Evaluating the Oman Tanfeedh program through a macroeconomic model

Evaluating the Oman Tanfeedh program through a macroeconomic model

The research evaluated the Tanfeedh program (2016-2020) for economic diversification in Oman (Tanfeedh 2017, p.15). The Tanfeedh program started in 2016 and was completed in 2020. Tanfeedh program was a national program that was working to increase the progress of economic diversification in Oman. The program follows the Malaysian model (big-fast results). The program's main objective was to increase the progress of economic diversification in Oman. The program proposed five economic diversification sectors: tourism, mining, fishing, logistics, and manufacturing. The three strategic directions of the program were creating job opportunities, increasing the contribution of non-oil sectors to the Oman economy and increasing the percentage of private sector investments (Tanfeedh 2017, p.18-19). However, Al-Mawali Hasim and Al-Busaidi (2016, p.120) found that oil and gas would equally contribute to Oman's GDP with the non-petroleum sectors in 2020. It indicated that the Tanfeedh program will not significantly progress in diversifying Oman's economy. Therefore, the study used a new, innovative macroeconomic model to evaluate the Tanfeedh program. The model was an advanced, diversified macroeconomic model. The researcher used past economic studies to build the new model. The model included 12 macro factors as evaluating parameters for evaluating the program. The study used quantitative methods to build a new model. The study used only secondary data, such as economic reports, government reports, international organisation reports, World Bank reports, private company reports, and academic studies. The researcher meticulously collected project data for ten sectors of the Tanfeedh program. The researcher also provided his opinion on several projects related to the Tanfeedh program for all ten sectors. The study also used statistical descriptive and quantitative analysis for data analysis. The research findings identified the success and failure of the Tanfeedh program. There are six success factors and six failure factors for the Tanfeedh program. Success factors are employment, economic development, innovation, competitiveness, private sector development and economic growth. Failure factors are international trade, human capital development, national income, ICT, economic diversification and foreign direct investment. Based on research findings, manufacturing is the best sector that will impact the Oman economy the most. Moreover, these 12 factors can assist in building an advanced, diversified economy for Oman in the future. Lastly, the study proposes comprehensive research recommendations and directions for future studies, ensuring that all aspects are considered.

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