The State’s General Budget for Fiscal Year 2021 has been prepared in a way that goes in line with the objectives of Oman Vision 2040 and Tenth Five-Year Plan (2021-2025). In addition to, the measures, endorsed by His Majesty Sultan Haitham bin Tarik, aiming at enhancing non-oil revenue and reducing spending on government units, leading to fiscal sustainability. The 2021 Budget also seeks to achieve a set of objectives, notably fiscal sustainability so as to continue achieving economic growth targets, a diversified economy, and targeted rates of domestic investment and foreign direct investment (FDI). Furthermore, the 2021 Budget endeavours to enable the private sector to play a greater role in accelerating economic growth, and to create more job opportunities.
The government has undertaken a set of fiscal and economic measures with the aim to alleviate the consequences of the COVID-19 pandemic and a sharp decline in oil prices, so as to minimise the burden on public spending. Therefore, the government has cut 10 per cent from the approved allocations of government units and development budget. In addition to reduce capital expenditures (CapEx) and operating expenditures (OPEX) of State-owned Enterprises (SOEs) by no less than 10 per cent. Moreover, widen the tax base such as excise tax.
As a result of fiscal and economic measures implemented in 2020 and economic diversification efforts including subsidy reforms to be implemented in 2021, public spending is estimated to be as low as RO 10.88 billion in 2021, decreased by 14 per cent as compared with the expected spending of RO 12.66 billion in 2020. Aggregate public revenue is also projected to increase to RO 8.6 billion in 2021, based on assumed oil price of US$ 45 per barrel, up by 2 per cent as compared with the preliminary results of 2020.
2021 Budget deficit is estimated at about RO 2.2 billion i.e. 8 per cent of gross domestic production (GDP). A 73-per cent of this deficit will be financed through external and domestic borrowing i.e. RO 1.6 billion, while the rest of the deficit, estimated to nearly RO 600 million, will be covered by drawing on reserves.
Public debt is projected to reach RO 21.7 billion by the end of 2021, and external borrowing represents 76 per cent of overall public debt.
The government will continue building the infrastructure required to spur economic growth, and giving priority to the highly needed projects that serve economic and social objectives. In addition to expanding the participation of private sector by enhancing its role in implementing and managing some projects and services.
Investment
spending in 2021
Government civil units: RO 900 million
Energy Development Oman: RO 1.3 billion
Oman Investment Authority: RO 2.9 billion (For local investments only)
Total: RO 5.1 billion
National Economy
The COVID-19 pandemic, in a low-oil price environment, has triggered tremendous challenges for national economy, which have prompted the government to undertake a set of precautionary measures to contain the spread of the coronavirus, such as:
1- Border closures.
2- Partial lockdown and closure of all public places and some of the commercial stores.
3- Reduction in workplace attendance.
Such measures have reflected negatively on the economic activity and public finance. By the end of the second quarter of 2020, the country’s GDP experienced a decline by 13.4 per cent at current prices, recording RO 12.3 billion compared to RO 14.1 billion over the same period in 2019, according to National Centre for Statistics and Information (NCSI). This decline is driven by a reduction in the value added of oil activities by 20 per cent, registering RO 4.1 billion by the end of second quarter of 2020. In addition to a decline in the value added of non-oil activities by 9.9 per cent, recording RO 8.7 billion. Moreover, the Ministry of Economy estimates the GDP at current prices to stand at RO 24.7 billion by the end of 2020.
In last October, the Institute of International Finance (IIF) affirmed that Oman is making progress on fiscal adjustments and structural reforms that will reduce the impact of the COVID-19 pandemic on the economy. IIF also pointed out that Oman has shown a strong financial response to maintain the resilience of the economy during the current crisis.
The World Bank pointed out in Global Economic Prospects (June, 2020) that Oman’s GDP is expected to shrink by 4 per cent in 2020, but will grow by 2 per cent in 2021, the highest percentage over the last five years. During the past three years, Oman has recorded growth rates of 0.3 per cent, 1.8 per cent and 0.5 per cent in 2017, 2018 and 2019, respectively.
