Economic Diversifications is one of the fundamental tools for the economic growth and resilience of any nation, be it a developed or developing country. Oman, being relatively a young nation, needs to practice is very vigorously.

Oman’s reliance on the oil economy, which in the past stood at 90 percent, has now come down to 70 percent. These figures are prior to the recent slump in oil prices. In the current scenario, it might have further improved as the oil revenue has seen a drastic drop.

So, whilst the percentage would reflect a healthier figure in terms of diversification, the real number may not be enough to grow and sustain. “We, therefore, need to carefully explore our potential in other sectors to improve the economy. The current critical environment of low oil revenue is the right stimulus to put all our efforts into looking for alternatives.

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Oman has a phenomenal landscape, rich reserves, and a reasonably large population – all the ingredients to explore the new avenues to growth. Even the incentives and the availability of power at economic rates are there, for the people to consider the options of alternative industries and services.

Lots of small to midsize industries in consumer products and some light engineering goods like biscuits, cooking oil, textiles, water heaters, steel rebar, paints, pipes, manholes, cement, cement products, and many more are produced locally and are products of international standards. They need to take a global view of reaching out across the nations.

Some sectors hold out great opportunities and potential for economic diversification in Oman. Tourism is one area for which a lot is being done. However, “we need to have a holistic view to enhancing revenue from this sector. We need to review our visa granting policies. We need to create better infrastructures and lots of other commercial and entertainment outlets to give the tourists an alternative or supplement their lifestyle”. Oman is blessed with a vast and picturesque landscape and interesting marine wealth. In fact, efforts are afoot to develop this sector but something more effective and comprehensive needs to be planned.

This vast and picturesque landscape can attract film shooting. The people here are fewer on the roads, a boon to the film shooting and most of the amenities are available at very affordable prices. If not in conflict with the local culture this is another opportunity to attract tourists and channel for economic development.

Construction Industry

There is a fair bit of industrialization in the construction industry. Most of the basic elements like cement, blocks, aggregate, sand, steel, concrete products, windows, doors, marbles, tiles, sanitary wares, a few electrical lights, control panels, and switch gears are produced in Oman. Thus the significant value of the components in the building construction and infrastructure works are locally produced. But as mentioned earlier they have not been able to capture the international market. They need to think big and build facilities that would make them globally competitive.
Al Ansari Group has done its bit in creating value additions to several sectors. Al Ansari assembles pumps and pumping sets for domestic and industrial use. It is also able to design and build sewage treatment and water treatment plants that hitherto were brought from overseas. Manufacturing of portable accommodations and offices are some of the areas for import-substitution and to promote the local products as well as the local talents.

Oman has the potential to do much more. “We need to change our approach; the regulatory bodies must make the industrial environment more conducive and offer more initial support so that the local industries can comfortably take off. At the moment most industrial enterprises in Oman find it difficult to compete with neighboring countries as they do not have similar costs. We need to provide confidence and assist them – make a friendlier environment. I am sure the business acumen, determination, and the skills are available here to take it forward”.

Oman enjoys several advantages in carrying forward economic diversification in certain areas. Oman is blessed with lots of natural reserves and a large population that is able and skilled.