The Sultanate of Oman has been witnessing a steady post-pandemic recovery due to economic reforms initiated by the government, especially the Mid-term Fiscal Term Plan, which was introduced in the year 2020 to beat challenges posed by low oil prices and the Covid-related restrictions on businesses.
Last year, the economy recorded its strongest performance, aided by high oil prices and ease of all pandemic restrictions following a successful vaccine drive.
For the first time since 2014, the Sultanate of Oman reported a budget surplus of RO 1.146bn in 2022 against an estimated deficit of RO 1.550bn at the start of the same year.
The additional financial revenues helped the government to spend more on reducing public debt and increasing and enhancing social spending.
Three key global rating agencies upgraded the Sultanate of Oman’s sovereign credit ratings in 2022.
It may be noted that the State Budget 2023 focused on spending in the social sectors, including education.
The social and essential sectors are expected to spend about RO 4.3 billion, or 38 per cent of total public spending projected in the budget.
Of these, 44 per cent has been marked for the education sector, 22 per cent for social security and care, 12 per cent for the housing sector, and 22 per cent for the health sector.
New projects for the year 2023 include the construction of 15 schools in various governorates, health centres in some governorates, implementation of a few dual and service roads, natural parks and dams, and the establishment of a fishing port in the Wilayat of Mahout.
Apart from 15 schools, 42 schools will be developed in partnership with the private sector.
The government is focusing on maintaining economic stability, growth of no less than three per cent and inflation rate of not more than three per cent, employment of job-seekers under the National Employment Programme (NEP), and digital transformation, among others.
More than 100 per cent of its targeted 35,000 job opportunities in the public and private sectors were created in 2022.
The number of job-seekers who joined the labour market for the first time crossed the 20,000 mark, and the number of employees who availed of the Benefit of Job Security increased by about 3,000 in 2022 compared to 2021.
The Mid-term Fiscal Term Plan gives importance to citizens’ social protection and well-being, such as health, education, learning, natural resources, and sustainability.
The Social Protection System covers several schemes such as social welfare schemes, retirement benefits, social security, and others to establish comprehensive social protection for vulnerable people.
Several reforms initiated by the government include allowing expatriates to own real estate and visa exemption for tourists from over 100 countries.
The IT sector transformation focuses on expanding the fibre optic network expansion projects and promoting investment in the technologies of the fourth industrial revolution and emerging technologies.
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