Oman’s vision 2040 targets doubling of annual income

Muscat: The Sultanate has set a target to raise the real GDP per capita by 90 per cent, according to the Oman 2040 vision.

The 2040 vision data revealed that the real GDP per capita in Oman was OMR6,264 in 2017, which is 49th among 187 countries globally.

The government’s target is to increase the real GDP per capita to 40 per cent in 2030, where it is targeted to reach 90 per cent by 2040.

The Economy’s Strategic Direction as per the 2040 vision is towards a diversified and sustainable economy that is based on technology, knowledge and innovation, operates within integrated frameworks, ensures competitiveness, embraces industrial revolutions and achieves fiscal sustainability.

In 2017 the oil share of GDP was 39 per cent where as non oil sources was 61 per cent, the Sultanate’s target is to decrease the oil share of GDP to 16 per cent in 2030 and to reach 8.4  by 2040. Whereas the non-oil share of GDP is targeted to reach 91. 6 per cent in 2040.

The economy is heading towards a robust base of economic diversification with focus on technology, knowledge and innovation. It also aims at reinforcing upstream and downstream integration among economic sectors to expand the production and export base, diversify trading partners, deepen investment in high value-added sectors, and enhance the contribution of non-oil sectors to the GDP.

The 2040 vision said,  “Achieving this diversity and integration highly depends on developing local capabilities in innovation and creativity, promoting entrepreneurship, along with preparing a fertile legislative and incentives ground. The competitiveness of the Omani economy will, therefore, increase both regionally and globally, and the growth rates will improve and stabilise in a sustainable manner. Above all, an integrated framework of insightful socio-economic policies should precede to guarantee macroeconomic stability and fiscal sustainability as top priorities, in addition to the optimal utilisation of natural resources.'

The 2040 vision added, “A future Omani economy that embraces technology, knowledge and innovation will allow for the production of competitive products and services with higher knowledge and technology components.

“Consequently this will contribute to developing the economy and enhancing its competitiveness in most sectors and activities such as tourism, education, and manufacturing, including oil and gas-based industries. Innovation will be the new engine of growth but will be closely dependent on appropriate infrastructure and educational system that encourages entrepreneurship.”