High oil prices compared with a conservative assumed price in the seventh five-year plan (2006-10) allowed Oman not only to weather the global economic downturn, but also to turn in a series of budget surpluses and increase investment spending fourfold compared with the planned figure. The unveiling of the eighth five-year development plan and 2011 budget was accompanied by a brief assessment of the previous plan and the outturn for the 2010 budget. Oil prices, which averaged US$73/b up to the end of October 2010, far outstripped the assumed price for 2006-10 of just US$30/b. This more than compensated for the overly optimistic forecast for average daily oil production of 827,000 b/d. In reality, average production from 2006 to the end of October 2010 (the most recent data available) was 776,000 b/d, 6% short of the assumed figure. Not surprisingly, this was not mentioned by Mr Macki. Planned deficits were realised as surpluses, which were used to strengthen the government financial reserve and reduce public debt. Investment was planned at OR3bn (US$8bn), but this was increased to an unprecedented level of OR12bn.

Mr Macki said that average annual growth rates in 2006-10 were estimated to have reached 13% at current prices and 6.3% at constant prices. Non-oil revenue increased at an estimated annual average rate of nearly 15% at current prices and over 8% at constant prices, which will please the authorities in their continuing bid to diversify the economy away from oil. Less satisfactory was the growth of inflation during the plan period, a factor which the authorities had little cause to worry about for many years. It peaked at 12.5% in 2008, owing to external factors, but the economy ministry estimates that it had fallen to 3.5% by 2010. The Economist Intelligence Unit estimates that inflation averaged 4% in 2010 owing to heavy government spending and rising food prices.

Another key objective of the government is the creation of jobs for Omanis: 177,000 new "work opportunities" were provided to the national workforce over the five-year period according to Mr Macki, who described the performance of the "Omanisation" programme as "outstanding". However, although it is true that the number of Omanis working in the private sector rose by nearly 80%, from just under 100,000 at the start of 2006 to 177,000 at the end of October 2010 (the most recently available data), the percentage that Omanis represent in the private-sector workforce fell over the same period. By contrast, in the public sector there was a small rise in the proportion of Omanis in the workforce, from 83% to 86%, reflecting an increase of 22,000 more nationals employed by the government.

On a more recent note, Mr Macki reviewed the expected fiscal results of 2010. The actual oil price realised was US$76/b, over 50% higher than the US$50/b price assumed for the year's budget. Despite a number of additional investments being approved during the year, Mr Macki said that he still expected a deficit, albeit much smaller than the OR800m budgeted. Part of the additional revenue has been used for early repayment of loans from the Arab Fund for Economic and Social Development used for the expansion of Salalah port and the Muscat expressway and the Abu Dhabi Fund for Development loans used for the Qurayat-Sur and Qurayat-Al Amerat roads.