The solution is in the hands of the private sector

Oman stands today at a promising turning point. The country has built strong infrastructure and developed its human capital. A young, ambitious population is looking for chances to contribute and succeed. This is not a story of decline, but a story of potential that has not yet been fully unlocked — and the key to unlocking it lies in the hands of the private sector.
Today, Oman is entering a phase where future growth can no longer rely on the same tools that shaped its past.
For many decades, it was natural for the state to lead development. In the early phases of nation‑building, projects that were essential for progress — airports, ports, railways, power plants and heavy industry — were capital‑intensive and carried low, uncertain financial returns. Private investors were not ready to take on such risk at scale.
Governments across the world stepped in, creating state‑owned enterprises to anchor investment and lay the foundations for growth and social stability. Oman’s development story is no exception. The state built critical infrastructure and expanded social services. This legacy must be recognised and preserved. But the economic context that once justified heavy state leadership has evolved.
However, the environment has changed. Today, private companies — local and international — are more globalised, better capitalised and more capable than ever before. They can access international capital markets, partner with global firms and bring in cutting‑edge technology.
Public–private partnerships allow private firms to lead investment in major projects while the government focuses on regulation, risk‑sharing and ensuring public benefit. In this new phase, the private sector must become the primary engine of production, innovation, job creation and export growth.
If the private sector is weak, no country can hope to attract sustained foreign direct investment or build competitive value chains. International companies will hesitate to enter markets where they feel they will compete not only with other firms, but also with powerful state‑owned entities whose policies and privileges they cannot match.
A strong, empowered local private sector is therefore not a luxury; it is a precondition for successful diversification.
For the private sector to play this role, certain conditions are essential. Businesses need clarity of vision and policy, so that long‑term investment decisions are not undermined by sudden changes.
They need regulatory stability and transparency, with predictable rules, efficient licensing and timely decisions. They need a level playing field, where private firms do not face unfair competition from state‑owned companies receiving preferential treatment.
And they need access to finance and markets, including support for partnering with global players in technology and capital. This includes practical measures such as clear licensing timelines, transparent incentives and predictable regulatory updates.
Here the government’s role is crucial. Its job is to govern and build the ecosystem, not to compete with its own private sector. When government and private firms operate side by side in the same commercial space, using policies the government itself sets, the private sector will always be at a disadvantage.
The state can and should remain a strong sovereign investor, particularly through sovereign wealth funds that are instrumental in government‑to‑government partnerships and de‑risking large projects. But day‑to‑day business must be left to businesses.
At the same time, the private sector must also shift its mindset. In many oil‑producing economies, including Oman, private companies have long relied heavily on government spending, contracts and the export of raw natural resources.
Too little attention has gone to processing, value addition and building competitive brands. Too often, firms have waited for the state to lead, instead of seeing themselves as nation‑builders and partners in transformation. Competing globally today requires more than depending on government contracts; it requires initiative, innovation and long-term commitment.
The next phase requires a different attitude. Private sector leaders must recognise that the global model has changed: they are expected to invest, innovate, integrate into global value chains and create quality jobs at scale. This will not happen through many small, scattered projects. It requires large, transformative investments in key sectors that can act as engines of growth.
Oman has clear opportunities in tourism, mining, logistics, fisheries, agriculture and related manufacturing and services. These sectors have the ingredients needed to achieve strong, sustained growth and to absorb large numbers of young job‑seekers.
What is missing is a critical mass of anchor projects — major investments led by reputable companies that can attract suppliers, service providers and complementary activities around them.
Creating such clusters requires coordinated action. Government must prioritise a few strategic locations in each sector, provide world‑class infrastructure and develop “build‑to‑suit” platforms where investors can plug in quickly. Sovereign funds can co‑invest to reduce risk and signal confidence.
The private sector must bring capital, know‑how and execution capabilities. Clear, compelling stories for each cluster — whether in tourism, mining, logistics or agri‑food — are essential to attract global partners and give local firms the confidence to scale up. Countries such as Singapore, Malaysia and the UAE have successfully used similar anchor-project models to accelerate diversification.
Within this architecture, the Oman Chamber of Commerce and Industry has a crucial role. It should go beyond protocol and routine representation to become a strong, data‑driven voice for the private sector: analysing trends, identifying bottlenecks, proposing solutions and helping companies build capacity. It must evolve into a proactive policy shaper, not only a voice for reaction.
We should also recognise that continuing to do what we have always done will only reproduce the results we already see. The current five‑year development plan comes at one of the most favourable fiscal moments in recent history, supported by relatively strong hydrocarbon revenues. This is a rare window of opportunity. If we use it to build a truly pro‑private‑sector ecosystem, strengthen our local businesses and attract strategic investors into anchor projects, we can place the economy on a new, sustainable growth path. If this alignment is achieved, Oman can secure a competitive position in the global economy for decades ahead.
The message is simple but powerful: the solution is in the hands of the private sector — but it is also in the hands of those who shape its environment. With a clear vision, a supportive policy framework and a genuine partnership between government, sovereign funds, the Chamber of Commerce and business leaders, Oman can turn today’s challenges into tomorrow’s success. The choice and the opportunity are in our hands.