An Assessment of Oman’s Economic Diversification Policy: Prospects and Challenges

This study offers insights into Oman’s economic diversification journey to considerably reduce its dependency on oil in relation to the policies introduced for this purpose and whether their implementation was successful. For this purpose, the study outlined a number of objectives to understand how Oman’s economic diversification policies were set and how extensive they were. It also examined the sectors covered by these policies and the challenges faced by the Sultanate in order to attain economic diversification. The study used qualitative methodology supported by quantitative analysis as the study needed some numerical analysis of the economic development. However, the qualitative research approach used document analysis and semi-structured interviews to understand the performance of Oman’s economic policies fully. The study found that Oman’s economic formulation developed positively from the perspective of increased stakeholder involvement; however, the implementation side remains an issue which needs to be taken seriously. Furthermore, the study determined that appropriate sectors need to be selected to focus on economic diversification, particularly that of the private sector, which does not yet have a major role. It also found a major issue in that local manpower needs to be equipped with the right current and future skills required to achieve the Vision 2040 targets. Therefore, the recommendations vary from finding a mechanism to assure adequate implementation of the policies that are firm and transparent through a measured approach to sector selection that needs to be more practical and linked to the advantages of the local attributes of Oman but which also takes into account what is happening in the wider Gulf region and neighbouring countries. The study also recommended that the country should give more economic power to the private sector across all stages of the economic diversification journey from the inception and/or amendment of new strategies to reflect this sector’s vital role. This, the study’s recommendations place emphasis on the human capital programmes, which are crucial for the sectors selected for economic diversification in the Sultanate.