## sipea2026008

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### B. Oman’s Economic and Export Structure — key findings
- Diversification metrics:
  - Global Economic Diversification Index (EDI): Oman has become more diversified over the last two decades but “still has a considerable gap to close to converge with the levels observed in the most diversified economies globally.”
- Nonhydrocarbon share:
  - Nonhydrocarbon activities' share rose from about 55 percent in 2005 to nearly 70 percent in 2024.
- Sector composition (2024):
  - Construction, public administration, education, and healthcare together ≈ 40 percent of nonhydrocarbon GDP.
  - Manufacturing contributed only 8 percent.
- Comparative benchmark (Singapore):
  - Combined share of construction and public services = 13 percent of total output; manufacturing = 21 percent.
- Structural shifts since early 2000s:
  - Manufacturing share broadly unchanged over past two decades.
  - Construction nearly doubled.
  - Wholesale and retail trade declined by almost 50 percent.
- Export concentration:
  - UNCTAD’s Export Product Concentration Index: Oman’s exports remain notably concentrated, exceeded only by Kuwait and Saudi Arabia within the GCC.
  - Oman’s export base much less diversified than Australia and Norway, and much less diversified than Singapore and Mexico.
- Manufacturing composition (around 2021):
  - Refined petroleum, chemicals, and metals ≈ 60 percent of manufacturing output.
  - More complex products (e.g., machinery and equipment) remain minimal.
- Economic Complexity Index (ECI):
  - Oman’s ECI has remained persistently low over the past four decades; countries with similar ECI in the early 1980s (e.g., Malaysia, Mexico) have since transitioned to higher-value exports.
- Services exports (2023):
  - Oman’s per capita services’ exports = $1,500 (among the lowest in the GCC; well below Norway and Australia).
  - Service export composition: transport = 34 percent; tourism = 28 percent; information and communication technology exports < 5 percent.
- Market concentration and penetration:
  - Market concentration of non-oil export destinations reduced markedly since early 2000s to levels commensurate with GCC and global peers.
  - Despite regional trade growth, Oman’s export penetration in GCC markets remains limited.

### C. Export Diversification: policies, outcomes, and enablers
- Standard policy prescriptions for oil-rich countries:
  - Invest in human capital (education and skills).
  - Improve business climate (institutions, regulatory quality, transparency, rule of law).
  - Targeted public investments in infrastructure and technology.
  - Ensure macroeconomic stability and reduced reliance on oil revenues.
  - Greater trade and investment openness, regional integration, global market access.
- Oman’s policy progress and outcomes:
  - Notable progress in upgrading physical infrastructure, investing in human capital, and easing product and labor market regulations.
  - These reforms produced limited gains in export diversification, indicating government-failure remedies alone are insufficient; a broader, targeted strategy is needed.
- Infrastructure:
  - Public capital stock exceeds 120 percent of GDP.
  - World Bank Logistics Performance Index score: rose from just under 3 in 2020 to nearly 3.5 in 2023.
  - Between 2000-2023, non-oil exports per capita amounted to around $4 for every $100 of cumulative infrastructure investment—about half the level achieved by Malaysia and Mexico.
  - Illustration uses a dotted 45-degree line representing a return of 10 percent (y to x axis scale of 1x10).
- Governance:
  - Oman’s governance environment aligns with the GCC average and stands above the average of EMDEs per the World Bank’s Governance Performance Index (average 2018-2022).
- Education:
  - Education spending = nearly 5 percent of GDP—above the GCC average.
  - Average years of schooling rose from 8.3 years a decade ago to nearly 12 years currently.
  - Oman is the second-best performer in the GCC on years of schooling and close to AEs.
  - Learning outcomes lag: low average math scores indicate need to improve quality and relevance of education.
- Openness:
  - Oman maintains relatively low numbers of restrictions on exchange, trade, and transfers—comparable to the UAE and Qatar, and well below the average for EMDEs (2022 data, IMF AREAER aggregate measure).
- Special Economic Zones (SEZs):
  - SEZ timeline: Salalah Free Zone (1999); Sohar (2010); Duqm (2011); Al Mazunah and Khazaen (2018); plus eleven industrial cities (Madayn).
  - SEZ incentives: 100 percent foreign ownership, tax exemptions up to 30 years, streamlined regulations, modern infrastructure, trade facilitation services.
  - By end-2024, cumulative investment across SEZs and industrial estates ≈ $55 billion.
  - Advantages: duty-free access to GCC market (~60 million consumers), Oman–United States free trade agreement, proximity to China and India.
- Global Value Chains (GVCs):
  - Oman’s forward GVC participation is relatively high (reflecting hydrocarbons exports).
  - Backward participation remains persistently modest (average comparisons 2010-2020 vs. 1990-2000), indicating limited integration of foreign inputs into higher-value manufacturing.
  - Countries with deep industrial sectors (Malaysia, Korea, Singapore) have higher backward participation.

