Muscat: Oman has introduced the 'Estidamah' plan to effectively allocate financial resources and enhance their role in achieving the economic, development, and investment goals of Oman Vision 2040.
The plan comprises over 74 initiatives with actionable programs based on six core themes, supported by four enablers, and includes 10 strategic program metrics.
Furthermore, the plan aims to improve financing opportunities and collaborate with stakeholders to implement these initiatives within the framework of the Tenth Five-Year Plan. The focus is on improving the state's public financial situation and ensuring its long-term impact.
On Monday, the National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah) announced a comprehensive financial sector development plan that encompasses both the banking and capital market sectors. Nasser Khamis Al Jashmi, Secretary-General of the Ministry of Finance and the General Supervisor of the National Programme "Estidamah," highlighted, "The announcement of the financial sector development plan is a continuation of the government's efforts, building on the positive results achieved through the implementation of the medium-term financial plan (2020-2024). This has led to a decrease in the average breakeven oil price in the state's general budget, a reduction in public debt, and an increase in credit ratings."
He emphasized that the government remains committed to improving financial conditions and developing the financial sector. The National Programme for Fiscal Sustainability and Financial Sector Development "Estidamah" has been approved for a three-year period starting from 2023, and it will play a crucial role in achieving the targets set by Oman Vision 2040.
Mahmood Abdallah Al Aweini, Director of the National Programme for Fiscal Sustainability and Financial Sector Development, emphasized the various objectives of the program. These objectives encompass enhancing the overall financial indicators of the state, strengthening the financial sector system to empower individuals and institutions in different development paths, and increasing the involvement of the private financial sector to offer targeted financing options for various groups, including SMEs, entrepreneurs, investors, start-ups, and sectors related to economic diversification.
The program's key areas of focus include providing financing alternatives for SMEs, channeling funds towards specific sectors, establishing a sustainable green finance system, bolstering the role of the capital market, attracting foreign investments, and promoting the growth of the insurance sector. Additionally, the program places significant emphasis on four key enablers: fintech, the legal and regulatory landscape, financial literacy, and the development of human capital.
During the research phase, the program encountered various obstacles such as a lack of financial services and products suitable for different demographics, a concentration of funding opportunities in traditional sectors, low levels of liquidity in the capital market, and a lack of opportunities related to fintech and sustainable green finance.
Additionally, there was a scarcity of qualified professionals in the financial sector.
Based on an extensive study conducted by the program's team, several quick-win initiatives were implemented in 2023 to address these tangible challenges. Clear and practical performance goals and indicators were established to monitor improvements, and corrective measures were proposed to capitalize on the best global practices.
The Financial Sector Development Plan represents a significant stride towards Oman's financial future, as it brings together the efforts of various stakeholders to achieve the national objectives outlined in Vision Oman 2040.
In recent times, the 'Estidamah' program has successfully completed several initiatives in collaboration with relevant stakeholders. These initiatives include the Market Maker and Liquidity Providers Initiative, Green/Sustainable Financing Initiatives, and the Insolvency Law Initiative.
