Doha - Arabstoday
Qatar will invest as much as OR500m ($137m) in the Omani economy, the head of Oman’s chamber of commerce said. The investment is part of a pledge by fellow Gulf Co-operation Council (GCC) members to provide $10bn each in support to Bahrain and Oman following demonstrations in those countries earlier this year. “We expect other GCC countries to show similar initiative to invest in Oman,” Khalil bin Abdullah al-Khunji, chairman of the Oman Chamber of Commerce and Industry, told Bloomberg. The GCC, led by Saudi Arabia, on March 10 announced $10bn each in aid for both Oman and Bahrain, two of its six members. Protesters in the two countries, drawing inspiration from demonstrations that have unseated the rulers of Tunisia and Egypt this year, are demanding free elections as well as more housing and jobs. Oman\'s leader Sultan Qaboos agreed in March to boost the powers of the nation’s consultative council. The ruler also dissolved the Economy Ministry and named a new finance chief in a Cabinet reshuffle. Oman\'s government announced in April a OR1bn ($2.6bn) plan to create jobs and raise pay, part of a strategy of increasing state spending to OR9.1bn, after weeks of protests demanding economic changes. The economy of the Arabian Gulf sultanate will grow by five percent at constant prices this year, the state-run Oman News Agency reported. The country’s debt is also forecast to amount to six percent of gross domestic product. At the same time, the budget deficit will rise to OR1.9bn, or 9.5 percent of GDP, while subsidies will cost OR954m.