The construction industry is at a pivotal moment, with Oman Vision 2040 serving as a beacon of strategic foresight and sustainable development. This ambitious blueprint, born from extensive consultations with Omani citizens, is not just a roadmap for economic diversification but a testament to the country’s commitment to a resilient, globally integrated future. The vision, which began under the leadership of the late Sultan Qaboos bin Said and continues under Sultan Haitham bin Tariq, is steering Oman towards a future less reliant on oil, embracing instead a diversified economy driven by knowledge and technology.
At the heart of Oman Vision 2040 is the imperative of economic diversification. This means investing heavily in digital infrastructure, encouraging research and development, and nurturing new industries. Major regulatory reforms, such as the new Foreign Capital Investment Law, have been rolled out to catalyze private-sector growth and attract foreign investment. This law, which took effect in 2020, removes minimum capital requirements and allows 100% foreign ownership in many sectors, unlocking opportunities for significant foreign direct investment. Such reforms are crucial for Oman’s transformation, as they create an environment conducive to innovation and economic growth.
Oman’s strategic geography is another key asset in its economic diversification strategy. Positioned outside the Strait of Hormuz on major global trade routes, Oman is leveraging its location to become a logistics and trade hub. The development of Duqm, a vast special economic zone with a deep-sea port, along with upgrades at Salalah and Sohar ports, exemplifies this push. These investments aim to streamline the flow of goods, making Oman a vital link in global supply chains. The early results of this economic transformation are already visible: non-oil sectors like construction, manufacturing, and transport are growing quickly. Maintaining this momentum will require sustained reform, and Oman’s multi-pronged approach—from startup incubators to industrial free zones—is steadily transforming the economy.
Sustainable development is an overarching principle of Oman Vision 2040, and the fisheries sector stands out as a success story. With support from the World Bank, the government has crafted a Fisheries and Aquaculture Vision to create a profitable, ecologically sustainable sector. The innovation in this sector is yielding impressive results, with a recorded 7.5 percent sectoral growth in the first three quarters of 2024. This progress reinforces Oman’s ambition for economic diversification, with the sector aiming to reach 10 percent annual growth and contribute 2 percent to the national GDP.
Developing human capital is another key element of Oman’s vision. A skilled, educated populace is the bedrock of competitiveness. Educational reforms are underway to align curricula with future labor market needs and improve quality at all levels. Oman’s ambition includes ranking among the top 20 countries in global education indices by 2030, and top 10 by 2040. Investments in schools and universities over the past decades have dramatically expanded access, and now the focus is on boosting outcomes in science, technology, engineering, and math to nurture a knowledge economy.
Equally important, Oman is fostering a culture of research and entrepreneurship. Through its Ministry of Higher Education, Research, and Innovation, new programs are funding research and commercialization of ideas. Innovation parks and incubators have been launched in partnership with the private sector to mentor startups and turn student projects into marketable products. Aspiring young entrepreneurs receive support via financing initiatives and training programs, often co-sponsored by government and industry. These efforts are bearing fruit: a burgeoning startup scene is evident in Muscat, and the number of Omani tech SMEs is on the rise.
To ensure the successful realization of Oman Vision 2040, a specialized entity—the Oman Vision 2040 Implementation Follow-up Unit—was established by Royal Decree 100/2020. Reporting directly to the Council of Ministers, the Unit plays a central role in monitoring the progress of the vision, facilitating coordination across sectors, addressing challenges, and providing strategic support to align efforts with the national vision.
Oman’s journey towards realizing its 2040 vision can serve as a valuable case study for other countries navigating uncertainties and striving for economic diversification, sustainability, and global integration. The construction industry, in particular, can learn from Oman’s strategic approach to integrating sustainability and innovation into its economic development plans. As the world grapples with climate change and resource scarcity, Oman’s model of economic diversification and sustainable development offers a roadmap for a more resilient and prosperous future.