It is reported that Qatar will invest as much as OMR 500 million in the Omani economy. The investment is part of a pledge by fellow Gulf Co operation Council members to provide USD 10 billion each in support to Bahrain and Oman following demonstrations in those countries earlier in 2011.

Mr Khalil bin Abdullah al Khunji chairman of the Oman Chamber of Commerce and Industry said that "We expect other GCC countries to show similar initiative to invest in Oman."

The GCC, led by Saudi Arabia, on March 10th 2011 announced USD 10 billion 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 Mr Sultan Qaboos agreed in March 2011 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 2011 an OMR 1 billion plan to create jobs and raise pay, part of a strategy of increasing state spending to OMR 9.1 billion, after weeks of protests demanding economic changes.

The economy of the Arabian Gulf sultanate will grow by 5% at constant prices in 2011. The country's debt is also forecast to amount to 6% of gross domestic product. At the same time, the budget deficit will rise to OMR 1.9 billion or 9.5% of GDP, while subsidies will cost OMR 954 million.

(Sourced from www.arabianbusiness.com)