Tenth Plan Launches Multiple Projects: What Investors and Entrepreneurs in Oman Need to Know
Muscat – The Ministry of Economy has expressed profound pride in the commendation by His Majesty Sultan Haitham bin Tariq Al Said regarding the positive outcomes achieved under the Tenth Five-Year Development Plan (2021-2025). These achievements reinforce confidence in the Sultanate’s comprehensive and balanced development strategy and affirm Oman’s ongoing commitment to economic diversification and sustainability, in line with the progressive growth of the national economy and improved financial and economic indicators as envisaged in Oman Vision 2040.
Dr. Nasser bin Rashid Al Maawali, Undersecretary of the Ministry of Economy, highlighted that His Majesty’s directives and the collaborative efforts among all stakeholders have been instrumental in meeting multiple strategic goals. These include attaining the targeted GDP growth rate set in the tenth plan, strengthening economic growth driven by non-oil sectors, achieving a fundamental shift towards financial sustainability, and advancing Oman’s credit rating alongside its global competitiveness standing.
The continued advancement of the economic diversification strategy and accelerated implementation of Oman Vision 2040’s development priorities—starting with the current plan—constitute a solid foundation for sustaining development goals throughout the Eleventh Five-Year Development Plan (2026-2030), with a strong focus on diversification.
During the tenth plan period, significant progress was made through the completion and operation of key projects and the initiation of numerous pivotal development ventures. These projects have played a vital role in diversifying production and export frameworks, expanding the economy, increasing employment opportunities, and attracting investment across various governorates. Notable initiatives include Sultan Haitham City, the Sultanate’s inaugural future city project, alongside the expansion of economic, free, and private zones such as the integrated economic zone in Al Dhahirah and the Al Rawdah Special Economic Zone in Al Buraimi.
Investments in development enhanced multiple service and social sectors, expanded healthcare infrastructure, launched strategic road projects, performed extensive road maintenance, and strengthened educational systems across wilayats and governorates.
Between 2021 and 2024, Oman’s real GDP grew by an average of 3.4%, nearing the 3.5% annual target outlined in the tenth plan. Non-oil sector growth surpassed expectations, averaging 4.1% against a target of 3.5%, while oil sector growth was 2.3%, slightly below the 3.5% target due to OPEC Plus-coordinated reductions in crude oil production.
Financial and economic indicators have continued to improve in 2025, with positive medium-term growth projections for diversification sectors, underscoring the sustainability of economic progress, enhanced investment appeal, and fiscal stability. Public debt fell to OMR 14.1 billion (34.1% of GDP) by mid-2025.
Oman’s investment-grade credit rating was reaffirmed this year as Moody’s upgraded it from “Ba1” to “Baa3,” reflecting the country’s strengthened financial position, efficient fiscal management, rising GDP, and the expansion of strategic projects. This resilience has enabled Oman to navigate oil production declines and global economic challenges effectively.
By the end of Q1 2025, cumulative foreign direct investment rose 20.6% year-on-year to OMR 30.6 billion. Non-oil exports grew by 9.1% in the first half of the year, reaching OMR 3.3 billion, while private sector deposits in banks increased by 6% to approximately OMR 22 billion. Loans and financing expanded by 8.4%, totaling OMR 34 billion.
The number of private enterprises across all sizes grew by 9.4% by Q1 2025 compared to the previous year, surpassing 268,000 businesses. Their contribution to GDP increased by 5.4%, amounting to OMR 8.4 billion. The Omani workforce expanded by 2.3%, reaching 863,932 citizens by July 2025 across government, private, family, and civil sectors.
Inflation remained moderate in 2025, with the Consumer Price Index recording 0.81% inflation from January to July. Despite a 0.4% decline in oil activity, GDP growth in Q1 2025 reached 2.5%, supported by a robust 4.4% expansion in non-oil sectors.
GDP growth is projected to reach 2.2% by the end of 2025, up from 1.6% in 2024, driven by increased crude oil production following eased OPEC+ restrictions and ongoing strength in non-oil sectors. This growth benefits from continued diversification, investment climate improvements, and the implementation of national initiatives that boost private sector performance and SME empowerment, crucial for generating jobs and attracting investments.
Dr. Al Maawali emphasized that through focused fiscal and economic sustainability efforts aligned with Oman Vision 2040’s first implementation phase, the Sultanate has achieved a balanced approach combining fiscal consolidation, economic stimulus, and social objectives. These efforts have expanded social protection, improved living standards, reduced public debt burdens, and enhanced credit ratings, paving the way for sustained, inclusive development.
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Oman’s successful execution of the Tenth Five-Year Development Plan underscores a strategic shift towards economic diversification and sustainability, significantly boosting non-oil sector growth and improving financial stability. For businesses and investors, this heralds expanded opportunities in emerging sectors and free economic zones, while smart entrepreneurs should leverage government incentives and infrastructure developments to tap into new markets. However, ongoing vigilance is needed to navigate oil production fluctuations and global economic uncertainties, ensuring resilience and sustained growth aligned with Oman Vision 2040.
