Social Protection and Job Creation: Key Drivers of Oman’s 11th Economic Plan for Business Growth
MUSCAT — Social welfare and job creation are central priorities in Oman’s Eleventh Five-Year Development Plan (2026–2030). The government aims to enhance living standards, shield citizens from global economic fluctuations, and promote inclusive growth in line with Oman Vision 2040 through increased budget allocations and targeted programmes.
The 2026 budget allocates approximately RO 5.2 billion to social and basic sectors, marking a 4% increase from 2025 and accounting for 43% of total public expenditure. Education receives the largest share at 40%, followed by social security and welfare at 26%, health at 25%, and housing at 9%, highlighting the plan’s strong focus on social development.
Significant funding includes around RO 614 million dedicated to the social protection system and substantial subsidies for food commodities and essential services. Continued support for electricity, water, sanitation, transport, and petroleum products aims to curb inflation and protect households from rising global costs.
Employment remains a key pillar, with about RO 100 million allocated annually to job programmes throughout the plan period. The goal is to create over 300,000 jobs for Omanis, averaging roughly 60,000 new positions per year. Efforts will concentrate on accelerating job seeker absorption, expanding training and skills development, fostering entrepreneurship, and incentivising private sector employment.
Dr Salem bin Abdullah al Shaikh emphasized that the plan seeks to transform the labour market into a dynamic and attractive environment for national talent. This includes aligning education curricula with future skills needs, developing professional standards in emerging sectors, and empowering Omanis in the private sector with clearer career pathways. Governorates will have an enhanced role in delivering quality employment through local development initiatives.
The social focus extends beyond employment to encompass education, healthcare, and social inclusion. The plan prioritizes empowering youth, women, and people with disabilities, strengthening vocational training, promoting research and innovation, and supporting sports, culture, and community development to improve quality of life.
Dr Abdulaziz bin Rashid al Hashmi, Vice Chairman of the Majlis Ash’shura’s Economic and Financial Committee, stated that the plan upholds the social pillar of Oman Vision 2040 by maintaining spending on education and health, expanding social protection coverage, and sustaining subsidies that have helped keep inflation below 1% in recent years.
He added that ongoing investment in housing support, employment initiatives, and essential services provides stability for citizens and underpins Oman’s transition toward a knowledge-based economy driven by human capital. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s Eleventh Five-Year Development Plan prioritizes social welfare and job creation, allocating 43% of public expenditure to education, healthcare, and social security, which underscores a strong safety net and inclusive growth framework. For businesses, this translates into opportunities in education, healthcare, and vocational training sectors, while smart investors should eye emerging industries driven by enhanced national talent and government incentives for private sector hiring. However, the focus on subsidies and social protection also signals a need to monitor inflation and public spending sustainability, presenting both a risk and a chance for entrepreneurs aligned with the government’s vision for a knowledge-based economy.
