Enhancing Economic Competitiveness in Oman: Path for Sustainable Growth

Abstract

Oman has achieved remarkable economic growth since the beginning of the new reissuance. In 1970, Oman moved to modernisation with the periodic five-year economic plan, which started in 1976. Currently, Oman is at the eleventh five-year plan. In addition, Oman Vision 2020 contributed to bringing Oman to its current state despite the deficiencies facing all plans and visions. This situation again triggered aspiring goals in Oman's 2040 vision that aims to move Oman to a non-oil-dependent economy and sustain a good level of economic growth. The over-reliance of Oman on its oil sector resulted in vulnerabilities, limiting its long-term competitiveness and economic diversification. This article summarises the various concepts of economic competitiveness, provides a wide overview of Oman's economic situation, explores the economic plans and visions used in Oman's economy, and tries to build a conceptual framework by studying journal articles about Oman's economic competitiveness, growth, and sustainability. The findings reveal that governance reforms, diversification into non-oil sectors, and improvements in human capital heavily influence Oman's economic competitiveness. However, challenges such as regulatory inefficiencies and reliance on oil revenue persist as major barriers. It recommends strategic approaches to improve governance, innovation, and workforce capabilities to enhance the country's global economic competitiveness. The implications of this study for different stakeholders are to focus on policy development, expansion by diversifying FDIs, human capital development, quality strategic planning, and execution. Recommendations for future studies to explore sector-specific competitiveness, comparing Oman to other oil-rich economies, such as Norway pursuing diversification policies may provide insights into best practices.