Vision Document Vision Document 7 May Almighty Allah preserve and protect It is with Allah’s guidance and amidst broad societal consensus that Oman’s vision for the future, “Oman 2040”, was developed. In line with the Royal Directives of His Majesty Sultan Qaboos bin Said, the vision is relevant to the socio-economic context and objectively foresees the future, to be recognised by the Sultanate as a guide and key reference for planning activities in the next two decades. Oman Vision 2040 is the Sultanate’s gatewaytoovercomechallenges, keep pacewithregional and global changes, generate and seize opportunities to foster economic competitiveness and social well-being, stimulate growth, and build confidence in all economic, social and developmental relations nationwide. While identifying the national priorities, the vision focuses on reshaping the roles of and relation between the public, private and civil sectors to ensure effective economic management; achieve a developed, diversified and sustainable national economy; ensure fair distribution of development gains among governorates; and protect the nation’s natural resources and unique environment. Furthermore, the vision builds on the principles of citizenship and genuine Omani identity to modernise the educational ecosystem, support scientific research and innovation, develop healthcare regulations and services and lay the national resources, honouring principles ofintegrity, justice, transparency, and accountability; so as to boost confidence in the national economy and promote competitiveness across all sectors under the rule of law. The vision was developed over several stages. The committees started by identifying the vision themes, and pillars, followed by a current status analysis and identification of national priorities. To achieve role integration, the Future Foresight Forum was organised, followed by several workshops to create scenarios and set the vision strategic directions, goals, KPIs and targets. With remarkable devotion and perseverance, the national committees and special taskforces collaborated with experts and industry professionals according to scientific and global practices. They made every step to engage different segments of society across all governorates, using every possible mean of interaction, to ultimately achieve the objectives of broad and effective societal participation. As a result, you have in your hands a vision for the future of Oman designed by you and for you. All those who have had the privilege of participating in the making of the future vision, “Oman 2040”, will now join hands to realise its directions and goals, into a future bursting with Developed Countries Global Innovation Index Government Effectiveness, World Governance Indicators Main Oman 2040 Vision Indicators Striving tobecome adeveloped country, the Sultanateof Oman is building a productive and diversified economy, founded on innovation, integration of roles, and equal opportunities; leveraging Oman’s competitive advantages, drivenbytheprivatesectortowardsintegrationintotheworld economy and active contribution to international trade; to ultimately achieve inclusive and sustainable development, based on effective economic leadership that operates within an institutional framework of coherent and contemporary economic policies and legislations, to ensure financial sustainability and diversify public revenues. In Oman’s vision for the future, a favourable environment is developed to attract talents in the labour market; partnerships grow in a competitive business climate, comprehensive regional development is achieved through decentralisation, guided by the principle of optimal and balanced use of land and natural resources and the protection of the environment to bring about food, water and energy security. Smart and sustainable cities are built with advanced IT infrastructure; and socio-economic prosperity and social justice are nurtured in urban and rural communities. This Vision lays down the foundations for an empowered knowledge- based society whose members are creative, proud of their identity and culture, committed to their civic duties and values and living in dignity and sustained well-being; a society endowed with leading healthcare system, an active lifestyle and an inclusive education for lifelong learning to develop skills for the future, promote scientific research, build national capabilities and achieve economic growth and social well-being; in a State with flexible yet strong agencies, all-encompassing governance, effective supervision, swih justice, efficient performance, and active and ever- renewing media, aided by an empowered civil society that participates in all aspects of life, towards higher levels of human development. Vision Document 11 Deeply rooted and forward-looking, Oman Vision 2040 builds on the achievements realised in many fields over the past decades. It represents an integrated set of socio-economic policies that should be implemented as guidelines to reach the image desired for Oman by 2040. A fair perspective on Oman’s current position reveals that Omanis and the society at large are in constant evolution driven, in all directions, by a strong Omani identity that is open to and acceptive of other identities and cultures. Precursor to reliable infrastructure, modern legislative framework and well-defined relations between economic actors, the economic achievements so far accomplished are the product of Omanis’ work, interaction and awareness of local, regional and global dynamics. Today, the maturity and sophistication levels reached by Oman pave the way for a new beginning where challenges, society needs and ambitions are addressed with more confidence. Over the past decades, the Sultanate of Oman used oil revenues to lay the groundwork for the present day, promote human development and develop many economic, social and cultural sectors. Oman thus attained leading positions in many critical areas and is in its pathway to further development in the future. Today, as we look forward to the future of Oman, building on our past achievements, we recognise that our economy and society must no longer rely on [non-renewable] resources but on innovation and knowledge, by investing in opportunities triggered by regional and international dynamics, and based on the following: • The wise guidance of His Majesty Sultan Qaboos bin Said –May his soul rest in eternal peace–, domestically and vis-à-vis foreign relations; • Omanis’ readiness in terms ofidentity, educational level and qualifications, and awareness of the necessity of the desired transformation. • Investments made in infrastructure and logistics. • The unique geographic location, climate conditions and natural resources available. • The global network of balanced, reliable and open international relations. • The legislative framework and foundations of good governance, currently under development; • The clear aspirations, aligned policies and societal consensus regarding the way forward. • The promising national talents in all areas. In addition to the above, the political stability and will to enter the new era framed by Oman Vision 2040, while taking intoconsiderationthenatureand specificities ofthe Omani society, and the profound recognition of the importance of balanced and inclusive development, well-being, prosperity and justice. Vision Document 13 Vision 2040 defined the national priorities to be achieved through parallel work streams, with the aim of promoting Oman’s position