MUSCUT: The future of Oman, situated along a vast stretch of coastline reaching the strategic Strait of Hormuz, is linked to the sea – and the country’s ability to leverage this connection will be key to its economic development in the years ahead.
2018 marks the middle of a five-year diversification strategy that builds on Oman’s long-term vision to shift from an oil based economy towards other critical sectors, including manufacturing, logistics, tourism, fisheries and mining.
In an era of low oil prices, Oman – which has the lowest GDP per capita among the Gulf Cooperation Council (GCC) countries and an unemployment rate surpassing 17 percent wants to refashion itself as a hub for shipping and industry. Facilities such as the special economic zone at Duqm, established in 2011 with a goal of becoming a commercial powerhouse, will play a significant role in this transition.
But how realistic is Oman’s diversification plan, and what obstacles could the Gulf nation face in the years ahead?
“We are aware that we live in a very critical area of the Middle East is like an island in a sea with a lot of challenges happening,” Talal Sulaiman al-Rahbi, the deputy secretary-general of Oman’s Supreme Council for Planning and the architect of the country’s economic diversification plan, told Al Jazeera.
“We are looking first into reducing the dependence on oil for the national budget, and also to diversify the economy and start other clusters of industries … in addition, increasing job opportunities in the private sector, away from government jobs. [These] are being looked at as key things to achieve.”
