audience.' This deal uses Intelsats Galaxy 19 (G-19) satellite, a premier free-to-air, direct-to-home neighborhood that provides broadcasters with a powerful platform to reach diverse audiences across North America. G-19 provides 5.7m viewers with access to more than 110 channels, originating from 35 countries in over 20 languages. In addition to prominent faith-based programming, G-19 is home to premium entertainment, news and free-ad-support-streaming content. Intelsat recently announced audience measurement capabilities to its enhanced VideoNow electronic program guide (EPG) for G-19, representing a significant step toward ad-monetization in the direct-to-home (DTH) free-to-air (FTA) satellite video market. Unlike broadband-dependent services, G-19 is capable of reaching all households in North America, ensuring content is accessible regardless of internet reliability.
Zawya
4 days ago
- Zawya
New projects expand ecotourism in Oman's nature reserves
Muscat – Oman is stepping up its efforts to develop ecotourism as part of a wider push to balance environmental protection with economic growth and job creation. The sultanate is investing in its 31 nature reserves, which cover nearly 15,000sqkm – about 17% of its land area and 10% of its marine territory. Authorities say these protected areas are central to supporting biodiversity, attracting tourists, and encouraging research on ecosystems and natural processes. The Environment Authority (EA), in partnership with other agencies and civil society, is implementing management plans to conserve habitats while opening up investment opportunities. New investment in ecotourism is expected to strengthen local economies, create jobs in nearby communities, and contribute to a sustainable green economy in line with Oman Vision 2040. Royal decrees continue to protect endangered species and preserve the geological and ecological diversity of the reserves. Strict environmental rules have been set to ensure that conservation remains a priority even as tourism and related projects expand. In recent moves, the Environment Authority signed nine investment contracts worth more than RO44mn for projects in seven reserves. These include the development and management of sites such as Ras al Shajar, turtle, oryx, and wetland reserves, parts of Jabal Samhan and Khor al Mughsail, as well as an eco-resort and star park in Al Hajar al Gharbi Starlight Reserve. Private sector partners are helping to build eco-friendly lodges, camps, visitor centres, trails, and facilities that meet advanced environmental standards. These projects cover sites in Muscat, South Sharqiyah, Al Wusta, Dakhliyah and Dhofar. The new developments aim to provide authentic nature-based experiences, combining conservation with cultural and educational value. Plans include turtle ponds, eco-safaris and adventure tourism in protected settings. Officials emphasise that local communities are closely involved in the planning, running and maintenance of these projects, ensuring direct employment and opportunities for small and medium-sized enterprises. The expansion of ecotourism, anchored in strong community participation and sustainable practices, is expected to strengthen Oman's position as a leading destination for responsible tourism in the region. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Filipino Times
6 days ago
- Filipino Times
61 OFWs complete skills training for reintegration and empowerment
A total of 61 Overseas Filipino Workers (OFWs) successfully completed their respective skills training programs during two separate seminars at the Philippine Embassy and the Majestic Hotel in Bahrain. The skills training in Baking and Haircutting, Manicure, and Pedicure were among the continuous initiatives in extending Overseas Filipino Workers (OFWs) with better knowledge and skills that would be applicable to career improvement, financial self-sufficiency, and integration upon returning Philippines in the future. Overseas Workers Welfare Administration (OWWA) Welfare Officer Juvilyn Anns Gumabay and Migrant Workers Office Officer in Charge (OIC) Celia V. Cabadonga commended the graduates on their endeavor to become better persons and encouraged other OFWs to grab similar chances in the future. In the morning session, 32 OFWs graduated from a baking skills training, while in the afternoon, 29 others completed training in hair cutting, manicure, and pedicure. Participants expressed appreciation for the opportunity to enhance their capabilities while working abroad, highlighting the importance of such programs in broadening employment options and building long-term security for themselves and their families. Ofelia Madriaga, 61, from Pamplona, Cagayan Valley, and a member of the PIN, was among the proud attendees of the recent training. A long-time household worker in Bahrain, Ofelia shared that this was not her first time joining such a program. She had previously completed a dressmaking training course, driven by her passion to improve herself. 'This is what I achieved as a housemaid,' she said with pride. 'Even though I'm a housemaid, I dreamed of developing my skills. I'm grateful to my madam, Nevien Sukhralla, who allowed me to attend, and to our embassy for this opportunity.' Having worked for the same employer for 17 years, Ofelia is now thinking ahead. 'I'm planning to put up my own small business in the future when my career as a housemaid comes to an end,' she shared, her voice filled with hope and determination. Her story is a powerful reminder that it's never too late to dream, learn, and prepare for a better future. Naida Duque, 67, with over 30 years of experience in the hair and beauty industry, was among the volunteer trainers who generously shared their expertise during the recent skills training sessions for OFWs. A seasoned beautician, Naida worked at the prestigious Regency Hair Salon in the Regency Intercontinental Hotel from 2009 to 2014. Afterward, she ventured into business with her daughter before returning to salon work until the COVID-19 pandemic disrupted operations. When asked why she chose to volunteer, Naida shared a heartfelt reason: 'I want to give back. As an OFW myself, I understand the struggles. Sharing my skills is my way of helping others build confidence and a better future.' Her contribution, along with that of fellow trainers Alma Maria Laqui, Aida Garay, and Rosalina Ortiz, reflects the true spirit of bayanihan—Filipinos lifting one another up, one skill at a time. Meanwhile, in the Baking skills training, its instructor, Ivy Diana Bello Ancheta, is a passionate baker and entrepreneur behind IV Bakes, has been teaching baking for four years, since beginning her journey in 2021. She brings a learner-centered approach to her classes, ensuring that beginners and more experienced students alike gain confidence and understanding. 'I start with baking basics to build a strong foundation,' she explained. 'We focus on understanding ingredients, tools, and techniques. I guide students through common mistakes and how to correct them.' What characterizes her teaching is the support and interactive nature of it. Each lesson is a combination of practice and demonstration, where students implement what they've learned because they get feedback in real-time. 'I make it engaging by answering questions, correcting the method, and providing tips above the recipes,' she said. 'I want migrant workers to leave here empowered—not just in baking, but in building a life for themselves.' Her own business, IV Bakes, began life as a small home-based passion business. Bananalike cake, pandesal, cookies, and customized party cakes are just some of the offerings, and these are done with a personal touch, 'as if for family.' In addition to selling baked goods, she also hosts fun, hands-on baking and decorating workshops, offering families and friends a chance to bond and create memories while learning valuable skills. The baking program not only served as a skills enhancement training but also inspired OFWs to see baking as a potential business opportunity, one they can carry with them, whether staying abroad or returning home. The Baking Class and Skills Training in Hair, Manicure, and Pedicure were facilitated through the joint efforts of the Overseas Workers Welfare Administration (OWWA), the Migrant Workers Office (MWO), the Philippine Embassy, and the Filipino community organization Pinay Ikaw Na (PIN). These two-Friday sessions training initiatives were tailored to support Overseas Filipino Workers (OFWs), providing them with essential skills that will aid in their reintegration into Philippine society when they return home.
