Qatar Joins Bahrain, UAE, Saudi Arabia and More as Oman Vision 2040 Creates a Pathway for Economic Resilience and Tourism Growth in the Gulf

Qatar joins Bahrain, UAE, Saudi Arabia, and more as Oman Vision 2040 paves the way for economic resilience and tourism growth in the Gulf. As the region navigates economic shifts, Oman’s strategic vision aims to diversify its economy, reduce reliance on oil, and unlock new opportunities for tourism. By investing in infrastructure, sustainable practices, and global competitiveness, Oman’s Vision 2040 is becoming a beacon for regional development, positioning the Gulf as a leading hub for both business and tourism. This shift not only strengthens economic stability but also fosters long-term growth in the tourism sector, creating a more resilient and diversified future for the entire region.

As Oman concluded its Tenth Five-Year Plan at the end of 2025, it signified more than just the completion of a planning cycle—it represented the close of a significant transitional phase. The plan, which was introduced in 2021 as part of Oman Vision 2040, was the first executive step toward achieving long-term strategic goals. It was designed to transform Oman’s broad vision into concrete, measurable projects that would shape the nation’s future. This initiative unfolded against the backdrop of rapid economic changes in the region and the pressures of managing fiscal stability amidst fluctuating global economic conditions.

The initial budget for the plan was set at 6.4 billion Omani rials (approximately $16.64 billion). However, by the end of the period, the budget had expanded to about 9.7 billion rials (around $25.22 billion), marking a 51 percent increase. This increase was a response to shifting economic dynamics, allowing the government to adjust resource allocation to meet new challenges while maintaining the focus on Oman Vision 2040’s long-term objectives. Despite the larger budget, the government’s strategy remained consistent—ensuring that fiscal discipline was maintained while pursuing ambitious national goals.

Over the course of the five years, 388 out of the 416 planned projects were successfully implemented. These projects spanned a broad spectrum of sectors, with a particular focus on social development, economic diversification, governance, and environmental sustainability. Among the key achievements was the reduction of public debt to around 34 percent of GDP, a significant improvement from previous years. The Vision 2040 periodic report revealed that approximately 74 percent of the interim targets set for the plan had been achieved, underscoring the plan’s success in meeting its goals.

Investment in key sectors such as economic, free, and industrial zones reached 20.9 billion rials (around $54.34 billion). Notable milestones included the expansion of green hydrogen projects, which saw eight initiatives launched. Furthermore, the Oman Global Financial Centre was established, complete with an independent legislative framework. An investment and trade court was also activated to provide a conducive environment for businesses, alongside several programs designed to support startups and small and medium-sized enterprises (SMEs).

Oman also saw notable growth in its stock market, with the Muscat Stock Exchange recording its best weekly performance since 2014. This surge was driven by speculation that the exchange might soon be upgraded to “emerging market” status on the MSCI index. Such an upgrade would bring a boost to investor confidence, with analysts predicting an influx of capital totaling around $350 million initially. Over time, this figure could increase to approximately $970 million. This anticipated upgrade represents a strong signal of growing investor interest in Oman’s evolving economic landscape.

While Oman has made significant strides, other Gulf countries have been re-evaluating some of their major development projects. In Saudi Arabia, for instance, the scope of the Red Sea tourism project was scaled back as part of a broader review of spending priorities. Furthermore, projects such as “The Cube” and the Trojena development in NEOM were delayed. These changes were attributed to technical and financial reviews intended to adjust the pace of these ambitious initiatives to match the kingdom’s long-term financial capabilities.

Fiscal experts have noted that the economic stability of Gulf countries may depend on the price of oil. If oil prices stabilize at around $60 per barrel, it is expected that Qatar, the UAE, and Kuwait will be able to balance their budgets, though only marginally. On the other hand, countries like Saudi Arabia, Oman, and Bahrain may find it necessary to borrow or use foreign assets to finance their national spending. Oman’s public debt, however, has shown a substantial reduction, falling to between 35 and 36 percent of GDP by 2024–2025, down from more than 60 percent in 2020. At the same time, Oman’s non-oil sector has seen growth of about 3.5 percent in 2025, reflecting the country’s efforts to diversify its economy and reduce its dependence on oil revenues.

Looking ahead, Oman has set its sights on further diversifying its economy by strengthening manufacturing and renewable energy sectors. The country aims to generate about 30 percent of its electricity from renewable sources by 2030. In addition to energy, Oman plans to boost tourism, digital economies, and logistics. These sectors are expected to play a significant role in the Sultanate’s long-term growth and will be key to sustaining the momentum from the Tenth Five-Year Plan.

While many countries in the region have pursued rapid, transformative development models, Oman’s approach has been more gradual and methodical, marked by fiscal discipline and institutional resilience. This approach, often described by economists as a “quiet transition,” has focused on incremental yet steady progress. By carefully managing its resources and maintaining clear targets, Oman has avoided the shocks and abrupt transformations that can often come with overambitious projects. Instead, it has laid the groundwork for sustainable growth, positioning itself as a stable and reliable player in the Gulf’s dynamic economic landscape.

Qatar joins Bahrain, UAE, Saudi Arabia, and more as Oman Vision 2040 drives economic resilience and tourism growth in the Gulf by diversifying economies, reducing oil dependence, and investing in sustainable tourism infrastructure, positioning the region for long-term success.

Oman’s Tenth Five-Year Plan marks a significant chapter in its development, characterized by strategic fiscal management and successful project implementation. As the Sultanate continues to diversify its economy and invest in key sectors, its measured approach to development stands as a model of gradual, steady transformation. With its focus on sustainable growth, Oman is well on its way to achieving the ambitious goals set out in Oman Vision 2040, ensuring a prosperous future for its citizens and a competitive position in the regional economy.

The post Qatar Joins Bahrain, UAE, Saudi Arabia and More as Oman Vision 2040 Creates a Pathway for Economic Resilience and Tourism Growth in the Gulf appeared first on Travel And Tour World.