Oman 9th Five-Year Development Plan and the Strategic...
44
Oman 9 th Five-Year Development Plan and the Strategic Economic Sectors (2016-2020) Presented by HE Talal al Rahbi, Deputy Secretary General of the Supreme Council of Planning in the Sultanate of Oman London, July 7,2017
Transcript of Oman 9th Five-Year Development Plan and the Strategic...
Oman 9th Five-Year Development Plan and the Strategic Economic Sectors
(2016-2020)
Presented by HE Talal al Rahbi, Deputy Secretary General of the Supreme Council of Planning in the Sultanate of Oman London, July 7,2017
Oman: A Historical Perspective
Oman has several comparative advantages that could put its economy on the high growth trajectory path
• The strategic geographical location • Oman is endowed with abundant level of
energy supply • High level of world quality infrastructure • Very young and vibrant labor force • Stable political and business environment • Effective pro FDI industrial policy • Supportive macroeconomic policies The Periplus map was prepared by a Greek sailor in the first century it shows
the importance of Oman as a hub for the main sailing routes at a time when the frankincense trade was important. (Rights courtesy : The Office of His Majesty’s Counselor for Cultural Affairs)
2
During the past 15 Centuries, Oman was considered the trading transit hub between East and West
A transformational Journey for the past 45 years
3
•Role of Private Sector in national economy has been expanding and strengthened . •Infrastructure has been brought to advance modern standards over much of the country .
Indicator 1970 1990
Population (in 000) Omani 658 1,321
Expats ~0 304
Oil extraction in 000 b/day 332 685
GDP at current prices (Mn.R.O.) 104.7 4,493
GDP per Capita in R.O 159 2,764.9
Life Expectancy at birth (years) 47.4 65.9
Pupils in general education in 000* 7 356
Students in Higher Education Institution in 000* 0.4 6.614
Water Production in bn. Gallons 0.16 13.373
Population with access to Safe water %
Girls in general education % of total Pupils 16.2% 46.4%
Source: NCSI
19
86
In the Vision 2020, Oman lays a roadmap for a sustainable economy rooted in diversification and private sector
5
THE VISION 2020 IS BASED ON 4 PILLARS INCLUDING DIVERSIFICATION…
…REINFORCED BY A SET OF 6 POLICY AGENDA GUIDING PRINCIPLES
Developing Human Resources and Upgrading Omani Skills And
Competences
Creating a Stable Macroeconomic Framework Aimed at the Development
of a Private Sector Capable of Operating Efficiently
Encouraging the Establishment of an Effective & Competitive Private Sector
Enabling Economic Diversification & Striding Towards an Optimal Use of
Natural Resources and the Geostrategic Location Of Oman
Enhancing the Standard of Living of the Omani People While Ensuring Social Equality & a Balanced Development
Across All Regions
Preserving, Developing & Building on the Achievements Accomplished in the
Past 25 Years
Oman Vision 2020
Economic Balance and Sustainability
Human Resource
Development
Economic Diversification
Private Sector Development
1 2 3 4
Source: Oman Vision 2020
A transformational Journey for the past 45 years
6
Achievements of Oman Socio Economic Development 1970-2015 after a major role played by the vision 2020
•Role of Private Sector in national economy has been expanding and strengthened . •Infrastructure has been brought to advance modern standards over much of the country .
Indicator 1970 1990 2015
Population (in 000) Omani 658 1,321 2,345
Expats ~0 304 1,814
Oil extraction in 000 b/day 332 685 981.1
GDP at current prices (Mn.R.O.) 104.7 4,493 26,850.3
GDP per Capita in R.O 159 2,764.9 6,456
Life Expectancy at birth (years) 47.4 65.9 76.4
Pupils in general education in 000* 7 356 724.4
Students in Higher Education Institution in 000* 0.4 6.614 136.5*
Water Production in bn. Gallons 0.16 13.373 79.357
Population with access to Safe water % 94.9%
Girls in general education % of total Pupils 16.2% 46.4% 49%
Source: NCSI
Oman light map, 1992 Source: US Defense Meteorological
Satellite Program, TEPAV
calculations
Oman light map, 2002 Source: US Defense Meteorological
Satellite Program, TEPAV
calculations
2013 Source: US Defense Meteorological
Satellite Program, TEPAV
calculations
Economic Fundamentals of the Omani Economy
Oman has enjoyed a Strong Economic Fundamentals for the past Fifteen Years (2000-14)
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2000–11 Average
2012 2013 2014
Gro
wth
in p
erc
en
t
Real GDP Growth Non-oil GDP GrowthInflation Fiscal Balance (percent of GDP)Current Account Balance (percent of GDP)
