The Omani government is implementing a number of mega strategic projects which will create job opportunities and boost GDP growth, according to the Minister of Economy, Ahmed bin Abdul Nabi Macki.

Macki said that Oman's investor-friendly legal, institutional and regulating environment would help fuel the growth.

"Oman is being rated among the top countries in the world in terms of economic freedom. This also reflects the flexible legislations adopted by Oman and its capability to keep abreast with international developments," Macki was quoted as saying by Oman News Agency.

Oman's total government expenditure stood at around 2.76 billion Omani riyals in 2001 (36.1 per cent of the country's GDP). The investment expenses accounted for 20 per cent of the GDP.

Macki called Oman's 2001 general budget deficit, which was only three per cent of the GDP, as excellent by international standards. "This deficit will be paid in full by using the state reserves."

He added that the sound banking system and the positive development at the Muscat Securities Market show that Oman's financial system was strong and efficient.

Oman's net oil reserves stood at 482 million riyals in the first three months of 2002, against 469 million riyals in the first quarter of 2001.

Net oil revenues stood at 1.87 billion riyals in 2001.

Macki revealed that the improvement helped decrease the general budget deficit from 366 million riyals in 2000 to 256 million riyals last year.

A sum of 1.95 billion riyals was allocated to investments during the sixth five-year plan.

Of this, 1.44 billion riyals will go to new projects.

Macki said that emphasis was being given in developing the gas sector and expanding its infrastructure.

The Sohar Port project and gas pipeline in Sohar and Salalah, joint fertiliser project, Sohar refinery and propylene projects would create jobs for the Omanis.

According to the minister, a foreign ownership could be up to 70 per cent and go up to 100 per cent in some cases.

The privatisation programme was progressing, especially in telecommunication, power and the airport sectors.