Resilience paves the way for a digital future

As the calendar year draws to a close, this is a moment for reflection before charting the course ahead. It is time to highlight how Oman navigates global challenges.
History serves as the most reliable judge, confirming that this uniquely Omani style has allowed the country not just to survive but to emerge strong from the past two decades’ most acute crises: the 2008 global financial meltdown, the protracted 2014-2019 energy price crash, and the comprehensive 2020-2022 pandemic shutdown.
The economic indicators for 2024 confirm that this deliberate approach is paying dividends. Economic activity has remained resilient, bolstered by robust growth in non-hydrocarbon activities and the steady execution of major development projects.
Crucially, inflation has remained low, offering a valuable buffer to citizens and businesses alike. The nation’s fiscal health has been significantly restored, recording healthy surpluses in both fiscal and external balances, while public debt has declined markedly.
The cornerstone of this success is the government’s unwavering commitment to economic diversification. The Omani economy recorded nominal growth of 0.9 per cent in 2024, a vital recovery from the 3.3 per cent contraction experienced in 2023. This rebound was almost entirely propelled by the non-hydrocarbon sector, which expanded by a strong 3.3 per cent. This growth, driven by a 4.4-per cent increase in industrial output and a 2.5-per cent rise in the services sector, has fundamentally reshaped the nation’s economic identity.
For the first time, the share of the non-hydrocarbon sector in nominal GDP has climbed to an impressive 68.2 per cent, a profound testament to the broad-based efforts to reduce reliance on the contracting hydrocarbon sector.
Looking forward, the vision is clear: the future is digital. Oman is intensifying its efforts to build a vibrant digital economy through its National Digital Economy Programme, aiming to raise the sector’s contribution to 10 per cent of GDP by 2040. The initial target of contributing around 3 per cent to GDP by the end of 2025 is firmly within reach, built upon remarkable global progress. Oman is already a global standout, ranking 1st in cybersecurity readiness, 41st in e-government development and 45th in AI readiness. This foundation is solid.
Equally critical is the investment in Omanis. Equipping the workforce with skills in information technology, transformative technologies and digitalisation is central to preparing for a rapidly changing economy. The success of Omanisation policies is evident, with employment among Omanis rising by 10.6 per cent in 2024, supported by a 4.0-per cent increase in the public sector, while expatriate employment saw corresponding declines.
Beyond the macroeconomic figures, the state’s commitment to social welfare has not wavered. The health system is poised for further development, with a specific focus on epidemic and pandemic preparedness and digital transformation. Social protection has expanded to cover all categories of employment contracts, including the mandatory registration for self-employed workers.
The Iskan initiative stands as a major achievement, facilitating financing for over 61,000 families and dramatically reducing waiting periods to under six months.
In conclusion, as we reflect on the past year, the narrative is one of prudent management and strategic execution.
Oman has not pursued breakneck speed but has instead focused on building deep, sustainable roots in its non-oil sectors and digital readiness. The economy remains on a solid footing, equipped not just to navigate global uncertainties but to actively seize the opportunities of the digital era. The foundation has been set; the next chapter of diversified, technology-driven growth is ready to be written.