New Year: Oman economy

off to a positive start

Oman’s Vision 2040 plan – the 10^th five-year plan – and budget for 2021 set the right tone for the new year, which will rightly focus on growth, fiscal discipline and key parts of the economy.

The Vision 2040 plan has been in the making for a while and was announced at the right time, especially in light of the fact that the entire global economy has been shaken up by the coronavirus pandemic and many governments, corporations and businesses are re-examining their priorities and reviewing their growth strategies.

Vision 2040, and its five-year iteration sets out a new path for the Omani economy that leverages the country’s strength, such as oil and gas, but also opens up new avenues for the economy,such as logistics and high-tech industries.

In the midst of the worst global health crisis in a generation, the Sultanate’s new ruler steadfastly focused on restructuring key entities and ministries to prepare them for the changing global economy. These entities and ministries can now hit the ground running and start implementing the ambitious strategies set out in the long-term plans and in budget 2021.

The governmentalso offereda short-term boost to the economy, which should restore business confidence. Officials announced the waiving of OMR 10.93 million in loans from Oman Development Bank and the Authority for Small and Medium Enterprises for 32,104 companies to alleviate their financial burdens.

The authorities are also raising loans from the Oman Housing Bank to OMR 100 million in the new budget, from OMR 60 million previously, and boost citizen housing loans to 2,250, from 1,350 previously. As part of the incentives, the Ministry of Housing and Urban Planning will distribute 23,000 land plots in different governorates and wilayats.

Equally crucial, Oman launched a national campaign for immunisation against COVID-19, with the first batch of the 15,600 vaccine doses, received in December and 28,000 doses expected to arrive in January, according to the Ministry of Health.

The quick vaccine rollouts in Oman and the rest of the world will no doubt bring confidence back among consumers and restart the engines of the global economy.