Oman links stronger economic management to diversification under Vision 2040
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Oman has set long-term targets for 5 per cent real economic growth and a fiscal deficit no greater than 3 per cent of GDP, supported by plans to strengthen economic leadership and coordinate national policies under Vision 2040.
The strategy seeks clearer institutional responsibilities, stronger regulation and management capable of responding to changing markets. Its wider objective is a diversified, competitive and knowledge-based economy that supports sustainable development and private sector investment.
Coordinating economic policy
The vision calls for an empowered reference entity responsible for guiding economic development while supporting social justice and environmental protection.
Its mandate would include coordinating national development programs against defined objectives and performance indicators.
Fiscal, monetary, trade, investment, industrial and labour market policies would be aligned so that plans and projects contribute to the same national priorities.
Economic leadership would have binding powers and a clear mandate to respond promptly to development needs. Better coordination between authorities would reduce overlapping responsibilities, improve government efficiency and support consistent policymaking.
Clear responsibilities and measurable results are also intended to strengthen accountability and help businesses understand the direction of economic policy before making investment decisions.
Regulation and business confidence
Oman aims to develop economic legislation that responds to changing market conditions, technological advances and international economic trends.
Priorities include improving regulatory quality, reducing administrative barriers and increasing transparency, giving private businesses greater scope to invest and innovate.
A predictable regulatory environment would help companies plan for economic changes while allowing Oman to make better use of its comparative advantages.
The strategy also links institutional efficiency and consistent policies to investor confidence, business growth and stronger private sector participation in national development.
Developing economic leaders
Senior economic managers would be expected to maintain and update their capabilities through professional development and institutional learning.
The vision emphasises informed decision-making, anticipating market changes and understanding how technology and emerging industries affect competitiveness.
These capabilities are intended to support innovation, diversification and long-term stability while improving Oman’s ability to manage future economic challenges.
The economic targets use historical baselines to measure the intended progress towards 2030 and 2040.
Oman’s average real GDP growth was 3.6 per cent over the 2000–2017 period. The target is 5 per cent for both 2030 and 2040.
Inflation stood at 1.6 per cent in 2017. The vision targets a range of 2 to 3 per cent at both deadlines to support stable and predictable market conditions.
The fiscal deficit was equivalent to 11.7 per cent of GDP in 2017. The long-term objective is to keep the deficit within 3 per cent of GDP, supporting sustainable public finances.
For the Global Competitiveness Index, Oman’s 2018 baseline was 64.4 out of 100, placing it 47th among 140 countries. The targets are a score above 71 or a top-30 position by 2030, followed by above 76.6 or the top 20 by 2040.
In the regulatory quality component of the Worldwide Governance Indicators, Oman recorded 0.42 in 2017 on a scale from −2.5 to 2.5, ranking 67th among 209 countries. Targets are above 1.23 or the top 30 by 2030, and above 1.44 or the top 20 by 2040.
The original plan also called for effective economic leadership to be established by 2021. The supplied material provides no numerical baseline or assessment of whether that objective was achieved.
Together, the priorities link economic stability with accountable institutions, coordinated decisions and leadership able to respond to changing conditions.