Oman's development project funding soars by 72% to OMR11bn

Times of Oman

21-06-2025

Muscat: Significant progress has been reported in implementing the Tenth Five-Year Development Plan (2021–2025), which aligns with Oman Vision 2040, the Ministry of Economy said on Saturday.
Development project funding has surged by 72 percent to OMR11 billion compared to the initial OMR6.4 billion approved at the start of the implementation of the plan. This significant growth follows the completion and launch of numerous infrastructure and economic diversification initiatives across various service and social sectors.
These efforts are supporting the Vision 2040 goals of comprehensive, balanced development by upgrading public services, improving infrastructure, and enhancing investment in all governorates. According to the Ministry, 95% of the plan's 412 strategic programmes are already underway, spanning 14 national priorities and covering all the key pillars of the vision.
The Ministry said that all programmes related to the youth development priority have come into force. These programmes aim to govern and regulate the youth sector, enhance youth participation, and develop capabilities and skills of youth. All the three programmes implemented focused on governance, youth engagement, and skill development.
All the programmes under the health priority segment like building hospitals, enhancing health coverage, and digital transformation are being implemented.
The ministry further said that under the education and scientific segment 65 of the 70 programmes are active and include capacity building, governance reforms, career guidance, and innovation promotion.
In the citizenship, heritage and culture segment 43 of the 45 programmes have been launched. These focus on tourism data systems, national talent training and international cultural events.
In the social welfare segment 25 of the 26 programmes are operational and these include housing support, disability-inclusive festivals, sports promotion and social insurance sustainability efforts.
The ministry further said that under the Economy and Development segment 152 programmes are underway, 98% of which are already being implemented. These include in areas like advanced urban services, community organisation roles in housing, land development for investment, and decentralised economic management.
All the 17 programmes targeting the private sector, investment, and international cooperation are ongoing featuring loan guarantees, SME growth programmes and cost optimisation in the oil and gas sector.
Under the information and communications technology (ICT) priority, all the 20 programmes related have come into effect. This includes the national digital economy strategy, smart city networks, cyber awareness campaigns and digital upskilling programmes. The flagship initiative 'Makeen' has trained over 8,200 Omanis through 126 sessions and set the groundwork for Oman's future tech talent hubs.
Under the economic leadership and management priority, all the six associated programmes are currently being implemented. These include developing a more advanced and efficient public finance management system, establishing a national registry for government assets, creating an empowered and effective body responsible for coordinating economic decisions and preparing a national policy guide, and updating economic legislation to stimulate activity and enhance competitiveness.
Additionally, 60 out of 62 programmes under the economic diversification and financial sustainability priority have entered the implementation phase. They include initiatives such as empowering startups in Fourth Industrial Revolution technologies, expanding national data centre and government cloud services, strengthening innovation and operational efficiency in public institutions, unified global software licencing management, reviewing government service fees, monitoring the performance and competitiveness of the logistics sector, and maximising local value in transport, communications, and IT projects.
Other notable initiatives include support for national industries and Omani products, modernisation of financial legislation in the mining sector, updating the Mineral Resources Law, promoting investment in mining, developing a digital mining platform, enhancing local company and SME participation in the energy and mining sectors, and advancing digital transformation in government services.
Regarding the labour market and employment priority, 17 out of 18 programmes are being implemented. These focus on drafting the National Employment Strategy, improving labour policies and legislation, implementing an effective nationalisation (Omanisation) mechanism, rolling out replacement-linked training initiatives, offering specialised entrepreneurship programmes in cooperation with relevant agencies, and cultivating a culture of empowerment for national talent in the energy and mining sectors.
Under the Sustainable Environment pillar, a total of 56 programmes have been outlined, with 95% (53 programmes) already in implementation. These include key initiatives such as updating environmental policies and legislation, sustainable biodiversity management, a national strategy for chemical and agricultural soil conditioner management, regulation of pesticides and fertilizers, enhancement of palm productivity, the establishment of a national environmental monitoring and control system, development of a national environmental information system to support decision-making, and programs to support fishing vessels and equipment.
In the governance and institutional performance segment, 54 programmes are aligned with its priorities. As of the first quarter of 2025, 87% are in execution. Notably, 13 out of 14 programmes in the legislative, judicial, and oversight areas have been launched—covering anti-corruption, public fund protection, oversight capacity-building, governance of national resources and projects, and improving civil aviation security in line with international standards.
Within the public administration governance segment, 34 out of 40 programmes are currently active. These include ensuring governmental compliance, evaluating governance in state-owned enterprises, and developing legal, regulatory, and policy frameworks for the telecom and IT sectors. Other ongoing efforts include establishing a national innovation and change management system, an innovation lab for performance improvement, integration of e-government services, performance measurement systems, and upgrading the infrastructure and technical support for national networks.
Regarding development projects currently being implemented during the Tenth Five-Year Plan (2021-2025), the Ministry of Economy said that notable progress has been made.
In the infrastructure sector segment, Phase 1 of Sultan Haitham City is 80% complete, with Phase 2 at 45% completion. 25% of the structural planning for Greater Muscat, Salalah, Nizwa, and Haima have been completed.
In the road sector projects indicated varied completion rates: Khasab–Daba–Lima road at 40%, Adam–Thumrait dualisation at 32%, Al-Amirat's Al-Joud Street at 79%, Dhofar's Darbat tunnel at 90%, Sultan Qaboos Street dualisation in Salalah at 81% and various other road projects ranging from 20% to 86%.
In the social services sector, construction of health facilities is progressing strongly: Sultan Qaboos Hospital (Salalah) is 58% complete, Madha Hospital 86%, Suwaiq Hospital 77%, and other facilities such as Wadi Bani Khalid, Samail, Falah, and Namah Hospitals are progressing between 3% to 82%. The new Infectious Diseases Lab has reached 91% completion.
In the education sector, 69 new schools are being built across the Sultanate, with an average completion rate of 50%.
In the commodity production sector date palm weevil eradication has reached a completion rate of 80%, palm seedling productivity at 95%, desert locust control at 90%, agricultural and fisheries development at 59%, and animal disease surveillance at 95%.
Fishing port infrastructure upgrades are ongoing and the completion rate includes Daba Port (86%), Kumzar Port (45%) and data preservation in the oil and gas sector and smart monitoring of mineral output are also underway.
Finally, in the productive services sector, major projects are nearing completion: the Oman Botanical Garden (95%), municipal service improvements in Dhofar tourist areas (95%), coastal development in Shuwaymiyah and Taqah (20%), and multiple urban promenade and tourism marketing initiatives all contributing to enhanced service quality, tourism appeal, and housing aid delivery, with some projects like the housing assistance program achieving 92% completion