Planning & Development  

Development Strategy » First Long Term Development Strategy Objectives (1970-1995)

The development council approved, in February 1975, the Omani development strategy. Within its framework, four five-year plans were prepared covering two decades, the long-term objectives for the strategy are:

1. Working towards development of new resources for the national income beside the oil recourses and replace it in the future.

2. To increase investments directed towards income generating projects, especially in the areas of industry, mining, agriculture and fisheries

3. To emphasize on the development of domestic human resources capable of assuming its role in the Omani Economy.

4. To allocate investments among different regions, so that its benefits are shared equally by all the regions and citizens of the country. This will lead to the elimination of the variation in the standards of living among the regions. Special priority should be given to the least developed regions at present.

5. Supporting and development of present housing centers and their maintenance against the mass migration to densely populated centers.

6. Completion of the infrastructure.

7. Attention shall be given to water resources, as it is a vital element for the continuation of the economic activity and its development and maintenance of environment.

8. Supporting domestic trading activity through removal of difficulties of transport, storage and the different obstacles, which hinder the completion of the commercial markets. This is to increase the competitive activity and securing a reasonable level of prices.

9. Completion of the constituents for establishing a free national economy based on the private sector activity on the basis of free competition and through provision of loans for the vital projects in accordance with the available resources of the state.

10. Promotion of the efficiency of the state administrative apparatus.

The First Five Year Development Plan (1976-1980) coincided with the phase of oil boom. The plan concentrated on benefiting from the oil resources offered by this boom, to complete the infrastructure, increase the economic capacity of the national economy and promote the private sector. The most prominent achievements in this plan are the establishment of the State General Reserve Fund (SGRF) in 1980 as per the Royal Decree No. (1/80) which aim at ensuring the economic stability and sustainable development.

The second Five Year Development Plan (1981-1985) aimed at raising the investment rates so as to strengthen the production capacities, pursue the completion of the infrastructure, support private sector and strive to ensure fair distribution of the fruits of development among the different regions. It also called for supporting the SGRF.

The beginning of the Third Five Year Development Plan (1986-1990) coincided with the significant drop in oil prices. It sought, as much as possible, to maintain adequate levels of economic activity, together with the maintenance of economic and fiscal balance of the country, and continuance of providing the basic services such as education, health, and social support. The government adopted policies for reducing and rationalizing expenditure without jeopardizing the achievement made, particularly in the social ones.

The Fourth Five Year Development Plan (1991-1995) which was the last one within the framework of the first development strategy, concentrated on directing the investments towards productive projects to broaden and diversify the production base and encourage the private sector. Special attention was given by the plan to sectoral and regional development processes. It was also distinguished from the previous plans by its concentration on the policies as effective methods for achieving its objectives.