MUSCAT: Social welfare and employment creation stand at the heart of Oman’s Eleventh Five-Year Development Plan (2026–2030), as higher budget allocations and targeted programmes aim to raise living standards, protect citizens from global economic volatility and support inclusive growth under Oman Vision 2040.
The government has increased estimated spending on social and basic sectors in the 2026 budget to about RO 5.2 billion, a 4 per cent rise from 2025, representing 43 per cent of total public expenditure. Education accounts for the largest share at 40 per cent, followed by social security and welfare at 26 per cent, health at 25 per cent and housing at 9 per cent, underscoring the plan’s strong social orientation.
Key allocations include around RO 614 million for the social protection system and substantial funding for subsidies on food commodities and essential services. Continued support for electricity, water, sanitation, transport and petroleum products is intended to help contain inflation and shield households from rising global costs.
Employment is another central pillar. About RO 100 million is to be allocated annually to employment programmes during the plan period, supporting a target of more than 300,000 jobs for Omanis, or roughly 60,000 jobs a year. Measures focus on accelerating the absorption of job seekers, expanding training and skills development, encouraging entrepreneurship and incentivising private sector hiring.
Dr Salem bin Abdullah al Shaikh said the plan aims to transform the labour market into a dynamic and attractive environment for national talent. This includes aligning education curricula with future skills, developing professional standards in emerging sectors and empowering Omanis in the private sector through clearer career pathways. Governorates will also play a stronger role in delivering quality employment through local development projects.
The social dimension extends beyond employment to include education, healthcare and social inclusion. The plan emphasises empowering youth, women and people with disabilities, strengthening vocational training, promoting research and innovation; and supporting sports, culture and community development to enhance quality of life.
Dr Abdulaziz bin Rashid al Hashmi, Vice Chairman of the Majlis Ash'shura’s Economic and Financial Committee, said the plan safeguards the social pillar of Oman Vision 2040 by maintaining education and health spending, expanding social protection coverage and sustaining subsidies that have helped keep inflation below one per cent in recent years.
He added that continued investment in housing assistance, employment initiatives and essential services provides stability for citizens and supports Oman’s transition towards a knowledge-based economy driven by human capital. — ONA
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