MUSCAT: The Oman Chamber of Commerce and Industry (OCCI), represented by its Economic Committee and Labour Market Committee, organised the forum titled "Decentralisation and its Role in Economic Diversification and Job Creation in the Governorates." The event was held under the auspices of Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion (MoCIIP), and attended by Shaikh Faisal bin Abdullah al Rawas, Chairman of the OCCI, along with members of the State Council, prominent officials and business leaders.

Speaking at the forum, Al Rawas emphasised that the forum reflects the OCCI’s commitment to supporting economic diversification efforts in line with Oman Vision 2040. He highlighted the role of OCCI in fostering the economic development of governorates and moving towards achieving decentralisation, noting that decentralisation enhances competitiveness and complementarity among governorates, contributing to developmental goals.

He explained that expanding powers within governorates requires an effective distribution of resources to direct efforts towards development that meets local needs and maximises the unique advantages of each governorate. He further stated that the forum was organised to showcase successful global experiences in decentralisation, such as Germany’s well-established model.

Philipp Deinstbier, Director of the Regional Programme Gulf States at the Konrad-Adenauer-Stiftung (KAS), provided insights into the origins of decentralisation in the Federal Republic of Germany. He highlighted Germany’s federal system as a global model, balancing responsibilities between the federal government, states, and municipalities. The federal government handles national issues such as defence and foreign policy, states oversee education, policing, and local development, while municipalities manage public services. States independently prepare their budgets and are allocated equitable shares of national revenue to ensure local development according to their priorities.

Germany’s decentralised system incentivises states to attract investments through tax incentives and infrastructure support programmes, enhancing regional competitiveness. Simultaneously, federal-state collaboration ensures the achievement of national objectives, with local communities actively participating in decision-making to promote transparency and balanced development.

His Highness Sayyid Dr Adham bin Turki al Said, Chairman of the Economic Committee, spoke about Oman Vision 2040’s strategic direction towards decentralisation. He stated that the priority of sustainable development for governorates and cities aims to ensure sustainable land use, establish urban and rural areas with natural and cultural heritage, and enhance resilience to climate change.

He also noted that this priority focuses on strengthening the comparative advantage and competitiveness of governorates through sustainable smart cities and vibrant rural areas. This ensures a high quality of life, state-of-the-art infrastructure, diverse and accessible transportation, and vibrant work and leisure opportunities. HH Sayyid Dr Adham stressed that Oman Vision 2040 places administrative and economic decentralisation at its core, recognising decentralisation as a crucial step towards achieving balanced development and economic equity among governorates.

The government empowers governorates with financial and leadership resources, while the private sector plays a pivotal role in activating opportunities across various governorates to maximise local value creation.

Mohammed bin Hassan al Ansi, Chairman of the OCCI Labour Market Committee, noted that the forum sought to leverage Germany’s decentralisation experience. Germany’s approach balances national development needs with local priorities, fostering competition and ensuring a robust economic presence.

He explained that applying decentralisation principles inspired by Germany’s model, following the directives of His Majesty Sultan Haitham bin Tarik, will grant governors and local decision-makers in Oman’s governorates greater powers. This will facilitate increased investments aligned with each governorate’s comparative advantages, creating sustainable job opportunities.

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