Tradition of Smart Planning to Boost Economic Diversification
Total Page：16
File Type：pdf, Size：1020Kb
#Oman Our World Tuesday, November 18, 2014 OMAN Tradition of smart planning to boost economic diversification This supplement to USA TODAY was produced by United World Ltd., Suite 179, 34 Buckingham Palace Road, London SW1W 0RH – Tel: +44 20 7305 5678 – [email protected] – www.unitedworld-usa.com While the hydrocarbon industry remains as a strong backbone to the Omani economy, the sultanate is promoting other sectors and industries as well as bolstering the education system to prepare young Omanis for a future characterized by a larger private sector and more diversified economic base here’s a revolution long-term plan to move away and other sectors to break the According to Mr. Hvidt, more under way in the from oil. economic dependence on oil. than half of total spending Middle East, and it’s Economic diversification On the tourism front, the in the current five-year plan, not characterized by away from oil has been at the government is touting Oman’s which runs until 2015, is ear- mass demonstrations, upheav- heart of Oman’s series of five- diverse geography and un- marked for the construction Tal and government overthrows. year plans since they were start- expected beauty. The third- and modernization of airports, It’s in the Sultanate of Oman, ed in the 1970s. Under the first largest country on the Arabian roads and other transportation and has been going on quietly plan, the government invest- Peninsula offers unusual land- means. Another 26% is allocat- for decades. Under the lead- ed heavily in projects to devel- scapes for the Middle East, with ed to developing seaports, wa- ership of His Majesty Sultan op industry, mining, farming fjords and sometimes snow- ter supply systems and housing. Qaboos bin Said al Said, the and fishing. Oman is now in its capped mountains punctuat- International consortia, main- Gulf nation is steadily reinvent- eighth five-year plan, which is ing desert vistas. Overlooking ly from Europe and Asia, have ing itself and, slowly but sure- part of a broader strategy called the Persian Gulf, Gulf of qualified to bid on a project to ly, moving its economy away Vision 2020 to build a more Oman and the Arabian Sea, build a 1,400-mile-long high- from dependence on oil to one diverse, sustainable economy Oman also offers unspoilt speed rail network, the first that generates income and jobs that creates jobs for Omanis. beaches, and its capital, Muscat, phase of which is expected to in fields ranging from tourism The plan aims, by the year combines cosmopolitan charm be operational in 2018. and industry to mining, farm- 2020, to boost private sector with Middle Eastern traditions. Oman has already seen some ing, and more. activity and educate Oman’s Attracting foreign inves- success in cutting its depen- Unlike most of its neighbors workforce so that they have the tors is key to Oman’s diver- dence on petroleum. – the exception is Saudi Arabia skills to fill the jobs that are cre- sification drive, and in that Oil’s share of total export – Oman has a long tradition of ated. Education levels and skill light, the sultanate has been revenues have dropped from economic planning. H.M. Sultan sets in Oman are low at pres- easing the rules on foreign 90% to about 65% since 1990, Qaboos and his government ent, and many jobs are filled by property ownership and for- French bank BNP Paribas re- launched the first five-year plan foreign labor. “I AM woRKING FOR OMAN – eign-owned businesses. Since ported last year. That compares for development in 1976. But under Vision 2020 and THE COUNTRY AND its PEOple… 2006, foreigners have been al- favorably to four other member That plan was driven by the the plan that will succeed it FOR ME IT IS A DELIGHT to SEE MY lowed to buy freehold prop- states of the Gulf Cooperation knowledge that Oman’s oil re- – Vision 2040 – Oman is re- CouNTRY AND MY PEOPLE IN THE erty in certain parts of Oman, Council – Bahrain, Saudi serves are neither infinite nor vamping its education system and the laws of the investor’s Arabia, Qatar and Kuwait – the biggest in the region. In to focus on science, technol- situatioN I IMAGINED FROM THE country of origin dictates who where there have been no ma- fact, Oman is a minnow in oil ogy, engineering and mathe- VERY FIRst DAY I ASSUMED PowER. inherits that property. jor changes in 20 years in oil terms. It sits on proven reserves matics. The aim is to prepare I FEEL THat I AM A MAN witH A Furthermore, property own- export revenues. of an estimated 5.5 billion bar- Oman’s large youth popula- ers and their immediate