1)
Market volume and available opportunities
Sultanate
of Oman is counted among promising markets due to it strategic
location linking the GCC countries with Iran, Yemen and Middle
Asia. It also distinguished with its limited populations of
2.5 million. Meanwhile the chances are open in Oman for
investors to enter to the gulf market or even to other Arab
markets within the Grand Arab Free Trade Zone. It also
facilitate to undertake the exporting activities to United
States of America , the biggest consumer market of the world,
without paying any charges as result of Oman-US Free Trade
Agreement.
There are plenty of investment opportunities are available in
various economic sectors like ;-
-
Industrial Sector
Industrial sector in Oman offers numerous opportunities
especially in the field of converting industry that depends
on energy license and availability of raw materials of
minerals. The chances are also available to set-up
collecting industries for re-export through modern ports
like Sohar and Salalah ports.
-
Tourism Sector
Oman is characterized with its peculiarity of multi climate
and topography in addition to its wealthy historic heritages
that includes almost 500 forts and castles. During the last
five years the country hosted a huge number of tourists
especially from European countries. Thus a number of
opportunities are available for investment in the fields of
hotels, tourism resorts and parks in various regions of the
country. To promote the investment in this sector, the
ministry allotted prepared lands in different measurements
for diversified types of projects
-
Health Sector
Health represents a significant sector of the country which
attracts investors especially while facing so much rush at
government hospitals. Therefore, the available opportunities
of this sector demands specialized hospitals like cardiology
hospital and hard diseases hospitals .. etc.
-
IT Sector
The Sultanate pays utmost attention towards attracting
investments in the field of Information Technology. A
special zone was set-up for this purpose under the name "
knowledge oasis " to accommodate entire IT related projects
which includes the projects with 100% foreign ownership.
This zone is accorded with all necessary services with
highest international specifications.
2)
Competition status related to sectors
The Sultanate adopted free market, open economic and healthy
competition policy along with the existence of regulating
rules such as anti dumping laws and intellectual property
protection rules and other laws related to the commercial
and investment practices.
3) Government Policies related to
sectors
Sultanate
of Oman makes all its effort to provide a number of
incentives to promote and encourage investments in various
economic sectors. Most important of these incentives include
;-
- Freedom to transfer
capital and profit
- Customs exemption for
machines, equipments, and raw materials of industry
- Income tax exemption up
to ten years for companies
- availability of well
planned industrial lands for a nominal rend with
reductions for basic services ( water – electricity – gas
)
- Foreign ownership
percentage of 70% directly with the possibility of
reaching to 100%
- Insurance policy program
of Omani origin exports against political and commercial
dangers
FACTS AND FIGURES 2006
I. GENERAL INFORMATION
Geographical Location: The Sultanate of Oman lies
on the southeastern tip of the Arabian Peninsula and it
has a coastal line of approximately 3165 kilometers,
stretching from the Strait of Hormuz on the north to the
borders with Yemen in the south, thus overlooking three
seas, viz. the Arabian Gulf, the Gulf of Oman and the
Arabian Sea.
Land Area: 309,500 sq. km.
Currency: Omani Rial (1 Riyal = US$ 2.6)
Language: Arabic. English is widely used in the
business circles.
II. SOCIAL INDICATORS
Population: 2.509 million
Omani : 1843000
Expatriate : 666000
Population Density: 8.1 person/sq. k.m.
III. ECONOMIC INDICATORS
-
GDP Details for the year
2006
GDP : US$ 35.6 billion
GDP Growth Rate : 15.6%
Economic sectors' share in GDP ( 2006)
- Oil and Gas : 48.8%
- Services : 39%
- Industry : 12.2%
- others : 1%
Per-capita GDP : US$ 11692
-
Foreign Trade:
Total trade exchange : US$ 27.653 billion
Total exports : US$ 18.686 billion
Major importers from Oman:
|
Sl |
Country |
% to the total imports |
|
1 |
South
Korea |
30 % |
|
2 |
UAE
|
21% |
|
3 |
Japan |
14% |
|
4 |
India
|
7.6% |
|
5 |
Spain
|
5% |
|
6 |
Saudi
Arabia |
2.8% |
|
7 |
Taiwan
|
2% |
|
8 |
Qatar |
1.8% |
|
9 |
Yemen |
1% |
|
10 |
Holland |
1% |
|
(source:
Royal Oman Police) |
Major exports: Oil
and Gas (84%), animals and animal products, chemical
industry, minerals and its products, electric systems and
equipments, Food Industry and Rubber and plastic products
Total Imports: US $ 8.967 billion
Major exporters to Oman:
|
Sl |
Country |
% to the total imports |
|
1 |
UAE
|
25.8 % |
|
2 |
Japan
|
17% |
|
3 |
India
|
5.3% |
|
4 |
USA
|
5.2% |
|
5 |
Germany
|
5% |
|
6 |
South
Korea |
3.5% |
|
7 |
Saudi
Arabia |
3.4% |
|
8 |
UK
|
3.39% |
|
9 |
China
|
3.38% |
|
10 |
Thailand
|
2.4% |
|
(source: Royal Oman
Police) |
Major imports:
Automobiles, minerals and its products, foodstuff and
electric and electronic equipments.
