MUSCAT:  The Sultanate of Oman is among the top five Arab countries in the productive capacity index, according to the latest report issued by the United Nations Conference on Trade and Development (UNCTAD).

 The study – Sources of Economic Growth in the Arab Countries – said that the UAE, Qatar, Bahrain, Saudi Arabia and the Sultanate of Oman are the Arab countries with the highest productive capacity among the Arab countries. It pointed out that the productivity index in Oman rose from 27.7 percent to 34.6 percent in 18 years.

The study aimed to analyse the contributions of human and material capital, and capital stock to GDP (Gross Domestic Product ) growth, and to estimate the flexibility of human capital transactions and capital stock, to determine the degree of correlation between production inputs and outputs, using the Cobb Douglas production function.

The commodity production sector in the Arab countries is one of the most economic sectors that contributes to economic growth, and the extractive industries activity is one of the economic activities most affected by external shocks, while private consumption on the expenditure side is the main catalyst for economic growth in the Arab countries, the report said.

The exports of goods and services are among the most important items of expenditure, contributing to economic growth for Arab oil-exporting countries, the report stated and added that the contributions of human resources (the labour force) to the GDP of Arab countries exceed the contributions of cumulative capital.