Oman looks to private capital for next phase of economic growth

Muscat: Oman is looking to private investors and capital markets to take on a greater role in financing economic growth, following five years of reforms aimed at strengthening public finances and improving government efficiency. Al Sayyid Dr Mundhir bin Hilal al Busaidi, Head of the Oman Vision 2040 Implementation Follow-up Unit at the Ministry of Economy, said the first phase of the national vision had largely focused on putting the foundations for economic development in place.

The task now is to turn those reforms into investment, business growth and employment opportunities.Speaking at ConFEAS 2026 in Muscat on Tuesday, he said public debt had fallen from more than 60 per cent of gross domestic product to around 35–36 per cent, reflecting measures taken over recent years to improve fiscal management. The improvement in public finances has also been accompanied by stronger sovereign credit ratings, giving Oman a firmer footing as it seeks to attract investment and broaden its sources of economic growth. But Al Busaidi made clear that fiscal consolidation was only part of the wider transformation.

A central objective of Vision 2040, he explained, is to move towards an economy in which government plays a greater role in setting policy and enabling investment, while businesses and private investors take more responsibility for financing and delivering growth.That shift places greater importance on the development of capital markets.Al Busaidi said improving market liquidity and widening access to investment could help companies secure funding, expand their operations and attract both domestic and international investors.Equity financing, in particular, could provide businesses with an alternative to borrowing while encouraging stronger corporate governance.

He also outlined changes introduced over the past five years to improve the way government institutions operate and measure their performance.These include restructuring government entities, linking institutional performance indicators to Vision 2040 targets and strengthening systems used to monitor implementation.

National programmes have also been introduced to address barriers to investment and improve the business environment. Al Busaidi cited work on hydrogen and food security among the initiatives intended to resolve challenges affecting economic development. Another priority is to spread economic activity beyond Muscat.

He said decentralisation was intended to create more opportunities across the governorates, supporting local investment, employment and economic growth rather than concentrating development in the capital.Major industrial projects, economic zones and infrastructure developments are also expected to support the next stage of diversification, alongside expanding activity in manufacturing, tourism and services. Al Busaidi described the first five years of Vision 2040 as a period of building the institutional and economic foundations needed for longer-term growth.

The coming five years, he indicated, should begin to show more of the results of that work as reforms translate into investment and economic activity.His remarks came as Muscat hosted exchange executives, investors and financial institutions for ConFEAS 2026, against the backdrop of Oman’s inclusion on FTSE Russell’s Watch List for a potential upgrade to Secondary Emerging Market status. The development has brought renewed attention to the role of the Muscat Stock Exchange in attracting investment and providing companies with access to capital. For Oman, the next measure of progress will extend beyond stronger fiscal indicators and improved market classifications to whether businesses can secure the financing they need to expand, invest and create jobs.