The Oman Sea Governance (Article Sample)

ARTICLE THE OMAN SEA GOVERNANCEInstitutional affiliationNAME:JULY 2020
Table of contents
Contents TOC \o "1-3" \h \z \u Table of contents PAGEREF _Toc47632448 \h 2The Future of Oman PAGEREF _Toc47632449 \h 3Introduction PAGEREF _Toc47632450 \h 31.0 Oman’s Vision 2040 Milestone PAGEREF _Toc47632451 \h 41.1 Background PAGEREF _Toc47632452 \h 41.2 Evaluating Oman Vision 2040 Three Year Milestone PAGEREF _Toc47632453 \h 51.2.1 The Manufacturing Sector PAGEREF _Toc47632454 \h 61.2.2 The Energy Sector PAGEREF _Toc47632455 \h 71.2.3 The Tourism Sector PAGEREF _Toc47632456 \h 71.2.4 The Logistics Sector PAGEREF _Toc47632457 \h 81.2.5 Labor Market and Employment PAGEREF _Toc47632458 \h 82.2.6 Business Environment PAGEREF _Toc47632459 \h 92.2.7 Fisheries PAGEREF _Toc47632460 \h 102.2.8 Mining PAGEREF _Toc47632461 \h 112.2.9 ICT PAGEREF _Toc47632462 \h 113.0 Way Forward on Political Stability PAGEREF _Toc47632463 \h 114.0 Conclusion PAGEREF _Toc47632464 \h 13References PAGEREF _Toc47632465 \h 13
The Future of Oman
Introduction
The future revolves around uncertainty. To a great extent, the future is defined by today's occurrences. Oman's future is full of uncertainty, will Oman achieve its economic diversification? Will Oman maintains its diplomatic relations? Will Oman maintain its political stability? What about the vision 2040 spearheaded by His Majesty the late Sultan Qaboos? The narrative behind this uncertainty will be built on the dedication, rule and commitment of the newly instituted Sultan Sayyid Haitham bin Tariq.
Over the past decades Oman has enjoyed a stable and steady growing sound economy but with a change in leadership Oman has a new challenge to counter to ensure a continuous flow of economic stability. The world is dynamic and has changed to a new world different from what the sultanate was built upon in the 1970s. The momentum with which the world is changing requires strategies to adapt to the new world needs. Looking at the past, there were no mobile phones, no internet connectivity and very few TV channels but what do we have today, great world connectivity, a widely spread use of mobile phones, many TV channels and the invention of robotic technology. All these changes pose both a political and economic challenge that Oman has to deal with.
Oman's Minister for Trade and Commerce, His Excellency Ali Al Sunaidi in his first delegates under the new leadership said that the new leadership is dedicated to maintaining its current stable foreign policy as well as endeavour to continue with the aspirations of Sultan Qaboos as set out in the vision 2040. In doing so the minister stated that maintaining Oman’s good relationship to the international community and the entire world will remain a priority. This, however, is not devoid of challenges. The main challenge that Sultan Haitham is likely to tackle are mainly domestic issues such as the need to reinvigorate the current sluggish economic growth resulting for low oil prices, the heightened unemployment amongst the youths who make up about 50% of the 4.6 million population and the need to include the private sector contribution in economic development. This article aims at exploring the future of Oman from the current milestones of vision 2040, the political situations and available opportunities for economic development.
1.0 Oman’s Vision 2040 Milestone
1.1 Background
Sultan Qaboos developed Oman’s Vision 2040 amidst societal consensus and great guidance from Allah. The vision lays the guidance and planning for economic posterity as well as remaining relevant for social-economic activities for the next two decades. The vision acts as the gateway to the realization of Oman's goal of gaining an economic diversification as well as fostering good diplomatic relationships with the outside world. Oman vision 2040 provides a framework for building economic competitiveness, generating and take advantage of new opportunities, adapting to the global changes, fostering economic competitiveness, ensuring the economic well-being of Omani citizenry, and building of foreign economic ties.
