Oman focuses on economic diversification and job creation

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Oman's real GDP grew by an estimated 4.5 percent in 2004 and 3.8 percent in 2005. In the face of declining oil production, economic growth has been resilient, and Oman has made significant progress in diversifying its economy, the IMF said in its annual economic review. Revenues from high oil prices have been used to develop non-oil sectors and create jobs. Nonhydrocarbon sectors grew by 8 percent in 2004 and 6 percent in 2005, driven by manufactured exports, construction, and services, including tourism.

Oman's banking system remains strong, bolstered by enhanced supervision, sound lending practices, and a healthy economy. The "Omanization" of the labor force, a program that makes national education a priority and generates job opportunities, continues.

Privatization efforts were stepped up with a 2004 law removing limits on foreign participation in privatized companies, partially privatizing the state telecommunications company (Omantel), and licensing a second mobile telephone company.

The IMF Executive Board commended the authorities for their outward-oriented development strategy and continued sound economic management, which have led to a rapid development of the non-oil economy, a stable monetary and financial system, large fiscal surpluses, and a sizable accumulation of foreign assets. Directors counseled Oman to continue its economic diversification and job creation...