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Thu 16 Apr 2020 10:08 AM

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Covid-19: Oman orders government to cut spending, safeguards locals' private sector jobs

State companies will no longer be established for business activity in order to give way to the private sector

Covid-19: Oman orders government to cut spending, safeguards locals' private sector jobs

State companies will no longer be established for business activities to give way to the private sector.

Oman has instructed that government entities take further steps to cut funding and has announced a wave of measures to bolster the private sector amid the coronavirus pandemic, it was announced on Wednesday.

As part of the measures to mitigate the impact of the Covid-19 crisis, the sultanate’s finance ministry has instructed all other government ministries and civilian units to reduce liquidity for development budgets by 10 percent.

Additionally, state companies will no longer be established for business activity in order to give way to the private sector.

Earlier in the week, government agencies were told to slash operating budgets by at least 10 percent to help cushion the blow caused by lower oil prices.

For the private sector, the government mandated that Omani employees cannot be terminated, although they can be put on paid leave or their wages cut if companies have reduced their working hours.

For Omani nationals whose salaries have been lowered, bank and financing loans will be postponed during their salary reduction period. Electricity and water bills will be postponed until June.

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