10 Source: OMM, SCP and IMF, World Economic Outlook, 2016.
Growth of Non-oil GDP accelerated in the past 15 years with low inflation and internal and external surpluses
Future vision
(Oman 2040) Vision
(Oman 2020)
Evaluation of Vision 2020
Evaluation of the 8th Plan (2011-2015)
The 2020 vision paving the way for the Future Vision (Oman 2040)
The 9th Five-Year Plan
11
The 9th Five-Year Development Plan
• Oman has succeeded in maintaining steady GDP growth in line with its 8th Development Plan targets, largely driven by non-oil sector growth and combined with declining levels of inflation
• Lessons learnt from Vision 2020 and the 8th Development Plan: Adopt a focused approach for economic sectors, redouble efforts to develop the private sector, create national champions to drive growth and build national human capital
The 9th Five-Year Development Plan Developed through analysis of 19 economic, support, social sectors and enablers
Oil & Gas
1 Macro-Environment
Eco
no
mic
Sec
tors
Mining Fisheries Tourism Transport &
Logistics Manufacturing
Div
ers-
ific
atio
n
Enab
lers
Soci
al &
S
ust
ain
abili
ty T
hem
es
Utilities Financial Services ICT
Regional Development
Education Healthcare
1 2 3 4 5
8* 7 6
9 10
Private Sector Development/SMEs
Youth and Culture Omanization
Other Social Development
11 Business Environment
12
14 13
16
Machinery of Government & E-Government
Global & Regional Economic Outlook
Socio-Economic Development Fiscal Framework Competitive Advantage
15
Science, Technology & Innovation
17
19
Environmental Protection, Sustainability and Readiness
for Natural Disasters
18
8*
Co
re
*Oil & Gas and Energy sectors have been combined 12
The 9th Five-Year Development Plan Policy Targets for the Strategic and Economic Diversification Sectors in the 9th 5YDP
13
•Share of the sector in GDP is 9.8% and is expected to achieve 11% by 2020.
•Average growth in the 9th Plan is 7.8%..
• Total investment is expected to increase to 2.6 billions OMR.
•Share of the sector in GDP is 6.2% and is expected to increase to 7% in the Plan.
•Average growth is forecasted at 5.4% per annum.
• Total investment is expected to increase to 6.1 billions OMR in the Plan.
•Share of the sector in GDP is 3% and is expected to achieve 3.3% by 2020.
•Average growth is forecasted at 5.3% per annum.
• Total investment is expected to increase to 1.6 billions OMR .
•Share of the sector in GDP is 0.5%.and is expected to achieve 0.6% by 2020.
•Average growth is forecasted at 7% per annum.
• Total investment is expected to increase to 1.1 billions OMR .
•Share of the sector in GDP is 0.4% and is expected to achieve 0.5% by 2020.
•Average growth is forecasted at 6.5% per annum.
•Total investment is expected to increase to 739 billions OMR .
Criteria for choosing the Diversification Economic Sectors
1
2
Ability to create job opportunities
High competitiveness internationally
3
4
Ability for sustainable and continuous growth
Ability to develop growth in other sectors
Mining Fisheries Tourism Transport & Logistics Manufacturing
The National Program for Enhancing Economic Diversification (Tanfeedh) A focused program to accelerate and enable implementation of the 9th 5 year development plan
14
.. an 8 steps methodology
The start of the implementation phase in January 2017 Steps to be implemented until Dec- 2016
Strategic Intent:
defining the strategic sectors and pillars that the
program will focus on.
