Planning & Development  

Development Strategy » The Macro Objectives of the Fifth Five-Year Plan (1996-2000)

The methodology for formulation of the Plan, and the priorities that are emphasized follow the directives of His Majesty the Sultan. Such priorities include the formulation of studies and objective priorities in order to reach a compromise between the increasing requirements of the community and the limited available resources. Priorities also include the following:

• To work towards striking a balance between the resources and the uses of the government.

• To put more emphasis on human resources development

• To encourage saving, and to subject government projects to economic criteria.

• To support and promote the private sector role.

• To emphasize the importance of self-reliance and to avoid dependency.

In accordance with the Royal directives, and based on the dimensions and strategies of the vision, the macro objectives to be achieved during the plan years were formulated in a way that conforms to the achievement of the vision. The main objective is to at least maintain the current level of per capita income and to strive to double it in real terms by 2020. Accordingly the overall objectives of the plan are as follows:

1. Working towards achieving a balance between government revenues and expenditure in order to achieve a balance budget by the end of the plan period.

2. Increasing the average production rate of crude oil to 880,000 barrels per day (bpd) throughout the period of the plan without affecting the technical requirements aimed at prolonging the estimated duration of oil for as long as possible.

3. Achieving an average GDP growth rate of 4.6% at current prices in order to at least maintain the current level of per capita income.

4. Diversifying the resources of national income through an increase in the GDP share of the non-oil sectors to 68.8% by the end of the year 2000.

5. Encouraging domestic and foreign private investment and increasing the private sector share of total investment in the plan to 53.3%. This will enhance the possibilities of success of the private sector based development strategy.

6. Undertaking the necessary steps for the development and promotion of natural gas based projects.

7. Implementing privatization programmes in the services sector in accordance with the policies and procedures established for this purpose.

8. Controlling inflationary pressures during the period of the plan that the average annual inflation rate does not exceed 1%.

9. According special importance to human resources development through the provision of the necessary resources required for the implementation of the strategies and programmes approved for this purpose.

10. Increasing the participation rate of the national labour force in the labour market through the adoption of a set of policies and programmes aimed at the realization of this goal.