Oman Country Program

December 4, 2016

Oman for the country program page 2

Following Oman’s graduation from World Bank lending in 1987, a framework agreement for annual technical cooperation between Oman and the World Bank was signed in 1991. The technical cooperation program included supporting labor market reform and SME development, education and health expenditure reviews, advisory services to the Capital Market Authority (CMA), and a mid-term assessment of the implementation of Vision 2020.

The size of the Reimbursable Advisory Services (RAS) portfolio in Oman increased from less than $100,000 in 2011 to over $2.5 million in 2015. Between 2013 and 2019, a significant RAS program was under implementation in the following areas:

(i) Budget System Modernization including assistance to enhance the efficiency and impact of health and education spending (PER), assistance to move towards Program Budgeting and a Functional Review of the Ministry of Finance,

(ii) Preparation of the 2016-2020 9th Development Plan,

(iii) Private sector development (Investment Climate Assessment, diversification report, foreign investment laws update),

(iv) Fisheries sector development,

(v) PPP Law Review; and

(vi) Transport sector institutional reorganization.

MIGA also has an active transaction in Oman, where it issued $1.7 billion non-honoring of sovereign financial obligation guarantees covering a number of lenders lending to Ministry of Finance for the purposes of developing ancillary infrastructure works in Duqm port and industrial zone. MIGA has been recently engaging with Ministry of Finance and Standard Chartered Bank structuring COVID19- pillar 1 transaction amounting to $100 million non-honoring of sovereign financial obligation guarantee that would be utilized to re-finance past COVID19 vaccine purchases as well as new vaccines procurement. The transaction is also being coordinated with ICIEC of the Islamic Development Bank that will be covering a tranche of $200 million as well. MIGA political risk insurance products are also being sought for several transactions including Manah 1 & 2 solar projects, green fertilizer project at Duqm industrial zone as well as the privatization of electricity distribution companies. These discussions are also being coordinated closely with IFC team.

Though there is no active RAS engagement with Oman currently, the RAS portfolio with Oman is expected to develop as the Bank continues to engage with government entities to define possible areas of support including: Financial Sector Assessment Program (FSAP), decentralization, SOE reform, SME development and green finance.