74 initiatives to boost financial sector
The National Programme for Fiscal Sustainability and Financial Sector Development ‘Estidamah’, supervised by the Ministry of Finance (MOF), announced a detailed plan on Monday to empower the financial sector.
The initiative aims to bolster the financial sector, including banking, capital markets and insurance, thereby contributing to the economic and investment objectives outlined in Oman Vision 2040. It seeks to harmonise fiscal, monetary and economic policies effectively.
The comprehensive plan comprises 74 initiatives across six strategic pillars, supported by four enablers, with performance measured by ten strategic indicators until the end of 2025.
Nasser bin Khamis al Jashmi, Secretary General of MOF and Supervisor of Estidamah, emphasised that the plan is a continuation of the government's concerted efforts to improve the economy. These efforts have yielded positive results, evident in the decline of the average oil break-even price in the state’s general budget and a reduction in public debt, alongside an improved credit rating.
Jashmi noted that Estidamah is a national programme, launched via a Royal Directive for the transition from fiscal balance to fiscal sustainability. “The programme focuses on directing financial resources towards developmental projects with returns on investments, aiming to enhance economic development. Estidamah will collaborate with public and private sector entities to foster a developed and dynamic financial sector, contributing significantly to the gross domestic product.”
The programme’s goals include improving the state's financial indicators, enhancing readiness of the financial sector to accommodate changes in the economic and investment climate, and increasing private participation in financing options.
The plan involves two tracks - the first addressing Fiscal Sustainability Pillars, such as improving public spending efficiency, enhancing public financial management and strengthening non-hydrocarbon revenue, and the second focusing on developing the banking sector, capital market and the insurance sector.
The six strategic pillars include establishing a system for SME financing, directing financing towards sectors targeted in Oman Vision 2040, developing policies for investment and green project finance, strengthening liquidity and local investor contribution in stock and debt markets, developing the insurance sector to support economic activities, and attracting foreign investments to reclassify Muscat Stock Exchange from a frontier to an emerging market.
The four enablers comprise developing fintech infrastructure and promoting financial innovation and entrepreneurship, promoting financial literacy and investment culture, updating laws and legislation to meet future requirements, and enhancing skills to ensure quality financial services.
Mahmood bin Abdullah al Aweini, Director of Estidamah, outlined several programme objectives, including completion of initiatives to improve the state’s financial indicators and developing the financial sector to facilitate various development paths.
Aweini highlighted the programme's aim to augment the private financial sector's role in offering financing options for diverse groups, including SMES, entrepreneurs, investors and emerging companies. He acknowledged the challenges identified in the study phase, such as limited financial services, low liquidity in the capital market, absence of investment opportunities in financial technologies and sustainable green financing, and shortage of specialised national human resources in the financial sector at leadership levels.
Estidamah aims to augment the private financial sector’s role in offering financing options for diverse groups MAHMOOD AL AWEINI
Estidamah will collaborate with public and private sector entities to foster a developed and dynamic financial sector NASSER AL JASHMI