New Royal Decree Approves State Budget and 11th Five-Year Plan: Implications for Business Growth in Oman
His Majesty Sultan Haitham bin Tarik has issued two Royal decrees on Thursday, which outline key developments for Oman.
The first decree, Royal Decree No (1/2026), officially approves the 11th Five Year Development Plan (2026-2030). This plan was presented to the Council of Oman prior to the decree’s issuance.
- Article (1) endorses the goals of the 11th Five Year Development Plan, detailed in Annex (1) attached to the decree.
- Article (2) mandates that the plan will be implemented in accordance with its economic and financial framework as specified in Annex (2).
- Article (3) directs all state administrative units and public legal entities to execute the plan, ensuring compliance with existing laws and regulations.
- Article (4) states that the Ministry of Economy will release a Strategic Programs Compendium for the development plan in the first quarter of 2026, with specific projects identified each year through collaboration with relevant authorities.
- Article (5) assigns the Ministry of Economy the responsibility for monitoring and periodically evaluating the implementation of the plan’s strategic programs in light of local, regional, and global developments.
- Article (6) declares that this decree will be published in the Official Gazette and will take effect from January 1, 2026.
The second decree, Royal Decree No (2/2026), ratifies the State’s General Budget for Fiscal Year 2026, which was also presented to the Council of Oman.
- Article (1) confirms the ratification of the State’s General Budget for Fiscal Year 2026, as outlined in the accompanying tables.
- Article (2) instructs all state administrative units and public entities to implement the provisions of this decree within their respective jurisdictions.
- Article (3) states that this decree will also be published in the Official Gazette and will come into effect on January 1, 2026.
Special Analysis by Omanet | Navigate Oman’s Market
The approval of the 11th Five Year Development Plan (2026-2030) signifies a significant commitment to economic diversification and infrastructure development, offering a fertile ground for businesses aiming to align with government initiatives. Opportunities for investment abound in sectors prioritized by the new plan, particularly in sustainable development and technology; however, investors should also remain vigilant of potential risks tied to implementation delays or changing regulatory landscapes. Smart entrepreneurs and investors should consider strategic partnerships with government entities to leverage support and navigate the evolving market effectively.