### D. Lessons from Korea, Singapore, and Malaysia
- Korea:
  - State-led discipline and targeted industrial policy in the 1960s and 1970s channeled concessional finance, infrastructure investment, and technology transfers into priority industries (steel, shipbuilding, electronics).
  - Support was contingent on meeting export targets, embedding global competition as a disciplining mechanism.
  - Firms upgraded from simple assembly to world-class heavy industry and high-tech products, raising export sophistication and supporting fast growth and income convergence.
- Singapore:
  - Leveraged strategic location and strong institutions to diversify into logistics, petrochemicals, and advanced services.
  - Early investments in port efficiency and free-trade facilitation positioned Singapore as a global hub.
  - Jurong Island example: integrated petrochemical cluster with co-location, world-class infrastructure, predictable regulation attracting multinational firms and catalyzing technology transfer.
  - Export performance improved in both volume and complexity; electronics and machinery, and later biopharma and digital services, reflect movement into knowledge-intensive exports.
  - Combined strategy: export orientation, innovation policy, and continuous human-capital upgrading enabled climbing the product sophistication ladder.
- Malaysia:
  - Penang case (from 1970s): free-trade zone attracted multinational electronics firms with incentives and skilled labor, embedding Malaysia into the global electronics supply chain.
  - Complementary policies: vocational training, infrastructure investment, gradually expanding domestic supplier networks.
  - Penang developed an ecosystem referred to as the “Silicon Valley of the East” that now accounts for over 5 percent of global semiconductor sales.
  - Export sophistication increased with electronics becoming a cornerstone of Malaysia’s non-commodity growth.
  - Sustaining complexity requires continuous upgrading, innovation, and movement into emerging technologies.
- Key cross-cutting lessons:
  - Climbing the product sophistication ladder requires more than passive liberalization.
  - Strategic interventions were decisive: Korea (export discipline), Singapore (logistics and cluster development), Malaysia (GVC participation with skills upgrading).
  - Common ingredients: targeted state support that is temporary and performance-based; openness to global markets as the disciplining force; heavy investment in human capital and innovation systems.

### Empirical analysis: potential gains for Oman from reforms
- Method:
  - Panel regression of export diversification measures (nonhydrocarbon/nonmineral exports per capita; manufacturing exports per capita; complex exports per capita) on country-level drivers over 2000-2023 (sample of 135 countries).
  - Key explanatory variables: R&D (% of GDP), credit to the private sector (% of GDP), rent from natural resources (% of GDP), logistics performance (index, 1-5), government effectiveness (WGI, -2.5 to +2.5), Learning-Adjusted Years of Schooling, and log GDP per capita.
  - Logistics performance measured via the “Quality of trade and transport-related infrastructure” component (1-5 scale).
  - Complex exports defined as products with a Product Complexity Index higher than zero.
- Quantified policy implications for Oman from regression estimates:
  - Government effectiveness:
    - A one-unit increase in government effectiveness index could raise per capita nonhydrocarbon exports by $5,707, manufacturing exports by $3,909, and complex exports by $4,279.
    - Enhancing Oman’s government effectiveness score from its 2023 level (0.27) to the 2023 average in Qatar, Saudi Arabia, and the UAE (1.2) could yield gains of around $5,277 in per capita nonhydrocarbon exports, $3,615 in manufacturing exports, and $5,690 in complex exports. ($5,277 = $5,707 (1.2-0.27))
  - Logistics performance:
    - A one-unit increase in the quality of trade and transport-related index is associated with $6,714 higher per capita nonhydrocarbon exports, and gains of $4,625 and $4,279 for manufacturing and complex exports, respectively.
    - Improving Oman’s logistics performance from 3.3 (Oman, 2023) to 4 (UAE, 2023) could yield an additional $4,700 of per capita nonhydrocarbon exports, $3,237 in manufacturing exports, and $4,205 in complex exports. ($4,700 = $6,714 (4-3.3))
- Regression sample summary:
  - Observations: 135
  - R-squared: 0.60 (Nonhydrocarbon), 0.57 (Manufacturing), 0.55 (Complex)