On the other hand, according to IMF’s World Economic Outlook (October, 2020), Oman’s real GDP growth continues to decline by 10 per cent in 2020, and it is projected to decline by 0.5 per cent in 2021. However, the Ministry of Economy predicts the GDP to rise by 2.3 per cent in 2021. The variation in the projections is attributed to different assumptions about the oil GDP.
Oman continues to pursue further efforts to improve investment climate and attract more domestic and foreign investments, especially after the recent development of relevant legislative infrastructures. According to the NCSI data, the FDI totalled RO 15.1 billion by the end of the first quarter of 2020.
The inflation rate is anticipated to decline by 0.8 per cent in 2020, while it is expected to rise by 3.8 per cent in 2021, according to the Ministry of Economy data.
As for the banking sector, the financial statements issued by the Central Bank of Oman (CBO) showed a rise in foreign exchange reserves by 8.1 per cent, reaching RO 6.8 billion by the end of October 2020 as compared to RO 6.3 billion during the same period in 2019. The rates of loans and deposits increased by 2.2 per cent reaching RO 26.4 billion, and 3.4 per cent reaching RO 24 billion, respectively, by the end of October 2020 as compared with the same period of 2019.
Oman trade balance showed a surplus of RO 2.7 billion by the end of third quarter of 2020, down by 38 per cent as compared with the same period of 2019. This decline is mainly attributed to a sharp decrease in the value of commodity exports, which totalled RO 8.7 billion, dropped by 21.5 per cent as compared with the same period of 2019. The value of commodity imports decreased by 11 per cent by the end of third quarter of 2020, reaching RO 6.0 billion as against RO 6.8 billion recorded during the same period in 2019.
By the end of November of 2020, Muscat Securities Market (MSM) index closed at 3,643.5 points, while the market value amounted to RO 20.42 billion.
Government Measures and Initiatives in 2020
The government has undertaken a number of measures and initiatives to stimulate the economy, sustain public finance in alignment with Oman Vision 2040 and Tenth Five-Year Plan.
Moreover, the Ministry of Economy issued a Ministerial decision No (148/2020) on the formation of a working group that aims to suggest policies and initiatives required to stimulate national economy in light of the consequences caused by the COVID-19 pandemic.
Restructuring the State’s Administrative Apparatus
In line with the standards outlined by Oman Vision 2040 to improve government performance and efficiency, service delivery, and to eliminate duplication of functions, the State’s administrative apparatus has been restructured. This will help to streamline and integrate government procedures, which would lead to enhanced performance and efficiency, and accelerate development process.
The restructure of the State’s administrative apparatus represents a paradigm shift towards a change for the future of Oman. It came in tandem with the standards outlined by Oman Vision 2040 as several ministries and government units have been merged.
Ten ministries have been merged with each other, whereas six ministries have been renamed. Furthermore, five councils have been cancelled and transferred its tasks to the Council of Ministers. Also, one council has been established, namely Governorates Affairs Council.
Medium-Term Fiscal Plan (2020-2024)
The Medium-Term Fiscal Plan (2020-2024), which has been endorsed by His Majesty the Sultan Haitham bin Tarik, aims at achieving fiscal sustainability and striking a balance between revenue and expenditures by the end of 2024. The plan also seeks to create favourable conditions for Oman Vision 2040. Moreover, the government endeavours, through the plan, to implement a set of measures and initiatives with the aim to bring the deficit under control and to avoid the deterioration of the credit rating. In addition to, achieve sustainable levels and create favourable investment climate.
The plan was developed based on the priorities of Oman Vision 2040, which is closely linked to Oman’s fiscal strategy. These include:
• Economic diversification and fiscal sustainability.
• Private sector, investment and international cooperation.
