Wednesday 10 September 2014

Article: Oman Tribune: Correct focus

"The focus of the Sultanate has always been on all-round, sustainable development. One of the aims of policy planners through economic growth has been job creation. So far, the Sultanate has been successful in this aspect. And once again it is with this aim that the government is focusing on the growth of the blue economy. It is in this context that the Blue Economy Seminar, which was held in Muscat, under the theme ‘Blue Economy – Blue Development’, must be seen as it stressed on sustainable development in the marine and maritime sectors. Organised in collaboration with the European Union, the seminar is the first held on the blue economy in the Sultanate. The seminar discussed a variety of issues that included exploring more opportunities in the field of investment, tourism, environmental safety and navigation in this sector  and this certainly will enhance cooperation with the European Union, which sent a high-profile delegation to the meeting. Environment protection issues were also discussed. And there is little doubt that this seminar might be a step forward in ensuring that the blue economy is exploited in the right manner in the Sultanate as this is not the case in many parts of the world where not much emphasis is being placed on the right kind of development. This focus is understandable for another reason and this is the Sultanate’s long seafaring tradition that is about 5,000 years old.

At the same time, this seminar opens the way for a mountain of opportunities for the European Union in the Sultanate, especially in the downstream metal and petrochemical sector in Sohar. Since the costs of land and energy at Jebel Ali are going up, the port of Sohar would be an attractive place for investment as it is cheaper. Moreover, ships could dock at Sohar and unload the containers there and avoid the huge insurance costs of going up the Straits of Hormuz. Later, the containers could be transferred by railway once the GCC rail network is completed. Andre Toet, CEO of Sohar Port, said that all this is possible since Oman had excellent logistics. It has land, energy and resources, besides economic and political stability, he added. In addition to all this, Oman has other advantages. Since it is positioned on the equatorial trade route where the overall market is growing at 8 per cent annually, it is the ideal place for a logistical hub and  can serve 1.6 billion consumers.

In other areas of the blue economy like fishing, the Sultanate is faring well. The catch in 2013 was valued at $415 million. In 2020, it will rise to $812 million in 2020. In the bargain a world class competitive fishing industry would be created with about $1.3 billion being invested by the government between 2013- 2020 to increase production manifold. All this will ensure that the fishing sector’s contribution to GDP will be $1.907 billion by 2020. In the area of acquaculture, Oman aims to set a new trend through regulations, model farm demonstration and by maintaining a national brand image.

The Sultanate has definitely achieved a lot in the blue economy area. But it has a lot more to do especially in the sectors of coastal and maritime tourism, aquaculture, renewable energy, mineral resources, biotechnology, fisheries, transport, shipbuilding, oil and gas and ship repair and maintenance, which is already thriving in Duqm. Closer cooperation with the European Union will surely help in this regard and result in ensuring faster growth of the blue economy. This is vital at a time when more and more jobs are needed for thousands of youth entering the employment market annually."


Source article can be found here.

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