Oman’s economy is expected to grow by minimum three per cent in 2018, according to the 2018 budget statement issued by the Ministry of Finance this week.
‘The GDP growth is projected to be positive at a rate of at least three per cent in 2018. This is driven by oil price recovery and efforts to diversify the economy and improve investment climate’, the budget statement said.
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The gross capital formation data for the period 2014-2017 showed an increase in private sector contribution to the implementation of investment schemes, rising from 52 per cent in 2014 to 60 per cent in 2017.
The 2018 budget sets out measures that the government will take to achieve the targeted minimum three per cent growth and control inflation rate to maintain per-capita income level.
Oman’s 2018 budget and ninth five-year development plan aim to improve the country’s investment environment and enhance the contribution of private sector in economic growth and diversification.
Despite the financial and economic challenges posed by weak oil prices affecting investment activities and capital markets in the region, the budget statement said Oman’s privatisation scheme is continued. ‘This scheme is essential to promote and expand participation of private sector in the economic activities. According to the scheme, six state-owned enterprises plan for privatisation during 2018’, it said.
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The budget statement noted that the government is taking measures to tackle the constraints hindering Oman’s global competitiveness, including through developing the legislative framework. The government is currently working towards enacting foreign investment law, public-private partnership (PPP) law, and bankruptcy law.
As per the budget statement, Oman also plans to establish a national office for competitiveness to monitor international indicators in order to improve the enablers required to raise Oman’s global competitiveness.
