Oman's Institutional Reforms

Exciting changes in Oman with substantial structural & institutional reforms which aim to create a leaner government structure and streamlined services. Through a series of royal decrees Oman's government has experienced a major reform in its institutional structure. It is too early to predict the efficacy of the new structure, however a few take away points should be noted. 

Governance 

• Consolidating locus of oversight to the council of ministers through the abolishment of multiple specialized councils. This is expected to create better information flow and strategic decision making in key areas of overall economic planning, fiscal spending, and social investment.
• The establishment of 2040 follow up unit is critical for the transition to the new vision. The governance of the implementation and follow up was the missing element.
• The abolishment of the supreme council of planning and creation of Ministry of Economy switches the planning perceptive of the country to key specific roles. 
• Regional empowerment through Governorante offices and municipal services is a step towards regional decentralisation of basic services.  

Economic Effects

• The operational and executive restructuring aligns disparate institutional structures in various economic touch points. For example, unification of special economic zones and free zones under one authority, or combining investment promotion with commerce.
• The energy and mining sectors may benefit from the emphasis on “Energy”. The transition from Oil & Gas emphasis to a more sustainable energy policy including renewables is important from a sustainability perspective.  

Social Effects

• Higher education will benefit from the merge of research and innovation elements formally into its structure administratively. This will help activate further integration of innovation in the process and focus previous programs directly into higher education.
• The merger of three key labor market institutions, Manpower, National Training Fund, and National Employment Center is an essential move in labor market reform. The synergies required to better align national policies and regulation may be better realized in a fresh new perspective. 

Public Services

• The reordering of key public services including general services including water and electricity, housing, municipal, justice, cultural, youth, and tourism are examples of clutter reduction and potential efficiency gains. 
• Basic social services such education and health remain unaffected directly by the changes. 

Adham Al Said, Ph.D.

Managing Parter

The Firm for Business and Economic Consulting

www.thefirm.om