MUSCAT: The Sultanate of Oman's private sector grew at an accelerated pace in the second quarter of 2023, with the total value added by active organizations increasing by 10.9% to $23.4 billion, compared to the same period in 2022.
The growth was driven by all three categories of businesses: major institutions, medium-sized enterprises (SMEs), and small enterprises. Major institutions added approximately $16.7 billion to the GDP, representing a growth of 168.2%. SMEs contributed approximately $1.9 billion, showing a 19.3% increase. Small enterprises added around $2.2 billion, marking a 21.7% increase.
The number of workers in private institutions also increased by 11.1% to 1,772,582, while the number of private institutions grew by 13.5% to 227,609.
The strong growth in the private sector is a positive development for the Omani economy, as it helps to reduce the country's reliance on oil and gas. The government has been taking steps to support the private sector, such as streamlining regulations and providing financial incentives.
According to the International Monetary Fund (IMF), Oman's economy is expected to grow by 1.7% in 2023. This growth will be driven by a rebound in the hydrocarbon sector and continued growth in the non-hydrocarbon sector.
The hydrocarbon sector accounts for around 60% of Oman's GDP, and the government is taking steps to boost production and investment in this sector. The government is also investing in new technologies and infrastructure to support the hydrocarbon sector.
The non-hydrocarbon sector is also growing, driven by tourism, manufacturing, and logistics. The government is supporting the growth of the non-hydrocarbon sector by investing in infrastructure and developing new industries.
Measures adopted by the government have already helped rein in inflation, which is prevalent globally, while also helping mitigate the impacts of a slowing global economy.
Overall, the economic outlook for Oman in 2023 is positive.
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