Tuesday 01 / July / 2025
Muscat: Oman’s economy is recovering, and initial performance indicators have provided plenty of reassurance over its state, Dr Saeed bin Mohammed Al Saqri, the minister of economy, has said.
Like countries across the rest of the world, Oman’s economy has also been strongly impacted due to the COVID-19 pandemic and its related repercussions. The minister added, however, that performance indicators showed a 10 per cent improvement over the first half of this year, even as they continue to display positive signs for the future.
During the “Economic Forum” programme broadcast on Radio Sultanate of Oman, and reported by Oman News Agency, Al Saqri added that the 10th Five Year Plan, which runs from 2021 to 2025, is set to restore the momentum concerning economic growth, and will accelerate the pace of economic activities.
“Balanced economic and social development will be achieved through the implementation of many proposed programmes, initiatives and projects within a specific time frame,” he added. “Furthermore, raising the efficiency of public financial management will help achieve and address the current economic conditions, caused due to the drop in oil prices, and the repercussions of the COVID-19 pandemic.”
“There are clear mechanisms to help follow-up on the implementation of the 10th Five Year Plan programmes in particular,” he said. “There are 430 programmes in this plan that will be implemented by various authorities, with follow ups conducted by the Ministry of Economy.”
The ministry is expected to measure progress through a series of indicators, with the current development plan looking to achieve a real Gross Domestic Product (GDP) growth rate of 3.5 per cent, increase the contribution of the private sector to 60 per cent of GDP, and boost investment rates to 20 per cent of GDP.
To deal with many concerns affecting the economy, including the decline in oil prices, reduction in public revenues, high deficits, increase in public debt, and the low credit rating concerning sovereign loans, Al Saqri explained that Oman had launched its Fiscal Balance Programme.
The programme aims to help maintain overall economic performance, including economic growth, the development of various sectors, and sustain the purchasing power of the Omani rial.
“This initiative is also aimed at restoring confidence in the performance of public finances, which is directly linked to the private sector, and improving financial performance, which leads to an improvement in the credit rating of sovereign loans,” explained the minister.
“It will also enable the government to borrow, so that it can implement investment and development projects,” added Al Saqri. “This will ensure there is no contraction between financial balance and economic performance.”
The minister went on to say that small and medium enterprises will play an important and essential role in the country’s economy.
SMEs contribute 17 per cent to the national GDP, and the government is instituting programmes to increase that figure to 30 per cent, by the end of the 10th Five Year Plan.
With inputs from Oman News Agency
