Exploring Funding in Higher Education Sector in Oman

2. Background Of Higher Education In Oman

Higher education in Oman has undergone several key developmental phases. Before 1970, there was no formal higher education sector in Oman, but the period from the 1970s to the 1980s saw the establishment of public colleges that emphasized vocational education and training, particularly in teaching and health. The Sultan Qaboos University was also established during this time. In 1990, foreign programs were introduced and delivered in Oman through private HEIs (i.e., colleges and universities). This was an attempt to rapidly grow the sector in response to an identified need. Currently, the new phase entails the establishment of a comprehensive higher education system. This is an attempt to consolidate gains by implementing quality assurance and a quality enhancement process that is both effective and efficient (OAC, 2006).

The governance of the HEIs is divided among different authorities, and therefore the expenditure on the system is not transparent. However, it is established that the Omani government fully funds public institutions. There are no fees to enroll in these public institutions, and students get financial assistance in the form of allowances. This is because the government has been using oil revenues to finance the higher education system.

Although the government does not finance private institutions, it still supports them indirectly through land grants, tax exemptions, and scholarships (Al’Abri, 2015). Annually, the government financially supports around 8,000 students to attend these institutions. Furthermore, “The National Strategy for Education 2040” stated that one of the major challenges in funding higher education is that “Education depends on the government as its main source of finance and there is a lack of alternative sources and the private education institutions depend on study fees as the main source.

Al Harthi (2011:174) stated that “The mechanisms of funding higher education institutions, particularly private institutions. We have noticed that private higher education relies heavily on tuition fees paid by students, together with governmental subsidies. For private higher education institutions to continue its function, funding resources must be diversified.”

Therefore, there is an urgent need to ascertain how these public or private universities can survive when they experience financial deficit and how they can diversify their sources of income (e.g., research investment, self-funded universities, and continued education). Therefore this study is mainly exploring the funding resources in higher education in Oman and how could be diversified according to the participant's perceptions who were chosen randomly and voluntarily to participate from Sultan Qaboos university (public one) and University of Nizwa (private one).