They said that while any such move may invite a lot of public disapproval 'there is no other way out due to the new economic reality'.

Speaking to Muscat Daily on the sidelines of the Asian Business Leadership Forum Series 2015 event Khalil bin Abdullah al Khonji former chairman of Oman Chamber of Commerce and Industry said 'The fall in oil prices is affecting Oman in a big way. All the reports indicate that the prices are unlikely to reach US$70 until 2020.

I hope my predictions are wrong but there is a strong indication that the prices might fall further after the crucial Organization of Petroleum Exporting Countries meeting in Vienna on Friday. It might even touch US$30.'

Khonji said that it is the right time to phase out subsidies especially on oil. 'We understand from government officials that citizens will not be affected if the subsidy is removed. We have to prevent smuggling of diesel and petrol to other countries.'

He said that regardless of prices going up or down this is an opportunity for Oman to change. 'I am sure foreign companies are keen to invest in Oman but they are suffering from bureaucratic hurdles. We need to liberalise the foreign investment law it should be very simple and open to investors.'

He said that Oman is facing huge competition from the neighbouring countries. 'There is no other way out except opening up. Here I mean opening our minds opening the books and be more transparent. There is a need for better Labour Law.'

Khonji said that since Oman has better infrastructure there is a need for better laws and efforts to promote Oman across the world. 'Since Duqm port will link the GCC the future of Oman is good. We need to develop new thinking and hope new Oman will be different from the present one economically.'

As far as privatisation is concerned Khonji said the process is a continuous one. 'You should privatise when the going is good.'
Pankaj K Khimji director Khimji Ramdas said that Oman has to be more concerned of falling oil prices than its neighbours. 'We depend so much more on oil than our neighbours Oman needs to be more careful. There is a need to find new solutions on how we can grow. Oman needs to focus on infrastructure development and bring in new investments for economic growth.'

He said that this is the right time to implement privatisation. 'This is also the best time to reduce the subsidies. People may argue these are tough times but actually nobody is hard pressed in Oman. People are getting better salaries than what they were getting five or six years ago.

Oil prices are at the lowest level and if we don't remove the subsidies now and wait for things to get better then the impact will be much more than what it is today.'

Aqeel Jawad Sultan chairman Jawad Sultan Group however said Oman is on the right track to tackle the problems that the country is facing due to falling oil prices. 'Everyone is being affected but I hope everything will be okay because the government is encouraging businesses to improve and diversify from oil dependence. There is of course room for improvement but we are on the right track looking at the full support that the government is giving to SMEs' he said.