Why Oman should consider a universal basic income

There are moments in a nation’s journey when a bold leap is not only desirable but necessary. Oman stands today at such a moment—one that invites us to reflect on the past five years, marked by resilience in the face of oil shocks and a global pandemic, and to consider how we can collectively chart a more inclusive, dynamic, and just economic future.
For Oman, at this precise historical moment, there could scarcely be a more opportune time to launch a version of Universal Basic Income (UBI). A well-designed UBI could help energise domestic demand, reduce income insecurity, accelerate savings and investment by households, and reinforce the social contract between government and citizens.
While no nation has yet implemented a full, permanent UBI for all adults at a subsistence level, a rich suite of pilot programmes and studies offers encouraging evidence. A comprehensive review by the UBC Institute for the Oceans and Fisheries found that a basic income programme applied globally could boost GDP by about 130 per cent, with every dollar spent generating $4 to $7 in broad economic impact. The Stanford Basic Income Lab documents more than 160 experiments worldwide, linking UBI-type payments to improved health outcomes, reduced stress, and increased economic participation.
A systematic review of cash transfer programmes similar in structure to UBI has associated the scheme with better nutrition, lower mortality, improved mental health outcomes and no significant drop in labour force participation. Yet the literature cautions: design matters deeply. Funding mechanisms must be sustainable; the level of payment must be meaningful; and the implementation must avoid perverse incentives or undue inflationary pressure.
For Oman, a tailored UBI offers multiple advantages. Firstly, it will stimulate consumption and demand. When households receive consistent income support, they are able to spend, save and invest—with vigorous multiplier effects. Rather than subsidies flowing indirectly through state-owned conglomerates or utility companies, UBI puts purchasing power directly in citizens’ hands, aligning with the vision of an economy driven by active participants.
Secondly, it will strengthen the social contract and equity. UBI sends a strong message: the citizen is recognised, valued and protected. This contributes directly to the ethos of Oman Vision 2040, where the human being is not merely a means of production, but the purpose of development.
Thirdly, UBI can provide a stabilising baseline for young entrepreneurs, informal workers, gig economy participants and those undertaking new sectoral opportunities—in tourism, technology, green energy or creative industries.
Finally, it will ensure resource efficiency and clarity compared to traditional subsidies: Existing subsidy regimes—on fuel, utilities or industry—often have leaks or abuses, and may distort economic incentives. By contrast, UBI is transparent, direct and efficient. The citizen decides how to spend their income, reinforcing agency and market responsiveness.
Implementation Considerations for Oman
To succeed, Oman’s UBI programme would need to be well-paced and sustainable. To achieve that, five implementation features need to be taken into consideration. Firstly, the UBI programme must have a pilot deployment. It should initially target vulnerable populations (young adults, low-income households, workers rendered redundant). This can allow calibration, build data and manage fiscal risk. Secondly, the programme must be digitally rolled out. Leveraging national ID systems and e-wallets will provide efficient delivery, transparency and reduced leakages.
Thirdly, the economic supply side must be reinforced. Ensuring that increased demand is matched by productive capacity in local SMEs, services and the non-oil economy to avoid inflation. It would also provide the missing link for the economic cycle to be completed and ensure some of the UBI funds are realised back into the treasury through VAT returns. Fourthly, the UBI programme should then be progressively updated. Payment levels must be meaningful yet fiscally prudent. Financing could include redirection of inefficient subsidies, gradual tax reforms and promotion of savings. In addition, different social segments can be considered for inclusion or later exclusion, contingent on some key socio-economic determinants.
Fifthly, and finally, regular monitoring and evaluation are imperative. Monitoring employment behaviour, consumption patterns and fiscal impact will be critical to refine the model.
Furthermore, to safeguard against inefficiencies, leakage, or misuse of funds, Oman’s version of UBI need not be a monolithic cash transfer. A hybrid model—combining direct cash via bank transfer and digital coupons earmarked for essential goods or services—offers a balanced alternative. While cash can be saved or invested, digital coupons can be directed efficiently. These non-cash digital coupons would be designed to preserve purchasing power while directing consumption toward key sectors such as local agriculture, tourism, education services, or Omani-made goods. Crucially, these coupons would not be exchangeable for cash, thereby preventing the emergence of secondary markets or speculative trading of such coupons.
Moreover, to align with broader economic objectives—such as revitalising domestic commerce—the system could introduce time-bound coupons. These would carry an expiration period (e.g., 60 or 90 days), creating a nudge toward immediate spending and stimulating circulation of capital within local markets. This approach channels liquidity precisely where it’s needed—into small shops, essential services, and productive consumption—while still leaving space for individual choice. The time-bound element ensures that the basic income does not become a deferred asset but instead acts as a continuous economic catalyst, reinforcing demand, supporting businesses, and sharpening the impact of fiscal interventions.
By using this intelligent mix of delivery mechanisms, Oman can simultaneously preserve economic dignity and agency for its citizens while ensuring fiscal prudence and targeted impact—a model worthy of national confidence and international observation.
By introducing a universal basic income today, Oman can accelerate real GDP growth, encourage active citizen participation, strengthen economic resilience, and, above all, reinforce the social contract.
This is not simply generous welfare; it is smart economic governance. It is a bridge to future prosperity and a signal that in Oman, the citizen is central.
The time to dare is now.

Ahmed al Mukhaini The author is a policy analyst