Oman economy 2015 pdf

Talent, not capital, will be the key factor linking innovation, competitiveness and growth in the 21st century, and we must each understand better the global talent value chain. The sultanate of oman is the third largest country on the arabian peninsula, with a total area of 309,500 square kilometers approximately 120,000 square miles and a coastline which stretches for over 3,000 kilometers overlooking the arabian gulf, the sea of oman and the arabian sea. Infrastructure projects throughout the country are planned by the government. The country is currently undergoing a transition to a knowledgebased economy as outlined in its economic. Oman, country occupying the southeastern coast of the arabian peninsula at the confluence of the persian gulf and arabian sea. After 5 years of growth, omans economy contracted in 2015.

Omans inward investment and export development agency and kpmg in oman. The human capital index quantifies how countries are developing and deploying their human capital and tracks progress over time. For exports, fdi and gdp measures, a higher rank closer to 100% indicates a stronger economy. Country report oman raboresearch economic research. Oman gdp the economy remains under pressure in the second quarter. The vision for omans economy, its primary dimensions, the strategy of economic balance and sustainable growth and covers the challenges facing their achievement, in addition to the most important basis of the vision. Youth bulge phenomenon 15 figure 4 comparing public expenditures with public revenues of state during 20152000. No claims are made regarding the accuracy of oman economy 2020 information contained here. In 2018, a boost in the hydrocarbon sector is expected to drive the recovery as the khazzan gas production expands. Omans research and development spending between 2016 and 2017 averaged 0.

Oman diversifies economy as oil revenues shrink oman. Another cornerstone of investment is the construction of new roads and the upgrading of existing ones. The plan for economic diversification aims to move oman away from the oilandgasbased sources of income, and has earmarked five sectors that have high growth potential and economic returns. One of the member states of the gulf cooperation council gcc and categorized as a highincome economy, oman has an estimated population of 4. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks.

Better data and metrics are critical to this understanding. This liberalization brought several improvements to omans economy and to its citizens. The economy remains under pressure in the second quarter. Economic diversification in sultanate of oman amidst oil crises. The head of state is his majesty sultan qaboos bin said. Including reexports after transfers average 20062010, calculated by author on the basis of data provided by ministry of national economy. Omans economic outlook april 2018 world bank group. Oman is the 58th largest export economy in the world and the 64th most complex economy according to the economic complexity index eci. The report traces the trends and development in the major industries of omans manufacturing sector and. The budget and current account will remain in deficit throughout the forecast period even as oil prices remain stable. It has been the great vision of his majesty sultan qaboos bin saids that started omans economic diversification process, which in recent years has given a significant boost to the manufacturing industries in the sultanate. The world economic forums global competitiveness report 201516 ranked oman as the 62nd most competitive country out of 140, with a score of 4. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets.

From the year 1999, it improved further due to increase in oil prices. Over 15 years of exemplary journalism has made oer the first choice for news, views and analysis for ministers, members of the diplomatic corps and industry leaders. Today, protracted low oil prices are weighing on oman s economy, as deficits remain large and real gdp growth has slowed to an estimated 2. Al kalbani group announces opening of royal tulip muscat hotel.

As of january 2018, oman has sufficient foreign assets to support its currencys fixed exchange rates. Subsequently the production and export of petroleum rapidly came to dominate the countrys economy. The government is currently passing major fiscal reforms to help the economy adapt to the new situation of low oil prices and maintain the. Low oil prices mean oman faces rising unemployment and slashed public spending. The sultan returned to oman in march 2015 after eight months in germany, where he received medical treatment. Omans health spending to gdp between 2015 and 2016 averaged 4. Conversely, for unemployment and inflation, a lower rank closer to 0% indicates a. Oman economy gdp, inflation, cpi and interest rate. Figure 1 fluctuations in oil price main driver of omani economy 11 figure 2 oman. The challenges facing omans economy have been discussed and diagnosed. It is the 6 th from among 15 countries in the middle east and n orth african.

Oman vision 2020 has laid out plans to boost industrialisation within the sultanate and to encourage the private sector to take a more active role in the economy and in the provision of jobs, both of which are billed as key drivers for. Oil in commercial quantities was discovered in oman in 1964 and was first exported in 1967. Its overall score remained the same as in 2018, with higher scores for government spending, government integrity, trade freedom, and labor freedom matched by declines in scores for judicial effectiveness and five other factors. Analysis of omans 2019 budget total projected spending will amount to 12. Based on this and the potentials and basis available to the sultanate, the approved strategy for economic balance and sustainable growth has been formulated.

Economic growth is set to modestly recover over the medium term with gdp expected to increase by 2. Human capital report 2015 reports world economic forum. Continuing low oil prices cause crisis in oman business. Oman is a rural, agricultural country, and fishing and overseas trading are important to the coastal populations. Diversification, economy, economic growth, oman, oil crises. Oil is the major source of income for the economy and more than 80% of the countrys economy. This handbook should be used as an introductory research tool and not in place of detailed professional. Oman free trade agreement fta was intended to facilitate omans access to the large u. Oman is heavily dependent on oil and gas resources, which can generate between and 68% and 85% of government revenue, depending on fluctuations in commodity prices. Oman economic indicators the gulf economies in a low oil price environment mar 12, 2020. This page provides oman gdp actual values, historical data, forecast, chart, statistics, economic calendar and news. Oman s current gdp per capita has expanded continuously in the past fifty years. Tourism is a growing sector of the economy and is expected to grow 7. Oman moves closer to a postoil economy news al jazeera.

