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Significance
A fiscal crunch exacerbated by the pandemic and associated oil-price crash has forced the authorities to step up long-term ‘Omanisation’ efforts, ultimately taking pressure off the bloated public sector wage bill. This comes as Sultan Haitham bin Tariq Al Said, one year into his reign, launches a raft of new political, military and economic initiatives.
Impacts
Oman will remain compliant with OPEC+ oil production cuts.
The sultanate will boost output at its competitive giant Ghazeer and Khazzan gas fields in Block 61 to benefit from high prices.
Muscat will prioritise agriculture, fisheries and logistics for non-oil growth but struggle to secure project financing post-pandemic.
Keywords:
Oman,
ME/NAF,
Gulf states,
economy,
social,
aid,
debt,
employment,
energy,
fiscal,
foreign investment,
gas,
investment,
oil,
prices,
private sector,
public sector,
Fossil fuels,
Transport & logistics
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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