• Governance of the state’s administrative bodies, resources and projects.
• Social protection and well-being.
The Medium-Term Fiscal Plan is based on five pillars, namely:
-Supporting economic growth.
-Revitalising and diversifying sources of government revenues.
-Improving public spending efficiency.
-Enhancing social security net.
-Enhancing the efficiency of public financial management.
These pillars include a number of initiatives that will help to achieve fiscal sustainability over the medium term. The initiatives will be implemented during the period from 2020 to 2024 with the aim to gradually reduce budget deficit to less than 1.7 per cent of GDP in 2024.
Some of the aforesaid initiatives have already been under implementation stage. The remaining initiatives will be phased based on priority and readiness, taking into account any economic or social effects that may arise from such initiatives. The plan seeks to develop a comprehensive social safety net geared towards vulnerable people.
The financial impact of the measures and initiatives undertaken during 2020 generated around a total of RO 1.4 billion. Such measures and initiatives contributed to public revenue by RO 486 million, generated from the privatisation of Oman Electricity Transmission Company (OETC) by RO 478 million and from expanding the excise tax that recorded an amount of RO 8 million. The same measures and initiatives helped to reduce public spending by RO 870 million, by reducing the approved allocations of government units by 10 per cent . In addition, development expenditures reduced by RO 170 million, and SOEs subsidy was cut by around RO 135 million.
New Retirement Policy
In line with the government’s efforts to achieve efficiency and financial sustainability for pension funds, and to overcome challenges faced by these funds, the government has decided to establish two pension funds. One fund for civil units and private sector while the other one for defence and security units. The minimum years of service have been raised to 30 years. Moreover, a new unified approach to retirement will be placed for those employed in government units and private sector.
Early Retirement
In accordance with the initiatives of Medium-Term Fiscal Plan, the government required 70 per cent of employees who exceeded 30 years of service to retire in 2020. This is in addition to those who worked as advisors, experts and competent directors in all government units and SOEs.
Redirecting subsidy of electricity and water sectors
Subsidy reform in electricity and water sectors aims at sustaining and enhancing the efficiency of these two sectors. The subsidy will then be redirected to the vulnerable households. The increase in tariff will be phased, while government subsidy will be kept for those registered in the National Subsidy System (NSS) as per the rules. Thus, new tariff will be applied gradually starting from 2021.
Energy Development Oman
Energy Development Oman (EDO) company has been established in pursuant to the Royal Decree No (128/2020), whereby government’s share in Block 6 has been transferred to EDO. Such share would be managed by EDO in accordance with the best international practices in energy assets management. EDO will also be entrusted with the collection of oil and gas revenue, payment of CAPEX and OPEX of annual production, and development of oil and gas sector. In addition to injection of more investments into this sector, in order to enhance financial and economic returns.
After the establishment of EDO, expenses of PDO have been removed from the State’s General Budget and this would result in the following:
1- Self-dependence for PDO in terms of financing its development projects.
2- Reducing deficit.
3- Improving Oman’s financial performance indicator and sovereign credit rating.
4- Raising economic activities and value added of oil activities.
5- Reflecting the real value of oil and gas sector.
Oman Investment Authority
Pursuant to the Royal Decree No (61/2020) on the establishment of Oman Investment Authority (OIA), the ownership of SOEs and investments has been transferred from Ministry of Finance (MoF) to OIA, with the exception of Petroleum Development Oman (PDO). Therefore, OIA will be responsible to transfer the dividends to the public treasury on annual basis. On the other hand, OIA launched “Rawabet”, a special programme, to link SOEs’ policies and systems with corporate governance in line with Oman Vision 2040, which focuses on economic diversification, enhancing non-oil revenues, and attract more FDI.
Housing sector
• Increasing the allocations of housing loans provided by Oman Housing Bank.
• Increasing the number of residential lands to be granted to the citizens.