1
18th of September – 26th of October 2016
The Labs:
Deep dive into the defined strategic areas to agree on
solutions and implementation requirements
2
Open Days:
sharing and the
outcomes of the Labs with
the public to obtain their
views and buy-in
3
Tanfeedh Handbook:
Developing a clear and concise implementation
plan and sharing it with the public and relevant
stakeholders
4
KPIs:
Identifying the KPIs required to monitor
implementation
5
Implementation:
Implementing the plan, resolving challenges and
utilizing available opportunities
6
Auditing and quality checking
Working with external parties to validate reported
outcomes
7
Publication of results:
Publishing the outcomes via pre-approved reporting
mechanisms
8
28-30 November 2016
15
More then 160 Organisations participated in the
Labs
The Participants numbers have exceeded the expected number of 30 per LAB on
daily basis
Diwan Ministry of Trade & Commerce Ministry of Finance Ministry of Tourism Ministry of Manpower MOTC Supreme Council of Planning Ministry of Health
Ministry of Environment Royal Oman Police MO Regional Municipalities Central Bank of Oman MOFA Ministry of Interior SGRF MOAF
Ithraa Ministry of Oil & Gas Ministry of Education Ministry of Civil Services Oman Chamber of Commerce Ministry of Housing Ministry of Legal Affairs
Al Khonji Group
Al Raffd Fund National Bank of Abu Dhabi OBIC National Bank of Oman Al Ajmi Marble Al Hosn Investment Company
Jindal Steel ORPIC MB Holding Oman Society of Contractors SQU Oman Air
OMRAN Oman Environment Society SABCO group Shell Oman HSBC Hyatt Khimji Ramdas
PDO Ernst & Young
OCEC
SOEs, Private Sector, Civil Society, Academics and the youth sector
Public Sector
MO Heritage & Culture
Hyatt
23 25 24 24 25
23
19 18 17 18 18 17
26 24
28 26 27
24
28 28 31 30 29 28
24
33 31 32
30 30
9 5 6 7 6
5
17
23 22 21 22
21
9 10
11
10
12
9 3
1
2 2
1 1
1
1 2
2
2 1
16 17 17
17 18
16
12
10
8 9 8
8 11
16
18
17
16
14 18 19
21 20
22
18
20
17
14
17
16
14
4
2 2 3 2
2
3
2
2
2
3
2
6
4
3 4 5
3 5
3
2
3
2
2
52
49 49 51
47
51
46 48 48
53
59
55 54
52
57 57
49
55
49
54
51
48
57 56
50
46 46
49 50
47
Public Sector
SOEs
Private Sector
Others
Daily Target of 30
Average weekly
attendance
W1 W2 W3 W4 W5 W6 W1 W2 W3 W4 W5 W6 W1 W2 W3 W4 W5 W6 W1 W2 W3 W4 W5 W6 W1 W2 W3 W4 W5 W6
The Labs participation rate and numbers
Open days in order to obtain feedback from the Omani society ….
Date:
28-30 November 2016
Location:
Oman Convention & Exhibition Centre
For 6 weeks, on a daily average of 250 participants from the private and public sector By the end of the 6 weeks the labs have produced lab reports with detailed activities for each of the proposed initiatives
27
… 14 Billion Omani Riyal Investments by 2020… (32 Billion Euros)
Strategic Sectors - Logistics The sector has been growing at a stable rate of ~8% since 2010, of which land & sea transport contributed more than 60%
28
11.6
17.5
62% 9%
10%
28%
2010 2013
Total GDP Contribution (2015)
29.1B OMR
Non-Oil
Oil
1.20
2010 2015
Logistics GDP (2010-2015) Billion OMR
CAGR 7%
3.5% 5.7% % Total GDP
Sectoral Composition Logistics GDP % by Sector
Support auxiliary transport services
Average Growth % 2010-2013*
Land and sea transport
Air transport
9%
11%
5%
6.6% 9.5% % Non-Oil GDP
Logistics
61%
30%
1.67
Logistics Lab – Projects and Initiatives
Strategic Sectors - Logistics Various infrastructure and enabling projects on top of existing developments, which can be syndicated with investors
30
1 Rail connectivity
3 One Stop Shop with full
integration of Bayan
3
3 3
5
3
3
3
3
1
1
3
2 Land Connectivity to Saudi
Arabia
2
2 2
4 Bonded warehouses for
goods in transit
4
4
4
3
4
4
Enhancing cold logistics
network
Making the most
New Opportunitie
s
Salalah Port
Development Project
Cargo Village
Air cargo business development: Invest in
leasing 3 air freighters
Oman as E-Commerce Logistic Hub
6
4
10
6
G
5
Improve efficiency in air
cargo clearance process 8
9 Sohar Port
2
4 5
5
5
5 5
5
10
6 8
5
9
Improve the quality of services by Oman’s
Ports Sea: Feeder connectivity into the regional
market
Sea: Increase competitiveness and
service deliverables of local logistics
Port Community System
Level playing field for Free Zones
7
7
7
7
G
G
G
G
G
7
4
Manufacturing Lab – Projects and Initiatives
2
Strategic Sectors - Manufacturing 3 promising clusters in Oman: Chemicals, Building Materials and Food
32
Making the Most
0
10
20
30
40
50
60
70
80
90
100
-0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.71.2 1.3
Organic
Chemicals
Manufactured
fertilisers
Metal ores
and scrap
Non-iron
metals
Plastic
Crude fertiliser
and minerals
Dairy and eggs
Non-metallic minerals Seafood
Cereals
and cereal
products
Manufactures
of metals
Veg.
and
fruit
Electronics Veg.
