15/03/2015 05:51 AST ONA

In a bid to attract local and foreign investments, Oman has devised various measures to improve the investment climate in the Sultanate.

The government’s commitment to providing infrastructure such as Sohar Industrial Port, industrial estates, freezones besides free transfer of commodities, services and capitals are some encouraging factors for potential investors.

Oman joining many international organisations including World Trade Organisation (WTO) and free trade agreement (FTA) with the United States and amendments made to some laws in the country to meet the requirements of globalisation and integration in world economy are some of the other factors which make the country an attractive hub for investments.

Banks operating in Oman also provide loans at low interest rates for different industrial projects and guarantees for exports. The government also provides planned industrial land plots that are provided with the required infrastructure to meet the needs of the industrial projects.

International rating agencies have pointed out that political stability is one of attractive features in the Sultanate. They noted that political stability encourages a large number of foreign companies to invest in the different economic, production, service and business sectors.

As part of the export-based diversification plan, the Sultanate sought to ensure maximum utilisation of its resources, such as natural gas and to increase the benefit of these resources. To this end, the government intensified its promotion efforts, which resulted in signing of agreements to set up major industries with foreign capitals, such as fertiliser project in Sur, steel and iron factory, aluminum smelter and other projects.

The government encourages foreign capital to invest in the untapped resources in the Sultanate, impart technology, benefit from the administrative capabilities and benefit from communication with multinational companies by opening new markets for Omani products.

The country has been committed to opening the economic market as per the free competition rule. To this end, it has encouraged the private sector and provided it with facilities that help it play an active role in the growth of gross domestic product (GDP). It also provided a number of packages, incentives, guarantees, tax exemptions and simplified procedures. It promoted transparent management of investments.

The Sultanate, which adopts ambitious privatisation policy, has integrated infrastructure and advanced communication and banking networks. It also implements policies that are investor-friendly in a bid to attract foreign investments.

Oman has a well-regularised capital market that is provided with the latest systems and equipment. It also entered into agreements with some countries to encourage and protect investments. The Sultanate has also a stable monetary system that allows free exchange and transfer of capitals.

A survey study conducted by the National Centre for Statistics and Information (NCSI), in coordination with the Central Bank of Oman (CBO) on the foreign investment in the Sultanate during the seventh five-year plan (2007-2011), highlighted the remarkable growth in the foreign direct and indirect investments. As of the end of 2013, the value of foreign investments in the Sultanate stood at OMR12.7 billion.

Foreign reports point out that the Sultanate has integrated package of incentives for foreign investments, the most important of which are the social and political stability, availability of production factors, such as free economic zones and industrial estates equipped with world-class facilities and the strategic location on the world regional and international trade routes coupled with having many export ports.