The remarkable economic
activities taking place in Sohar is
a bright example in this regard. Sohar
port is being developed and modernized.
Moreover, the construction of some mega
industries is well underway in Sohar
Industrial Estate, some of which have
already started commercial production.
Another important economic hub is Sur,
which is also hosting some mega industries,
the LNG project, the Fertilizer Project
and some other vital projects. The development
of the Omani ports physical infrastructure
and the upgrading of the ports facilities
were important for the effective utilization
by Oman for its strategic geographical
location advantage.
This consideration was behind establishing
the container terminal at Salalah port,
and equipping it with modern facilities
of international standards. In order
to maximize the positive effects of
the development of Salalah port, and
making it better serve the Omani economy
and regional trade, the Salalah Port
Free Zone is being launched. Thus the
Salalah Port and the Free Zone shall
turn Salalah into an active economic
hub.
One further effective economic hub is
Knowledge Oasis Muscat (KOM). KOM is
a technological park that constitutes
the nucleus for the knowledge based
industries in Oman. It is anticipated
that KOM shall motivate foreign investors
in the field of IT due to the positive
investment facilities and incentives
it provides. In fact, some local and
international companies have already
taken their places at KOM.
Another area of high priority is the
comprehensive development of the Tourism
Sector. A long-term development plan
for this sector has been formulated,
with the objective of making Oman a
competitive tourist destination. Major
tourist projects in various regions
are included in that plan. The size
of the tourist projects planned for
and their volume of investment make
them real economic hubs with a chain
of benefits to the regions where they
are located.
Which
are the under explored sectors with
regard to commercial activity in Oman?
Oman has taken a number of steps and
initiatives recently that are expected
to have a positive impact on the commercial
activity in the country.
The GCC Customs Union, The Greater Arab
Free Trade Area, Oman active membership
in The Indian Ocean Rim for Regional
Cooperation, the Conclusion of FTA with
USA, the prospective GCC-European Union
FTA are all factors that furnish good
ground for a flourishing trading activity
in Oman. On the legislative front, Oman
has also made considerable progress
towards trade liberalization. New laws
have been enacted and existing ones
have been amended so that they conform
with WTO agreements; examples are laws
in the areas of custom valuation, Intellectual
Property, standards and phytosanitary
measures.
Oman has also taken important steps
towards liberalizing the services sector,
which is an important vehicle of attracting
foreign investment. Liberalization also
covers foreign ownership and national
treatment provisions. Oman would now
allow branch offices and wholly foreign
owned subsidiaries in the important
services sectors, such as computer related
services, banking, insurance and other
financial services and telecommunication
services.
With this positive background, an excellent
base is being set for the under-explored
trading activities to take off, particularly
those that constitute part of Oman new
industrial orientation, and for which
the physical infrastructure has been
set; examples here are the IT industries
and services, the downstream industries
and the educational services. The privatization
programme has also opened wide horizons
for more commercial and industrial activities.
What type
of relation does Oman have with other
GCC nations as far as commerce is
concerned? Are any studies on to devise
ways and means to expand Oman's presence
in the region in a bigger way?
Since its inception, the Gulf Cooperation
Council has played an important role
in the economic fields, through the
important steps the GCC countries
have taken up towards diversifying
their economies. Progress has been
achieved in the various production
and services sectors. This has been
reflected in the increased levels
of economic development and the standard
of living and welfare of GCC citizens.
In the field of foreign trade, the
GCC countries have directed emphasis
towards promoting their inter-trade,
with the objective of fostering economic
integration and reducing the negative
effects of relying on the outside
world. Inter Arab trade has been achieving
consistent advancement through the
years.
The Unified Economic Agreement (UEA)
signed between the GCC member states
in 1981 provided for the free exchange
of goods, the exemption from custom
duties and facilitating the transit
passage of goods. Moreover the UEA
provides for the GCC countries coordinating
policies and relations with other
countries and economic groupings.
It also provides for free movement
of capital and labour, residence permits
and the freedom of exercising economic
activities
The recent move towards the GCC Customs
Union was an important step in the
GCC countries promoting their inter
trade. Consumers shall benefit from
the competitive prices resulting from
the open door trading policies.
Studies are underway to maximize Oman
benefits from the single e
ntry point under Customs Union. The
strategic geographical location of
Oman is expected to attract greater
activity to the Omani ports, with
the concomitant increase in the general
level of vitality in the various business
fields.
Will foreign
investors be able to aquire prime
plots in the Sultanate for new business
ventures?
The Sultanate is characterised by
its capability to attract foreign
capital by providing all the investors'
necessary requirements. One of the
most vital incentives offered by the
government to both Omani and foreign
investors is the allocation of investment
plots. For instance the Public Establishment
for Industrial Estates (PEIE) currently
controls six major industrial estates
in each of al Rusayl, Sohar, Sur,
Al Buraimi, Nizwa and Raysut, besides
free zones such as Salalah Port and
Al Mazyuna, which was established
in accordance with Royal decree No.
103/2005. The Sultanate has recently
established the Sohar industrial Port,
which is mainly earmarked for strategic
industries, as well as the Knowledge
Oasis Muscat (KOM) to attract investors
in the field of information and communication
technology. New plans an under consideration
for allocating additional new industrial
and commercial plots in the Sultanate
within the current development plan.
The Law of Tourist Land usufruct has
crowned the government initiatives
to encourage international investment
in the field of tourism. The Blue
City Project in A'Sawadi and The Wave
Tourist Project are good examples.
Will the
arrival of new supermarkets and hypermarket
not eat into the business of smalltime
businessmen and traders? Do you have
any plans to safeguard their interests?
Many new supermarkets and hypermarkets
have widely spread in the Sultanate.
This is a good indication that the
Omani community is positively interacting
with development and that the Sultanate
has succeeded in convincing foreign
investors that it is one of the safest
destinations for their investments.
Such shopping malls will no doubt
provide many job opportunities for
the Omani youth. On the other hand,
they will not impair the business
of groceries; we think that they complement
their role.
Most important is the fact that Sanad
Project for financing and supporting
small foodstuff shops depends mainly
on cooperation with such supermarkets.
Today, indeed we can see many of these
successful groceries serve the rural
community by feeding them main daily
merchandise instead of unnecessary
shopping in supermarkets.
As far as
environmental regulations are concerned,
what are the guidelines for new commercial
projects to ensure that they employ
environmental friendly practices?
Oman is known to be one of the countries
that exert great efforts towards maintaining
and protecting the environment. The
Omani strategies for the development
of the various sectors of industry,
mining, tourism etc, give full regard
to the environment aspects.
Comprehensive coordination is maintained
between the various concerned ministries
in order to ensure that the projects
established do not cause any harm
to the environment.
As Oman realises that many environmental
problems result from the irrational
use of natural resources and the lack
of adequate knowledge about new technologies
and methods of production, the concerned
government organs give advice to investors
in that regard. The prior knowledge
of potential investors to environmentally
sound technologies and methods have
proved to be very helpful both in
their making their investment decisions,
and also for facilitating the processing
of their applications.
In addition to such general advice,
the Ministry of Regional Municipalities,
Environment and Water Resources issues
some specific guidelines. Those guidelines
constitute part of the criteria used
for assessing investment proposals.
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