Private Sector
• Removing interests of loans, for one year, offered by Oman Development Bank and Small and Medium Enterprises Development Authority.
• Removing licence fees of SMEs owned by Omani citizens (holders of Riyada Card) within the first three years of setting up their businesses (specific activities).
Real-estate Sector
• Reducing rental contract fee from 5 per cent to 3 per cent.
Job Security System
The Job Security System (JSS) is a national initiative stems from social solidarity, with the aim to provide social protection for the Omanis who lost their jobs against their will. The JSS will provide aid to those people until they get other job opportunities, and it will assist them in getting new jobs. Moreover, the JSS will also provide temporary aid to those seeking jobs for the first time.
His Majesty the Sultan has generously financed the Job Security Fund, which has been established under the JSS, with an amount of RO 10 million. The fund will be financed by the following:
- The employers will pay 1 per cent of the insured’s monthly subscription wage.
- The insured will pay 1 per cent of his monthly subscription wage.
- A 5-per cent will be added to the fee of each licence or licence renewal of bringing expat manpower for business purposes.
The Job Security System was launched in November 2020.
Number of beneficiaries in November 2020 (2,901).
Excise Tax
In the framework of the Common Excise Tax Agreement of the Gulf Cooperation Council (GCC) and in light of its application by some GCC countries, the government has introduced the excise tax in mid-2019. The excise tax is imposed on specific consumer products that are harmful to human health, society or the environment. The excise tax is classified as an indirect tax that are imposed once at one of the stages of the supply chain (import or production), and it is borne by the final consumer.
This tax aims at promoting a healthy life and addressing negative practices by modifying the consumption pattern of individuals. The tax is imposed on tobacco and its derivatives, energy drinks, alcoholic beverages and pork at 100 per cent , and carbonated drinks at 50 per cent.
In 2020, the excise tax was applied to alcoholic beverages at a rate of 100 per cent. The tax base of the excise tax was expanded to include sweetened drinks at a rate of 50 per cent, as of the beginning of October 2020.
Value Added Tax
The Value Added Tax (VAT) is an indirect tax on consumption so that the final consumers will ultimately bear the cost of VAT. The tax will be imposed on goods and services in Oman starting from April 2021, with exception of the education and health sectors and some basic commodities. According to the Royal Decree No (121/2020), a 6-month grace period granted for the taxpayer to register and prepare their internal system to implement the VAT. The value added tax rate of 5 per cent to be applied in Oman is among the lowest rates at the international level. Therefore, it is expected that the impact of VAT on the cost of living in Oman will be minimal. The VAT will have a positive impact on the economic and social development and the international competitiveness of Oman. The financial resources obtained from this tax will contribute to building a sustainable economy for future generations, and it will also contribute to improving public services and continuing the development of infrastructure in future.
Annual Allowance
The annual allowance for 2021 has been approved for all employees in the government units and SOEs, in accordance with the following:
1- Employees whose total salary less than RO 900 shall get 100 per cent of the entitled annual allowance.
2- Employees whose total salary equal to or more than RO 900 shall get 50 per cent of the entitled annual allowance.
Allowances and Benefits
• Equalising non-basic allowances and benefits in the State’s Administrative Apparatus, with exceptions to jobs with specific functions.
Tenth Five-Year Plan: Financial Framework
The Tenth Five-Year Plan has a significance importance as it is the first executive financial program of Oman Vision 2040. It is also considered as the cornerstone and springboard to achieve fiscal sustainability and economic growth. Therefore, the plan has prioritised spending in accordance with the changes in the local and global economic environment, in order to achieve higher economic growth.
In accordance with the financial framework, the fiscal measures would achieve positive results by the end of the Tenth Five-Year Plan, wherein a surplus of RO 65 million is projected to be achieved.
Government Measures and Initiatives in 2021
In the current unfavourable economic and fiscal conditions, the government is keen on enhancing the efficiency of public finance management through a set of initiatives. Such initiatives aim at improving and sustaining fiscal position, and advancing economic growth in consistency with government objectives and priorities pertaining to economic and fiscal policies. These initiatives will help to strike fiscal balance over the long term.
