MUSCAT: The International Monetary Fund (IMF) has advised Oman to generate over 220,000 new jobs by 2032 to accommodate its expanding working-age population. As the country undergoes economic transformations, job creation remains a crucial challenge. The IMF emphasized that employment growth must align with economic diversification efforts, ensuring that opportunities extend beyond the traditional oil sector. Addressing youth unemployment and increasing labor market participation will be key factors in maintaining economic stability and sustainable growth.
Oman’s Vision 2040 initiative aims to develop a more diversified and resilient economy, reducing reliance on hydrocarbons while fostering private sector investment. The IMF highlighted the importance of strengthening non-oil industries such as tourism, logistics, manufacturing, and technology. Encouraging entrepreneurship and small business growth will also play a significant role in job creation. However, achieving this target requires policy adjustments, skill development programs, and labor market reforms to enhance workforce competitiveness.
Despite government efforts, structural challenges remain, including skill mismatches between job seekers and market needs. The IMF recommended that Oman invest in education and vocational training programs tailored to emerging industries. Additionally, strengthening partnerships between public and private sectors will help create sustainable employment opportunities. Foreign direct investment and business-friendly policies could further stimulate job creation by attracting international companies and fostering economic growth.
Policymakers must also balance job creation with economic efficiency, ensuring that employment policies do not strain fiscal resources. The IMF urged Oman to maintain prudent financial management while implementing labor market strategies. As demographic pressures increase, a proactive approach will be necessary to integrate more citizens into the workforce and support long-term prosperity. Achieving the 220,000-job target will be crucial for Oman’s economic future, requiring coordinated efforts from the government, private sector, and international stakeholders.