in the different fields over the next two decades. The vision equally outlined the strategic directions, goals and key policies to translate ambitions into action plans underpinned by clear milestones and timelines and progressing against a set of local and international indicators to measure and evaluate the performance in a transparent manner. National Priorities Strategic Directions and Objectives Policies 5-year Development Plans Such collaboration will deepen the principle of partnership and active citizenship whereby Omanis are aware of the impending transformation and the need to foresee and positively contribute to shaping the future. Such partnership is facilitated by effective communication to clarify the roles of all actors in order to translate policies into actions, all within a comprehensive governance framework. Clear aspirations and societal consensus Legislative & governance frameworks Basic & logistics infrastructure Oman’s readiness to transition to knowledge and Innovation National willingness Geographic location & natural resources Political stability Empowered Omanis Oman Vision 2040 has garnered wide community participation. The created Vision committees consisted of representatives of the Government, the Council of Oman, the private sector, civil society organizations (CSOs) and citizens – experts, scholars and specialists. Community dialogue was launched with inclusive participation from the different sectors, actors and segments of society, representing the government sector, private sector, CSOs, municipal councils, academic institutions and agencies, and Civil Society Organizations Vision Individuals other sectors, including the press among others, with the attendance of groups representing women, youths, persons with disabilities and students from all Realisation Partners levels, in addition to a range of residents in Oman. This community participation was present throughout the stages of Vision development, across the different governorates of Oman, thus embodying the consensus between the political leadership and all segments of the community to create gradual transformation across the board – transformation that would maintain and strengthen the stability enjoyed by Oman and make today’s Vision a realistic path towards attaining the objectives of the future we aspire to. Government Private Sector A Society of Creative Individuals Proud of their identity, innovative, globally competitive, leading a decent life and enjoying sustained well-being An Environment with Sustainable Components Safe and well-preserved environment, with effective and balanced ecosystems and renewable resources A Competitive Economy Productive and diversified; based on innovation, integration of roles and equal opportunities; driven by the private sector, and achieving comprehensive and sustainable development Responsible State Agencies With comprehensive governance, effective oversight, swih justice system, and efficient performance Legislative, Judicial and Oversight System Governance of State’s Administra- tive Bodies, Resources and Projects Education, Learning, Scientific Research and National Capabilities Health Environment and Natural Resources Development of Governorates and Sustainable Cities Our National Priorities Citizenship, Identity and National Heritage and Culture Well-being and Social Protection The Private Sector, Invest- ment, and International Cooperation Labour Market and Employment Economic Diversification and Fiscal Sustainability Economic Leadership and Management Vision Document 17 Vision Document 19 Priority Education, Learning, Scientific Research and National Capabilities Strategic Direction Inclusive Education, Lifelong Learning, and Scientific Research that Lead to a Knowledge-based Society and Competitive National Talents Developing the different levels of the educational system and improving educational outcomes have become necessary to build Omanis’ confidence in their identity and commitment to their social values. This is attainable through increasing the quality of basic and higher education and developing scientific and educational curricula, so that graduates are acquainted with competitive qualifications and employability skills to enter the local and international labour market. Such graduates will have an adequate level of productivity and competitiveness to build a knowledge-based economy, enhance job security in the private sector and foster a participatory relation between the private and the public sectors. In addition to this, a developed educational system also entails the development of educational institutions, faculty and staff, the application of international standards for accreditation, the use of modern teaching and learning techniques, and the dissemination thereof as national culture. A leap is required in quality and quantity in the domain of scientific research and development, through the provision of diverse and sustainable sources of funding to support applied scientific researches to promote innovation in various fields and strengthen partnership between the academic and research institutions on the one hand and the private sector on the other. The various stakeholders need to join forces to promote the role of citizens and society in advancing economic development. This necessitates the establishment of a stimulating educational and vocational training system to afford individuals high-level skills to enter the labour market, raise their productivity and improve the efficiency of the economy in general. Values of competition and qualification should prompt individuals to seek high-ranking jobs based entirely on merit. This implies adherence to institutional values and a performance-based qualification system. Another aspect of joining forces also entails maximising national capabilities through a national system established to nurture talent, creativity and entrepreneurial potential. A high-quality educational system with societal partnership A system that empowers human capabilities in the educational sector An integrated and independent system to govern and evaluate the educational ecosystem against national and international standards An effective national system that nurtures scientific research, innova- tion, and creativity to build a knowledge-based economy and society Value-enforcing curricula that incorporate Islamic principles and Omani identity; are inspired by Oman’s history and heritage; are consistent with the contemporary requirements of sustainable development and future skills; and support the diversification of learning pathways Objectives Diversified and sustainable funding sources for education, scientific research and innovation National talents with dynamic capabilities and skills that are competitive locally and interna- tionally Performance Indicators Baseline Values 2030 Target 2040 Target Global Innovation Index Education for All Development Index Skills, Global Competitiveness Index Global Talent Competitiveness Index Quacquarelli Symonds Ranking of World Universities - Average rank for Omani Universities listed within the top 500 Universities Quacquarelli Symonds Ranking of World Universities - Number of Omani universities listed within the top 500 Universities Value: 32.8 (0 – 100) Rank: 69/127 (2018) Value: 0.938 (0 – 1) Rank: 51/92 (2015) Value: 71.6 (0 – 100) Rank: 36/140 (2018) Value: 43.93 (0 – 100) Rank: 56/119 (2018) Value: 25.7 (0 – 100) Rank: 450/500 (2018) Value: 1 University Rank: 450/500 (2018) Value > 41.19 or Top 