ECONOMIC DIVERSIFICATION IN OMAN: PROGRESS, CHALLENGES, AND STRATEGIES TOWARDS VISION 2040

The study investigates Oman's economic diversification potential in Vision 2040 and examines the process of economic diversification in development, governance, fiscal policy, and global alignment. Oman has made modest advancements in the EDI score between 2000-2021 by 10 points, but continues to be among the lowest performing GCC countries for economic diversification. The study introduces a conceptual framework to provide a multi-dimensional approach to demonstrate the inter-relation between the following three core components: Governance and Fiscal Policy, Priority Sectors, and Global and Regional Alignment to achieve Economic Diversification Goals in the center. The conclusions of this study, founded on a literature review, support the function of governance in overcoming institutional barriers and the need to tap public-private partnerships (PPPs) in mobilizing foreign and domestic investment. By comparing and contrasting Oman with Saudi Arabia and the UAE, the study supports the need for Oman to accelerate reforms and invest selectively in sectors identified as high-potential areas to break away from the low point it has fallen to through diversification. Oman's goals as outlined in Vision 2040 are parallel with global agendas − the United Nations Sustainable Development Goals (SDGs). Vision 2040 provides an agenda to achieve sustainable and inclusive growth potential in Oman. The sectors identified tourism, manufacturing, renewable energy, and digital economy − are all high-potential but are contingent on obtaining necessary investment, infrastructure, and regulatory encouragement to enable them to achieve their highest level of potential.