Oman’s Sultan Says Government’s Plan Serves ‘Financial Sustainability’

Oman's Sultan Haitham bin Tariq. File photo
Oman's Sultan Haitham bin Tariq. File photo
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Oman’s Sultan Says Government’s Plan Serves ‘Financial Sustainability’

Oman's Sultan Haitham bin Tariq. File photo
Oman's Sultan Haitham bin Tariq. File photo

Oman's Sultan Haitham bin Tariq has affirmed that austerity measures endorsed by the authorities aim at achieving “financial sustainability.”

Sultan Haitham on Wednesday addressed the nation on television on the occasion of the country’s 50th National Day.

“Despite the challenges facing our economy, the financial balance plan, and the measures that have been taken are sufficient to bring our economy to a safe shore,” he said.

In his speech, the Sultan stated that the government had taken the necessary measures to mitigate the impact of the coronavirus pandemic.

Sultan Haitham stressed that to support the government’s ability to move forward in achieving Oman 2040 Vision, “we have worked to develop the state’s administrative apparatus and the restructuring of the Council of Ministers, and we have entrusted to it the responsibility of implementing development plans” in a way that enhances government performance and raises its efficiency."

The Sultan added that his government will continue working on “reviewing" legislative and supervisory mechanisms, and developing accountability tools as a “main pillar of Oman’s future.”

He stressed the importance of accountability in “safeguarding the rights of the nation and citizens,” and its role in establishing justice and integrity.

On decentralization, Sultan Haitham said in his speech, “We have laid the organizational basis for local administration by establishing a decentralized administrative structure."

He stressed that the health, social and economic sectors are at the top of the government’s priorities, with an emphasis on continuing to support these sectors “to provide health services and education with utmost efficiency.”

The Sultan also highlighted the positive aspect of the pandemic on the government’s digital transformation, saying it helped accelerate its pace.



Israel Cuts 2024 Growth Estimate as Conflict with Hezbollah Escalates

 Women carrying rifles walk on Dizengoff Square, amid the ongoing conflict between Israel and Hamas in Gaza and the hostilities between Hezbollah and Israeli forces, in Tel Aviv, Israel, October 28, 2024. (Reuters)
Women carrying rifles walk on Dizengoff Square, amid the ongoing conflict between Israel and Hamas in Gaza and the hostilities between Hezbollah and Israeli forces, in Tel Aviv, Israel, October 28, 2024. (Reuters)
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Israel Cuts 2024 Growth Estimate as Conflict with Hezbollah Escalates

 Women carrying rifles walk on Dizengoff Square, amid the ongoing conflict between Israel and Hamas in Gaza and the hostilities between Hezbollah and Israeli forces, in Tel Aviv, Israel, October 28, 2024. (Reuters)
Women carrying rifles walk on Dizengoff Square, amid the ongoing conflict between Israel and Hamas in Gaza and the hostilities between Hezbollah and Israeli forces, in Tel Aviv, Israel, October 28, 2024. (Reuters)

Israel's economy lost about 14 billion shekels ($3.75 billion) since the military conflict with Hezbollah in Lebanon escalated over the past month, the Finance Ministry said on Tuesday.

In an updated forecast, the ministry's economists estimated growth of 0.4% in 2024, down from a prior forecast of 1.1% and well below a projected 1.9% in May.

"This scenario is no longer relevant since the fighting expanded starting at the end of September to the northern arena," the ministry said in a report.

Since its last estimate in September, the geopolitical situation changed drastically - the fighting against Palestinian armed group Hamas in Gaza became less intense but intensified in Lebanon as Israel responded to Hezbollah rockets with airstrikes and a ground incursion.

That required a large call up of more army reservists, while Hezbollah rocket fire into Israel sent citizens into shelters, hurting the economy by 0.7 percentage point, the ministry said.

It previously had believed that intense fighting would continue through the first quarter of 2025 but its latest forecast expects the worst of the fighting to end in 2024.

Growth, it said, looks to be 4.3% in 2025 - down from a prior 4.6% - as the economy starts to rebound.

Should fighting continue into 2025 and the return of the economy to normal is delayed, growth this year would be 0.2% and 3.4% next year, the ministry said.

The Bank of Israel earlier this month trimmed its 2024 economic growth estimate to 0.5% from 1.5% and foresees 2025 growth of 3.8% in 2025.

With Israel's population growth at least 1.6% a year, the economy is likely to contract this year on a per capita basis.

Growth was just 0.3% in the second quarter but despite the weakness Bank of Israel policymakers have no intention of lowering interest rates, but rather have warned of rate increases should inflation stay high.