Fiscal sustainability initiatives
Medium-Term Fiscal Plan
(2020-2024)
This plan will implement a number of initiatives, seeking to achieve sustainable levels of financial resources. Such initiatives fall under the following:
-Supporting economic growth.
-Revitalising and diversifying sources of income.
-Improving public spending efficiency.
-Enhancing the efficiency of public financial management.
-Enhancing social security net.
The financial impact of measures and initiatives taken under the Medium-Term Fiscal Plan has been estimated at RO 3.5 billion in 2021, with an increase in revenue by RO 565 million resulting from VAT which is expected to generate RO 300 million, government investments to yield up to RO 195 million, excise tax RO 20 million and taxes RO 50 million.
On the other hand, the adopted measures will help to reduce public spending by RO 2.9 billion, through 5 per cent cut in all government units which will generate savings of around RO 1.1 billion, a reduction in development spending of civil units by RO 300 million, and subsidy reforms in the electricity and water sector that will save around RO 215 million. In addition to a reduction in investment expenditures of oil and gas sector by RO 1.3 billion.
Public Debt Law
The Public Debt Law was enacted to manage the funds borrowed by the government from individuals or institutions to finance public spending. This Law aims at:
n Planning and managing government debt.
n Diversifying funding sources.
n Monitoring public debt and associated risks.
n Enhancing the mechanisms of cash flow management in public treasury.
Single Treasury Account:
A bank account which includes the government liquidity fund in order to optimise the use of government cash resources. The account aims at:
n Increasing the efficiency and effectiveness of managing the government’s cash balances and enhancing risk management processes.
n Improving quality and accuracy of financial accounts.
n Minimising costs of bank transactions.
n Facilitating payment processes.
n Simplifying bank reconciliation processes.
Programme-Based Budget (PBB)
An advanced approach of fiscal planning that identifies public spending priorities and links spending to objectives and activities serving the society.
Advantages of the PBB:
n Translate public policies and objectives into the budget.
n Provide authenticated data on government performance.
n Raise the efficiency of financial and administrative control.
n Organise government programmes and activities, and integrate the efforts to prevent duplication.
n Flexibility to allocate resources as per tasks and activities.
n Enhance and prioritise public spending.
Government Financial Management Information Systems (GFMIS)
GFMIS is a financial system that presents financial data in a systematic manner and helps improve public spending management efficiency.
Objectives:
• Provide accurate financial data and information to enhance financial planning and control.
• Develop and integrate financial systems and processes of all government units.
• Adopt the best international practices in public finance management.
• Facilitate data exchange and reduce paperwork.
Labour sector
• Issuance of Labour Law and Civil Service during 2021.
• Provide training linked to jobs, and training for entrepreneurs.
• Provide training courses aiming at developing youths’ skills, which are required by the labour market.
• Issuance of a number of rules that regulate the labour market.
Restructuring SOEs and revising the payroll
State’s General
Budget for FY 2021
2021 Budget has been prepared in alignment with the priorities of Oman Vision 2040, and in tandem with the Tenth Five-Year Plan (2021-2025). The 2021 Budget seeks to achieve fiscal sustainability, a stable economic growth, and to reduce public debt to GDP. In addition to further strengthen the role of private sector in the development process.
2021 Budget builds on the following pillars:
• Setting a ceiling for all government units that the budget of each unit should not exceed the 2020 revised budget.
• To continue to rationalise public spending while enhancing its efficiency.
• Implementing the first phase of fiscal measures geared towards fiscal sustainability.
• Controlling the deficit and maintaining its downward trend.
• Completion of shifting process to PBB by increasing the number of government units applying PBB.
• Identifying innovative means for funding some of government projects and services.