oils
Oman’s export competitiveness Export growth CAGR in 2005-2014 vs world market share; with 2014 export volume (bubble size); 14 sectors with >100M USD exports are included
Iron and
steel
Ex
po
rt g
row
th C
AG
R (
%)
Raysut
Al Mazunah Zone
Salalah Free Zone
Duqm
Nizwa
Sur
Smail Rusayl
Buraimi
Sohar
Knowledge Oasis Musccat Sohar Freezone
Free Zone
Industrial Zone
Industrial and Free Zones in Oman
Strategic Sectors - Manufacturing Various projects to unlock, and also business opportunities of which can be syndicated with investors
33
True North
New Opportunities
Ground Breaking Ideas
• Gas Market Liberalisation
• Environment Standards
• Energy Diversification
• Advanced Manufacturing Research
Centre
• Industrial Innovation Centre
Enablers
• Integrated Dairy Farm
• Enhancing Poultry
• OCTAL PET Resin Capacity
Improvement
• Sohar Alu. Phase 2
• Development and Innovation of
Date Products Poultry Production
• Aquaculture Development
• Dice & Mould Production
• Wheels Production
• New Grey Cement
Factory
• White Cement Factory
• Cement Grinding
• Seafood Processing &
Canning
• Vegetables Processing
• Solar manufacturing (to be
explored)
1
2
3
5
6
• PET Preform Plant
• Ammonia Fertiliser
• Catalysing Petrochemical
Downstream
• Bituminous Waterproofing
Membrane
• Alu. Wheels Manufacturing
Expansion
• Valves Manufacturing
• Flanges Manufacturing
• Production of Scaffolding & Parts
1
2
4
1
2
3
4
5
6
1
2
3
1
2
Making the Most 2
3
6 3 4
4
2 4
5 6
Muscat
4
1
3
2
5
Duqm
2 4
Salalah
2
2 Quriyat
Sur
Bar Al Hikman
Sunainah
Al Wusta
Safa
Suwaiq
Petrochemical
Metal
Non-metal
Food
Innovation
7
1 1
2 3
1 3
3
1
Sohar
7
3
2
Strategic Sectors - Tourism Oman’s Tourism sector has its strengths in its culture and heritage, and exceptional natural endowment
37
Culture and Heritage
• Rich culture, traditions, heritage & values
• Many cultural attractions including forts and castles, souks, oil alleys & ancient mosques
• Forts and castles classified as World Heritage Sites such as: Bahla Fort and Wall, Jabreen, The Five Falajs, and the Bat Tombs.
Exceptional Natural
Endowment
• Strategic, central location accessible to potential tourists from the East & West
• Exceptional natural sights placing it at an advantage relative to GCC peers, sights include:
- Natural reserves & water springs
- Natural caves, Mountains & several islands
Strategic Sectors - Tourism Oman’s Tourism sector has its strengths in its culture and heritage, and exceptional natural endowment
38
Finance Lab – Projects and Initiatives
Finance Lab – Projects and Initiatives
Tanfeedh will directly coordinate with relevant Ministries to facilitate investment
opportunities
Sector’s Minister Sector Steering Committee
Ministerial Delivery Unit
Tanfeedh Delivery Unit –
Implementation Support
and Follow-up Unit
Sectorial working Group 1 Sectorial working Group 2 Sectorial working Group 3
Initiative Owners Initiative Owners Initiative Owners
Investors could reach directly to Tanfeedh contact of reference for further enquiries regarding the
investment opportunities. The contact reference will link investors with the relevant initiative owners
and sectorial working groups
7
The start of the implementation phase in
January 2017 Steps to be implemented until Dec- 2016
Strategic Intent:
defining the strategic sectors
and pillars that the program will focus
on.
1
18th of September – 26th of October
The Labs:
Deep dive into the defined strategic areas to agree on
solutions and implementation requirements
2
Open Days:
sharing and the
outcomes of the Labs
with the public to obtain
their views and buy-in
3
Tanfeedh Handbook:
Developing a clear and concise implementation plan and sharing it with the public and relevant
stakeholders
4
KPIs:
Identifying the KPIs required to monitor
implementation
5
Implementation:
Implementing the plan, resolving challenges and utilizing available
opportunities
6
Auditing and quality checking
Working with external parties to validate reported outcomes
7
Publication of results:
Publishing the outcomes via pre-approved reporting
mechanisms
8
Hence The National Program for Enhancing Economic Diversification (Tanfeedh)
28-30 November
.. an 8 steps methodology
![PETROLEUM DEVELOPMENT OMAN (PDO) [Elmech] Development Oman - PDO [Elmec… · Petroleum Development Oman L.L.C. ... Postal Address : P.O.BOX 505- PC 114- SULTANATE OF OMAN Is registered](https://static.fdocuments.in/doc/165x107/5ac633c57f8b9a5c558dcb76/petroleum-development-oman-pdo-elmech-development-oman-pdo-elmecpetroleum.jpg)
