MINISTRY
OF COMMERCE & INDUSTRY Creating the right environment
for doing business
Manal Al Abdwani
Director General of Planning & Follow - up
Ministry of Commerce & Industry
Manal Al Abdwani is
the Director General of Planning & Follow-up
at the Ministry of Commerce & Industry. She
is also the Chairperson - Oman Flour Mills Co. SAOG
and Mazoon Electricity Distribution Company SAOC,
and on the board of directors of Electricity Holding
Company SAOC.
She talks to Oman Vistas about the government policies
aimed at boosting commerce and trade in the Sultanate
of Oman.
Excerpts: What is the best thing happening
with the rise in petroleum prices and the resultant
boom of the Omani economy?
Though the revenue generated from the oil exports
– around 79% of the total revenue in 2005 - remains
to be the mainstay of Oman economy, the government’s
efforts to diversify and liberalize its economy
is to be seen as the equally important reason for
the current enhanced economic activities. The government
has liberalized foreign investment norms, tax regimes,
real estate ownership options for foreigners, simplified
doing business procedures, transparent corporate
governance, etc. The government is also making all
out efforts to create world class infrastructure
facilities such as ports, airports, communication
facilities, etc. The mega industrial project developments
in Sohar, Sur and Salalah and the various large
tourism projects are contributing to the development
of other supporting infrastructure, logistic and
social projects also.
All these have created very attractive atmosphere
to invest in the country by the local businessmen
and the foreign investors.
What is the good thing about
retailing in your opinion? With the coming of big
hypermarket chains in Oman, do you see increase
in consumption too?
Before the arrival of hyper markets in Oman, the
retailing sector was highly unorganized. The arrival
of hypermarkets have brought in centralized purchasing,
warehousing, bulk-breaking and retailing techniques
to the country where such concept was non-existing
earlier. It offers the customers an array of quality
products ranging from groceries, processed food,
fresh food, apparel, consumer durables at competitive
prices and in some cases it also provide food courts,
children entertainment facilities and cinemas. The
hypermarkets have improved the demand for retail
products which is partially evidenced by the 19%
increase in wholesale and retail business during
the year 2006 compared to 2005. The hyper markets
also provide employment opportunities to the local
population as the government has stipulated strict
Omanisation norms for the hyper markets. An estimate
shows that more than 1,600 Omanis are currently
working in the major hypermarkets in Oman and the
number is increasing as major hypermarkets are expanding
to the various locations. However it may also be
noted that hyper markets pose high competition on
small retailers and grocery shops such as ‘Sanad’.
What is the Ministry doing
to promote more Foreign Investment in the country?
Which are the areas offering maximum opportunities?
There are several positive features in the economic
policy and environment of Oman that should encourage
the flow of foreign direct investment (FDI) into
Oman – among these are: • Political and macro – economic
stability
• Stable foreign exchange rate
• Fully convertible Omani currency
• Freedom to repatriate capital and profits
• Minimal inflation compared to other countries
• Membership of WTO
• Establishment of a Electronic One – Stop- Shop
in the Ministry of Commerce and Industry which facilitates
the processing of requests from domestic and foreign
investors
• Non – discriminatory and liberal tax regime for
company profits (12%), and no personal income tax
• Developed Industrial Areas and Free Zone
The government is continuously engaged in making
the investment climate as conducive and investor-friendly
as possible. Oman's Foreign Capital Investment Law
has been further liberalized, permitting 70% foreign
participation in companies automatically. Even 100%
foreign capital can be permitted for projects of
national importance.
The Law on Income Tax for companies has been amended
providing for completely nondiscriminatory treatment
between fully Omani owned companies and other companies
incorporated in Oman irrespective of the extent
of foreign participation, and permanent establishments
in Oman of companies incorporated in other GCC countries.
Can you tell us something
about the government’s policy on Free Trade Zones.
Salalah Free Zone Company SAOC” a wholly owned company
of the Government of Oman established by Royal Decree
No: 62/2006 dated 20 June 2006 and the company has
started developing the Phase 1 of the Free Zone
at Salalah.
Government of Oman is planning to develop Duqum
area by establishing a port, dry-dock, free trade
zone, industrial area, township, airport etc. An
overall master plan earmarking the land area for
these initiatives has already been prepared and
the detailed master planning for the free zone is
being carried out.
From potato chips to tissue paper and more, ‘Made
in Oman’ products are now occupying prominent shelf
space in the supermarkets across the gulf. Comment.
The contribution of manufacturing sector to GDP
during the period 1976-2006 increased from a mere
RO 2 million in 1976 to RO 1,423 million in 2006.
The non-hydrocarbon (non-gas and oil) exports from
Oman during the year 2006 was RO 738 million as
against the RO 465 million in 2005; an increase
of 59%. This growth in both contribution of manufacturing
sector to GDP and Omani product exports are achieved
as a result of the continuous efforts on diversification,
adoption of new investment policies, revamped government
support schemes, attractive incentives packages
and the establishment of excellent infrastructure
facilities at various parts of the country.
The efforts of National Product Promotion Committee,
an agency started in the year 1997 by the government
to support and promote Omani products in the local
market have contributed greatly to the success of
making ‘Omani Product Our First Choice’. The NPPC
has conducted several campaigns and trade shows
during the past years to enhance the awareness of
Omani brands among the population. Several bilateral
trade agreements, WTO membership and Custom Union
with GCC countries etc. also helped in increasing
the exports of Omani products.
The most important factor of success is the quality
of Omani products; without which the Omani products
should not have sustained the pressures exerted
by the imported multinational brands and succeeded
in effectively sell their products not only in Oman
and GCC but also to other countries.
Omani women seem to be occupying
positions of importance in every field of activity
now. What would you attribute this phenomena to?
The progress of Oman women achieved in every field
is mainly due to the special and focused attention
given by the government in providing education,
training and other tools of developing skills of
women in the country. This is evidenced by the percentage
of female students studying in the schools and Sultan
Qaboos University. 48.5% of the total students in
the general education system of government schools
and 49.7% in Sultan Qaboos University are female
students. Also 37% of the civil service employees
are women.
Omani women take responsibility and work side by
side with men, thereby, playing a major role in
building and developing the society. Oman's legislation
secures equal social status for women with men in
rights and duties. Omani women shoulder several
important positions such as ministers, ambassadors,
business leaders, etc and simultaneously shouldering
the family responsibilities.