family BNP Paribas also praised rels, or around 0.4% of global tion to take on the jobs that MISSION RatHER THAN A MAN are given residency in Oman. Oman for the “spectacular” oil reserves, and experts have H.M. Sultan Qaboos’ vision- witH autHORITy” Oman also allows some busi- leap in contributions from the predicted Oman’s wells will ary plans will create, and to nesses to be 100% foreign- non-oil sector to GDP since run dry in less than 20 years. give employers the skilled lo- H.M. SULTAN QABOOS BIN SAID AL SAID owned, if the investment is 1990. In Gulf countries as a The sultanate reached peak cal workforce they need. deemed to be in the interest whole, the non-oil sector’s oil production of around In a report for the London term aim of a productive and reserves, that’s well within of the country. Most business- share of GDP grew from 54% 960,000 barrels per day (bpd) School of Economics, Martin diversified economy.” the realm of possibility. es can only be 70% foreign- in 1990 to 72% in 2010, while in 2001, before falling to a low Hvidt, an associate profes- Among its goals are re- H.M. Sultan Qaboos’ gov- owned, however. in Oman, it rose by 10 percent- of 710,000 bpd in 2007. By har- sor at the University of ducing the oil sector’s con- ernment is also seeking to Developing the sultan- age points more – from 43% to nessing enhanced oil recovery Southern Denmark’s Center tribution to GDP to 9% by boost tourism, education, in- ate’s infrastructure is another 71% – in the same period. A techniques and because of new for Contemporary Middle 2020 from its current share formation technology, mining key element in Vision 2020. spectacular rise, indeed. discoveries, Oman has bumped East Studies, summarized of 40%. The plan also aims production back up to nearly Vision 2020 as aiming to to increase natural gas’ con- A UNITED WORLD SUPPLEMENT PRODUCED BY: 960,000 bpd, where the govern- bring “diversification, indus- tribution to GDP from 1.5% Pablo Delcassó, Karla Arteaga, Lucas Nuttall ment is hoping to sustain it for trialization, privatization and ‘in 1995 to 10% when Vision and Andrew Machaj. Special thanks to National the next five years. increased integration into the 2020 reaches its final year. Ferries Company and to Dr. Raman and Dr. Arul Yet that does not mean global economy” to Oman, With an estimated 34.6 tril- Shanmugam from Al Hayat International Hospital it is backing away from its “in order to achieve the long- lion cubic feet of proven gas Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 2 Distributed by USA TODAY OMAN Bilateral trade on the rise, as is variety of Omani exports A free trade agreement between the two nations has boosted two-way trade. Ithraa, Oman’s investment promotion agency, supports the government’s economic diversification efforts by “I AM GRatEFUL endorsing the country’s FOR ALL THE non-oil exports U.S. HAS GIVEN to OMAN, .S.-Omani relations PARTICULARLY are nearly as old as IN... TRANSFER OF the Constitution. TECHNOLOGY to Ties were forged THE YOUNG PEOPLE between the two countries un- IN OMAn“ Uder the presidency of George Washington when, in 1790, a DR. YUSUf BIN ALAWI BIN brig ship called the Rambler, ABDULLAH, captained by Robert Folger and Minister of foreign Affairs sailing out of Boston, dropped anchor in the port of Muscat. Five years later, another brig, the Cadet, which sailed out of Salem with Charles Derby at the helm, reached Muscat. Der- by sailed back to Massachusetts with a cargo of coffee, mark- ing the beginning of a thriving trade between the merchants of Salem and Muscat. Since those early days, the two countries have signed several treaties, and established formal diplomatic relations in 1972. In 1980, Muscat and Washington U.S Secretary of State john kerry speaks to staff of U.S. embassy Muscat, Oman on May 22, 2013 (State Department Photo/Public Domain) inked a military cooperation agreement, which was renewed OMANI EXPORts to THE with Omani companies and portation network,” the State age is quite interesting,” he says. and revised in 2010. And since U.S. HAVE INCREASED tap their local expertise. Department says. Efforts to diversify the econ- 2009, they have had a free trade BY 60% AND U.S. The State Department Minister of Foreign Af- omy, and move it away from agreement (FTA). EXPORts to OMAN ARE describes Oman in glowing fairs Dr. Yusuf Bin Alawi Bin oil-only, have also helped to “PRESIDENT According to the U.S. Em- UP BY MORE THAN 26% terms: the country with a mod- Abdullah underscores the sul- open Oman to outside invest- OBAMA AND bassy in Muscat, Omani ex- ern business law framework; tanate’s successful efforts, as ment.