Overview
Oman’s public-private partnership (PPP) and privatisation framework provides the legal and institutional basis for private sector participation in public infrastructure and services delivery. The PPP Law, enacted by Royal Decree, establishes procedures for identifying, structuring, tendering, and managing PPP projects across sectors including utilities, transport, health, education, and social infrastructure. Privatisation of state-owned enterprises, through full or partial divestment via public offerings on the Muscat Stock Exchange or strategic sales, represents another key mechanism for expanding private sector participation. The framework aims to improve service delivery efficiency, reduce fiscal burden on the government, attract private capital and expertise, and create investment opportunities for Omani and international investors.
Key Facts
- PPP Law enacted by Royal Decree establishing comprehensive framework
- Covers utilities, transport, health, education, and social infrastructure
- Privatisation through IPOs on the Muscat Stock Exchange and strategic sales
- Independent power and water producer (IWPP) projects as successful PPP model
- Dedicated PPP unit within the Ministry of Finance for project origination
- International best practices in risk allocation between public and private sectors
- OQEP IPO as a landmark privatisation transaction in 2024
Significance for Vision 2040
PPP and privatisation are central mechanisms for financing and delivering Vision 2040’s ambitious infrastructure and service improvement targets without unsustainably increasing government debt. The independent power producer model has already demonstrated that private capital can deliver utility infrastructure efficiently in Oman, and Vision 2040 seeks to extend this model to other sectors. Privatisation of state-owned enterprises generates immediate fiscal revenue while improving operational efficiency through exposure to market discipline and shareholder scrutiny. The PPP framework also supports Omanisation objectives by requiring private operators to meet nationalization targets in their contract terms. For Vision 2040 to succeed, the government must leverage private sector capabilities and capital alongside public resources, and the PPP and privatisation framework provides the legal and institutional architecture for this partnership.