2021 Budget Estimates:
Aggregate revenue is estimated to amount to RO 8.64 billion in 2021, while public spending is projected to stand at 10.88 in 2021. This will lead the budget deficit to stand at RO 2.24 billion.
Public Revenue:
Aggregate revenue is estimated at RO 8.6 billion in 2021, increased by 2 per cent as compared with the preliminary results of 2020, representing 33 per cent of GDP at current prices. Such revenue consists of oil and gas revenue of RO 5.4 billion, accounting for 63 per cent of total revenue. Non-hydrocarbon revenue is estimated at RO 3.2 billion i.e. 37 per cent of total revenue.
Revenue estimates are based on the following considerations:
• 2020 Budget assumes oil price of $45 per barrel.
• Transferring proceeds from selling 20,000 oil barrels per day to the Oil Reserve Fund so as to repay partial of the loans due over the upcoming years.
• Oil production is projected to be 960,000 barrels per day, taking into accounts Oman’s commitment to cut oil production in compliance with OPEC plus deal, for a period from May 2020 to April 2022.
• Revenue generated from gas.
Hydrocarbon Revenue:
Oil Revenue
Oil revenue is projected to amount to RO 3.6 billion i.e. 41 per cent of total revenue, down by 19 per cent as compared with the preliminary results of 2020.
Gas Revenue
Gas revenue estimated to stand at RO 1.8 billion i.e. 22 per cent of total revenue, decreased by 6 per cent as compared with the preliminary results of 2020.
Non-hydrocarbon revenue:
The non-hydrocarbon revenue is projected to reach RO 3.2 billion, up by 33 per cent as compared with the preliminary results of 2020. This is in light of the actual results of 2018 and 2019, and preliminary results of 2020 which have been affected by the consequences of the COVID-19 pandemic.
Current Revenue
The current revenue is anticipated to amount to RO 3 billion in 2021. Excise tax and VAT revenue are expected to stand at RO 413 million in 2021, increased by threefold when compared with budgeted figure of RO 100 million in 2020.
Corporate income tax revenue is estimated at RO 400 million in 2021, decreased by 27 per cent as compared with 2020 Budget. This decline is mainly due to consequences of the COVID-19 pandemic. Government revenue from Oman Investment Authority, estimated at about RO 800 million. The remaining current revenue is projected to be around RO 1.4 billion in 2021.
Capital revenue and repayments
Capital revenue is expected to amount to RO 200 million in 2021, while capital repayments are anticipated to be around RO 20 million in 2021.
Public Spending:
In light of the policies adopted by the government to enhance spending efficiency and in line with the initiatives undertaken in 2020, public spending for 2021 Budget was estimated based on the following considerations:
• Reducing current expenditures of government units in 2021 Budget by 5 per cent, taking into account the financial impact of fiscal measures, such as retirement order, restructure of State’s administrative apparatus, and revision of the financial grades of new employees. In addition to the government contribution to Job Security Fund by 1 per cent.
• Removal of oil and gas production expenditures of PDO from the budget after the establishment of EDO.
• Allocations for gas expenditures will be in accordance with the expected cost.
• Allocations of electricity subsidy, taking into account the subsidy reform outcomes.
• Allocating subsidies for water sector, sewage and waste sector as per the estimates made by the relevant entities.
• Cost of public debt service in accordance to the existing loans and the planned ones.
Therefore, total public spending is budgeted at about RO 10.8 billion in 2021 Budget, decreased by RO 1.8 billion i.e. 14 per cent as compared with the preliminary results of 2020, as follow:
RO %
Current Expenditures 9,020 83
Investment
Expenditures 900 8
Subsidies and others 960 9
Total 10,880
Current Expenditures of Ministries and Government Units
These expenditures are estimated at RO 4.1 billion. The salaries and entitlements account for 80 per cent of total current expenditures of ministries and government units, with an amount of RO 3.3 billion.
