Oman is demonstrating a strong commitment to balanced regional growth with a significant boost to the Governorate Development Program. Recent Royal Orders have increased allocations for the program to RO 270 million during the Eleventh Five-Year Development Plan (2026–2030), underscoring the nation’s dedication to enhancing social welfare and fostering economic opportunities across all governorates. This investment builds upon the considerable successes of the Tenth Five-Year Plan and directly supports the ambitious goals of Oman Vision 2040.
Royal Support for Oman’s Governorate Development Program
The decision to substantially increase funding for the Governorate Development Program highlights the Sultanate’s proactive approach to ensuring that the benefits of economic progress are shared equitably throughout the country. His Majesty Sultan Haitham bin Tarik’s directives are central to this initiative, aiming to empower local communities and leverage their unique strengths. The program, initially launched in 2022 with an annual RO 4 million per governorate, has quickly become a vital instrument for comprehensive and sustainable development.
Impact of the Tenth Five-Year Plan and Progress to Date
The groundwork laid during the Tenth Five-Year Plan proved instrumental in stimulating economic activity and creating employment opportunities. The Governorate Development Program has effectively capitalized on this momentum, focusing on utilizing the natural resources and comparative advantages specific to each region. This localized approach is key to its success.
Data released by the Ministry of Economy reveals impressive progress. By mid-2025, the number of completed and ongoing projects had risen to 1,089, a significant increase from the 941 projects at the end of 2024. Total spending reached RO 127 million between 2021 and November 2025, with a strong emphasis on supporting local businesses. Specifically, 950 contracts were awarded to small and medium-sized enterprises (SMEs), demonstrating the program’s commitment to fostering a thriving private sector.
Job Creation and Economic Diversification
The program’s impact extends beyond infrastructure development. It has generated 1,400 direct job opportunities and an additional 428 indirect jobs by the end of last year. This focus on employment is crucial for Oman’s economic diversification efforts, reducing reliance on traditional industries and building a more resilient economy. The program’s success in this area is a testament to its well-defined objectives and effective implementation.
A Diverse Portfolio of Projects
The Governorate Development Program encompasses a wide range of projects designed to improve infrastructure and enhance the quality of life for residents. A substantial portion of the investment is directed towards enhancing public spaces and tourism attractions.
Some key project areas include:
- Waterfront Development: 60 projects are dedicated to improving waterfronts, creating scenic viewpoints, and developing natural water springs.
- Parks and Recreation: 162 projects focus on the construction of parks and the creation of healthy walkways, promoting active lifestyles.
- Local Markets & Infrastructure: 80 projects are geared towards upgrading local markets, building modern slaughterhouses, and establishing convenient kiosks.
- Infrastructure Improvements: 259 projects are focused on general maintenance and land leveling, while 125 address road lighting and 97 focus on paving internal and industrial roads.
- Disaster Mitigation: Recognizing the importance of safety and resilience, 20 projects are specifically dedicated to rainwater drainage and flood protection.
Looking Ahead: The Eleventh Five-Year Plan and Beyond
With the commencement of the Eleventh Five-Year Development Plan (2026–2030), the Ministry of Economy is introducing 20 new strategic programs to further accelerate development. These programs will prioritize the creation of smart cities, the integration of rural and urban development initiatives, and the enhancement of spatial justice – ensuring that resources and opportunities are distributed fairly across all regions.
To support these ambitious goals, key enablers have already been established. The Governorate Competitiveness Index provides a framework for measuring and comparing performance across different regions, while an interactive platform monitors progress against 61 key indicators. This data-driven approach allows for informed decision-making and ensures accountability.
Capacity Building and Private Sector Partnerships
Recognizing the importance of skilled personnel, the program has invested in training 50 local officials in spatial and financial planning. This capacity building initiative will ensure that the increased budget is managed effectively and that projects are aligned with the overall development strategy. Furthermore, fostering strong partnerships with the private sector is a central tenet of the program, leveraging their expertise and resources to maximize impact.
Oman’s Vision for Sustainable Growth
The continued expansion of the Governorate Development Program is a clear indication of Oman’s unwavering commitment to economic diversification and long-term social stability. By empowering local communities, investing in infrastructure, and fostering a thriving private sector, the Sultanate is laying the foundation for a prosperous and sustainable future. This strategic investment not only improves the lives of Omani citizens but also enhances the nation’s attractiveness as a destination for tourism and investment. Stay informed about the program’s progress and its contribution to Oman Vision 2040 by visiting the Ministry of Economy’s website and following related news updates.
