Finding suitable jobs for Omanis is a source of headache for Omani authorities and likely to remain the case in the foreseeable future, based on demographic statistics. Available statistics are alarming, with nearly 43 per cent of the local population below 15 years of age.

What’s more, unemployment among Omanis was a key reason behind the outbreak of unrest in the first quarter of 2011 in the context of the Arab Spring. The fact that the socio-economic uprising erupted in the industrial town of Sohar carried an economic message.

Against this backdrop, it is not surprising that the authorities have decided to embark on a major scheme to find employment opportunities for Omanis. The ambitious plan calls for creating around 56,000 jobs — divided between 36,000 and 20,000 in the public and private sectors respectively.

Undoubtedly, these are staggering figures for the Omani economy, which ranks the fifth largest within the Gulf Cooperation Council (GCC), ahead only of Bahrain. However, the plan focuses on finding jobs throughout the vast country, including in rural areas. In fact, many of the unemployed live outside the capital city of Muscat and other major towns. Women make up the largest chunk of the unemployed.

At any rate, the programme falls in line with a promise made by the authorities in 2011 to create around 40,000 employment opportunities, primarily in governmental departments. The undertaking was issued in the aftermath of upheaval in the sultanate.

Monthly allowance

As such, the authorities decided to spend some $2.6 billion (Dh9.6 billion) on numerous projects and initiatives, including granting job seekers about $400 as monthly allowance. Certainly, this is a sizeable figure when compared to total projected spend of $26 billion for the fiscal year 2012.

Undoubtedly, officials cannot be blamed for tackling the unemployment problem, if only to avoid a repeat of events in 2011. Fortunately, the economic conditions in the country, including budgetary surpluses, support adoption of such schemes.

Like other GCC states, the petroleum sector plays a key role in the Omani economy, with oil and gas accounting for 63 per cent and 13 per cent of the treasury income respectively. In fact, the budget for the fiscal year 2012 was prepared using an average rate of $75 per barrel, way below the prevailing market rates. The projected shortage of $3.1 billion is likely to be reversed into a resounding surplus, with oil prices averaging around $100 per barrel.

Moreover, the drive to employ Omanis in the private sector could not have come at a better time. Not long ago, labour officials raised the minimum wage for Omanis working in private sector establishments by 43 per cent to $520 per month.

The new move followed a decision taken two years ago, designed to restrict the issuance of visas to foreign workers in certain professions. These entail import and export, cleaning, barber shops, laundry, electronic repair, garbage cleaning and selling, textile shops, mobile shops, health clubs, workshops dealing in aluminium, iron, wood, car repair, tailoring shops and beauty parlours.

Vision 2020

At least, some Omanis like to take up these jobs in the private sector in line with Vision 2020. The vision stipulates that Omanis should seek employment opportunities in private rather than public sector entities. The widely sought-after public sector can only offer a certain number of jobs.

Overcoming the job challenge for Omanis would give officials peace of mind, at least temporarily. Certainly, human development is a goal of any economic development programme. Needless to say, there is no point having a strong economy when it is coupled with significant unemployment.

— The writer is a Member of Parliament in Bahrain