Despite the difficulties and challenges facing some GCC state economies, including Oman, the value of projects stemming from partnerships between the public and private sectors are expected to reach about RO 2.5 billion ($6.5 billion) by the end of the Ninth Five-Year Plan next year.
The Public Authority for Privatization and Partnership (PAPP) is currently reviewing other partnership project initiatives to be offered to the private sector during the upcoming phase.
Such partnership programmes are an affirmation of the government’s interest in working with the private sector, and its complete confidence in the sector’s capabilities to take the lead in economic diversification efforts to achieve higher economic growth and enhance the competitive edge of the Omani economy.
This was confirmed by the concerned entities who took part in a forum organised recently alongside experts from the US, Britain, the Netherlands, Canada and a number of GCC states, together with Omani executives who shared their local experiences in the area of PPP.
Oman is paying great attention to the non-hydrocarbon sectors. By the end of 2018, the contribution of non-hydrocarbon activities increased to about 70 per cent of the Gross Domestic Product (GDP), in which the private sector had a significant role in achieving.
Meanwhile, it continues to adopt its future vision (Oman 2040) based on the concept of partnership between the public and private sectors as a main pivot of the vision, using the same tools as other countries worldwide in establishing, funding and operating development projects with the aim of providing public services to citizens.
Partnership programmes between the public and private sectors are expected to achieve the Sultanate’s Sustainable Development Goals (SDGs). This is through promoting private sector investments and utilising its specialised experiences and abilities in establishing, funding and operating projects, improving the quality of services offered to citizens and residents and creating new employment opportunities in the Omani market for jobseekers.
Oman has recently issued several new legislations aiming at regulating and stimulating investment climate, including the Foreign Capital Investment Law, the Commercial Companies Law, the Public-Private Sectors Partnership Law, the Bankruptcy Law and the Privatization Law, along with establishing the PAPP to supervise the implementation of government policies in the field of partnership in line with the country’s economic development priorities.
The upcoming period will witness further collaboration and effective long-term partnership between the public and private sectors in Oman as the government intends to launch new projects. 38 projects are currently being reviewed in multiple sectors, including health, education, transport and others.
These projects belong to 11 government entities that provide services to citizens and expatriates. Such projects, will undoubtedly, open new horizons for investors while creating an attractive investment and business climate that allows finance companies to contribute in enhancing local and foreign investments in the country.
Many countries worldwide are depending today on the private sector as a main pivot of development. Private sector activities contribute to upgrading the level of services and providing employment opportunities for cadres entering the job market.
Oman’s experience with the private sector is not fortuitous, but harks back to the dawn of the Blessed Renaissance in the 1970s. Meanwhile, the government supported in the past years projects for electricity generation, water desalination, seaport management, telecommunications, housing and many more, which were implemented by private sector companies.
Partnership with the private sector will enhance its competitive edge and integration in projects. Partnership means trust, cooperation and integration among all parties, representing a joint responsibility for serving society goals, not to mention that this performance between both sectors creates a sense of competitiveness.
With respect to new laws, the upcoming phase will witness further investment opportunities by activating these laws, facing challenges and assessing risks.
Because the Omani population is small, we have a myriad of opportunities to strengthen partnership between the government and the private sector through partnership projects, whether with small or large-scale companies, which requires building trust and keeping a close eye on any mistakes to identify and tackle problems on the spot.
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