In order for member states of the Gulf Cooperation Council (GCC) to better the sectors of their economies that are struggling, the International Monetary Fund (IMF) supports the countries in their privatization programs.
Sultanate Oman is a part of the members who received a newly published documents with recommendations on “Learning to Live with Cheaper Oil: Policy Adjustment in Oil-Exporting Countries of the Middle East and Central Asia.”
Many of the GCC states, including Oman, have plans to privatize state-owned enterprises as a way to rebuild poor economies. The IMF believes that plan could possibly improve productivity and efficiency, while simultaneously increasing revenue for economic deficits.
“Implementation has often moved slowly, particularly in GCC countries where supporting institutional frameworks have sometimes been lacking, and where privatization programs have often focused on already-successful enterprises,” according to the IMF paper. “Nonetheless, GCC divesture programs have, in the past, managed to generate significant receipts from only a handful of high value operations.”