Oman gdp 19602019 data 20202022 forecast historical. It grew 339% in the 1960s reaching a peak growth of 1,370% in the 1970s scaling back to modest % growth in the 1980s and rising again to 34% in the 1990s. Over 200,000 omanis registered in public sector pension funds. Although the sultanates petroleum wealth has traditionally provided a backbone for growth, efforts are well under way to diversify away from hydrocarbons. Nonhydrocarbon gdp growth is estimated to continue to slow down to 2. New oil recovery techniques and greater efficiency. Oman vision 2020 has laid out plans to boost industrialisation within the sultanate and to encourage the private sector to take a more active role in the economy and in. Oman diversifies economy as oil revenues shrink oman 2016. Ministry of national economy, oman, the development experience and investment climate, 2008. Fiscal and current account deficits remain large, and with oman increasingly resorting to external borrowing to finance its deficits, public debt is rising rapidly. Oman is a highincome country that has seen strong growth in economic output and exports in recent years.

Tourism is fast growing business in oman and has a great impact on the economy of the country its self because it contributes to the economy in many ways such as. However, the economy is dominated by oil production, and the fall in international oil prices is putting pressure on gdp expansion as well. The gross domestic product gdp in oman was worth 79. Economies are ranked on their ease of doing business. To help reduce the spread of coronavirus cases nationally, the government has implemented containment measures in recent weeks such as travel restrictions, closing all schools and universities, as well as most shops and businesses. Renowned in ancient times for its frankincense and metalworking, oman occupies a strategically important location, for which it has long been a prize for empire builders. Introduction sultanate of omans economy has seen tremendous growth continuously for the past 50 years. Oman global economic prospects examines trends for the world economy and how they affect developing countries. Crude oil production, subdued in 2014, turned around by 4 per cent to 358 million barrels in 2015. Gcc states, but oman has only modest resources and has sought to attract foreign investment, including to fund the major development of al duqm port. Based on the 2015 index of econom ic freedom, oman is the 56 th freest economy with an eco nomic freedom score of 66. However, fiscal and monetary policy measures should help mitigate the headwinds. Doing business 2015 is the 12th edition in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Economy profile of oman doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a limited liability company dealing with construction permits procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety.

Add to cart 12 issues starting from april may 2020 digital access. Omans economic outlook spring 2016 the latest mena economic monitor report spring 2016, expects omans real gdp growth is 1. Oman 2020, with its main dimensions promulgated at the vision conference oman 2020 held in 1995, represent the first step in the sultanate march to build a vision through the second long term strategy 19962020 representing the work strategy of the second. But the crisis has also increased pressure to diversify the economy, as reese erlich reports from oman. In view of this, and to be in line with paca decision, oman air is to temporarily suspend service between mctcan v. It scored strongly for its macroeconomic environment 6 out of 7, while its lowest score was in the innovation category 3 out of 7. Though oman considered to be a desert city, manpower, infrastructure, technology and other resources has changed the country into a beautiful tourism place.

It provides a very high level summary of omans economic and legal frameworks and highlights important factors which should be considered before investing in oman. Emily frost looks at the economic development of oman. Economic diversification in sultanate of oman amidst oil. In 2017, oman joined most opec nonmembers in participating in oil production cuts, leading to a contraction of the hydrocarbon sector by 2. However, plans to accelerate economic diversification will be constrained by the impact of the coronavirus, sharply lower oil prices and global volatility. Analysis of omans 2019 budget analysis of omans 2019 budget on tuesday 1 january, oman revealed its 2019 budget. This study aims at analyzing the reasons behind the level of unemployment rate in the sultanate of oman. It is a small member of the opec oilcartel with a share of 0. Omans 10th fiveyear plan 20202025 is the first implementation plan of vision 2040, and will focus its efforts towards achieving economic diversification. In 2020 we expect the economy to contract and large widening of the currentaccount and budget deficits. As per the decision taken by paca, national committee for civil aviation security to temporarily suspend all flights between airports in oman and airports in mainland china.

In its fiveyear economic plan 20102015, oman has allotted 3. Oman s bicameral legislature, referred to as majlis oman the council of oman. Oman is known as one of the very popular attraction for tourist among gulf nations, with a verity of special sites it has become a tourist favourite destination. This page has economic forecasts for oman including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the oman economy. In oman, economic diversification is considered as one of the main objectives for the achievement of the vision for omans economy, and is formulated as part of the various economic development plans. The oil and gas sector continued to play a dominant role in the economy of oman in 2015. Omans current gdp per capita has expanded continuously in the past fifty years. Learn more about the oman economy, including the population of oman, gdp, facts, trade, business, inflation and other data and analysis on its economy from the index of economic freedom published. The economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them. Omans nonoil economy continues to grow and gather momentum.

All suggestions for corrections of any errors about oman economy 2020 should be addressed to the cia or the source cited on each page. English is widely spoken and used in the business sectors. Oman economy, politics and gdp growth summary the economist. Oman economic growth the economy is expected to suffer this year, owing to the fallout from the coronavirus pandemic and lower oil prices. This rate is comparable to other gulf nation economies that are dependent on the export of oil and gas.

Continuing low oil prices cause crisis in oman dw 17. Population projections according to the different scenarios 20402015 14 figure 3 oman. Oman is planning to boost mining and quarrying in order to contribute more than 2% of gdp by 2020 with an estimated yearly growth of 10. Oman is a small high income economy that is heavily dependent on oil resources. However, we discuss the dimension, policies and mechanisms associated with the. Business continuing low oil prices cause crisis in oman. Oil revenues represent roughly twofifths of gross domestic. Oman was ranked 62nd out of 7 countries covered by the global competitiveness index 20172018, four places higher than in 20162017h, with notable improvements in its macroeconomic environment and higher education and training. Oman intended to achieve the objective through providing. The population under the age of 30 made up around 52 percent of the omani population in 2017, the highest among the gcc countries. Omanis are tolerant towards believers of other faiths who are allowed to practice their religion.