May Investors choose
to invest in Oman for several reasons.
A
Special International Report Prepared by The Washington Times
Advertising Department - Published on December 21, 1999,
mentioned the reasons why US
should invest in Oman. These reasons are also true for
investors.
Oman’s excellent geographical
location makes it a gateway to the Arabian Gulf. It is at a
focal point of two continents: (East) Africa and (South) Asia,
two areas that combined are considered a huge export market and
an ideal point for distribution and communications with
neighboring and international markets.
Oman has always been known for
its political stability in the Gulf region. It has close
relations with other Gulf Cooperation Council (GCC) members and
other nations of the world outside the Middle East. With a free
market economic system, Oman enjoys a stable monetary policy
that keeps inflation under control. Unfortunately, because of
Oman’s continued stability and reluctance to draw attention to
itself, some Washington policy-makers tend to take Oman for
granted.
The Sultanate has an ambitious
policy for privatization. A systematic process of privatization
focuses on encouraging and promoting private sector’s
participation in providing public services that previously have
been exclusively handled by the government, as well as
privatization in other sectors of the economy.
Oman has a duty-free access to
the GCC markets, which with a total population of about 18
million, constitutes a great purchasing power. All products
originating from Oman are exempted from customs duty if the
value added to the product is not less than 40 percent and the
shareholding of GCC nationals in the company responsible for
export is at least 51 percent.
Other advantages to investing
in Oman are the availability of (1) adequate infrastructure
facilities, such as completed paved roads, seaports and
airports. (2) advanced banking services, with 18 commercial
banks, seven local banks and 11 foreign ones. There are also
three specialized banks and 39 foreign money exchangers. 3)
advanced communication networks that cover all major parts of
Oman, allowing communication with a large number of foreign
countries. (4) a well-established securities market with a view
to develop and promote the economic development of Oman, to
regulate transactions in securities and to build confidence
among investors locally and internationally. Foreign investors
can raise capital through the security markets.
In a recent public speech to
his nation, His Majesty Sultan Qaboos said “We have to encourage
others to invest in Oman in accordance with the principles
governing these investments.” Adding that these investments will
not be forthcoming “unless we facilitate them in a manner that
will be beneficial to us, and not necessarily in amounts that
may only come with inherent disadvantages.” Investments, he
stressed, will benefit Oman and diminish the dependence on oil
as the main source of the nation’s hard currency earnings.
Foreign investment is welcome
as long as it is in a development enterprise and is accompanied
by foreign expertise. The following are areas where foreign
participation is accepted:
- Industrial development
projects
- Agricultural and fisheries
development projects
- Civil construction and
electro mechanical works
- Mining
- Oil exploration and
processing projects
- Medicine
- Law
- Accountancy
- Engineering
- And consultancy in
specified fields
Foreign businesses in Oman
should be registered according to the following forms: Joint
venture, limited partnership, joint stock company, or general
partnership. The Ministry of Commerce and Industry has
coordinated all these types of investments. However, to ease the
path of entry to potential international investors, the royal
decree No 59/96 was recently issued to establish a center for
investment and export promotion (OCIPED) which will act as a
one-stop shop by helping and guiding local and foreign investors
Source:
http://www.internationalspecialreports.com/middleeast/99/oman/6.html
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