Oman has launched its Eleventh Five-Year Development Plan (2026–2030), setting out the second executive roadmap for Oman Vision 2040 and targeting an economic growth rate of approximately 4 per cent at constant prices.
The plan represents a pivotal phase in advancing economic and social transformation, built on comprehensive and sectoral policies focused on efficiency, sustainability and competitiveness.
It places particular emphasis on fiscal sustainability and economic diversification, which the government has identified as critical to safeguarding and sustaining long-term growth.
Low-carbon growth
A central priority of the plan is a gradual transition towards a low-carbon economy, alongside the implementation of sustainable environmental policies. These measures align with global efforts to mitigate climate change and preserve natural resources for future generations.
The Eleventh Five-Year Development Plan is structured across three time-bound work programmes:
- The First Work Program (2026–2027)
- The Second Work Program (2028–2029)
- A Complementary Work Program in 2030 dedicated to evaluation and preparation for the Twelfth Five-Year Plan
Oman Development Plan 2026 – 2030
From a planning perspective, the framework is organised around two principal pathways. The Economic Pathway focuses on leveraging economic levers to address challenges, drive sustainable diversification, enhance export capacity and generate employment.
The Developmental Pathway concentrates on strengthening infrastructure and meeting developmental needs to achieve balanced social and environmental progress, while raising household incomes in line with the ambitions of Oman Vision 2040.
Dr. Said Mohammed Al Saqri, Minister of Economy, said that the plan focuses on promoting promising economic sectors with high growth potential, strong job-creation capacity and meaningful contributions to Gross Domestic Product.
He identified Manufacturing Industries, Tourism and the Digital Economy as the three core sectors, supported by enabling sectors including Mining, Food Security, Renewable Energy, Transport and Logistics, as well as Education and Health.
He added that the Tenth Five-Year Plan (2021–2025) generated 175,000 job opportunities, while the new plan is expected to create 300,000 positions across the public and private sectors between 2026 and 2030.
This equates to 60,000 opportunities annually, comprising 10,000 in the government sector and 50,000 in the private sector.
Growth forecasts and investment needs
Dr. Nasser Rashid Al Maawali, Undersecretary of the Ministry of Economy, highlighted positive economic projections for 2026, with anticipated growth of 4 per cent and inflation maintained at 1.4 per cent.
He said preparatory work on the Eleventh Five-Year Development Plan began in July 2023 and included broad-based community participation to ensure alignment across state institutions and with the objectives of Oman Vision 2040.
Dr. Nasser noted that the plan requires additional investments estimated at OR15.6bn ($40.6bn), directed toward key economic and social sectors to accelerate growth and support a target rate of 5 per cent.
The plan sets out ambitious macroeconomic targets, including GDP growth of 4.6 per cent at current prices and 4 per cent at constant prices, an investment-to-GDP ratio of 28 per cent at current prices, FDI inflows equivalent to 11 per cent of GDP, and an inflation ceiling of 2 per cent.
It also aims to raise the private sector’s contribution to GDP at current prices to 56 per cent, with a private investment-to-GDP ratio of 21 per cent. Targeted growth rates include 4 per cent for non-oil activities and 2.6 per cent for oil activities at constant prices.
High-potential sectors in Oman
High-potential sectors are expected to lead expansion, with targeted growth of 5.9 per cent for Manufacturing Industries, 10.8 per cent for the Digital Economy, and 5.7 per cent for Tourism.
Supporting sectors are projected to grow at an average of 4.2 per cent for Agriculture and Forestry, 5 per cent for Fisheries, 6.2 per cent for Mining, 7 per cent for Transport and Logistics, 3 per cent for Education and 3.5 per cent for Health.
The financial framework for the plan is based on an assumed oil price of $60 per barrel. Average general revenues are projected at OR11.556bn ($30bn) over the plan period, compared with average public expenditure of OR12.222bn ($31.8bn), resulting in an estimated average deficit of OR666m ($1.75bn).
Key fiscal indicators include raising non-oil revenues to 37.4 per cent of total revenues by the end of the plan. Annual development spending is estimated at OR900m ($2.3bn), with an additional OR400m ($1bn) allocated annually for economic transformation projects.
Average annual allocations for social protection are projected at OR668m ($1.75bn).
The plan anticipates a major expansion in labour market programmes, strengthening the role of the Ministry of Labour’s Training and Employment Support Centre, enhancing employment frameworks for citizens in the private sector, and increasing the role of governorates in generating sustainable job opportunities.
New jobs in Oman
Economic modelling suggests around 700,000 job opportunities could be created during the plan period, including approximately 300,000 direct roles for Omanis across the public and private sectors.
Private-sector employment for Omanis is expected to be concentrated in retail (34.2 per cent), construction (29.8 per cent), industry (10.6 per cent), tourism (8.7 per cent) and transport (5.5 per cent).
In total, the Eleventh Five-Year Development Plan includes 190 strategic programmes spanning the priorities of Oman Vision 2040, alongside dedicated initiatives for the Information and Communication Technology sector and for youth and entrepreneurship.
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