40 Countries Value > 0.984 or Top 20 Countries Value > 76 or Top 20 Countries Value > 55.57 or Top 30 Countries Top 300 Universities 3 Universities Value > 51.98 or Top 20 Countries Value > 0.989 or Top 10 Countries Value > 83.2 or Top 10 Countries Value > 62.63 or Top 20 Countries Top 300 Universities 4 Universities Number of Graduates from Programs or Institutions for Gifted Students (at all education levels) out of Identified Gifted Students The Global Human Capital Index New Indicator, under development Sultanate to be listed in this indicator Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Health Strategic Direction A Leading Healthcare System with International Standards An inclusive and equitable healthcare system should cover all of Oman governorates, with the participation of government, the private sector, and civil society. This coverage should include more medical specialities and specialised medical institutes and universities to develop medical staff of various specialisations. The desired healthcare system should follow international best practices in accreditation, be it in medical services, healthcare centres, medical laboratories or medical personnel. A new necessary culture will emerge to redefine the relationship between citizens and healthcare institutions. Community awareness will increase regarding the concept of health being the responsibility of all, and technology will play a key role in delivering medical services and preventing diseases, ensuring communication and raising awareness about health and healthcare services. Technology will also help to overcome geographic and distance barriers to ultimately deliver world-class health services to all citizens and residents of Oman. A healthy society free of health risks and hazards, where “health is the responsibility of all” A decentralised healthcare system operating with quality, transparency, fairness, and accountability Qualified national talents and capabilities leading scientific research and innovation in health- care Objectives Diversified and sustainable funding sources for the healthcare system Technology-driven medical systems and services, and high-quality preventive and clinical healthcare across all levels Performance Indicators Baseline Values 2030 Target 2040 Target Health, Legatum Prosperity Index Healthy Life Expectancy at Birth Value: 79.03 (0 – 100) Rank: 33/149 (2018) Value: 65.6 Rank: 84/183 (2016) Value > 81.257 or Top 20 Countries 67 Years Value > 81.257 or Top 20 Countries 70 Years Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Citizenship, Identity and National Heritage and Culture Strategic Direction A Society that is Proud of its Identity and Culture, and Committed to its Citizenship The effect of globalisation and industrial revolutions extends beyond the economic aspects to encompass political, cultural, social and behavioural dimensions as well. While there is a need for modernisation and integration approach in an era of advanced science and technology, such direction must be counterbalanced by a deep- rooted sense of belonging to an authentic culture, in order to enrich the Omani identity and preserve traditions and privacy. Success in promoting the identity and preserving culture rests upon the conscious and responsible engagement in this fast-paced world and the positive exploitation of the available potential. Theprocessofpreservingtheidentityandreinforcingresponsiblecitizenshipisachievedthroughtheincorporation of those concepts into the educational curricula and by teaching the new generation to cherish their historical and cultural legacy. Society in general and civil society organisations in particular play an active role in preserving the cultural and historical heritage through the various activities that are facilitated and supported by the government and the private sector. Such activities aim to develop and coordinate national programs to promote social cohesion and embrace the Omani identity and civilisation. For their part, the media play a prominent and vital role in framing the culture for the Omani youth and ensuring a balance between the legacy of the Omani civilisation and identity on the one hand, and the optimal exploitation of technical developments on the other hand to nurture pride within the society. Furthermore, the educational curricula should focus on developing national capabilities to stress the importance of the Omani identity and shape the Omani personality in a way to perpetuate the national identity. In this context, cultural touristic activities in Oman are essential to promote citizenship among the Omani youth and make them more proud of their identity. The Sultanate’s location and cultural, historical and touristic landmarks are capable of attracting large numbers of tourists to Oman and diffuse the country’s civilisation to the world. Anticipating future developments and working to preserve cultural diversity and tolerance is the entry point for Oman Vision 2040 that opens up to the world, starting from solid roots and a clear understanding of the components that make up the Omani identity. A society that is proud of its identity, citizenship, and culture; and strives to preserve, document and diffuse its heritage worldwide An institutionalised ecosystem of integrated societal partnerships that reinforces identity, citizenship, solidarity and social cohesion A society that is capable of assess- ing, challenging, investing in, producing and disseminating knowledge A globally leading society in the areas of mutual understanding, coexistence, and peace A knowledge-based society that is conscious and mindful of its identity, having skills and capabilities, and keeping abreast of development and technological changes A sustainable investment in heritage, culture, and arts to contribute to national econom- ic development Objectives A society of responsible members who are aware of their rights and committed to their duties Professional media that reinforces societal awareness and contributes to socio-eco- nomic development Performance Indicators Baseline Values 2030 Target 2040 Target Security, Global Competitiveness Index Social Capital, Legatum Prosperity Index Value: 94.6 (0 – 100) Rank: 4/140 (2018) Value: 51.2 (0 – 100) Rank: 68/149 (2018) Value > 94.6 or Top 5 Countries Value > 60.062 or Top 20 Countries Value > 94.6 or Top 5 Countries Value > 63.905 or Top 10 Countries Culture and Values Index New Indicator, under development Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Well-being and Social Protection Strategic Direction A Decent and Sustainable Life for All Social justice is a prerequisite for cohesive, strong and peaceful societies. It is achieved by providing sustainable quality social well-being services, such as healthcare and education, and providing social safety nets to ensure viable livelihood means for the present and future generations. Achieving decent living standards and sustainable well-being requires the creation of an environment conducive for social responsibility programs, civic voluntary contributions, as well as socio-economic empowerment programs targeting women and youth. Enhancing social protection through the community social responsibility (CSR) necessitates organising the efforts of established entities, social responsibility projects and the governance framework thereof. CSR principles and areas thereof should be defined, managed and measured for impact effectively and efficiently. Aligning CSR activities with the real needs of the