11th Plan to raise private sector's GDP contribution to 56%

MUSCAT, MAR 9

In light of global economic shifts, the private sector in the Sultanate of Oman is no longer merely a supporting partner but has become the primary driver and backbone upon which the state relies to achieve financial independence and economic diversification, moving away from the volatility of oil prices.

Oman Vision 2040 focuses on the private sector and its leading role in the development process, as well as in transforming the national economy from total dependence on oil to a diversified and sustainable economic model.

In its Eleventh Five-Year Development Plan, the Sultanate of Oman aims to raise the private sector's contribution to GDP to 56%. This direction comes within the framework of strengthening partnerships between the public and private sectors, allocating RO 33 million to finance small and medium enterprises (SMEs) and supporting non-oil sectors such as logistics, tourism and industry under the umbrella of Oman Vision 2040. The initiative forms part of broader efforts to enhance economic diversification, drive growth and focus on value-added sectors to reduce reliance on oil.

The Labour Market Committee of the Oman Chamber of Commerce and Industry reviewed several challenges related to the employment environment in the private sector during its meeting chaired by Mohammed bin Hassan Al Ansi. Participants emphasised the importance of the current phase, which requires integrated efforts and a unified vision among stakeholders to support the private sector and enhance labour market efficiency in Oman, in line with economic development goals and the creation of sustainable job opportunities.

The meeting also discussed the importance of reviewing and regulating the labour market structure to promote economic growth and create new job opportunities. It further stressed the need to empower, regulate and protect self-employment from illicit business practices, while encouraging young Omanis to pursue entrepreneurship and self-employment.

The Small and Medium Enterprises Development Authority noted that the expected strategic economic impact will support Omani start-ups by increasing their contribution to GDP, expanding job opportunities for young Omanis, and improving the Sultanate of Oman’s ranking in global start-up indicators. SMEs are also being enabled to benefit early from programmes available under the Eleventh Five-Year Plan, while incentives are being introduced to support Omani SMEs and entrepreneurs in their management and production processes.