### Regression results (Annex I. Table 1) — key coefficients and significance
- Dependent variables: (1) Nonhydrocarbon/Nonmineral Exports Per Capita; (2) Manufacturing Exports Per Capita; (3) Complex Exports Per Capita
- Selected coefficient estimates (robust standard errors in parentheses):
  - Research & Development Expenditures (% of GDP): -1295.43 (1014.96), -592.11 (793.67), -730.63 (894.86)
  - Rent from Natural Resources (% of GDP): -20.57 (63.89), -21.35 (46.08), -15.19 (53.76)
  - Logistics Performance (index, 1 to 5): 6714.32*** (2039.82), 4624.61*** (1379.63), 6007.45*** (1730.31)
  - Log GDP Per Capita: 1109.09 (3226.69), -957.14 (2393.27), -910.01 (2807.73)
  - Credit to the Private Sector (% of GDP): -66.73*** (18.88), -37.50** (14.74), -51.35*** (16.41)
  - Learning-Adjusted Years of Schooling: 163.78 (450.51), 212.69 (359.92), 296.00 (377.13)
  - Government Effectiveness: 5706.79** (2217.17), 3909.08** (1610.15), 4279.11** (2047.08)
  - Constant: -17374.87* (9365.28), -7120.29 (5668.04), -11088.9 (7599.30)
- Significance notation: *** p<0.01, ** p<0.05, * p<0.1
- Notes:
  - Other variables (education, R&D) were statistically insignificant.
  - The negative coefficient on private sector credit is noted as anomalous and warrants further investigation.

### Policy recommendations for Oman to promote export diversification
- Accelerate structural reforms to enable private sector–led growth:
  - Reduce the state footprint, accelerate labor market reforms, streamline business regulations, enhance transparency in SOEs.
  - Phase out untargeted subsidies and strengthen competition policy.
- Deepen integration into GVCs:
  - Leverage geographic position and SEZs (Duqm, Sohar) to build export platforms in manufacturing and services.
  - Reduce non-tariff barriers, improve trade facilitation, and promote regional connectivity with Africa and Asia.
- Leverage SEZs as catalysts:
  - Use coordinated industrial policy with clear performance benchmarks, sunset clauses, and strong governance and accountability.
  - Target measures to link local SMEs to multinationals, develop sector-specific vocational training, and embed sustainability standards.
- Invest in human capital and innovation systems:
  - Increase R&D investment, foster university-industry linkages, promote technology adoption among SMEs.
  - Align education and vocational training with STEM, digital skills, and entrepreneurship.
  - Use public programs to incentivize private R&D and sector collaboration.
- Mobilize finance for diversification and green transition:
  - Scale up venture capital, support green finance, align fiscal incentives with diversification objectives.
  - Recent frameworks noted: 2024 Sustainable Finance Framework and new Central Bank of Oman regulatory guidance to promote green finance.
  - Further work needed: full green taxonomy, comprehensive disclosure standards, robust Project Investment Management/PPP and project-pipeline systems.
- Leverage sovereign investment vehicles:
  - Use Oman Investment Authority and Future Fund Oman to act as anchor investors via co-investment and blended finance.
  - Implement transparent privatization and IPO pipelines, governance upgrades, and performance contracts to deepen capital markets.
  - Implement targeted supplier-development and export-readiness programs linked to SEZ ecosystems.
- Strengthen institutions to sustain reform momentum:
  - Roll out a full-fledged medium-term fiscal framework, develop sovereign asset-liability management, and adopt a credible transparent fiscal rule.
  - Empower Invest Oman and the Public Authority for Special Economic Zones with mandate, resources, and accountability to deliver export diversification targets.

