On the 26th of June 2018 The British Omani Society interns, Beth Richards and Jareer Al-Daoud attended an interactive evening presentation and discussion entitled The Silver Economy organised by Ithraa, an award-winning investment and export development organisation that promotes the image, profile and business benefits of Oman to a global audience.
This event was held at the Public Authority for Civil Aviation Training Centre in Muscat and hosted by CEO of Ireland’s Smart Ageing Exchange, Anne Connolly, and the CEO and founder of The Firm, His Highness Sayyid Dr Adham Al Said.
This report is based on the discussions that took place during the event.
Societies across the world are transforming. In many countries, fertility rates are in decline while life expectancies are increasing. By 2050, the elderly population is expected to become a sizable proportion of the population – in a time when the median age is expected to jump to 36.1 years, as opposed to today’s 29.6 years.
In Oman, the youth dominates the 4.6 million-strong population, with 45.1 per cent being younger than 20 years old. But this is changing. Thanks to country-wide developments across many sectors, the people are getting older, and so emerges the so-called silver economy. This is now becoming an important and diverse aspect of Omani society, and a significant theme for Oman’s investors, given that they are a fast-growing consumer age group with an increasing share of income and thus a higher spending power. Businesses are thus beginning to cater to the needs of this affluent segment of society, as opposed to dedicating their time and efforts solely to the younger population who have less free time and a smaller disposable income.
In order to fulfil the commitments of the 2030 Agenda for Sustainable Development, Oman is making sure that no one will be left behind, including this important percentage of the population. The needs and priorities of the ageing population, including but not limited to: housing, health care and employment, are all being taken into consideration in order to enable the country and its people to cope with this significant demographic shift.
It was clear from the discussion that the outlook on the ageing population was changing. The diverse audience discussed the possibility of scrapping retirement, resetting consumer markets and improving intergenerational solidarity. With age, the population’s needs change radically. The increasing life expectancy is giving rise to demands for senior housing in Oman, to be characterized as barrier-free with easy access to public transport, shopping and recreation as well as to all-important medical care. This is undoubtedly a very attractive opportunity for investors.
Moreover, these citizens would, of course, like to continue to live independently for as long as possible and so assisted living services like ambulatory care, emergency services, physiotherapy, household assistance and activities of an entertaining nature are likely to be in demand in the near future, so the growth potential of this area seems vast.
Tourism and leisure is of great interest with endless possibilities to this segment of society especially, since they have the time and disposable income for it. This is of special importance to the hospitality sector as using their accumulated savings, many senior citizens might prefer to explore the world and discover exciting new destinations, while others would be willing to travel long distances for health reasons for medical tourism in the sense of seeking new and innovative treatments. It is expected that by 2025, 65+ travellers will account for 13% of international travel.
On an entrepreneurial basis, so often the focus is concentrated on Omani youth, but it is important not to undermine the role that senior entrepreneurs play in Oman’s growing economy. Anne Connelly emphasized the idea that senior citizens should not kill their entrepreneurial spirit since, besides their drive to remain productive, these older individuals have an immense life and work experience, as well as strong and diverse networks that make them important assets in regard to contributing to the Sultanate’s economy.
Studies by Swinburne University of Technology and Queensland University of Technology have shown that many older entrepreneurs tend to face many barriers, such as insufficient governmental support and age discrimination, all of which in turn contributes to their under-representation in the workplace. Therefore, the policy, as well as local media representation, needs to be addressed in order for this demographic to no longer be seen as a liability.
The event concluded with the highlighting of two ways in which to support senior entrepreneurship, fondly dubbed seniorpreneur, which would also serve to benefit the economy. The first was the creation of seniorpreneur networking centres, places for the older population to get together, connect with like-minded peers, exchange ideas and brainstorm about business ambitions. The second was bespoke courses for seniorpreneurs, which would encourage senior Omani entrepreneurs and equip them with the necessary skills to keep up with new startups and companies. These courses would be run, in theory, by other senior entrepreneurs, and possibly even subsidized by the government. This is a guaranteed way to support and help advance such an important movement and, in turn, enrich the growing and ambitious economy of Oman.
Beth and Jareer would like to thank Ithraa for the invitation.