From High Costs to Viable Markets: Rethinking Agricultural Economics in Oman
This strategic initiative responds to the declining competitiveness of Oman’s agricultural sector, which historically played a vital role in supporting livelihoods and food security. Rising electricity costs, increasing groundwater salinity, and the growing reliance on desalination for irrigation have significantly increased the energy intensity and production costs of farming, weakening the position of local crops against lower-priced imports.
The initiative positions solar-powered irrigation not as a purely technical solution, but as a policy and economic instrument to restructure production costs and enable a shift from broad consumption-based subsidies toward targeted, performance-driven support. Its focus is on translating energy cost reductions into real market competitiveness through an implementation-oriented framework that prioritizes high-impact crops and regions, aggregates small and medium farms into bankable models, and links energy savings to improved market access and local value chains.
By doing so, the initiative aims to restore the competitiveness of Omani agricultural products in terms of price, reliability, and supply stability, while reducing import dependency and supporting rural economic growth—fully aligned with Oman Vision 2040 objectives for economic diversification, subsidy reform, and food security.
Sector: Agriculture – Renewable Energy – Water – Economic Policy
Majan Council’s Role: Strategic analysis, economic and implementation model development, decision-support