*Source: IMF staff paper (selected issues), content unit sipea2026008.*

### 4. This paper is structured as follows:  Section B provides an overview of Oman’s economic

### sipea2026008 - 4. This paper is structured as follows:  Section B provides an overview of Oman’s economic

### B. Oman’s Economic and Export Structure — key findings
- Oman’s economy has become more diversified over the last two decades per the Global Economic Diversification Index (EDI), but it “still has a considerable gap to close to converge with the levels observed in the most diversified economies globally.”
- Nonhydrocarbon activities' share rose from about 55 percent in 2005 to nearly 70 percent in 2024.
- In 2024, construction, public administration, education, and healthcare together accounted for approximately 40 percent of nonhydrocarbon GDP, while manufacturing contributed only 8 percent.
- Comparative benchmarks:
  - Singapore: combined share of construction and public services = 13 percent of total output; manufacturing = 21 percent.
- Structural shifts since early 2000s:
  - Manufacturing share broadly unchanged over past two decades.
  - Construction nearly doubled.
  - Wholesale and retail trade declined by almost 50 percent.
- Export concentration:
  - UNCTAD’s Export Product Concentration Index shows Oman’s exports remain notably concentrated, exceeded only by Kuwait and Saudi Arabia within the GCC.
  - Oman’s export base is much less diversified than Australia and Norway, and much less diversified than Singapore and Mexico.
- Manufacturing composition (around 2021 data shown):
  - Refined petroleum, chemicals, and metals account for around 60 percent of manufacturing output.
  - More complex products (e.g., machinery and equipment) remain minimal.
- Economic Complexity Index (ECI):
  - Oman’s ECI has remained persistently low over the past four decades; countries with similar ECI in the early 1980s (e.g., Malaysia, Mexico) have since transitioned to higher-value exports.
- Services exports (2023):
  - Oman’s per capita services’ exports = $1,500 (among the lowest in the GCC; well below Norway and Australia).
  - Service export composition: transport = 34 percent; tourism = 28 percent; information and communication technology exports < 5 percent.
- Market concentration of non-oil export destinations has been reduced markedly since early 2000s to levels commensurate with GCC and global peers.
- Despite regional trade growth, Oman’s export penetration in GCC markets remains limited.

### C. Export Diversification: policies, outcomes, and enablers
- Standard policy prescriptions for oil-rich countries emphasize:
  - Investing in human capital (education and skills).
  - Improving business climate (institutions, regulatory quality, transparency, rule of law).
  - Targeted public investments in infrastructure and technology.
  - Ensuring macroeconomic stability and reduced reliance on oil revenues.
  - Greater trade and investment openness, regional integration, global market access.
- Oman’s policy progress:
  - Notable progress in upgrading physical infrastructure, investing in human capital, and easing product and labor market regulations.
  - These reforms produced limited gains in export diversification, indicating government-failure remedies alone are insufficient; a broader, targeted strategy is needed.
- Infrastructure:
  - Public capital stock exceeds 120 percent of GDP.
  - World Bank Logistics Performance Index score rose from just under 3 in 2020 to nearly 3.5 in 2023.
  - Between 2000-2023, non-oil exports per capita amounted to around $4 for every $100 of cumulative infrastructure investment—about half the level achieved by Malaysia and Mexico.
  - Non-oil exports per capita vs. cumulative investments illustration uses a dotted 45-degree line representing a return of 10 percent (y to x axis scale of 1x10).
- Governance:
  - Oman’s governance environment aligns with the GCC average and stands above the average of EMDEs per the World Bank’s Governance Performance Index (average 2018-2022).
- Education:
  - Education spending = nearly 5 percent of GDP—above the GCC average.
  - Average years of schooling rose from 8.3 years a decade ago to nearly 12 years currently.
  - Oman is the second-best performer in the GCC on years of schooling and close to AEs.
  - Learning outcomes lag: low average math scores indicate need to improve quality and relevance of education.
- Openness:
  - Oman maintains relatively low numbers of restrictions on exchange, trade, and transfers—comparable to the UAE and Qatar, and well below the average for EMDEs (2022 data, IMF AREAER aggregate measure).
- Special Economic Zones (SEZs):
  - SEZ timeline: Salalah Free Zone (1999); Sohar (2010); Duqm (2011); Al Mazunah and Khazaen (2018); plus eleven industrial cities (Madayn).
  - SEZ incentives: 100 percent foreign ownership, tax exemptions up to 30 years, streamlined regulations, modern infrastructure, trade facilitation services.
  - By end-2024, cumulative investment across SEZs and industrial estates ≈ $55 billion.
  - Advantages: duty-free access to GCC market (~60 million consumers), Oman–United States free trade agreement, proximity to China and India.
- Global Value Chains (GVCs):
  - Oman’s forward GVC participation is relatively high (reflecting hydrocarbons exports).
  - Backward participation remains persistently modest (average comparisons 2010-2020 vs. 1990-2000), indicating limited integration of foreign inputs into higher-value manufacturing.
  - Countries with deep industrial sectors (Malaysia, Korea, Singapore) have higher backward participation.

