Muscat – Since assuming power on January 11, 2020, His Majesty Sultan Haitham has led the country through a time of global uncertainty, focusing on economic diversification, financial sustainability, and the strengthening of both the public and private sectors.

Under His Majesty’s leadership, Oman has undergone significant reforms that are aligned with Oman Vision 2040 and aimed at modernizing governance, while boosting the economy and enhancing social welfare. His Majesty’s reign has seen key advancements across various sectors, marking a transformative era for the Sultanate.

A cornerstone achievement has been the restructuring of the State’s administrative apparatus, with over 470 Royal Decrees issued to modernise governance. A pivotal moment was the promulgation of Royal Decree No. 6/2021, updating Oman’s Basic Law of the State, reinforcing governance principles, and laying the groundwork for a law-based state.

Of particular significance has also been the introduction of Social Protection Fund, which stands out as one of the pillars of social and economic development in the Sultanate of Oman, contributing effectively to achieving the goals of Oman Vision 2040. The year 2024 witnessed unprecedented achievements in the field of social protection, covering 1,514,015 beneficiaries across various branches of the Fund. 

Economic Diversification and Growth

One of the key highlights of the past five years has been the government’s successful efforts to diversify Oman’s economy. The Sultanate’s non-oil sector has flourished, particularly in sectors such as manufacturing, renewable energy, tourism, and fisheries, contributing to the overall positive growth of the country’s GDP. The Sultanate’s GDP at current prices recorded an increase of 2.7 percent by the end of the third quarter of 2024 to reach (at market price) RO 30,642.0 million.

Petroleum activities increased by 0.3 percent, recording RO 10,766.2 million by the end of the third quarter of 2024, compared to RO 10,728.9 million by the end of the third quarter of 2023, with the contribution of oil activities reaching 35 percent.

Total industrial activities increased by 5.4 percent, recording RO 6,095.4 million compared to RO 5,783.2 million at the end of the third quarter of 2023; while agriculture, forestry and fishing activities increased by 9.7 percent to reach RO 807.6 million, service activities recorded RO 14,071.8 million.

Fiscal Balance and Debt Reduction

A notable feature of His Majesty Sultan Haitham’s reign is the significant progress made in achieving fiscal stability. The government has implemented several policies designed to reduce public debt and ensure long-term financial sustainability. Thanks to the implementation of the 2020-2024 medium-term financial plan, public debt was reduced to about RO 14.4 billion by the end of 2024, down from RO 19.8 billion in 2020. This equates to a reduction from 67.9 percent to 34 percent of the country’s GDP.

This reduction was made possible by the government’s focus on improving public finances, controlling spending, and increasing non-oil revenues. As a result, Oman’s credit rating has also improved. Leading international credit rating agencies such as Standard & Poor’s, Fitch, and Moody’s have upgraded Oman’s rating, signalling a strengthened financial outlook for the Sultanate.

Growth in Private Sector and Investments

The private sector has been at the forefront of Oman’s economic development over the past five years, with a focus on encouraging entrepreneurship and attracting foreign investments. Sultan Haitham’s government has worked tirelessly to create an enabling environment for private enterprises through initiatives such as the National Program for Private Sector and Foreign Trade Development (Nazdaher). This has resulted in the increased participation of the private sector in driving economic growth, particularly in the areas of manufacturing, trade, and infrastructure.

Oman has also seen a sharp increase in foreign direct investment (FDI), with the cumulative value of FDI rising from RO 14.3 billion in 2020 to RO 25.4 billion by the first quarter of 2024. This growth in FDI flows has helped to strengthen Oman’s global economic ties and promote the Sultanate as an attractive investment destination in the region.

Positive Social and Economic Indicators

The success of His Majesty Sultan Haitham’s leadership is not only reflected in economic metrics but also in key social indicators. The government’s efforts to ensure economic inclusion and improve social services have yielded impressive results. 

It is important to note that Oman’s inflation rate has remained stable, averaging 1.7 percent from 2021 to 2023, falling below 1 percent by the end of 2023. The inflation rate was around 0.8 percent between January and October 2024. This reflects the success of the government’s measures to stabilize prices, particularly through initiatives such as fixing fuel prices and supporting basic foodstuffs.

Looking Ahead: A Vision for the Future

As Oman enters the next phase of its development under His Majesty Sultan Haitham’s leadership, the outlook remains positive. The government’s economic forecasting team projects nominal GDP to grow by 3 percent in 2024 and 3.4 percent in 2025, with continued expansion expected in the non-oil sectors.

His Majesty the Sultan’s vision for a diversified, sustainable economy driven by both public and private sector innovation continues to guide Oman toward a prosperous future. The successes of the past five years are a testament to the country’s resilience and the dedication of its leadership to improving the well-being of its people and securing a brighter future for generations to come.

As Oman celebrates this milestone in its history, it is clear that under His Majesty Sultan Haitham bin Tarik’s reign, the country is firmly on a path of sustained growth, economic diversification, and financial stability