Oman bets on SMEs, tourism for economic recovery

By Rahul Vaimal, Associate Editor
  • Follow author on
Representational Image

According to reports, Oman is banking on its non-oil sectors, including small-to-medium enterprises and tourism, to strengthen the local economy.

For next year, the Oman Chamber of Commerce and Industry has estimated an economic growth of 2.5 percent.

Ahmed Al-Hooti, the Chamber’s head of economic research said, “We feel that by next year the COVID-19 pandemic will be over and this means we could actually have some growth. But if the coronavirus remains or comes back stronger, then we cannot do anything about it.”

But the authority said that when it comes to local tourism, they are witnessing a positive trend. He explained, “Omanis are actually travelling inside the country and they are using the utilities inside the country, such as hotels and restaurants and such.”

Mr. Al Hooti added that while these factors would see several sectors in the country experiencing positive changes in the coming year, the development rate would not be consistent between one sector and the next, with some sectors of the economy taking more time to recover than others.

Funding for SME

Al-Hooti has called for more funding for the country’s small and medium-sized enterprise (SME) sector, which he said could play a crucial role during the pandemic.

He further added, “We are now pushing the banking and financing sectors to pump some money and help the small and medium enterprises to do better than now.”

Another optimistic spin-off could be the stimulus given to the economy that can generate employment for many more Omanis.