Ageing population holds great potential

Oman could benefit a great deal from the ageing population, referred to as the “silver economy”, through right planning.

Economists say the group is an asset.

Ageing population, which was considered irrelevant and less productive, might hold great potential as economies have realised there are “many services required by this segment of demographics”.

“These services are beyond medical. It could be leisure, social interaction, tourism or entertainment,” said His Highness Dr Sayyid Adham al Said, Assistant Professor of Economics at Sultan Qaboos University and founder of the Firm, Business and Economic Consulting as well as Ithraa’s “inside stories moderator”.

Ithraa, the Public Authority for Investment and Export Development, says the ageing population is a market worth $15 trillion globally by 2020.

It is time to raise awareness about the sector.

According to him, this group is often in the late stage of working life, where they might work differently or choose to enjoy other services. “They tend to be better prepared to pay for those because they have worked and might have savings where they could be enjoying the fruits of retirement. They might even move from one industry to the other.”

More people are joining this group, says the economist, making the silver economy even more interesting.

It’s a group that businesses often neglect.

“As we begin to live longer, we tend to be in that bracket — anyone above 60 years,” he said.

Dr Sayyid Adham said, “We tend to think of Oman as a young nation. Technically, the ageing population of Oman is currently between six and seven per cent. In the next two decades, it will be almost 11 per cent.

“In other words, by 2030 we are going to have a different situation. In about two decades’ time, Oman will have an ageing population. At the moment, we are unprepared. For every young person, we still have low level of dependency but that is going to change.”