The Influence of Economic Diversification Agenda on the Economic Growth of the Sultanate of Oman

Abstract

The purpose of this paper is to present a study on the relationship between the economic diversification agenda and economic growth of the Sultanate of Oman. As one of the oil-exporting countries that are heavily dependent on it for income, Oman believes that the state's policy should be geared towards creating an effective economic diversification agenda that serves the economic growth of Oman away from the increasingly volatile oil prices.  As a result, Oman initiated a national programme called Tanfeedh, as a catalyst for the development of economic diversification agenda that helps to reduce its over-reliance on oil and gas. In the present study, the impacts of both the economic diversification and the Tanfeedh Programme and coupled with another factor, industrial development, on the economic growth are examined using pilot data. This is operationalised through the development of a research model that represents the inter-relationships between the strategic factors. The preliminary analysis from the pilot study indicates that the enablers of economic diversification together with the Tanfeedh Programme and Industry development are the right strategic factors for the progress of Oman.