SINGAPORE: In spite of the fall in oil prices, which affected annual budgets of many GCC countries, the Sultanate remained committed to implementing infrastructure projects in various parts of the country.
Stating this in a report published by Singapore-based Frontera Research and Intelligence Centre, the most renowned investment centres in Asia, it hailed the efforts made by the Sultanate’s government to ensure economic development.
The report added that the construction sector accounts for about 8 per cent of the
Sultanate’s GDP.
The centre in its report said that the Sultanate has managed to avoid the negative effects of oil price fluctuations.
It also noted that Sultanate’s government has identified transport and logistic services as a priority sector in the 9th Five-Year Development Plan, as this sector is a key driver for development process in the region. It said that the government seeks to double the number of job opportunities in logistic and transport sector to 80,000 and its contribution to the GDP by 2020.
The report further added that key infrastructure projects covering a large number of sectors including transport, logistic services, oil and gas and construction are under way.
The report pointed out that the 9th plan aims at diversifying the economy, maximising the contribution of the private sector to the development process, increasing Omani participation in the private sector and ensuring financial compliance with the budget.
The plan targets 3 per cent growth rate on average per annum and constraining annual inflation to 2.9 per cent. It also seeks to reduce the contribution of oil sector to the GDP from 44 per cent to 26 per cent.
As per the report, the 2,135-km long railway project which connects Suhar, Salalah and Duqm with about $12 billion to $15.6 billion worth of investments is the biggest mega project to be implemented by the government.
The report also pointed out that the Duqm Port development projects include construction of two container terminals with a capacity of 3.5 million TEU by 2019.
The infrastructure and construction projects in the coming three years include road, helipads, potable water network, electricity, communication and other service projects.
The report hailed the efforts made to develop Suhar Port and increase its capacity to 5 million TEU by 2020.
About 95 per cent of the free zone has been already developed and leased out.
The Salalah Port development projects include addition of three container terminals, tourist terminals and other terminals to increase the port capacity to 7.5 million TEU.
It praised the efforts made to develop gas reservoirs in Khazzan and Makarem fields which cover about 2,800 km. The project, which is expected to provide one third of the Sultanate’s gas supplies, includes digging of 300 wells in 15 years.
The report added that the government implemented a number five-year development plans, the latest of which was the 9th Five-Year Plan (2016-2020) which is the last plan in Oman Vision 2020. — ONA
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