New 5-Year Plan: How It Will Transform Business Strategies and Goals in Oman
Muscat – The Oman Economic Society welcomed Dr. Saeed bin Mohammed Al-Saqri, the Minister of Economy, to discuss the performance of the national economy from 2020 to 2025.
During the discussion, the minister addressed several pressing issues, including protectionist trade restrictions, the challenges posed by climate change and inflation, as well as rising global debt levels for the period spanning 2019 to 2025.
In response to audience inquiries, the minister affirmed that purchasing power remains stable and has not been adversely affected by inflation. He highlighted that approximately 35,000 Omanis secure employment each year, exceeding initial expectations set at the start of the Tenth Five-Year Plan.
The Ministry projects a 2.6 percent growth for the Omani economy in 2026, an increase from the anticipated 2.2 percent for 2025.
The upcoming Eleventh Five-Year Plan is designed to generate tangible developmental outcomes while ensuring broad community involvement in its formulation. The plan aims to align the work of state institutions and connect program planning with the long-term goals outlined in Oman Vision 2040 and the 2026-2030 Medium-Term Plan.
By the end of the second quarter of 2025, Oman’s public debt had decreased to RO 14.1 billion, down from RO 14.4 billion during the same period in 2024. The average annual growth target for the period 2021-2024 is estimated at 5 percent. Additionally, non-oil activities represented 73 percent of the Omani economy at constant prices in 2024.
New Legislation
The year also saw the introduction of several regulations by the Central Bank of Oman (CBO), including the Banking Law, the Investment and Trade Court, the Public Health Law, the Electronic Transactions Law, and the Financial Law. Other notable regulations included those governing Special Economic Zones and Free Zones, the Social Protection Fund Regulation, and the executive regulations of the Social Protection Law. Additionally, laws addressing real estate regulations and income tax compliance were enacted, with RO 577 million allocated for social benefits in the 2025 Budget.
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The discussion highlights strong economic growth and a diverse strategy focused on non-oil sectors, providing robust opportunities for businesses looking to invest beyond traditional oil avenues. However, ongoing challenges like trade restrictions and inflation indicate potential risks that investors must navigate. Smart entrepreneurs should consider engaging with new regulations and the growing sectors outlined in the Tenth Five-Year Plan, positioning themselves to capitalize on a projected economic upswing by 2026.
