Planning & Development  

Regional Development And Regional Distribution of Investment» Regional Distribution of Investment in the sixth five year development plan(2001-2005)

It is expected that the share of the national projects in the Sixth Five Year Development Plan investment program – as shown in the table below will be about OR. 3962.8 million, representing about (59.3%) of the total investments of the plan investment program. This noticeable increase in the national projects relative share is due to the classification oil and natural gas projects were classified as national

projects considering that they serve the whole national economy. Beside this the investments that were not distributed regionally were classified as national projects. The most important of these investments are the other investments of the public and private sectors and the additional investment program for human resources development.

Regarding the program of investments that have been regionally distributed, the relative shares varied between regions. It range between (48.5%) for Al Batina region and (1.1%) for Musandam governorate. As density of population is considered an effective factor defining the volume of investments by regions/area, the indicator for per capita investments allocated to region/area has been considered a more precise equity index for investments distribution between the different regions. According to the indicator of per capita regionally allocated investments- as indicated in the table above and the below. Al Wusta region is at the top rank of the regions of high level per capita while it is at the end the regions arranged according to their share in regionally allocated investment and the opposite is true for Muscat governorate.

It is important to mention that certain changes in the regional distribution of the program investments will take place in terms of per capita share and the relative share when later some investments which presently considered as national projects have been distributed. It is also important that were not executed.

It is expected that the average per capita investments will range between OR. (2905) for Al Wusta region and RO. (354.4) for Adh Dahirah region. The top f the regions arranged per capita is expected to reach about OR. (1982.2) and Ash Sharqiyah in which the per capita is expected to reach about RO. (1720.4).

The increase of per capita investments in Al Wusta region is due to the relative increase of its share in the development investment program for civil ministries and units whereas part of the program investments was directed for provision of basic services for that region which is the least developed. The increase in per capita investments for Al Batinah and Ash Sharqiyah regions was due to the settlement of major industrial projects in the plan investment program in these two regions due to economic consideration. The important of these is that these areas (Sohar & Sohar port) and secondly to benefit from economies of scale.

It should be mentioned that the investments related to e major industries projects in these two regions have in direct return on the region and other areas of the country through forward and backward linkages of these industries and through expenditure of public private and household sectors of their income and returns on these industries.

Accordingly the regional distribution of the investments of the sixth five-year development plan invest program was due from one hand to the requirements of the social considerations in equity of investments distribution among regions to achieve comparable levels of development in the different regions. On the other hand for economic consideration which require regional settlement of projects resulting in increased returns and promotion of productivity and competitiveness of the national economy.

The increase of the per capita investment s in the Al wusta region, is due to the relative increase of it's share in the development investment program for civil ministries and unit whereas part of the program investment was directed to provision of basic services for that region which is the least developed. The increase in per capita investments for al batinah and al sharqiah regions was due to the settlement of major industrial projects in the plan investment program for those two regions, due to economics considerations. The importance of this I is that theses industries are export oriented and thus it is appropriate that their location be in export area (Sohar and Sohar ports) and secondly to benefit from economics of scale.

It should be mentioned that, the investment related to the major industries projects In these two regions have indirect return on the region and other areas of the country through forward and backward linkage of these industries and through expenditure of public, private and household of their income and returns on their industries.

Accordingly the regional distribution of the investment of the sixth five years development plan investment program was due, from from one hand to the requirements of the social considerations in equity of investment distribution among regions. On the other hand, for economic considerations which require regional settlement of projects resulting in increase returns and promotion of productivity and competitiveness of the national economy.