Muscat- The Sultanate of Oman today launched its Eleventh Five-Year Development Plan (2026-2030), the second executive roadmap for "Oman Vision 2040," targeting an economic growth rate of approximately 4 percent at constant prices.
This plan constitutes a fundamental phase for advancing economic and social transformation, underpinned by comprehensive and sectoral policies founded on efficiency, sustainability, and competitiveness. It places a distinct emphasis on fiscal sustainability and economic diversification, priorities that are now more critical than ever to safeguarding and perpetuating economic growth.
The plan prioritizes a gradual transition to a low-carbon economy and the implementation of sustainable environmental policies, aligning with global efforts to mitigate climate change impacts and conserve natural resources for future generations.
Serving as a bridge from economic recovery to a phase of growth and expansion, the plan is supported by a clear vision and integrated legislative and regulatory frameworks, positioning the Sultanate of Oman on a promising trajectory toward a prosperous and sustainable economic future.
The Eleventh Five-Year Development Plan is characterized by the diversity of its pathways in both temporal and planning dimensions. Its timeline is segmented into three distinct work programs: The First Work Program (2026-2027), the Second Work Program (2028-2029), and a Complementary Work Program in 2030 dedicated to evaluation and preparation for the Twelfth Five-Year Plan.
In its planning dimension, the framework is structured around two principal pathways: The Economic Pathway, which leverages economic dimensions as catalysts to address challenges, drive the economic process toward sustainable diversification, enhance national export capacity, and generate job opportunities for the citizens. The Developmental Pathway concentrates on reinforcing infrastructure and meeting diverse developmental requirements to attain balanced social and environmental progress, while elevating household income in accordance with the aspirations of "Oman Vision 2040."
The plan further emphasizes the adoption of programs and initiatives derived from the work of cross-sectoral teams comprising various government and private entities, alongside civil society institutions. Additionally, it incorporates strategic programs deemed essential by the government for implementation in the forthcoming phase, responsive to both local and international developments.
Several strategic objectives have been delineated, encompassing the establishment of a diversified and sustainable economy, a phased transition to a low-carbon model, the enhancement of environmental sustainability, the promotion of economic decentralization across governorates, the advancement of sustainable social development, the strengthening of governance and institutional performance, and the elevation of labour market and employment efficiency.
Dr. Said Mohammed Al Saqri, Minister of Economy, stated that the plan focuses on promoting promising economic sectors with high growth potential, job-creating capacity, and significant contributions to the Gross Domestic Product. Three core sectors were identified, namely Manufacturing Industries, Tourism, and the Digital Economy. Enabling and supporting sectors include Mining, Food Security, Renewable Energy, Transport and Logistics, as well as Education and Health, the minister pointed out.
He added that the preceding Tenth Five-Year Plan (2021-2025) yielded 175,000 job opportunities, with an expectation of generating 300,000 positions in the public and private sectors during the new plan's tenure (2026-2030). This translates to an annual rate of 60,000 opportunities, comprising 10,000 within the government sector and 50,000 in the private sector.
For his part, Dr. Nasser Rashid Al Maawali, Undersecretary of the Ministry of Economy, noted positive economic projections for Oman in 2026, anticipating a 4 percent growth rate with inflation maintained at a stable 1.4 percent.
He added that preparatory work for the Eleventh Five-Year Development Plan commenced in July 2023, incorporating broad-based community participation to ensure coherence across state institutions and alignment with the ambitions of "Oman Vision 2040."
Dr. Nasser clarified that the Eleventh Five-Year Plan necessitates additional investments estimated at RO 15.6 billion, channeled towards pivotal economic and social sectors to accelerate economic growth and realize a target rate of 5 percent.
He indicated the plan's targets include a Gross Domestic Product (GDP) growth rate of 4.6 percent at current prices and 4 percent at constant prices; an investment-to-GDP ratio of 28 percent at current prices; a ratio of Foreign Direct Investment (FDI) inflows to GDP of 11 percent; and an inflation ceiling of 2 percent.
He further added that the plan aims for the private sector's contribution to GDP at current prices to reach 56 percent, with a private investment-to-GDP ratio of 21 percent. It also targets growth rates of 4 percent for non-oil activities and 2.6 percent for oil activities, both at constant prices.
Dr. Nasser explained that the Eleventh Five-Year Plan concentrates on high-potential sectors poised to lead economic expansion: Manufacturing Industries with a targeted growth of 5.9 percent, the Digital Economy at 10.8 percent, and Tourism at 5.7 percent.
He affirmed the average targeted growth rates for the plan's supporting sectors as follows: Food Security (encompassing Agriculture and Forestry at 4.2 percent and Fisheries at 5 percent), Mining at 6.2 percent, Transport and Logistics Services at 7 percent, Education at 3 percent, and Health at 3.5 percent.
He stated that the Eleventh Plan institutes a rigorous performance management system for implementation and monitoring, utilizing clear indicators to track progress toward goals and programs. This ensures efficient execution and a tangible developmental impact on citizens' livelihoods.
Regarding the Tenth Five-Year Plan (2021-2025), Dr. Nasser confirmed a 97 percent implementation rate, with 398 out of 411 strategic programs achieved. He noted the plan's success in addressing numerous economic challenges in the Omani economy, with most sectors and indicators meeting their established targets.
The financial framework for the Eleventh Five-Year Plan is predicated on an assumed oil price of 60 US Dollars per barrel. Projections estimate average general revenues at approximately RO 11.556 billion over the plan period, against average public expenditure of about RO 12.222 billion, resulting in an estimated average deficit of RO 666 million.
This financial framework incorporates key indicators reflecting fiscal policy approaches, including elevating the contribution of non-oil revenues to roughly 37.4 percent of total general revenues by the plan's conclusion. Annual development expenditures are estimated at RO 900 million, with an additional annual allocation of RO 400 million dedicated to economic transformation projects. Average annual allocations for the social protection system are projected at RO 668 million.
The Eleventh Five-Year Development Plan anticipates a significant expansion in labour market programs and initiatives. This aligns with the government's focus on augmenting the financial resources of the Ministry of Labour's Training and Employment Support Center, enhancing regulatory and legislative frameworks for citizen employment in the private sector, and amplifying the role of governorates in fostering quality, sustainable employment opportunities.
Based on economic modeling, approximately 700,000 job opportunities are forecast to be created during the plan period, including about 300,000 direct opportunities for Omanis in the public and private sectors—averaging 60,000 annually.
The plan also aims to generate further employment by continuously regulating the labour market and employment policies to favour the national workforce.
Projections indicate that new jobs for Omanis in the private sector will be predominantly concentrated in retail (34.2 percent of total expected opportunities), followed by construction (29.8 percent), and then industry, tourism, and transport at 10.6 percent, 8.7 percent, and 5.5 percent, respectively.
Strategic programs have been defined for each national priority, alongside dedicated programs for the Information and Communication Technology sector and the Youth and Entrepreneurship sector. In total, the plan encompasses 190 strategic programs distributed across the priorities of "Oman Vision 2040."
