Oman
Launches 11th Five-Year Development Plan (2026-2030)

Muscat,
1 Jan 2026 (ONA) — The Sultanate of Oman today launched its Eleventh
Five-Year Development Plan (2026-2030), the second executive roadmap for
“Oman Vision 2040,” targeting an economic growth rate of
approximately 4 percent at constant prices.

This
plan constitutes a fundamental phase for advancing economic and social
transformation, underpinned by comprehensive and sectoral policies founded on
efficiency, sustainability, and competitiveness. It places a distinct emphasis
on fiscal sustainability and economic diversification, priorities that are now
more critical than ever to safeguarding and perpetuating economic growth.

The
plan prioritizes a gradual transition to a low-carbon economy and the
implementation of sustainable environmental policies, aligning with global
efforts to mitigate climate change impacts and conserve natural resources for
future generations.

Serving
as a bridge from economic recovery to a phase of growth and expansion, the plan
is supported by a clear vision and integrated legislative and regulatory
frameworks, positioning the Sultanate of Oman on a promising trajectory toward
a prosperous and sustainable economic future.

The
Eleventh Five-Year Development Plan is characterized by the diversity of its
pathways in both temporal and planning dimensions. Its timeline is segmented
into three distinct work programs: The First Work Program (2026-2027), the
Second Work Program (2028-2029), and a Complementary Work Program in 2030
dedicated to evaluation and preparation for the Twelfth Five-Year Plan.

In
its planning dimension, the framework is structured around two principal
pathways: The Economic Pathway, which leverages economic dimensions as
catalysts to address challenges, drive the economic process toward sustainable
diversification, enhance national export capacity, and generate job
opportunities for the citizens. The Developmental Pathway concentrates on
reinforcing infrastructure and meeting diverse developmental requirements to
attain balanced social and environmental progress, while elevating household
income in accordance with the aspirations of “Oman Vision 2040.”

The
plan further emphasizes the adoption of programs and initiatives derived from
the work of cross-sectoral teams comprising various government and private
entities, alongside civil society institutions. Additionally, it incorporates
strategic programs deemed essential by the government for implementation in the
forthcoming phase, responsive to both local and international developments.

Several
strategic objectives have been delineated, encompassing the establishment of a
diversified and sustainable economy, a phased transition to a low-carbon model,
the enhancement of environmental sustainability, the promotion of economic
decentralization across governorates, the advancement of sustainable social
development, the strengthening of governance and institutional performance, and
the elevation of labour market and employment efficiency.

Dr.
Said Mohammed Al Saqri, Minister of Economy, stated that the plan focuses on
promoting promising economic sectors with high growth potential, job-creating
capacity, and significant contributions to the Gross Domestic Product. Three
core sectors were identified, namely Manufacturing Industries, Tourism, and the
Digital Economy. Enabling and supporting sectors include Mining, Food Security,
Renewable Energy, Transport and Logistics, as well as Education and Health, the
minister pointed out.

He
added that the preceding Tenth Five-Year Plan (2021-2025) yielded 175,000 job
opportunities, with an expectation of generating 300,000 positions in the
public and private sectors during the new plan’s tenure (2026-2030). This
translates to an annual rate of 60,000 opportunities, comprising 10,000 within
the government sector and 50,000 in the private sector.

For
his part, Dr. Nasser Rashid Al Maawali, Undersecretary of the Ministry of
Economy, noted positive economic projections for Oman in 2026, anticipating a 4
percent growth rate with inflation maintained at a stable 1.4 percent.

He
added that preparatory work for the Eleventh Five-Year Development Plan
commenced in July 2023, incorporating broad-based community participation to
ensure coherence across state institutions and alignment with the ambitions of
“Oman Vision 2040.”

Dr.
Nasser clarified that the Eleventh Five-Year Plan necessitates additional
investments estimated at RO 15.6 billion, channeled towards pivotal economic
and social sectors to accelerate economic growth and realize a target rate of 5
percent.

He
indicated the plan’s targets include a Gross Domestic Product (GDP) growth rate
of 4.6 percent at current prices and 4 percent at constant prices; an
investment-to-GDP ratio of 28 percent at current prices; a ratio of Foreign
Direct Investment (FDI) inflows to GDP of 11 percent; and an inflation ceiling
of 2 percent.

He
further added that the plan aims for the private sector’s contribution to GDP
at current prices to reach 56 percent, with a private investment-to-GDP ratio
of 21 percent. It also targets growth rates of 4 percent for non-oil activities
and 2.6 percent for oil activities, both at constant prices.

Dr.
Nasser explained that the Eleventh Five-Year Plan concentrates on
high-potential sectors poised to lead economic expansion: Manufacturing
Industries with a targeted growth of 5.9 percent, the Digital Economy at 10.8
percent, and Tourism at 5.7 percent.

He
affirmed the average targeted growth rates for the plan’s supporting sectors as
follows: Food Security (encompassing Agriculture and Forestry at 4.2 percent
and Fisheries at 5 percent), Mining at 6.2 percent, Transport and Logistics
Services at 7 percent, Education at 3 percent, and Health at 3.5 percent.

He
stated that the Eleventh Plan institutes a rigorous performance management
system for implementation and monitoring, utilizing clear indicators to track
progress toward goals and programs. This ensures efficient execution and a
tangible developmental impact on citizens’ livelihoods.

Regarding
the Tenth Five-Year Plan (2021-2025), Dr. Nasser confirmed a 97 percent
implementation rate, with 398 out of 411 strategic programs achieved. He noted
the plan’s success in addressing numerous economic challenges in the Omani
economy, with most sectors and indicators meeting their established targets.

The
financial framework for the Eleventh Five-Year Plan is predicated on an assumed
oil price of 60 US Dollars per barrel. Projections estimate average general
revenues at approximately RO 11.556 billion over the plan period, against
average public expenditure of about RO 12.222 billion, resulting in an
estimated average deficit of RO 666 million.

This
financial framework incorporates key indicators reflecting fiscal policy
approaches, including elevating the contribution of non-oil revenues to roughly
37.4 percent of total general revenues by the plan’s conclusion. Annual
development expenditures are estimated at RO 900 million, with an additional
annual allocation of RO 400 million dedicated to economic transformation
projects. Average annual allocations for the social protection system are projected
at RO 668 million.

The
Eleventh Five-Year Development Plan anticipates a significant expansion in
labour market programs and initiatives. This aligns with the government’s focus
on augmenting the financial resources of the Ministry of Labour’s Training and
Employment Support Center, enhancing regulatory and legislative frameworks for
citizen employment in the private sector, and amplifying the role of
governorates in fostering quality, sustainable employment opportunities.

Based
on economic modeling, approximately 700,000 job opportunities are forecast to
be created during the plan period, including about 300,000 direct opportunities
for Omanis in the public and private sectors—averaging 60,000 annually. The
plan also aims to generate further employment by continuously regulating the
labour market and employment policies to favour the national workforce.

Projections
indicate that new jobs for Omanis in the private sector will be predominantly
concentrated in retail (34.2 percent of total expected opportunities), followed
by construction (29.8 percent), and then industry, tourism, and transport at
10.6 percent, 8.7 percent, and 5.5 percent, respectively.

Strategic
programs have been defined for each national priority, alongside dedicated
programs for the Information and Communication Technology sector and the Youth
and Entrepreneurship sector. In total, the plan encompasses 190 strategic
programs distributed across the priorities of “Oman Vision 2040.”

—
Ends/AH