The Sultanate's economy is projected to reach $95 billion by 2018, with the industrial sector emerging as the fastest growing sector with a significant contribution to the country's gross domestic product (GDP), according to a study conducted by a leading global management consultancy firm.
The Sultanate's GDP at the current prices soared by 11.6 per cent to $77.5 billion in 2012 from $69.5 billion last year, according to data released by the National Centre for Statistics and Information.
The country's Minister Responsible for Financial Affairs Darwish bin Ismail bin Ali Al Balushi expects the economy to grow by six per cent during the current year.
The economy sustained well even during the global economic recession, thanks to the prudent economic policies. "In recent years, the major focus of Oman economy is to stretch its dimensions in terms of economic growth and enter other sectors," said Lucintel, a leading global management consulting and market research firm.
Lucintel has conducted a competitive analysis of the political, economic, social, technological, legal, and environmental risks associated with the country to prepare a study titled 'Pestle Analysis of Oman 2013.'
Lucintel provides a brief overview of the major challenges faced by the Oman's economy.
Oman's overly oil-reliant economy renders growth rates highly volatile and prone to speculation.
Advanced economies are vulnerable to a second recession while emerging economies are also slowing down. There are chances that oil prices might decline.
Key drivers
The report gives a concise overview of the key drivers as well. The crude oil and natural gas industry is the backbone of the Sultanate's economy and features world-class refining, storage, and distribution infrastructure. Heavy investment in airport and port operations in southern Oman, near the border with Yemen, is expected which will possibly stimulate the domestic economy and create substantial export opportunities for foreign businesses.
Increasing pressure
The economy is witnessing an increasing pressure on the country's hydrocarbon resources due to its growing population.
To conserve its oil and gas reserves, the Oman government has introduced new policy reforms and is also focusing on diversifying its economic base by shifting the focus towards non-oil sector and services sector.
Times of Oman
8 September
