The Sultanate of Oman has unveiled its Eleventh Five-Year Development Plan (2026–2030), a comprehensive strategy designed to build upon recent successes and propel the nation towards a future characterized by economic resilience, social equity, and environmental sustainability. This ambitious plan represents a continuation of the transformative “Oman 2040” vision, with a strong emphasis on improving the lives of Omani citizens and reducing reliance on oil revenues. The Oman Development Plan aims to create a more diversified and robust economy.
A Foundation Built on Oman 2040
The Eleventh Five-Year Plan isn’t starting from scratch. It’s strategically built on the foundations laid by the initial phase of “Oman 2040.” This first phase focused on strengthening financial stability, stimulating Gross Domestic Product (GDP) growth, and diversifying the economy beyond its traditional dependence on hydrocarbons. Significant progress was made in these areas, creating a platform for even more ambitious goals in the coming years. Furthermore, the initial phase demonstrated Oman’s ability to navigate global challenges, including effectively managing the social, health, and economic impacts of the recent pandemic.
Key Pillars of the Eleventh Five-Year Development Plan
The new plan prioritizes direct benefits for Omani citizens, focusing on bolstering the social safety net and expanding access to essential services. This includes increased social spending, enhanced subsidies for food commodities, and improvements to basic infrastructure. Significant investments are also planned for healthcare and education, ensuring a highly skilled and healthy workforce for the future. Alongside social improvements, the plan outlines substantial strategic projects in areas like economic diversification, road construction, and affordable housing.
Three Integrated Implementation Tracks
To ensure effective execution, the Eleventh Five-Year Plan will be implemented through three interconnected tracks. The Time track divides the plan into distinct work programs, providing a clear timeline for achieving specific objectives. The Integrated track fosters collaboration between technical teams and strategic programs, allowing for policy adjustments and sustainable growth. Finally, the Planning track links economic and social development, aligning initiatives with the broader goals of “Oman 2040” and the United Nations Sustainable Development Goals.
Driving Economic Diversification and Stability
A central tenet of the Oman Development Plan is the promotion of sustainable economic diversification. This involves fostering innovation, attracting foreign investment, and expanding non-oil exports. The plan recognizes the need to move beyond a resource-based economy and create a more knowledge-driven and competitive landscape. This shift will not only reduce vulnerability to global oil price fluctuations but also generate new opportunities for employment and economic growth. The focus on financial stability is also crucial, ensuring the long-term health and resilience of the Omani economy.
Investing in People and Infrastructure
The development track of the plan is equally ambitious, focusing on upgrading infrastructure across the Sultanate. This includes improving transportation networks, developing smart cities, and expanding access to digital technologies. Crucially, the plan emphasizes decentralizing governance, empowering local communities, and stimulating investment in the governorates. Alongside infrastructure, significant resources will be allocated to enhancing social services, improving household incomes, and empowering vulnerable groups. This holistic approach aims to create a more equitable and prosperous society for all Omanis.
Financial Allocations and Job Creation
For the year 2026, the plan allocates OMR5.2 billion to social and basic sectors, representing a 43% share of total public spending. This substantial investment will be distributed across key areas, with 40% dedicated to education, 26% to social security and welfare, 25% to healthcare, and 9% to housing. Furthermore, the plan earmarks significant funds for supporting food commodities (OMR614 million), electricity subsidies (OMR509 million), and employment programs (OMR100 million annually). A key target of the Oman economic growth strategy is the creation of over 300,000 jobs for citizens during the plan’s duration, averaging nearly 60,000 jobs per year.
Expert Perspectives and Future Outlook
Dr. Salem bin Abdullah Al-Sheikh, spokesperson for the Ministry of Economy, emphasized the plan’s commitment to financial sustainability, economic diversification, job creation, social welfare, and service quality. He also highlighted the plan’s flexibility, allowing it to adapt to unforeseen challenges and capitalize on emerging opportunities. Dr. Abdul Aziz bin Rashid Al Hashimi, Vice Chairman of the Shura Council’s Economic and Financial Committee, echoed these sentiments, stating that the plan is designed to protect citizens from global economic instability and ensure continued access to high-quality education, healthcare, and essential goods.
Social Goals and National Identity
The Eleventh Five-Year Plan sets out three core social goals. First, it aims to enhance decentralization and promote balanced development across all governorates. Second, it seeks to raise the efficiency of the labor market by supporting job seekers, encouraging entrepreneurship, and aligning education with industry needs. Finally, it focuses on promoting sustainable social development through improved social services, empowerment of vulnerable groups, and the strengthening of national identity. Investing in youth, women, scientific research, innovation, and the tourism and sports sectors are also key priorities.
In conclusion, the Oman Development Plan (2026-2030) represents a bold and ambitious vision for the future of the Sultanate. By building on the successes of “Oman 2040” and prioritizing economic diversification, social welfare, and sustainable development, the plan aims to create a more prosperous and resilient nation for generations to come. To learn more about Oman’s economic vision, explore resources on Oman Vision 2040 and stay updated on the latest developments in the region.
