Oman begins selling state assets amid oil price slump

Transfer of government stakes aimed to boost privatisation

Oman’s finance ministry has begun transferring stakes it owns in listed and private companies to other state-owned corporates and sovereign funds, the country’s undersecretary of finance has said, a move that could pave the way for their privatisation in future.

Oman has already outlined plans to sell off state assets as it seeks to cope with a budget shortfall in the wake of lower oil prices.

The aim is to move the stakes to new owners that are more of a natural fit.

The ministry’s stakes in Salalah Port Services Co, for example, were transferred earlier this month to Oman Global Logistics Group, which has interests in transport and support services.

Nasser Al Jashmi said the transfer of stakes from the government was aimed at making their operations more efficient and also to improve the management of the companies.

“We are transferring logistics-related assets, and the same applies to other sectors,” Al Jashmi said, noting sector-specific owners could manage them in a synchronised way in line with industry strategies.

In June, a special committee of the Shura Council for studying the effects of lower oil prices recommended the merger of government ministries to reduce government spending. It also called for the lifting of subsidies given to government-owned companies as well as applying zerobased budgeting.