Following Oman’s graduation from World Bank lending in 1987, the partnership between Oman and the World Bank Group has encompassed technical cooperation and private sector investment. To further strengthen this partnership, the World Bank Group (WBG) has established a new Country Office in Muscat, led by the WBG Country Manager for Oman. This office enhances the Bank Group’s ability to respond to development challenges with speed, efficiency, and impact, while integrating leadership across IBRD/IDA, IFC, and MIGA. It underscores the WBG’s commitment to supporting Oman’s public and private sector priorities and delivering results that contribute to sustained competitiveness, social stability, and long-term development, in alignment with Oman’s 2040 Vision.
In 1991, Oman signed its first framework agreement with the World Bank for annual technical cooperation, launching Reimbursable Advisory Services (RAS) in areas such as labor market reform, SME development, and public sector efficiency. A second framework agreement in 2015 expanded the partnership with new engagements, including macroeconomic modeling and development planning. Over the years, the World Bank have worked closely with Omani stakeholders to support Oman’s Vision 2040 priorities on economic diversification, fiscal sustainability, and human capital development. In February 2025, the World Bank signed a new Reimbursable Advisory agreement to support investment climate reforms with the Ministry of Commerce, Industry, and Investment Promotion. Oman’s experience in public enterprise reforms has been recognized as a regional model, complementing work in SOE governance and investment climate reforms.
In April 2025, and as part of the first joint World Bank Group Day held in partnership with Oman’s Ministry of Finance, IFC signed three landmark agreements to bolster sustainable finance and enhance the private sector's role as a key driver of growth and diversification in Oman. These include a sustainable finance investment of up to USD 120 million to support projects in clean transport, renewable energy, and energy and water efficiency; a partnership to co-develop and invest in non-oil sectors such as green manufacturing, clean energy, tourism, healthcare, agribusiness, and logistics; and an agreement to support for the development of a 1.6 billion greenfield polysilicon plant in Sohar with a planned annual capacity of 100,000 tons.
The new agreements align with the key pillars of the government’s Oman Vision 2040 plan, which focuses on diversifying the economy, fostering innovation, enhancing education and healthcare, and promoting sustainability. They are part of a series of IFC regional engagements aimed at boosting impact investments, attracting additional capital to support development needs, and promoting cross-border investments, particularly in the energy, food, and water nexus.
The Multilateral Investment Guarantee Agency (MIGA) has been actively involved in Oman, issuing $1.7 billion in non-honoring of sovereign financial obligation guarantees. These guarantees cover several lenders providing funds to the Ministry of Finance for developing ancillary infrastructure works in Duqm port and industrial zone, aligning with Oman’s Vision 2040 ambitions.
The WBG remains committed to continue to support Oman’s strategic goals under Vision 2040, fostering a diversified and sustainable economic landscape.