The past two years have witnessed a great transformation in the history of the Sultanate of Oman. The pathway towards this transformation had been illuminated by the Vision 2040 strategy of the government of His Majesty Sultan Haitham bin Tarik. It identifies the true potential and hidden resources of the country to attract foreign investors and accelerate the economic diversification process.
Towards this goal, all the free zones and special economic zones were brought under one single body, the Public Authority for SEZs and Free Zones (OPAZ). To develop and foster the investment culture and further attract foreign investors, Muscat Stock Exchange Company has been formed. Manufacturing, tourism, transport & logistics, mining, and fisheries have been identified as the five core industries to spearhead the acceleration of the economy. In response to these prudent initiatives, the World Bank, International Monetary Fund, IIF and other rating agencies have already given a bright outlook to the Oman economy.
The government has announced the Medium-Term Fiscal Plan 2020-24 with the aim to achieve the above objectives on a fast track basis. The fiscal balance plan includes initiatives across five pillars:
• Pillar I- Supporting economic growth through E transformation initiatives and stimulating the real estate market
• Pillar II- Revitalizing and diversifying government investment returns by stronger tax administration, implementation of value added tax and taxation of high earning Individuals
• Pillar III- Rationalizing and improving efficiency in government spending
• Pillar IV-Establishing and strengthening the social protection Plan
• Pillar V- Raising the efficiency of public financial management.
The financial framework of the tenth development plan 2021-2025 further emphasizes on
1. Strengthening the social protection system to protect low-income earners by maintaining the level of spending on basic services such as education, health, housing and social security and welfare.
2. Providing financial and investment incentives to the governorates of the Sultanate, to enable each governorate to exploit their respective constituents so as to achieve sustainable development, activate trade and generate employment opportunities for citizens.
3. Motivating economic diversification and development of economic sectors by creating means of additional financing for certain productive projects and raising the level of partnership between the public and private sectors
4. Ensuring the transfer of the proceeds of the sale of twenty thousand barrels per day of oil during the Plan years to use it to pay part of the loan installments.
5. Improving the credit rating of the Sultanate to enhance investor confidence through control on deficit rates and public debt.
It is logical to conclude that such a rapid visualization and conceptualization of achieving the noble objectives, requires deployment of tremendous amount of financial and human resources, self-governance and regulatory measures enabled by total digital transformation. This has been addressed in the financial framework of the development plan. The plan also emphasizes on strengthening of sustainable human development and safeguarding human capital to enhance the competitiveness of Omani youth in the local and global markets. Vision 2040 lays down in clear terms the direction and growth of the economy which is the vital indicator for the foreign investors planning to enter this market.
The help supplement these efforts of the Omani government, an investor guide, titled ‘Doing Business in Oman 2022’ was published by Crowe Oman This book provides a complete overview of the incorporation process of business entities across the various governorates of Oman and in the free zones.
This book will give you a quick overview of the economic and business environment of Oman, which will help you in decision making process regarding investing in Oman. Let us join together to build a promising future for the Sultanate of Oman and its people.