Sectors Overall Spending
Education 17 per cent
Health 11 per cent
Housing 5 per cent
Social Welfare 7 per cent
Total 40 per cent
Spending on basic services such as education, health care, housing and social welfare will be maintained. The spending on such basic services represents about 40 per cent of current spending, which is the largest in the budget. The following table illustrates appropriations allocated for the social services: >>
Development Expenditures
Spending on development projects is estimated at RO 900 million in 2021 Budget, representing the estimated amount to be paid during the year as per the actual work in progress for the projects. The development projects have been reprioritised in terms of its urgency, cost, and economic and social return.
Gas Purchase and Transport
The expense of purchasing and transporting gas estimated at RO 780 million in 2021 Budget, accounting for 8 per cent of total current expenditures.
Subsidies
The appropriations allocated for subsidies are estimated at RO 800 million, including subsidies for electricity, water, sewage and waste sectors. In addition to subsidies for oil products, housing and development loans.
Housing Aid, Social Housing Scheme and Housing Loans
Oman Housing Bank will continue providing housing loans, with a total allocated amount of RO 100 million.
Oil Products Subsidy
The total appropriations allocated for oil products subsidy are estimated at about RO 35 million.
Public Debt Service
Expenses of servicing public debt are estimated to reach RO 1.2 billion in 2021, due to higher public debt and interests. Moreover, an amount of RO 150 million has been allocated in the budget to partially repay future loans.
Deficit:
According to budget estimates, the fiscal deficit for 2021 Budget is projected to be around RO 2.2 billion i.e. 8 per cent of GDP, lower than the preliminary results of 2020 by 47 per cent.
The deficit will be financed through external and domestic borrowing by 73 per cent i.e. RO 1.6 billion. The remaining deficit, estimated to nearly RO 600 million, will be covered by drawing on reserves.
Projects being financed outside 2021 Budget
The private sector, side by side the investments, is among the priorities of Oman Vision 2040. This vision seeks to place Oman into the ranks of advanced nations, by creating competitive business environment that is attractive to investment. In addition to enable the private sector to play a greater role in accelerating economic growth.
Oman Investment Authority
Local investments, carried out by OIA, are expected to total RO 2.9 billion in 2021. These investments will be put on a track that goes in line with the wider governance and priorities of Oman Vision 2040.
Energy Development Oman
The EDO will contribute by RO 1.3 billion to the investment projects related to oil and gas production in 2021. This will help to raise net revenue collected from oil and gas sector, and narrow the deficit.
Partnership for Development Programme
Partnership for Development (PFD) Programme, known as Offset worldwide, is an economic tool applied over more than 100 countries for various purposes, including economic development, implementation of economic and industrial projects, and transfer state-of-the-art technologies and knowledge. The MoF focuses on PFD in order to enhance and support three main sectors, as follow:
- Defence and Security Capability
- Human Resources Development and Knowledge Transfer
- Private Sector Development
The MoF has launched until now 17 projects including Oman Aviation Academy, in collaboration with Airbus, CAE and other government and private funds. In addition to Advanced Cybersecurity Academy, youth skills development programme, STEM Oman, and others.
Moreover, MoF is conducting a feasibility study for 14 proposed projects. Currently, 7 projects are underway out of which 5 projects are expected to be launched during 2021, including Leaders Development Centre in collaboration with Arizona State University.
MoF is also setting out a strategic plan to implement the projects, which fall within the Partnership for Development Programme, in industry sector and knowledge transfer area in alignment with Oman Vision 2040 and Tenth Five-Year Plan.
Public-Private Partnership Projects
The Public-Private Partnership (PPP) is considered as one of the economic policies that aim at developing national economy and diversifying sources of income. The MoF is responsible for the enforcement of PPP Law in order to encourage private sector to invest in the infrastructure and public services, in order to reduce the burden on public spending.
Key Sectors of PPP projects:
Seaports
Education
Environment
Transport
Health Care
Municipalities
Government Services
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