In order to enhance value creation for the economy, Oman is planning to expedite an effective privatization programme for government owned enterprises (GOEs), generating around OMR700 million by 2021.
Oman has around 70 GOEs spread over different sectors, some of which, over the years, have witnessed reduced profits, according to the Implementation Support & Follow-Up Unit (ISFU) tasked with overseeing timely execution of economic initiatives.
In order to facilitate and supervise the privatisation of GOEs, a privatisation committee was established by July 2017.
According to ISFU, the Ministry of Finance had to develop a new privatisation plan through GOEs holding companies. As part of the plan, all holding companies had to submit their five-year privatisation plan to the ministry for reviews. “The plan outlaid an aspirational target of OMR700 million for the value of GOEs transferred to private sector owners between 2017 and 2021,” ISFU stated in its annual report.
The initiative is aimed to receive privatization plans from companies like the Oman Tourism Development Company (Omran), Oman Food Investment Holding Company, Electricity Holding Company (EHC), Oman Global Logistics Group (Asyad) and Oman Oil Company (OOC) by November 2017. “A notable accomplishment was that a committee to supervise the privatization of GOEs was established. While Asyad submitted its privatization plan, Oman Food Investment Holding Company and OOC identified companies under it to be privatised. The privatization plan of EHC has already been green lighted by the Council of Ministers.”
Moving forward, ISFU stated, “The direction for 2018 is to have all the privatization plans related to GOEs received by the ministry.”
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