Oman’s economy has grown dramatically since 1970. Until recently, however, Oman’s economic progress has been largely driven by the wealth generated from oil export revenues. Despite historical attempts to diversify the economy away from oil, the state budget has remained dominated by oil export revenues, accounting for 84.3% of total government revenue in 2014 and 68.2% in 2016. Without successful development of alternative sources of income and reduced dependence on oil, Oman’s economy will remain highly vulnerable not only to the fall in oil prices but also to other challenges including increasing domestic demand for energy, as well as the effects of climate change on both oil and non-oil economic sectors. This chapter provides policy recommendations that can help overcoming structural challenges and tapping into the opportunities to achieve the goals of economic diversification and shifting towards a post-oil economy.
Former Research AssociateAisha’s research interests focus on the environment, energy policy and climate economics and policies. She obtained her Ph.D. at Imperial…Aisha’s research interests focus on the environment, energy policy and climate economics and policies. She obtained her Ph.D. at Imperial College's Centre for Environmental Policy. Her thesis focused on policies and challenges for renewable energy adoption in oil-producing countries. Following her Ph.D., Aisha pursued her postdoctoral research at the London School of Economics and Political Science's Middle East Centre, working on assessing the economic implications of climate change in the GCC. She also joined the Arab Gulf States Institute in Washington, studying the challenges and opportunities for aligning climate policies with economic diversification strategies in Saudi Arabia, Oman and the UAE. Before joining KAPSARC, Aisha worked at Georgetown University's Center for Contemporary Arab Studies as a visiting scholar.