MUSCAT, 4 May 2005 — Oman’s revenues rose to $10.8 billion last year from a projected $7.5 billion on the back of high oil prices despite a drop in production, a senior official said in remarks published yesterday.
But Oman, a small non-OPEC producer, is accelerating a campaign to diversify its economy and reduce dependence on its fluctuating oil income, National Economy Minister Ahmad bin Abdel Nabi Mekki told the Times of Oman. “The government’s priority is diversification of the domestic economy and creation of new job opportunities for citizens,” he said. “We are committed to speed up economic diversification to boost foreign and local investment.” Oman currently produces about 767,000 barrels per day, a drop from past levels, the newspaper said. The economy grew by 12.5 percent as the government’s public finance account showed a surplus of $1.2 billion in 2004.
Mekki said the government was also committed to liberalization and deregulation, and state-controlled concerns are increasingly being privatized. Omantel, the Gulf sultanate’s sole telecom service provider, will join the list on May 24 when 30 percent of its equity will be sold off. The minister said Oman’s exports rose by 14 percent in 2004 to more than $13.3 billion, while imports shot up 31 percent to $8.5 billion. Oil revenues, forecast at $4.2 billion, grew to $7.5 billion. This raised income to $10.8 billion from the projected $7.5 billion.
Mekki said the government’s seventh five-year plan, to be launched next year, also lays increasing emphasis on “diversification, financial stability, job creation, integration into the global economy and promotion of research and development.”
“We believe in sustainable economic development and are busy encouraging entrepenues to invest mega projects such as aluminum smelter, fertilizer and LNG projects, to name the top few,” he said.