Exportable Omani Products:
|
Industrial Activity |
Product |
|
Foodstuff |
- Frozen
fish
- chocolates and sweets
- dates
- potato chips
- wheat flour
- corn oil
- biscuits
- fruit juices
- tea and coffee |
|
Garments and Textiles |
- Men's
readymade garments
- ladies readymade garments
- cloth and textiles |
|
Chemical industry |
- paints
- pest control
- perfumes
- cosmetics |
Paper industry and
paper products |
-
Computer stationery
- baby diapers
- sanitary napkins
- paper boxes |
|
Non-metallic minerals
|
- Marble
- granite
- gypsum
- chromium |
|
Metallic products |
- Metallic furniture
- wire fencing
- aluminum
- auto batteries
- pipes
- nails
- steel poles
- electric switchgears
- freezers
- auto air conditioners
- optical fiber
- oil and air filters
- electric water heaters
- copper cables and wires
- air conditioners
- refined Bronze
- metallic cans
- ceiling fans |
|
Other products |
- Wooden furniture
- mattresses
- plastic products
- glass bottles |
-
General Finance:
|
Gross revenue : |
US$ 11.726
billion |
|
Gross expenditure : |
US$ 16.369
billion |
|
Surplus : |
US$ 787.5
million |
|
Share of oil and gas in
gross revenue: 79% |
-
Economic Coalition
Agreements signed by Oman
a. Customs Union with other AGCC countries
b. Grand Arab Free Trade Zone
c. Indian Ocean Rim Association
d. Free Trade Agreement with United States of America
e. Mutual Investment Promotion and Protection Treaties with
the following countries:
| Germany |
U.K. |
Sudan |
| Holland |
India
|
Algeria
|
| Tunisia |
Finland
|
Austria |
| Italy |
Pakistan |
Morocco
|
| France |
Egypt |
Iran
|
| China |
Brunai
Darussalam |
Ukraine |
| Sweden |
Yemen |
South
Korea |
|
Switzerland |
Belarus |
Croatia
|
| South
Africa |
|
|
f. Double Taxation
Avoidance Treaties with the following countries:
| France |
India |
Tunisia |
| Britton |
Mauritius |
Italy |
| Pakistan |
Algeria |
Egypt |
| Lebanon |
Russia |
China |
| Yemen |
South
Africa |
Sudan |
| Seychelles |
Singapore |
Thailand |
| Canada |
Iran |
Belarus |
-
Investment Advantages:
• Excellent strategic location.
• Political stability
• WTO membership
• Unified GCC Custom Tariff
• Grand Arab Free Trade Zone
• Natural resources
• Investment promotion and protection treaties.
• Privatization policies.
• Integrated and state-of-art infrastructure
• Varied and rich tourism potentials
-
Investment Incentives:
• Strong and fixed local currency
• Unrestricted capital and profit repatriation
• Custom duty exemption on machinery, equipments and raw
materials imported for manufacturing purposes.
• Corporate income tax holiday reaching 10 years.
• Zero personal income tax
• Planned industrial plots at nominal rents with subsidized
utility charges (water, electricity and gas)
• Automatic foreign ownership up to 70% with a possibility
of 100%
• Guarantee for Omani origin exports against commercial and
political risks.
-
Economic Institutions:
• Oman Chamber of Commerce and Industry (OCCI)
Website :
www.chamberoman.com
E-mail : occi@chamberoman.com
• Central Bank of Oman
website :
www.cbo-oman.org
E-mail : info@cbo-oman.org
• Omani Centre for Investment Promotion & Export Development
(OCIPED)
Website :
www.ociped.com
E-mail : info@ociped.com
• Capital Market Authority
Website :
www.cma-oman.com
E-mail : info@cma-oman.com
• Muscat Securities Market (MSM)
website :
www.msm.gov.om
E-mail : msminfo@msm.gov.om
• Public Establishment for Industrial Estates (PEIE)
website :
www.peie.com
E-mail : info@peie.com
• Knowledge Oasis Muscat (KOM)
website : www.kom.om
E-mail : info@kom.om
• Ministry of Commerce and
Industry
website :
www.mocioman.gov.om
E-mail : info@mocioman.gov.om
• Ministry of National Economy
website :
www.moneoman.gov.om
E-mail : info@moneoman.gov.om
|
