• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 3 hours Oil prices going down
  • 5 hours Oil and Trade War
  • 18 hours Two Koreas Agree To March Together At Asian Games
  • 5 hours When will oil demand start declining due to EVs?
  • 8 hours Sell out now or hold on?
  • 10 hours Correlation Between Oil Sweet Spots and Real Estate Hot Spots
  • 8 hours Russia and Saudi Arabia to have a chat on oil during FIFA World Cup - report
  • 5 hours venezuala oil crisis
  • 4 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 3 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 9 hours Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 5 hours Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 2 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 18 hours Geopolitical and Political Risks make their strong comeback to global oil and gas markets
  • 15 hours Trump Renews Attack On OPEC Ahead Of Group's Production Meeting

Oman Plans to Privatise State Companies, Beginning Next Year

The Sultanate of Oman has already decided to sell a 19% stake in Oman Telecommunications, the country’s largest phone operator, and now His Excellency Darwish Bin Ismail Al Balushi, the Minister for Financial Affairs, has announced that the government plans to privatise a number of state companies

Speaking on Tuesday at a function to launch the new credit card being released by Oman Air, in conjunction with the Bank Musca, Al Balushi said, “we are a few months away from the announcement of the new budget, which is currently under preparation and will be announced on Jan. 2. The 2014 budget will see the announcement of the companies that will be privatised.

Related article: Oil-Rich Kurds Squeezed in Iraq

We have a privatisation strategy, which was approved by the government. That is a two-fold strategy, which opens the doors for the private sector to venture into new projects on the one hand and reduces the government stake in...companies that are wholly or partially owned by the government.”

Reuters reports that the government of Oman owns more than 60 companies across a range of sectors. When asked if Oman Air would be one of the companies up for privatisation, Balushi said that it would be privatised at the appropriate time.

Oman, unlike its Gulf neighbours, has fairly small hydrocarbon reserves and exports oil in low volumes. After increasing spending over the past few years, in order to improve social welfare and create new jobs to support a growing economy, the country is now struggling to manage its finances.

In June the International Monetary Fund (IMF) warned that Oman must reduce its spending and raise income from non-oil revenues in order to maintain its finances at a sustainable level.

Related article: Roadblocks on Iraq’s Leap of Faith to Oil Success

The sale of government companies plays a big part in generating the revenue needed to keep a healthy financial situation, whilst at the same time reducing the costs of the state. However, the Sultanate is not yet ready to give up on investing in projects to develop the economy, which it has already started.

Balushi explained that “the government is aware of the importance of sustaining a positive economic growth, which requires continued spending on developmental projects, which is why it is continuing with its policy of expansion in spending while at the same time encouraging both the local and foreign investments.”

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News