Oman's continuing efforts to diversify its economy are an example of how countries in the Gulf Co-operation Council can successfully move away from oil and gas, an official at the International Monetary Fund said on Thursday.
Muscat's Vision 2040 is among a number of “vision” plans in the region as countries continue to implement initiatives to diversify their economies.
An IMF mission to Muscat last month found implementation of Oman's Vision 2040 plan is advancing “decisively”, and it urged the sultanate to push through with its efforts to ensure sustainable growth.
The lender noted in particular progress the sultanate made on strengthening social safety nets, increasing labour market flexibility, strengthening its business market, advancing climate and digitalisation priorities, and continuing its state-owned enterprise reforms.
The UAE, Saudi Arabia, Qatar, Kuwait and Bahrain are also in the process of implementing reforms. Countries in the region are aiming to attract greater foreign investment by establishing stronger business-friendly environments, investing in infrastructure and advanced technology, and promoting tourism and other policy priorities.
“[A] success story in terms of growth, diversification and where they come from is Oman,” IMF mission chief to Saudi Arabia Amine Mati said during a discussion at the Arab Gulf States Institute In Washington.
Mr Mati also said Omani authorities have introduced efforts to be more financially prudent.
Recent IMF projections showed that Oman's economic growth was boosted by stronger non-hydrocarbon growth, which grew by 3.8 per cent in the first half this year.
Mr Mati said the Vision 2040 plan was “chugging along” despite falling oil prices. He said some countries in the GCC are moving more quickly than others, but noted many of the plans are continuing.
The IMF official was speaking after a presentation on a staff report outlining the GCC's outlook for 2025. The report said that the region's economic outlook remains positive despite conflicts in the Middle East, although medium-term risks do remain.
