1. Oman Economic Forum March 23/24, 2016 Mr. Saad Al Jenaibi General Manager Qatar National Bank, Oman

2. Oman Economic Review

3. Flushed with hydrocarbon revenues, the Omani economy has experienced strong growth coupled with diversification over the previous decade

4. Oman has embarked on a large infrastructure and investment spending programme to diversify the economy and spur growth

5. 20142015e2016e2017e Fiscal surplus (% of GDP)7.1-13.0-14.5-10.6 Current account surplus (% of GDP) 5.7-10.1-13.2-9.0 International reserves –ex gold (USD Bln) 16.314.212.711.9 Import cover (Months)5.14.64.24.0 Public sector debt (USD Bln) 4.19.914.817.2 Public sector debt (% of GDP) 5.315.721.523.5 Lower oil prices are forecast to drive the current and fiscal accounts into deficits, impacting growth, foreign reserves and sovereign rating

6. ObjectiveAction Sustain long term growth Maintain capital expenditure levels focusing on quality flagship projects like Duqm development, Muscat, Salalah airport expansion, SAIL gas based steel plant, Liwa cracker plant, Khazzan, Makarem fields and Middle east deep water gas pipeline Capital expenditure funding Issue sovereign debt, partially liquidate sovereign assets and execute targeted privatizations Cost controlCutting energy subsidies, security & defense spending Raising revenueIntroduce VAT, marginally increase corporate tax and charges for state provided services, take a broader approach to balancing revenue and expenditure Meeting the challenging economic environment