Oman’s Reinvention Is Making It One To Watch
How the Middle Eastern sultanate is leading into a prosperous future
The Omani government’s recently published Vision 2040 is a detailed portrait of a society completely reimagined from the ground up, propelling it into the top tier of international culture and trade in the process.
Enhancing socio-economic prosperity, boosting opportunities, and creating an empowered population for a strong economy is central to the plans. And for Omani nationals and foreign expats, the diversification strategy is providing prospects for investment and employment.
And while the challenges and resources available to Oman’s neighbors differ, this intricate roadmap could form the template for transformation in other nations across the world.
Vision 2040
The goal of Vision 2040 is for Oman to build on its impressive credentials; its strength in security, IT infrastructure, and a knowledgeable workforce, paired with political stability give it the ability to grow from a position of power.
The sultanate intends to enter the top 20 of various international indices, including the Ease of Doing Business Index, currently 68th globally and the first in the Gulf Cooperation Council region in cross-border trading, Environmental Performance Index (currently 110th), and the Global Competitiveness Index (currently 53rd.)
These targets serve as tangible metrics for the success of a comprehensive roadmap to decentralizing and diversifying Oman’s economy – a sweeping strategy to reconfigure everything from education to the nation’s legislative framework.
Arguably the most salient aspect of the document is a clear-eyed assessment of the sultanate’s alternative resources, accompanied by a targeted investment strategy to capitalize on them.
Diversifying the economy
Oman is blessed with pristine beaches, rolling dunes, and 7,000 years of heritage – wonders currently yet to be discovered by global tourism. By 2040, the Ministry of Heritage and Tourism (MoHT) intends to serve 10 million visitors per year by leveraging a new passenger terminal at Muscat International Airport, alongside expanding the capital’s hotel capacity.
With its nearly 2,000 miles of coastline, Oman already boasts the world’s largest shrimp farm in Barr Al Hikman. However, the rest of the fishing sector remains 99% artisanal. But with an estimated $1.6 billion earmarked in private investment, the industry is projected to add 11,000 jobs and up to $900,000,000 to the economy.
Elsewhere, the country’s commodity expertise can be applied to extracting its substantial and diverse mineral deposits, currently lying undisturbed. It is estimated that 97% of Oman’s minerals are unexploited.
And the manufacturing sector – already one of the largest contributors to GDP – is set to receive greater investment to further grow subsectors such as petrochemicals, metal manufacturing, food processing, and healthcare products.
Of course, all these industries require world-class infrastructure to funnel visitors, goods, and capital in and out of the country.
The gateway to MENA
Oman already boasts an impressive 9.3 million TEU (Twenty-Foot Equivalent Units) throughput capacity across its three deep ports. Its five airports can carry 450,000 tons. Its $10 billion road network snakes towards the country’s borders, soon to be augmented by a $20 billion railway.
This impressive infrastructure is geared towards both facilitating domestic exports and serving as a regional gateway. Lying on the south-eastern coast of the Arabian Peninsula, bordered by Saudi Arabia, the UAE, and Yemen, Oman is ideally situated to access the increasingly significant Middle East and North Africa (MENA) markets, as well as the Asian subcontinent.
And a recent swathe of regulatory changes actively encourages foreign investment. It is now possible for foreign companies to operate without a local partner. Three free zones offer duty-free trade. Visa-free travel is available from 103 countries. Free trade agreements are in place with the U.S., EU, Singapore, and the GCC.
A modern renaissance
Oman describes its recent history as a ‘modern renaissance’ that began in the 1970s. This spirit of reinvention and renewal underpins Vision 2040.
With its bold and decisive roadmap, Oman is showing other states how they can achieve the profound transformation required for a diverse and growing economy, which benefits a population of Omani people, expat workers, and investors.
