Muscat: Oman’s economic freedom score is 64.6, making its economy the 71st freest in the 2021 Index, said the 2021 Economic Freedom Index of Heritage Foundation. Last year it was ranked 76th.
Its overall score has increased by 1.0 point, primarily because of an increase in monetary freedom. Oman is ranked 7th among 14 countries in the Middle East and North Africa region, and its overall score is above the regional and world averages.
Oman’s economy is in the moderately free category this year as it has been since 1996. Greater economic freedom would help the government to diversify the economy away from dependence on oil. To achieve this goal, the government would have to cut government spending sharply and make a concentrated effort to reduce debt.
Increased use of prepaid meters and more punctual service delivery have made obtaining electricity easier and less time-consuming. Starting a business and dealing with construction permits have become less costly.
Labor force participation has increased. Electricity and fuel subsidies consumed more than one-quarter of the government’s budget in 2019.
Oman has four preferential trade agreements in force. The trade-weighted average tariff rate is 5.7 percent, and 19 nontariff measures are in effect.
Oman Observer is now on the WhatsApp channel. Click here
