Oman improves ranking in economic freedom index

The Sultanate of Oman’s economic freedom score is 64.6, making its economy the 71st freest in the 2021 Index, said the 2021 Economic Freedom Index of Heritage Foundation. Last year it was ranked 76th.

The overall score of Oman has increased by one point, primarily because of an increase in monetary freedom. Oman is ranked 7th among 14 countries in the Middle East and North Africa region, and its overall score is above the regional and world averages.

Oman’s economy is in the moderately free category this year as it has been since 1996. Greater economic freedom would help the government to diversify the economy away from dependence on oil. To achieve this goal, the government would have to cut government spending sharply and make a concentrated effort to reduce debt.

Increased use of prepaid meters and more punctual service delivery have made obtaining electricity easier and less time-consuming. Starting a business and dealing with construction permits have become less costly. Labour force participation has increased. Electricity and fuel subsidies consumed more than one-quarter of the government’s budget in 2019.

Oman has four preferential trade agreements in force. The trade-weighted average tariff rate is 5.7 per cent, and 19 nontariff measures are in effect. As per the government’s Midterm Fiscal Balance Plan, improving and developing the business environment is one of the most important factors supporting the empowerment of the private sector, which in turn helps to stimulate economic growth and increases job opportunities.

The plan aims to support economic growth to achieve the following initiatives. It lays emphasis on achieving a comprehensive electronic transformation in the procedures for registering companies and issuing commercial licences through the “Invest Easy” initiative, so that the initiative represents for the business community in the Sultanate a single access point to all electronic government services.

An integrated framework was created for the investment system in the Sultanate through a set of laws that were issued in June 2019, which included foreign capital investment laws, privatisation, a partnership between the public and private sectors and bankruptcy.