community and providing them with sustained financing will enhance the sense of justice, improve well-being and actively institutionalise effective partnerships between the public and private sectors and the civil society organisations. Looking aher the youth is a guarantee for the future as it encourages their political, social and political participation in building the future; while empowering the persons with disabilities; maximising their capabilities and skills and providing them with adequate social protection. Moreover, focusing on sports activities has direct benefits and developmental gains across the different sectors and various age categories, and enhances Oman’s presence on the global sports map. A society enjoying insurance coverage through an effective, sustainable and fair social safety network A cohesive and vigilant society that is socially and economically empowered, especially women, children, the youth, the persons with disabilities and the most vulnerable groups Advanced social services and programs that cater to the needs of society Integrated social protection targeting the most vulnerable groups and empowering them to be self-dependent and contribu- tors to the national economy Objectives An effective partnership between the government, the private sector and the civil society in the various fields of social develop- ment An empowered civil society that participates effectively in sustainable development An environment and ecosystem conducive for sports to contrib- ute to the economy and compete globally Performance Indicators Baseline Values 2030 Target 2040 Target Social Progress Index Human Development Index Value: 68.2 (0 – 100) Rank: 66/146 (2018) Value: 0.821 (0 – 1) Rank: 48/189 (2018) Value > 76.27 or Top 40 Countries Value > 0.871 or Top 30 Countries Value > 86.76 or Top 20 Countries Value > 0.908 or Top 20 Countries Youth Development Index Real GDP per Capita (Growth Rate) Gini Coefficient (Household Expenditure and Income Survey) Value: 0.611 (0 – 1) Rank: 99/183 (2016) Value: 6264 RO Rank: 49/187 (2017) Value: 0.31 (1 – 0)1 Rank: 23/82 (2010) Value > 0.717 or Top 40 Countries Increase by 40% 0.31 Value > 0.737 or Top 30 Countries Increase by 90% 0.28 Living Standards Index New Indicator, under development Accessibility Index for the most-needy groups New Indicator, under development Civil Society Contribution to welfare New Indicator, under development Number of Omani Athletes or Teams that win in sport competitions New Indicator, under development 1 The lower the value, the better the performance Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Economic Leadership and Management Strategic Direction A Dynamic Economic Leadership with Renewed Capabilities Operating within an Integrated Institutional Framework The role that a stable economic leadership and management will play is to set and align the fiscal, monetary, trade, investment, industrial and labour market policies in such a manner so as to contribute to the development and implementation of economic plans, programs and projects in line with the strategic directions. Furthermore, the national priorities shall constitute a framework for this leadership, building on the Sultanate’s comparative advantages, and its aspiration to build a competitive knowledge-based economy and keep abreast of economic and technical developments. The presence of empowered and renewed economic leadership at the top of a clear economic structure – a leadership that is capable of steering the national economy – will help to improve the effectiveness and efficiency of the regulatory ecosystem; eliminate overlaps between organisational roles; shoulder officials in implementing policies and coordinating between institutions; and enhance governance practices so that the private sector can be confident about the commitment to the declared economic policies and aware of the nature of upcoming transformations. A reference entity empowered to achieve the objectives of economic development, social justice, and environmental protection Senior management with continually renewed capabili- ties to keep up with market dynamics, forecasts and fast-paced developments Objectives Effective economic leadership with binding powers and a clear mandate to swihly respond to development needs on the basis of well-defined perfor- mance indicators A solid and effective economic legislative framework that keeps abreast with contempo- rary developments Performance Indicators Baseline Values 2030 Target 2040 Target Global Competitiveness Index Regulatory Quality, World Governance Indicators Value: 64.4 (0 – 100) Rank: 47/140 (2018) Value: 0.42 (-2.5 – 2.5) Rank: 67/209 (2017) Value > 71 or Top 30 Countries Value > 1.23 or Top 30 Countries Value > 76.6 or Top 20 Countries Value > 1.44 or Top 20 Countries Availability of Effective Economic Leadership by 2021 - Availability of Effective Economic Leadership by 2021 Real GDP Growth Value: 3.6% (Average) (2000 – 2017) 5% 5% Inflation Rate (CPI Inflation) Value: 1.6% (2017) 2% - 3% 2% - 3% Fiscal Balance percentage of GDP (Budget Deficit) Value: -11.7% (2017) Does not exceed -3% Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Economic Diversification and Fiscal Sustainability Strategic Direction A Diversified and Sustainable Economy that Is Based on Technology, Knowledge and Innovation, Operates within Integrated Frameworks, Ensures Competitiveness, Embraces Industrial Revolutions and Achieves Fiscal Sustainability The Omani economy is heading towards a robust base of economic diversification that relies on economic diversification with focus on technology, knowledge and innovation. It also aims at reinforcing upstream and downstream integration among economic sectors to expand the production and export base, diversify trading partners, deepen investment in high value-added sectors, and enhance the contribution of non-oil sectors to the GDP. Achieving this diversity and integration highly depends on developing local capabilities in innovation and creativity, promoting entrepreneurship, along with preparing a fertile legislative and incentives ground. The competitiveness of the Omani economy will, therefore, increase both regionally and globally, and the growth rates will improve and stabilise in a sustainable manner. Above all, an integrated framework of insightful socio-economic policies should precede to guarantee macroeconomic stability and fiscal sustainability as top priorities, in addition to the optimal utilisation of natural resources. A future Omani economy that embraces technology, knowledge and innovation will allow for the production of competitive products and services with higher knowledge and technology components. Consequently, this will contribute to developing the economy and enhancing its competitiveness in most sectors and activities such as tourism, education, and manufacturing, including oil and gas-based industries. Innovation will be the new engine of growth but will be closely dependent on appropriate infrastructure and educational system that encourages entrepreneurship. The new economy will capture global trends in technology, innovation and industrial revolutions in order to keep up with and incorporate such trends in the national plans and programs in a safe knowledge and technology- based environment that ensures transformation to technology, knowledge and innovation-based economy. The desired economy should be able to achieve inclusive and sustainable development, create an attractive business environment