Omani economy resilient, set on growth path

Muscat: Oman’s economy has remained resilient in the first half of this year and growth is likely to accelerate towards the end of 2017, as prudent reforms by government and the private sector begin to show on balance sheets.
Recently released statistics show that the government deficit decreased by 21 per cent in the first four months of this year, mainly on back of higher oil prices, when compared with last year.
Growth in private and government institutions, which had begun rationalising expenses and improving efficiency last year, is healthy and sustainable, according to experts.
“The economy has remained resilient. Oil prices have remained at a good level. The government did well to borrow early on, so liquidity in the market is maintained, which has allowed for more financial activities,” Fabio Scacciavillani, chief economist at the Oman Investment Fund, said.
“Resilience shown by the economy is not at risk in any way. Investment coming into the country, a push towards efficiency by companies and infrastructure projects to boost diversification is all moving forward well and signals a strong growth and confidence in the Sultanate’s economy. I believe the first half was good and the second half will see acceleration in economic growth due to the continuous efforts by authorities to diversify.”
NCSI data shows that in the first four months of this year, government revenue rose by 19 per cent to OMR2.550 billion. Number of visitors to Oman until the end of April rose by 13 per cent to 585,192 generating revenue of more than OMR77 million, thanks to a strong marketing campaign by the Ministry of Tourism globally. Hotels and car rental companies in Oman have confirmed the higher number of tourists visiting the country during the first half of this year.
“We have received around 10 per cent more foreign customers until now, compared with 2016,” Shabbir Boxwala, general manager of Budget rent a car said.
An official from a leading hotel in Oman said bookings this year have increased by nearly 20 per cent from 2016 and it has been a great year for tourism industry until now. The struggling construction sector has also witnessed a rise in the number of projects from 2016, due to increased industrial and tourism initiatives.
“Although there is a decline in conventional housing projects, we have seen a rise in commercial projects in the tourism and agriculture,” Maaz Firdous, consultant at Al Iskaan Engineering said.
Markus Strohmeier, chief executive officer at Siemens Oman said companies in Oman need to shift to innovative strategies to improve profitability.
“There are a lot of projects and tenders floated this year and many more are to come. I don’t see a downturn as such. There are huge growth prospects, given that companies innovate and improve efficiency,” he added.