Oman Is Fueling its Vision 2020 with Natural Gas
In anticipation of our GE Oman event this Sunday, today we explore the country’s Vision 2020. Oman is known for its tall mountains, enchanting wadis and fjord-like coastlines, but it’s also a major regional natural gas producer and exporter. In fact, Oman’s proven natural gas reserves stand at 11.73 trillion cubic feet (the 28th largest globally). This resource is being used in power plants to generate electricity that is powering the Sultanate’s economic growth, and it’s serving as feedstock for petrochemical and other downstream industrial projects that support economic diversification.
All of this supports the “Vision for Oman’s Economy 2020,” adopted in 1995 to chart the Sultanate’s path toward self-sustained growth in a private sector-led, export-oriented economy with diversified sources of national income.
The vision seeks to see oil & gas as a share of GDP halve, from 39% in 1996 to 19% by 2020 and for the non-oil & gas economy to grow from 6% of GDP in 1996 to 81% by 2020. Gas alone is set to grow from just under 1% to 10% (oil is projected to fall from 37% to 9%), while industry is projected to grow from 8.4% to 29%.
Current IMF forecasts see Oman’s real GDP growth reaching 4.2% in 2013 and 3.5% in 2014.
Alongside this economic and industrial growth, Oman is equally focused on healthcare. This will ensure a healthy population that is able to enjoy the benefits of this economic growth and that can productively work in this growing economy. To that end, the government is developing its “Health Vision 2050,” which seeks to substantially enhance healthcare facilities in the country. In 2011 government spending on healthcare was 3.7% of all government spending, while globally government spending is regularly above 10%.
GE is supporting these developments, having been operating in Oman since 1975, through various activities in healthcare, energy and oil & gas. More than 130 GE turbines are generating 8 gigawatts of power, new GE turbines are supporting an independent water and power project in Salalah, and its technologies are helping power Oman’s large gas-liquefaction plant at the Qalhat Complex. What’s more, GE operates an Electric Submersible Pumps (ESP) Field Service & Repair Center that brings localized service to its customers and generates skilled employment opportunities for Omanis.
In the healthcare field, GE is supporting the Health Vision 2050 in numerous ways. More than 150 distinct GE Healthcare technologies have been deployed across more than 20 hospitals in the Sultanate. GE also is a strategic partner to the Ministry of Health and is supporting the Sultan Qaboos Hospital’s Cardiac Center. Early this year, GE signed a strategic agreement with Oman’s Apex Medical Group (AMG), a subsidiary of Al Joaib Group, to support the development of a $1-billion, world-class medical complex featuring a 530-bed tertiary care multispecialty hospital. Located in Salalah, the International Medical City complex is set to establish Oman as a technology and innovation hub in the healthcare sector.
At the event “Partners for Progress,” GE will outline the full scope of support it is offering to Oman’s Vision 2020. It will showcase GE technologies and solutions that are addressing the toughest challenges in energy, oil & gas, water, healthcare, transportation and industrial sectors. Thought leaders from government and the corporate world will discuss the continued development of public-private partnerships as a powerful avenue to support the growth of Oman’s economic competitiveness.
For more on GE’s activities in Oman, click here.