for all and increase exports in sectors with high technical and value-added components. To identify, every 5 years, sectors that drive economic diversification and other comple- mentary sectors A regulatory environment and governing legislations that are renewed, flexible, up to date and ensuring equal opportunities A competitive, diversified and integrated economy based on foresight, innovation and entrepreneurship Informed, integrated and sustainable fiscal, monetary and economic policies, and budgets that ensure effective use of public revenues Objectives Advanced base and IT infrastruc- ture that empowers all sectors, and is capable of keeping pace with the latest developments and cyber security challenges A research and development ecosystem spanning the various sectors and institutions Performance Indicators Baseline Values 2030 Target 2040 Target Economic Complexity Index Networked Readiness Index Readiness for Future of Production - Drivers of Production Readiness for Future of Production - Structure of Production Oil/Non-Oil Share of GDP Value: -0.004 (-3 – 3) Rank: 62/126 (2016) Value: 4.31 (1 – 7) Rank: 52/139 (2016) Value: 5.13 (0 – 10) Rank: 45/100 (2018) Value: 4.00 (0 – 10) Rank: 69/100 (2018) Oil: 39% Non-Oil: 61% (2017) Value > 1.186 or Top 20 Countries Value > 5.4 or Top 20 Countries Value > 6.73 or Top 20 Countries Value > 6.21 or Top 20 Countries 16.1% 83.9% Value > 1.577 or Top 10 Countries Value > 5.6 or Top 10 Countries Value > 7.2 or Top 10 Countries Value > 7.34 or Top 10 Countries 8.4% 91.6% Current Account Deficit or Surplus to GDP Ratio Total Public Expenditure to GDP Ratio Non-Oil Revenue to GDP Ratio Value: -14.8% (2017) Value: 45.1% (2017) Value: 9.5% (2017) -7% Deficit 34% 15% -1.5% Deficit 25% 18% Gross Debt to GDP Ratio Percentage of GDP output of the knowledge economy of Total GDP Value: 44% (2017) Does not Exceed 60% New Indicator, under development Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Labour Market and Employment Strategic Direction A Dynamic Labour Market that Attracts Talents and Keeps up with Demographic, Economic, Knowledge and Technological Changes Achieving balanced development requires a labour market with a highly efficient legislative system that ensures effectiveness, integrates national capabilities coming from the educational system into the domestic labour market, attracts both technical and skilled labour from abroad and develops specific methods to improve the administrative and organisational framework to manage the labour market. Labour market legislations and flexible labour policies will reinforce the role of the private sector to generate employment opportunities for qualified Omani youth with the participation of civil society organisations. They will also enable better adaptation of the Omani labour market to the global updates in the future of jobs. They can also help absorb the new workforce into the labour market in a manner that keeps pace with future challenges. A labour market with a skilled and productive workforce and a positive work culture A system of employment, qualification, promotion and incentives based on efficiency and productivity that nurture initiative and innovation Objectives A labour market that attracts talents and skilled labour through clear and standardised recruit- ment policies Laws and regulations to regulate the labour market based on professional standards and a stimulating and dynamic work environment Performance Indicators Baseline Values 2030 Target 2040 Target Percentage of Skilled Labor of Total Labor in the Private Sector Labour Productivity Growth Ratio Omanis share of total jobs created in the private sector Value: 57.9% (2017) Value: -1.2% (2017) Value: 11.6% (2016) 81% 1% - 2% 35% 83% 2% - 3% 40% Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority The Private Sector, Investment, and International Cooperation Strategic Direction An Empowered Private Sector Driving a National Economy that is Competitive and Aligned with the Global Economy Promoting the values of competitiveness and set up the relevant frameworks in both the public and private sectors pave the way for an economic renaissance where equal opportunities are guaranteed among competitors to provide the best. This effective competition should be the criteria to gauge economic development and strengthen the resilience of economy towards regional and global changes. The business environment will be developed, the private sector will play a leading role and will be empowered to achieve balanced economic development so as to create a competitive and empowering environment for the private sector in order to develop free, socially responsible and eco-friendly sectors. Financial deepening will be sought in the capital market and sustainable funding will be provided through innovative models to start productive enterprises, especially SMEs. A competitive economy led by the private sector will make use of several advantages that the Sultanate enjoys, particularly the political and economic stability and the long-term investment of strategic relations. The strategic geographic location of the Sultanate is an excellent opportunity to develop and expand trade partnerships with other countries worldwide. Through this location, the Sultanate seeks to foster investment partnerships between the Omani private sector and the international business community by attracting foreign direct investments of high quality to meet the new global demand and support the Sultanate in becoming an international trade hub. Those global partnerships will expand the production base of various sectors and increase the contribution of exports to the Sultanate’s GDP. The solid legislative framework governing privatisation and the availability of the infrastructure required for such partnerships – especially between the public and private sectors- will enhance efficiency and productivity. They will equally increase the effective delivery of modern and traditional public services at lower cost while keeping pace with international developments and optimising the use of technology in various service-based sectors. A competitive business environment that attracts investments, where the government plays a regulatory role coupled with successful, efficient and seamless management Flexible and facilitated financing models that are aligned with global developments and investment needs An empowered and competitive private sector that leads the economy while taking into consideration the social and environmental dimensions Partnership and integration among SMEs, backed by large corporations Objectives An effective public-private partnership to improve production efficiency and a gover- nance framework to monitor the privatisation of projects and public services Diversified imports and exports in terms of goods and geographic origins, to further promote the Sultanate’s global status and geographic location A unique economic identity that integrates seamlessly with global production and service supply chains Performance Indicators Baseline Values 2030 Target 2040 Target Ease of Doing Business Index Economic Freedom of the World Value: 67.2 (0 – 100) Rank: 78/190 (2018) Value: 6.76 (0 – 10) Rank: 89/162 (2019) Value > 79.58 or Top 20 Countries Value > 7.36 or Top 50 Countries Value > 81.55 or Top 10 Countries Value > 7.52 or Top 40 Countries Export Product Concentration Index HH Market Concentration Index Gross Private Investment percentage of GDP FDI Net Inflow percentage of GDP Value: 0.506 (1 – 0)2 Rank: 168/217 (2016) Value: 0.26 (1 – 0)3 Rank: 105/120 (2016) Value: 22.8% (2017) Value: 4.12% Rank: 68/231 (2017) Value < 0.123 or Top 30 Countries Value < 0.07 or Top 30 Countries 25% 7% Value < 0.087 or Top 10 Countries Value < 0.06 or Top 20 Countries 22% 10% Private Sector Contribution to GDP Providing Infrastructure for Public-Private Partnerships New Indicator, under development New Indicator, under development 2 The lower the value, the better the performance 3 The lower the value, the better the performance Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Development of Governorates and Sustainable Cities Strategic Direction Comprehensive Geographic Development Through Decentralisation and the Development of Limited Urban Hubs; and the Sustainable Use of Lands The desired future shape of major cities in the Sultanate stems from the socio-economic strategic directions of Oman 2040 vision. Proper city management helps accelerate growth and openness to global markets. It can create productive environments to attract global investments, increase economic efficiency, provide liveable environments, and sustain the environmental and social evolution of cities. Coordination becomes feasible among the economic sectors and different clusters within cities, with the aim to enhance productivity, stimulate innovation, and diversify sources of growth. The comprehensive and harmonious development of infrastructure, with all its components, can foster equitable development of urban and rural areas, to promote socio-economic prosperity. The Sultanate will systematically establish smart cities enjoying advanced basic services and modern technology. It will also build three-dimensional cities revolving around urban, social and economic development. This approach depends on the participation of the private sector, particularly in empowering urban communities so that advanced and smart Omani cities stimulate growth and provide a safe place to live. In the next phase of the Sultanate’s future, efforts will focus on achieving sustainable development in all governorates, including infrastructure, government services, public utilities, and a regulatory environment that attracts investments. The added value chain will be maximised by connecting governorates and higher standards of living will be guaranteed. Plans and comprehensive schemes to develop governorates will invest in the available resources towards maximising the usage of current and future public utilities and services, in an integrated way, taking into account the different regional specificities. Sourcing local management and leadership capable of applying the principles of decentralisation will contribute to the comprehensive socio-economic development of governorates. Such local leadership should be able to plan and make decisions in line with the future national directions. They will contribute to developing their local communities by creating suitable jobs, promote innovation and development in building the local system in each governorate, and encourage the use of state-of-the-art technology. They will ensure sustainable use and effective exploitation of land and natural resources. Balanced and equitable development to enhance the competitive and comparative advantages of governor- ates and urban areas Urban and rural areas and cultural and natural heritage regions that are highly resilient and capable of coping with climate change effects Empowered communities capable of setting their socio-economic and environ- mental priorities and operat- ing within a framework of administrative and economic decentralisation An efficient settlement hierarchy to guide sustain- able urban development, accommodate the growing population and provide the necessary public services and utilities Objectives Smart, sustainable and vibrant cities and a vital countryside with a viable architecture that ensures high quality of life, work, and leisure Diversified and easily accessible means of transport, integrated with sound and targeted urban planning and sustainable world-class infrastructure Performance Indicators Baseline Values 2030 Target 2040 Target Decentralization Implemented by 2022 Settlement Hierarchy Implemented by 2022 Most Livable Countries, Inequality-adjusted Human Development Index - Decentralization Implemented by 2022 - Settlement Hierarchy Implemented by 2022 Sultanate to be listed in this indicator Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Environment and Natural Resources Strategic Direction Effective, Balanced and Resilient Ecosystems to Protect the Environment and Ensure Sustainability of Natural Resources to Support the National Economy Effective and balanced environmental ecosystems and models will help to support the well-being system in general, protect the environment and ensure the quality and good productivity of environmental ecosystems. The preservation of such ecosystems will help to reduce the economic cost of waste, degradation or loss of resources. Similarly, the optimal use and sustainability of natural resources are necessary to support the economy and stimulate production. The future strategy in natural resource management will focus on developing non- traditional sources of natural resources, such as the use of renewable energy to reduce production cost and subsequently enhance the competitiveness of economic sectors. New infrastructure projects will be geared towards green economy, green strategies and renewable energy production. This approach should take place in such a manner as to promote environmental sustainability, achieve stability, reduce the constraints and pressures of financial management, and replenish the treasury with revenues from non-traditional natural resources. On the other hand, managing traditional resources requires a balance between development requirements and environmental sustainability as an economic necessity. Structural reforms in the water sector will be sought to increase water efficiency, expand sanitation services, and use modern technology in wastewater treatment and use in agriculture and energy production, among other applications, to grow and diversify agricultural production using modern technology and enhance food security. Ultimately, the aim is to gradually move towards the use of raw materials in manufacturing goods instead of exporting them as is, thus increasing the added value, building relevant technical capabilities to diversify the country’s sources of revenue and enhance its economic resilience. An environment that ensures balance between environmental, economic and social requirements, according to sustain- able development guidelines. Environmental ecosystems that are of high quality and free from pollution Food and water security achieved through renewable resources, advanced technologies and optimal exploitation of the Sultanate’s strategic location and biodiversity Objectives Sustainable use of and investment in natural resources and wealth to deliver high added value Renewable energy, diversified sources of energy, and rationalised consumption to achieve energy security A green and circular economy that addresses national needs and moves consistently with the global trends Environmental awareness coupled with the effective implementation of sustainable consumption and production rules Performance Indicators Baseline Values 2030 Target 2040 Target Environmental Performance Index GDP Per Unit of Energy Use Oman Water Index Renewable Energy Consumption percentage of total