Overview
Sultan Haitham bin Tariq assumed leadership of the Sultanate of Oman in January 2020 following the passing of Sultan Qaboos bin Said, inaugurating an era of accelerated institutional and economic reform. Sultan Haitham’s reform programme has encompassed significant restructuring of the government apparatus, consolidation of state financial entities, fiscal discipline measures, and the formalization of Vision 2040 as the national development roadmap. Key reforms include the merger of sovereign wealth funds into the Oman Investment Authority, the introduction of value-added tax, government ministry restructuring to reduce bureaucratic overlap, and the promulgation of new laws on foreign investment, bankruptcy, and public-private partnerships.
Key Facts
- Sultan Haitham bin Tariq assumed leadership in January 2020
- Comprehensive government restructuring reducing number of ministries
- Merger of sovereign wealth funds into the Oman Investment Authority
- Introduction of value-added tax at 5 percent in April 2021
- New Foreign Capital Investment Law enacted
- Bankruptcy and insolvency law modernization
- Public-private partnership legal framework established
Significance for Vision 2040
The reform programme initiated by Sultan Haitham provides the governance and institutional framework that makes Vision 2040’s ambitious targets achievable. Government restructuring has reduced bureaucratic fragmentation and improved coordination across agencies responsible for economic development. Fiscal reforms including VAT introduction and subsidy rationalization have strengthened public finances, creating the fiscal space needed to invest in Vision 2040 priorities while maintaining sustainable debt levels. Legal reforms in investment, bankruptcy, and PPP frameworks have modernized the business environment in ways that attract private sector participation in development. The pace and scope of reform since 2020 has been unprecedented in Oman’s modern history and has been recognized by international credit rating agencies through upgrades to Oman’s sovereign credit rating.