### D. Lessons from Korea, Singapore, and Malaysia
- Korea:
  - State-led discipline and targeted industrial policy in the 1960s and 1970s channeled concessional finance, infrastructure investment, and technology transfers into priority industries (steel, shipbuilding, electronics).
  - Support was contingent on meeting export targets, embedding global competition as a disciplining mechanism.
  - Firms upgraded from simple assembly to world-class heavy industry and high-tech products, raising export sophistication and supporting fast growth and income convergence.
- Singapore:
  - Leveraged strategic location and strong institutions to diversify into logistics, petrochemicals, and advanced services.
  - Early investments in port efficiency and free-trade facilitation positioned Singapore as a global hub.
  - Jurong Island example: integrated petrochemical cluster with co-location, world-class infrastructure, predictable regulation attracting multinational firms and catalyzing technology transfer.
  - Export performance improved in both volume and complexity; electronics and machinery, and later biopharma and digital services, reflect movement into knowledge-intensive exports.
  - Combined strategy: export orientation, innovation policy, and continuous human-capital upgrading enabled climbing the product sophistication ladder.

*Source: IMF staff paper (selected issues), content unit sipea2026008.*

### 22. Malaysia. Malaysia’s experience underscores how participation in GVCs can accelerate export

### 22. Malaysia. Malaysia’s experience underscores how participation in GVCs can accelerate export diversification

### Malaysia case study: Penang and electronics GVC participation
- Beginning in the 1970s, Penang’s free-trade zone attracted multinational electronics firms with incentives and skilled labor, embedding Malaysia into the global electronics supply chain.
- Complementary policies included vocational training, infrastructure investment, and gradually expanding domestic supplier networks.
- Penang developed an ecosystem referred to as the “Silicon Valley of the East” that now accounts for over 5 percent of global semiconductor sales.
- Export sophistication increased with electronics becoming a cornerstone of Malaysia’s non-commodity growth.
- The experience highlights the need for continuous upgrading: sustaining complexity requires innovation and movement into emerging technologies.

### Key lessons from comparative cases (Korea, Singapore, Malaysia)
- Climbing the product sophistication ladder requires more than passive liberalization.
- Strategic interventions were decisive:
  - Korea: export discipline.
  - Singapore: logistics and cluster development.
  - Malaysia: GVC participation with skills upgrading.
- Common ingredients:
  - Targeted state support that is temporary and performance-based.
  - Openness to global markets as the disciplining force.
  - Heavy investment in human capital and innovation systems.

### Empirical analysis: potential gains for Oman from reforms
- Method: panel regression of export diversification measures (nonhydrocarbon/nonmineral exports per capita; manufacturing exports per capita; complex exports per capita) on country-level drivers over 2000-2023 (sample of 135 countries).
- Key explanatory variables included R&D (% of GDP), credit to the private sector (% of GDP), rent from natural resources (% of GDP), logistics performance (index, 1-5), government effectiveness (WGI, -2.5 to +2.5), Learning-Adjusted Years of Schooling, and log GDP per capita.
- Logistics performance measured via the “Quality of trade and transport-related infrastructure” component (1-5 scale).
- Complex exports defined as products with a Product Complexity Index higher than zero.

### Quantified effects from regression estimates (implications for Oman)
- Government effectiveness:
  - A one-unit increase in the government effectiveness index could raise per capita nonhydrocarbon exports by $5,707, manufacturing exports by $3,909, and complex exports by $4,279 (Annex I. Table 1).
  - Enhancing Oman’s governance effectiveness score from its 2023 level (0.27) to the 2023 average in Qatar, Saudi Arabia, and the UAE (1.2) could yield gains of around $5,277 in per capita nonhydrocarbon exports, $3,615 in manufacturing exports, and $5,690 in complex exports (Text Figure). ($5,277 = $5,707 (1.2-0.27))
- Logistics performance:
  - A one-unit increase in the quality of trade and transport-related index is associated with $6,714 higher per capita nonhydrocarbon exports, and gains of $4,625 and $4,279 for manufacturing and complex exports, respectively (Annex I. Table 1).
  - Improving Oman’s logistics performance from 3.3 (Oman, 2023) to 4 (UAE, 2023) could yield an additional $4,700 of per capita nonhydrocarbon exports, $3,237 in manufacturing exports, and $4,205 in complex exports. ($4,700 = $6,714 (4-3.3))
- Regression sample summary:
  - Observations: 135
  - R-squared: 0.60 (Nonhydrocarbon), 0.57 (Manufacturing), 0.55 (Complex)