consumption Value: 51.32 (0 – 100) Rank: 116/127 (2018) Value: 6.92 Int’l Dollar (fixed 2011) Rank: 97/130 (2014) Value: 395 million cubic meter per person (2015) Value: 0% Rank: 200/210 (2015) Value > 65.46 or Top 40 Countries Value > 14.57 or Top 20 Countries 550 - 600 20% Value > 74.69 or Top 20 Countries Value > 17.3 or Top 10 Countries 650 - 700 35% - 39% Domestic Material Consumption (DMC) Self Sufficiency Ratio (The Coverage of Total Consumption from Local Components for Food) New Indicator, under development New Indicator, under development Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Legislative, Judicial and Oversight System Strategic Direction Participatory Legislative System; Independent, Competent and Swift Judicial System; and Effective and Transparent Oversight Achieving economic growth and social well-being for the Omani society goes hand in hand with national, economic and judicial legislations that cater to contemporary needs and rapid changes, empower qualified national talents to fortify confidence in the overall legislative system and ensure balanced and transparent enforcement of laws. Legislative support of the socio-economic development also calls for the separation of powers, the pursuit of civic engagement, and public legal education about individuals’ rights and duties. The legislative system will be complemented by a sophisticated and flexible judicial system that adopts international best practices of justice and arbitration and ensures swih justice. Within this transformed legislative system, Omani judges will achieve international stature, the rule of law will further prevail within the Omani society so that to maintain societal security and promote the Sultanate as one of the best countries worldwide in applying the rule of law standards, and an international destination for alternative dispute resolution. In addition to the legislative and judicial systems, an effective and independent oversight system will be at the core of the Oman Vision 2040. A fair and transparent oversight system will enable citizens, and society at large, to access and use information to assess the development process, thus establishing a harmonious and positive relationship between citizens and State institutions. It will also empower society to track the performance of the State administrative bodies and their commitment to implementing national strategies and plans. An active oversight system will also promote accountability, improve the quality of services delivered, and reinforce stakeholders’ confidence, especially the economic sectors, and contribute to protecting the natural resources of the Sultanate, being a public good. Strengthening the fundamentals of governance, through legislation, judiciary, and oversight, will positively and directly impact the Sultanate’s economy both locally and internationally. It boosts investor confidence, improves the Sultanate’s ranking in numerous international indicators related to investment, stimulates economic development and contributes to attracting foreign investment to various economic sectors; building on the efficiency and stability of the governance framework. Flexible legislations and an independent legislative branch possessing full power An effective and independent oversight system that adopts transparency and disclosure to combat corruption, with the media assuming an active and insightful Swih, impartial and competent judicial system that employs forward-looking technologies Effective alternative dispute resolution methods that render the Sultanate a global centre in this area A comprehensive oversight system that protects national assets and applies the principles of accountability Objectives role A society that is legally educated and actively engaged in legisla- tive and oversight processes National talents who are specialised, qualified and trustworthy in the areas of legislation, judiciary and oversight, and who operate in an attractive environment Performance Indicators Baseline Values 2030 Target 2040 Target Corruption Perception Index Judicial Independence, Global Competitiveness Index Quality of Judicial Processes, Doing Business Report Voice and Accountability, World Governance Indicators Value: 44.0 (0 – 100) Rank: 68/178 (2017) Value: 5.7 (1 – 7) Rank: 18/140 (2018) Value: 6.5 (0 - 18) Rank: 110/190 (2018) Value: -1.06 (-2.5 – 2.5) Rank: 165/204 (2017) Value > 63 or Top 30 Countries Value > 6.446 or Top 5 Countries Value > 13 or Top 20 Countries Value > 0.88 or Top 50 Countries Value > 73 or Top 20 Countries Value > 6.446 or Top 5 Countries Value > 14 or Top 10 Countries Value > 1.14 or Top 30 Countries The World Justice Project "Rule of Law Index: Open Government" Sultanate to be listed in this indicator Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect Priority Governance of State’s Administrative Bodies, Resources and Projects Strategic Direction Flexible, Innovative and Future-Shaping Administrative Bodies Operating with Good Governance The desired Omani administrative agencies will be known for their high productivity, flexibility and effectiveness, based on sound foundations that facilitate planning, organisation, monitoring, evaluation and development. Within this model, the State institutions provide services in an integrated, optimised and modern manner, coupled with a results-based budgeting process to increase developmental expenditures especially in major and strategic projects. Therefore, the desired model for administrative bodies will be based on efficient and incentivising management that rewards productivity, penalises negligence and nurtures creativity. Those administrative bodies are capable of prioritising and aligning objectives across different government entities. They also have the capacity to control public spending, improve self-generated revenues for the Treasury through proper project governance and ensure efficient and effective distribution thereof among governorates. Ensuring sustainable institutional performance in the future requires a balanced and transparent partnership between the government, the private sector, the civil society and individuals. Such collaboration will help to boost the Omani economy and move towards a knowledge-based economy; keep pace with industrial and technological advances; redefine the role of the public sector to achieve optimal capacity to facilitate partnerships with individuals and other sectors to assume new roles in economic development. High quality and high-performance government services Clear and competitive recruitment standards for leadership positions in the public sector and public agencies Composed and trustworthy government decisions A forward-looking public sector with sectoral structure that is effective in planning, regulation, monitoring and evaluation Effective governance of resources and projects Objectives Transparency and institutional disclosure to ensure the right to access information Balanced, long-term partnership, and integrated roles between stakeholders including government, the private sector, civil society and individuals to ensure effective institutional performance Performance Indicators Baseline Values 2030 Target 2040 Target E-Government Development Index Government Effectiveness, World Governance Indicators Rule of Law, World Governance Indicators Value: 0.685 (0 – 1) Rank: 63/193 (2018) Value: 0.21 (-2.5 – 2.5) Rank: 81/209 (2017) Value: 0.43 (-2.5 – 2.5) Rank: 72/209 (2017) Value > 0.8301 or Top 20 Countries Value > 1.260 or Top 30 Countries