Omani
Economy
Industrial
Strategy
Importance
of Non Oil industries for growth
Agriculture
& Fisheries
Tourism
Special
Incentives for foreign investors
Attraction for
Foreign investments in Oman
Requirements
for establishments of business in Oman
Commercial
Registration
1.
The Omani Economy:-
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Oman’s
economy is based on the concept of free economy. Total competition ,
free markets and price mechanism are major elements
of the national
economy which primarily depends upon one single sector, the Oil.
Therefore , Oman’s
economic policy as laid by His Majesty Sultan Qaboos, aims at
diversifying the income source and just
and fair distribution of the
national income on a larger section of
the citizens. The year 2000 saw a GDP growth rate of 3.5 per cent
which meant that the Omani economy is gaining from the well planned
economic policies perused by the government. (for
more information Please look at web site
www.moneoman.org
)
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2.
Industrial strategy:-
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According
to the latest Ministry of
Commerce & Industry figures
there are more than 1,555 industrial establishments in Oman employing a
labour force of over 33000. Oman’s
industrial strategy up to 2020, envisages that within a stable
macro-economic frame work provided by the government, sustainable
development will be attained by using the private sector as the
mainspring of growth. A
diversified, dynamic and
globalised economy can be achieved and
maintained as long as there is strong, efficient and competitive
private enterprise. The manufactured
sectors has contributed around 6.7 per cent of GDP in the year
2000.
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3.
Importance of Non Oil
industries for growth:-
The
government is keenly aware that , in order to reduce dependence on the non-renewable resource of oil, it is necessary to diversify
the economy. Within the
framework of the industrial
strategy, the following types of industry will be encouraged:-
Industries
utilizing local raw materials.
Export
oriented industries.
Industries
using gas as the main source of energy or feed stock.
Capital-
knowledge and technology intensive projects.
Projects
that employ large number of Omanis.
Industries
that can serve as production centres of
multinationals for international marketing of products.
Downstream
petrochemicals.
4.
Agricultural and Fisheries:-
Agricultural
and Fisheries are Oman’s
main non Oil exports, and over the last three years, have accounted for
an average of 35 per cent of non
Oil exports. There is a potential for self sufficiency in many areas ,and
the government has established research and development centre across
the country to promote the use of latest technology among national in
this field . Among this the government has encouraged
farmers to grow fish farms which depend encompasses quality
assurance, as has been developed
and maintained worldwide.
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5.
Tourism:-
Oman
considered as a country with a huge touristic potential. Untapped ,
virgin and unspoiled land.
With
different landscapes, different chain of mountains , golden beaches,
certainly Oman serve as a good tourist
product,
The number of hotels & tourist resorts in Oman has been increasing
dramatically over the past few years in Oman as a response to increase
influx in tourist visiting the country.
The
Government of Oman
has been encouraging tourism
by giving soft loans for the build up of
tourist resorts and
amenities. Also it encourage joint venture from foreign firms wishing to
start up a touristic project in Oman.
For more informations visit
www.tourismoman.com
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6.
Special Incentives
for Foreign Investors:-
In accordance with
the foreign Capital and Investment Law of 1994, Foreign investors can
avail the following facilities:
Up
to 100 per cent foreign ownership
Free
surveys of Industrial investment opportunities- the government will either fully undertake , or subsidies economic and technical
feasibility studies.
A
five year exemption for custom duty on imports of equipment and raw
materials required for production purpose, which are not available
locally.
tariff
protection through imposition of customs duty on imported goods which
compete with local products and quantitative restrictions.
Recommendation
to reduce utility tariff.
7. Attraction for
Foreign investments in Oman:-
1.
Strategic
location connecting major world continent.
2.
Political
& economical stability.
3.
Stable
currency with full
convertibility.
4.
Free repatriation of
capital & profits.
5.
No
personal income tax.
6.
Free
trade and open market policy.
7. Total
business capabilities - Oman has the skills and service to cater to
entire spectrum of business activities.
8.
Requirements for establishment of business
in Oman:-
Laws
Regulating Business
For
any foreign company/ Individual to do business or to invest in Oman,
they must comply with , amongst others, the Foreign Capital and
Investment Law (FCIL) of 1994, the commercial registration law and
investment law of 1974, the Commercial Agencies Law of 1977, the Muscat
Securities Market Law of
1989 the Law for the Organsiation of Encouragement of Industry of 1978
and the law of Commerce of 1990
9.
Commercial Registration:-
In
order to register a company (SAOG or LLC) the following information is
generally required:
Company
name
legal
form of the company
company
objectives / activities
name
, nationalities, date and place of birth of
shareholders.
Name
of persons authorized to sign.
All
these information must be addressed to the Director Companies Affairs /
Ministry of Commerce & Industry / Sultanate of Oman
P.O. Box 550 P.c. 113 Tel:
00968-7710519,
Fax:
00968-7715382.
For
inquiry please email to
tradeoman@ocodubai.com
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