Muscat has moved to broaden its technical partnership with the World Bank as the Sultanate of Oman accelerates economic reforms tied to diversification, employment and long-term competitiveness under Oman Vision 2040.
The Ministry of Economy held talks at its headquarters with a World Bank delegation led by Wendy Werner, Country Manager of the World Bank Group for the Sultanate of Oman, in a meeting centred on expanding technical cooperation across priority sectors. The discussions covered economic diversification, labour market development and the implementation of national strategic programmes, reflecting Muscat’s effort to bring global policy expertise into its next phase of development planning.
Dr Said Mohammed Al Saqri, Minister of Economy, led the Omani side in talks that also reviewed areas where advisory support can strengthen policy execution, institutional capacity and performance monitoring. The meeting comes as Oman enters the Eleventh Five-Year Development Plan for 2026-2030, the second executive roadmap under Oman Vision 2040.
The plan targets economic growth of about 4 per cent at constant prices and places diversification, private sector expansion and labour market efficiency at the centre of national policy. It identifies manufacturing, tourism and the digital economy as core growth sectors, supported by mining, food security, renewable energy, transport and logistics, education and health.
Oman’s cooperation with the World Bank has evolved over more than three decades, with the relationship shifting from lending to reimbursable advisory services after the country graduated from World Bank borrowing in 1987. A framework agreement signed in 1991 opened the way for annual technical cooperation, including work on labour market reform, small and medium enterprise development and public sector efficiency. A second framework agreement in 2015 expanded that engagement into macroeconomic modelling and development planning.
The World Bank Group has also opened a country office in Muscat, strengthening its ability to coordinate work across public sector advisory services, private sector investment and risk mitigation. That presence gives Oman a more direct channel for technical advice at a time when the government is seeking faster implementation of reforms and better integration between ministries, state entities and private investors.
Labour market development remains one of the central themes of Oman’s economic agenda. The 2026-2030 plan aims to generate about 300,000 direct job opportunities for Omanis in the public and private sectors, averaging 60,000 annually. Broader economic modelling points to about 700,000 total job opportunities during the plan period when indirect employment is included.
The labour programme is expected to rely on stronger private sector participation, targeted training, regulatory reform and closer alignment between education outcomes and market demand. Retail, construction, industry, tourism and transport are among the sectors expected to absorb a large share of new employment, while digital services and logistics are being positioned for higher-value growth.
Economic diversification remains urgent because hydrocarbons continue to shape fiscal performance and external earnings. Oman has improved its budget position since oil prices recovered after 2021, while public debt has fallen sharply from earlier pandemic-era levels. The government is seeking to use that stronger fiscal position to sustain reform rather than return to a spending model overly dependent on energy revenue.
The Eleventh Five-Year Development Plan envisages additional investment of about OMR15.6 billion in key economic and social sectors. It targets non-oil activity growth of 4 per cent at constant prices, a private sector contribution of 56 per cent to GDP at current prices, foreign direct investment inflows equal to 11 per cent of GDP and an inflation ceiling of 2 per cent.
Policy attention is also turning to performance management. The latest plan includes 190 strategic programmes aligned with Oman Vision 2040 priorities, compared with 411 programmes under the previous five-year cycle. The smaller number suggests a shift towards more focused execution, clearer indicators and closer monitoring of outcomes.
World Bank technical input could prove important in areas where Oman is trying to balance fiscal discipline with growth. These include investment climate reform, public enterprise governance, human capital development, sustainable finance and the design of labour policies that improve productivity without weakening business competitiveness.
The partnership also complements wider World Bank Group activity in Oman. Private sector arms of the group have supported sustainable finance, clean transport, renewable energy, water efficiency, tourism, healthcare, agribusiness and logistics. Risk guarantees have also been used to support infrastructure linked to Duqm port and industrial zone, a major component of Oman’s long-term logistics and industrial strategy.
The Ministry of Economy held talks at its headquarters with a World Bank delegation led by Wendy Werner, Country Manager of the World Bank Group for the Sultanate of Oman, in a meeting centred on expanding technical cooperation across priority sectors. The discussions covered economic diversification, labour market development and the implementation of national strategic programmes, reflecting Muscat’s effort to bring global policy expertise into its next phase of development planning.
Dr Said Mohammed Al Saqri, Minister of Economy, led the Omani side in talks that also reviewed areas where advisory support can strengthen policy execution, institutional capacity and performance monitoring. The meeting comes as Oman enters the Eleventh Five-Year Development Plan for 2026-2030, the second executive roadmap under Oman Vision 2040.
The plan targets economic growth of about 4 per cent at constant prices and places diversification, private sector expansion and labour market efficiency at the centre of national policy. It identifies manufacturing, tourism and the digital economy as core growth sectors, supported by mining, food security, renewable energy, transport and logistics, education and health.
Oman’s cooperation with the World Bank has evolved over more than three decades, with the relationship shifting from lending to reimbursable advisory services after the country graduated from World Bank borrowing in 1987. A framework agreement signed in 1991 opened the way for annual technical cooperation, including work on labour market reform, small and medium enterprise development and public sector efficiency. A second framework agreement in 2015 expanded that engagement into macroeconomic modelling and development planning.
The World Bank Group has also opened a country office in Muscat, strengthening its ability to coordinate work across public sector advisory services, private sector investment and risk mitigation. That presence gives Oman a more direct channel for technical advice at a time when the government is seeking faster implementation of reforms and better integration between ministries, state entities and private investors.
Labour market development remains one of the central themes of Oman’s economic agenda. The 2026-2030 plan aims to generate about 300,000 direct job opportunities for Omanis in the public and private sectors, averaging 60,000 annually. Broader economic modelling points to about 700,000 total job opportunities during the plan period when indirect employment is included.
The labour programme is expected to rely on stronger private sector participation, targeted training, regulatory reform and closer alignment between education outcomes and market demand. Retail, construction, industry, tourism and transport are among the sectors expected to absorb a large share of new employment, while digital services and logistics are being positioned for higher-value growth.
Economic diversification remains urgent because hydrocarbons continue to shape fiscal performance and external earnings. Oman has improved its budget position since oil prices recovered after 2021, while public debt has fallen sharply from earlier pandemic-era levels. The government is seeking to use that stronger fiscal position to sustain reform rather than return to a spending model overly dependent on energy revenue.
The Eleventh Five-Year Development Plan envisages additional investment of about OMR15.6 billion in key economic and social sectors. It targets non-oil activity growth of 4 per cent at constant prices, a private sector contribution of 56 per cent to GDP at current prices, foreign direct investment inflows equal to 11 per cent of GDP and an inflation ceiling of 2 per cent.
Policy attention is also turning to performance management. The latest plan includes 190 strategic programmes aligned with Oman Vision 2040 priorities, compared with 411 programmes under the previous five-year cycle. The smaller number suggests a shift towards more focused execution, clearer indicators and closer monitoring of outcomes.
World Bank technical input could prove important in areas where Oman is trying to balance fiscal discipline with growth. These include investment climate reform, public enterprise governance, human capital development, sustainable finance and the design of labour policies that improve productivity without weakening business competitiveness.
The partnership also complements wider World Bank Group activity in Oman. Private sector arms of the group have supported sustainable finance, clean transport, renewable energy, water efficiency, tourism, healthcare, agribusiness and logistics. Risk guarantees have also been used to support infrastructure linked to Duqm port and industrial zone, a major component of Oman’s long-term logistics and industrial strategy.
Topics
Oman