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The Bounce Back Time

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The Bounce Back Time

Sujith Vasudevan, Managing Editor, 0

Oman has manifested great strength in its growth trajectory ever since the dawn of the new millennium, ensuring the welfare state of its nationals, who today savor a very high per capita income. Oman's economy is heavily dependent on oil production, as the the petroleum sector accounts for around 87 percent of budget revenues 51 percent of GDP and 60 percent of total exports. But it's no secret that the oil reserved have been shrinking in recent years, forcing the government to a process of economic diversifi cation based on development of tourism and gas based industries.
This augmented with the effective vaccination program prevailing in Oman, the country is well on its tracks to recover in 2021 from the dual impact of the Covid-19 pandemic and the collapse in oil prices last year. According to International Monetary Fund, the economy is projected to grow by 2.5 percent after the 2.8 percent contraction in 2020.

Going forward, government spending is also expected to increase with a plan to boost the economy in a diversi fied manner. It's commendable the way the sultanate has adopted various fiscal measures over the past year to support the economy during the pandemic. This ranges from interest free emergency loans to tax and fee reductions and waivers, the flexibility to pay taxes in instalments and a Job Security Fund to support citizens who lost their jobs.

This issue is about a bunch of entrepreneurs who have been an instrumental part of driving Oman's economy from the corporate side of things.

Do let us know what you think!

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