Value > 1.20 or Top 30 Countries Value > 0.8783 or Top 10 Countries Value > 1.800 or Top 10 Countries Value > 1.80 or Top 10 Countries Number of Co-created or/and delivered Smart Government solutions with the private sector Number of Government Services Privatized / total number of Government Services New Indicator, under development New Indicator, under development Achievement in international indicators is measured by realising value or rank Mapping of Strategic Directions to SDGs Direct Indirect In Oman, we firmly believe that “Omanis” are the most precious wealth endowed by God. They have developed civilisations throughout history, and gained reputation for their abilities, talents and morals. Today, they are capable of reviving and renewing their dream of a prosperous and modern nation. The blessed Renaissance has brought about security and stability to Oman, through a policy of positive neutrality and balanced relations with neighbouring countries and the world. The Renaissance empowered Omanis through citizens’ consultation, engagement in equitable development, knowledge and economic growth, urban development and confident embracement of the successive industrial revolutions. It has also prepared citizens to play an active regional and global role in achieving peaceful coexistence and contributing to the region’s stability and evolution, without losing the authenticity of their identity or forsaking their long-standing heritage or principles. However, the world is facing rapid and successive changes. Political and economic challenges of the post-oil era pose all the more hurdles in the path of Oman’s development. Disruptive technological and scientific advances, digital globalisation and cyberspace have turned the world into a global village, thus creating new challenges in society, especially among youth and families, in addition to other challenges burdening natural resources, such as climate change and demographic projections of population growth in Oman. Facing these challenges and transformations, the Sultanate stands at crossroads. Either disregard them and give in to the shihing sands across the region, or recognise them, embrace them, and take advantage of ensuing opportunities. The latter means redefining the developmental roles internally and gearing towards a well-planned openness towards the world, which was the future choice of Oman 2040 vision. Today, Oman enjoys expansive opportunities to serve its national developmental objectives and future directions of the national economy. This will be achieved through sound and positive guidance, systematic evidence-based planning, diversification of the economy and revenue sources, and gradual government withdrawal from providing public services. Instead, the government will act as a regulator and catalyst for active partnerships with the private sector and the civil society. This partnership builds on good governance aiming at developing education, empowering talents and utilising the scientific and technical progress to improve efficiency and productivity, especially aher that the enormous growth had created new markets and given rise to the knowledge-based economy. The demographic opportunity will support the social stability and economic growth in the Sultanate. However, the Vision ought to develop preventive policies to avoid the invasion of social and value systems of the Sultanate. The Vision should also increase the economic, social and cultural returns while reducing the excessive reliance on the government, especially among youth. The latter should start empowering themselves scientifically and economically through entrepreneurship and innovation. Some might think that oil wealth, bestowed by God upon the Sultanate, is the main reason behind achievements made thus far. However, facts indicate that financial resources alone werenotenough. Thedeterminationofthe Omanipeoplewaskey, especiallytheirunwavering trust in their leadership and their participation in the development process. Otherwise, no progress or development could have been possible. If oil loses some of its global glow, the will and determination of the Omanis will increase in defending these achievements and will continue the process of modernisation and building for future generations. As when the entire society of Oman, across all hues and segments, has been a partner in formulating the vision; it will continue to be so in its implementation. Each and every Omani has a role to play in the implementation, monitoring and evaluation of development plans and commitment to future directions. No effort will be spared in building for the future generations and carrying on the dazzling journey into the future, always moving into the future, always moving forward with confidence. Vision Document 45 • Global Innovation Index • Education for All Development Index • Skills, Global Competitiveness Index • Global Talent Competitiveness Index • Quacquarelli Symonds Ranking of World Universities – Average rank for Omani Universities listed within the top 500 Universities • Health, Legatum Prosperity Index • Healthy Life Expectancy at Birth • Security, Global Competitiveness Index • Social Capital, Legatum Prosperity Index • Culture and Values Index • Social Progress Index • Human Development Index • Youth Development Index • Real GDP per Capita (Growth Rate) • Gini Coefficient (Household Expenditure and Income Survey) • Global Competitiveness Index • Regulatory Quality, World Governance Indicators • Availability of Effective Economic Leadership by 2021 • Economic Complexity Index • Networked Readiness Index • Readiness for Future of Production - Drivers of Production • Readiness for Future of Production - Structure of Production • Oil/Non-Oil Share of GDP • Current Account Deficit or Surplus to GDP Ratio • Percentage of Skilled Labor of Total Labor in the Private Sector • Labour Productivity Growth Ratio • Omanis share of total jobs created in the private sector • Quacquarelli Symonds Ranking of World Universities – Number of Omani universities listed within the top 500 Universities • Number of Graduates from Programs or Institutions for Gifted Students (at all education levels) out of Identified Gifted Students • The Global Human Capital Index • Living Standards Index • Accessibility Index for the most-needy groups • Civil Society Contribution to welfare • Number of Omani Athletes or Teams that win in sport competitions • Real GDP Growth • Inflation Rate (CPI Inflation) • Fiscal Balance percentage of GDP (Budget Deficit) • Total Public Expenditure to GDP Ratio • Non-Oil Revenue to GDP Ratio • Gross Debt to GDP Ratio • Percentage of GDP output of the knowledge economy of Total GDP Direct١ Indirect٢ • Ease of Doing Business Index • Export Product Concentration Index • HH Market Concentration Index • Gross Private Investment percentage of GDP • FDI Net Inflow percentage of GDP • Economic Freedom of the World • Private Sector Contribution to GDP • Providing Infrastructure for Public-Private Partnerships • Decentralization Implemented by 2022 • Settlement Hierarchy Implemented by 2022 • Most Livable Countries, Inequality-adjusted Human Development Index • Environmental Performance Index • GDP Per Unit of Energy Use • Oman Water Index • Renewable Energy Consumption percentage of total consumption • Domestic Material Consumption (DMC) • Self Sufficiency Ratio (The Coverage of Total Consumption from Local Components for Food) • Corruption Perception Index • The World Justice Project "Rule of Law Index: Open