To achieve its broad focus the vision focuses on plausible economic management, diversification of the national economy from overreliance on oil production, reshaping the relationships and roles of both civil, public and private sectors on building the Omani economy, ensuring a fair distribution of resources while taking a keen interest in the maintenance of natural resources endowments. Furthermore, a need to modernize the current Omani education system, support scientific research and developing the Omani healthcare arises to be of great concern in the realization of the Oman vision 2040. To ensure good economic relations and adherence to the rule of law the Vision emphasizes on the importance of good governance and its related issues such as ensuring effective use of national resources, enforcing oversight, and honouring the principles of justice, integrity, accountability and transparency in all government undertakings.
In essence, Oman vision leverages on the current Omani history, long-lasting civil stability, its unique geographic location, its youthful population, and its prevailing noble character to realize a promising future for Oman.
1.2 Evaluating Oman Vision 2040 Three Year Milestone
Since its inception, Omani Vision 2040 has one year of execution. It is therefore important to have an insight into its execution over the past year. This will help one base a future outcome of this vision in terms of its effectiveness and efficiency in sustaining Omani appetite for economic diversification, political stability and overall economic development. Echoing the statement of the late his highness Sultan Qaboos that the policies followed by Oman government to develop the non-oil sectors are now visible and are already contributing to the country’s GDP and increasing the availability of employment as well as training and development.
The minister for Diwan of Royal Court Sayyid Khalid bin Hilal bin Saud Al Busaidi notes that for the past three years he has seen the tremendous growth of Implementation Support and Follow-up Unit (ISFU) from a small team with limited resources to a full institution with its methodology, systems and business procedures. Such a tremendous change means that the implementation of Oman Vision 2040 has gained good momentum to ensure its full realization. Furthermore, the chairman of ISFU HE Dr Khamis bin Saif Al Jabri indicates that he has followed keenly the singing of each year’s key performance indicators (KPI) with the adoption of the sprint methodology in 2019 is a great step towards the realization of this vision. The sprint methodology includes a principle of working harder and faster to fill the gap between the expected outcomes and the real outcome each year. This principle has enabled an increase in the achievement of the National Program for Enhancing Economic Diversification (Tanfeedh) from 7.5% in 2018 to 76.1% in 2019. In this sector will explore the performance of each sector in connecting to contribute to the realization of Oman Vision 2040.
1.2.1 The Manufacturing Sector
The manufacturing sector has for decades held Oman's economic wellbeing. In the fiscal year 2019, the manufacturing sector was boosted by the inauguration of "Mazoon Dairy” whose products are already in the market. This has resulted from the commitment and tireless efforts of the leaders follow up through ISFU as well as the adoption of the 'sprint methodology'. Other key achievements in the manufacturing towards achieving the Vision 2040 are; the completion of the Misco Steel Rebar, Koso Gulf Valves Manufacturing Plant, Billet Production Plant, the reinstatement of Sohar Cement factory, the completion of Polymer Manufacturing project, and construction of Sebacic Acid Production Plant in Duque.
In 2020 the manufacturing sector aims to achieve the operationalization of the food security project i.e. meat and poultry production, complete the construction and operationalization of Liwa Plastic Industries Complex, complete the Salalah LPG project as well as the construction of Salalah Methanol Company’s ammonia plant. All this initiative will work toward the realization of Oman Vision 2040 which is to achieve a more than 90% index of the share of GDP from non-oil production income.
1.2.2 The Energy Sector
In 2018 the energy sector was included in the key performance indicators. This sector works in joint with Electricity Regulation Authority, the ministry of oil and gas, ISFU and other entities due to its key contribution to the operationalization of other economic sectors. This sector is steadily achieving its goals of offering effective and reliable sources of energy that conserves the Omani environment status. A key achievement in this sector was the completion and operationalization of Dhofar Wind energy source. An increase in energy sourced from with means an increase in sources of an environmentally friendly source of energy. This help achieving the Vision 2040 goal of 74.69% environmental performance index.
1.2.3 The Tourism Sector
To achieve an economic diversification there is a need for Oman to focus on the improvement of the tourism sector. Oman has a rich cultural, natural, and environmental heritage that makes it the destination for many tourists. Focusing on maintaining this natural and cultural heritage was a priority in setting the vision 2040. Since its inception, Oman has succeeded in aligning to its objectives by the completion of Ras Al Hadd, Hay Al Sharq, Al NaKhael Resort, Naseem Al Sabaah and Quarayyat Resort ICT. In addition to building and completion of this touri...