### Regression results (Annex I. Table 1) — key coefficients and significance
- Dependent variables: (1) Nonhydrocarbon/Nonmineral Exports Per Capita; (2) Manufacturing Exports Per Capita; (3) Complex Exports Per Capita
- Selected coefficient estimates (robust standard errors in parentheses):
  - Research & Development Expenditures (% of GDP): -1295.43 (1014.96), -592.11 (793.67), -730.63 (894.86)
  - Rent from Natural Resources (% of GDP): -20.57 (63.89), -21.35 (46.08), -15.19 (53.76)
  - Logistics Performance (index, 1 to 5): 6714.32*** (2039.82), 4624.61*** (1379.63), 6007.45*** (1730.31)
  - Log GDP Per Capita: 1109.09 (3226.69), -957.14 (2393.27), -910.01 (2807.73)
  - Credit to the Private Sector (% of GDP): -66.73*** (18.88), -37.50** (14.74), -51.35*** (16.41)
  - Learning-Adjusted Years of Schooling: 163.78 (450.51), 212.69 (359.92), 296.00 (377.13)
  - Government Effectiveness: 5706.79** (2217.17), 3909.08** (1610.15), 4279.11** (2047.08)
  - Constant: -17374.87* (9365.28), -7120.29 (5668.04), -11088.9 (7599.30)
- Significance notation: *** p<0.01, ** p<0.05, * p<0.1
- Notes: Other variables (education, R&D) were statistically insignificant; the negative coefficient on private sector credit is noted as anomalous and warrants further investigation.

### Policy recommendations for Oman to promote export diversification
- Accelerate structural reforms to enable private sector–led growth:
  - Reduce the state footprint, accelerate labor market reforms, streamline business regulations, enhance transparency in SOEs.
  - Phase out untargeted subsidies and strengthen competition policy.
- Deepen integration into GVCs:
  - Leverage geographic position and SEZs (Duqm, Sohar) to build export platforms in manufacturing and services.
  - Reduce non-tariff barriers, improve trade facilitation, and promote regional connectivity with Africa and Asia.
- Leverage SEZs as catalysts:
  - Use coordinated industrial policy with clear performance benchmarks, sunset clauses, and strong governance and accountability.
  - Target measures to link local SMEs to multinationals, develop sector-specific vocational training, and embed sustainability standards.
- Invest in human capital and innovation systems:
  - Increase R&D investment, foster university-industry linkages, promote technology adoption among SMEs.
  - Align education and vocational training with STEM, digital skills, and entrepreneurship.
  - Use public programs to incentivize private R&D and sector collaboration.
- Mobilize finance for diversification and green transition:
  - Scale up venture capital, support green finance, align fiscal incentives with diversification objectives.
  - Recent frameworks noted: 2024 Sustainable Finance Framework and new Central Bank of Oman regulatory guidance to promote green finance.
  - Further work needed: full green taxonomy, comprehensive disclosure standards, robust Project Investment Management/PPP and project-pipeline systems.
- Leverage sovereign investment vehicles:
  - Use Oman Investment Authority and Future Fund Oman to act as anchor investors via co-investment and blended finance.
  - Implement transparent privatization and IPO pipelines, governance upgrades, and performance contracts to deepen capital markets.
  - Implement targeted supplier-development and export-readiness programs linked to SEZ ecosystems.
- Strengthen institutions to sustain reform momentum:
  - Roll out a full-fledged medium-term fiscal framework, develop sovereign asset-liability management, and adopt a credible transparent fiscal rule.
  - Empower Invest Oman and the Public Authority for Special Economic Zones with mandate, resources, and accountability to deliver export diversification targets.

*Source: sipea2026008 - 22. Malaysia. Malaysia’s experience underscores how participation in GVCs can accelerate export diversification*

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_Source: https://www.imf.org/-/media/files/publications/selected-issues-papers/2026/english/sipea2026008.pdf_