Oman

The IT sector in Oman looks set to continue expanding on the back of a sharp rise in broadband and mobile phone take-up, together with falling costs across several services. However, while competition in the industry remains fierce, Oman is still struggling to close the gap on a number of its regional neighbours that are edging the Sultanate when it comes to innovation.

A number of new projects, concentrated on bolstering Oman’s infrastructure backbone, are currently filling the order books of domestic construction firms. However, some industry insiders have warned new regulations and a rising wages bill could see profit margins eroded even as activity increases.

Solar energy looks set to play a growing role in Oman’s energy mix as the Sultanate moves to address the two-fold challenge it faces of meeting rising demand for electricity while reducing state support for the power sector.

Efforts to open up new avenues for investment in family owned firms in Oman are gathering momentum as the authorities step up a bid to steer more local firms towards listing on the sultanate’s stock exchange.

Extensive plans to shift the focus of Oman’s oil export capacity away from the crowded Gulf waterways are gathering pace, led by the establishment of the newly-formed Oman Tank Terminal Company which will build, own and operate a huge storage facility positioned along the Sultanate’s eastern coast.

The government in Oman is channelling extra funding into education as part of a broader bid to provide its younger generations with the skills and qualifications needed to work in the modern economy. However, although the additional resources are a welcome step toward tackling key issues, such as improving students’ English language skills, it will take time for the benefits to trickle down into the economy.