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National Economic Diversification Program (Tanwea’a)

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Overall
Objective

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Anchored in the strategic aims of the Economic Diversification and Fiscal Sustainability priority within Oman Vision 2040, and building on prior diversification efforts, the National Economic Diversification Program (Tanwea’a) seeks to empower non-oil economic sectors to achieve their intended contributions to the Gross Domestic Product. The program further endeavors to enhance interlinkages across different sectors of the national economy, fostering greater integration, resilience, and value creation.

In addition, Tanwea’a addresses the challenges facing economic diversification sectors by developing phased solutions and initiatives that contribute to achieving the desired growth targets. The program focuses on five priority sectors: manufacturing, food security, tourism, mining, and transport and logistics.

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Key Initiatives and Projects

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Integrated
Economic
Clusters

An integrated economic system for the Shaleem Industrial Minerals Area, established in cooperation with Oman Investment Authority (Minerals Development Oman) and the Public Establishment for Industrial Estates "Madayn". The Shaleem area is considered one of the promising mineral regions due to its geographical location overlooking regional maritime corridors and its geological composition, which includes gypsum, limestone, and dolomite ores.

The cluster aims to establish integrated economic zones within the governorate, encompassing all facilities: touristic, agricultural, industrial, and logistic. It represents a model to be emulated across other governorates in the future. The aim is to stimulate economic growth across sectors and strengthen both forward and backward linkages among the various economic sectors, thereby expanding the tourism base, enabling the sector to contribute to the Gross Domestic Product, and supporting the Decentralized Governorate Development Program.

This cluster aims to develop and enhance the integrated logistics system for the cold chain, which will contribute to improving the quality of exports by strengthening both upstream and downstream segments such as fisheries, agricultural products, food industries, and related services. The initiative seeks to achieve the strategic objective of positioning SEZAD as a regional hub for cold chain operations. This is to be accomplished by introducing supportive legislation and attractive incentives specific to the cold chain, and improving the business environment to stimulate economic growth across sectors, reinforce inter-sectoral linkages, expand the productive and export base, and empower subsectors to enhance their contribution to the Gross Domestic Product.

This initiative establishes a comprehensive economic system for An Najd agricultural region, in collaboration with An Najd Development Office. The area is considered agriculturally promising due to its strategic location and favorable climate for year-round cultivation. The project aims to stimulate growth across economic sectors, strengthen forward and backward linkages, expand the productive and export base, and support the sector’s contribution to GDP. It further seeks to bridge the food gap and enhance local content. The cluster will encompass a fully integrated system including agricultural, industrial, and logistics facilities.

This cluster is designed to connect the upstream and downstream segments of the aluminum industry, by expanding the liquid aluminum production base and establishing a group of downstream industries with higher added value, thereby advancing the aluminum sector's overall development. The manufacturing activities within this cluster are closely integrated with the transport and logistics sector through comprehensive supply chains and innovative, unified logistics and storage solutions across all factories. The cluster is further supported by a range of shared services, including quality laboratories, training and qualification centers, and marketing outlets. Ample opportunity exists for industrial integration to enhance the efficient use of resources and services available within the region.

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Policies

The economic diversification policies reflect a set of national directions that define broad strategic pathways and require an array of tools, mechanisms, and actions to achieve specific economic goals. These policies are intended to stimulate economic growth, generate new employment opportunities, and reduce dependence on sectors that are vulnerable to global economic fluctuations. The adopted policies are as follows:

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Initiatives

The economic diversification initiatives constitute focused programs and quick-impact actions aimed at improving the overall economic performance of the Sultanate of Oman. Encompassing a range of sectors, these initiatives are considered essential drivers of economic progress and enhancements to quality of life. They are designed to stimulate economic growth and generate new employment opportunities by supporting small and medium-sized enterprises and encouraging investment in emerging and diversified sectors. These initiatives include:

Thereby strengthening Oman’s bargaining position on global mineral prices and enhancing the mining sector’s contribution to GDP. The initiative also aims to promote international marketing and build strategic economic partnerships, positioning Oman as a global center for mineral trade.

With the goal of ensuring operational sustainability, increasing efficiency within the sector, enhancing competitiveness, and developing cohesive legislation and regulatory frameworks to guarantee seamless integration across all types of ports.

By formulating a supply strategy for basic food commodities, as a precaution against potential crises that may disrupt imports. The initiative also aims to secure access to these goods at competitive prices, thereby reducing the risks associated with economic and political instability stemming from reliance on limited sources of supply.

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