In light of the current economic situation, diversification of economy is not an option but rather an urgent strategic requirement, according to H E Dr Nasser bin Rashid al Maawali, Undersecretary of Ministry of Economy (MoE). 

The Investors Residence Programme (IRP) complements the government’s efforts to diversify the economy and achieve higher growth rates, he said on Wednesday. 

“The programme aims to support integrated efforts to enhance the investment climate, attract FDIs and reflect the proposed policies of the private sector for investment and international cooperation as part of the Tenth Five-Year Development Plan,” he said.

IRP is a value addition to a programme to attract foreign investment launched in March 2021 to accelerate the first phase of the executive plan for Oman Vision 2040. 

“IRP is expected to improve the sultanate’s position on the index of ease of doing business, specifically in the criteria related to ‘investor protection’ in a way that supports the objectives of Oman Vision 2040. It will increase the contribution of FDI to the gross domestic product, supporting investment activities and stimulating consumption in the local market. This will surely promote business activities and enhance economic growth,” H E Maawali said.

He added that IRP seeks to support collaborative efforts towards enhancing Oman’s investment climate and push for a radical shift in attracting quality investments that contribute to creating more job opportunities and setting up more economically feasible projects. 

“The programme reflects the objectives of developing the macroeconomic environment and achieving financial sustainability in the Tenth Five-Year Plan by creating the necessary environment to stimulate investment and attract foreign investments.” 

IRP is expected to develop a framework for competitive business environment and establish a unique economic identity that promotes best practices. “It also integrates the investor in general into local market activities and makes them more sensitive to political, economic and social changes. This will help in developing best investment practices that serve the local market, on one hand, and achieve sustainability goals on the other.”

The sectors identified for IRP have been prioritised depending on economic diversification in the Tenth Five-Year Plan. 

“It will help in addressing the challenges faced in coordinating national efforts on stimulating investments and strengthening investor protection mechanisms. The programme supports the Tenth Five-Year Plan’s target of increasing average contribution of investments to 27 per cent of the GDP during the plan years and to 10.9 per cent in the oil and non-oil sectors by the end of the plan.”