Interview: Qais Al Yousef
What are the priorities for enhancing Oman’s integration into the evolving global trade landscape?
QAIS AL YOUSEF: The focus areas include economic diversification, investment in infrastructure, improving the business environment, promoting investment, developing human capital, creating jobs, enhancing trade, increasing in-country value and digital transformation. These priorities align with Oman Vision 2040 and are further reinforced by the country’s commitment to achieving net-zero emissions by 2050. As for global trade, Oman is negotiating free trade agreements (FTA) with countries including India and South Korea, and discussing a GCC-wide agreement with the UK. The UK-GCC FTA alone could boost trade by 16%.
It is crucial that Oman’s trade system can tackle the issues of climate change and sustainability, to avert fragmentation, safeguard trade routes, and maintain a steady and predictable business landscape. Attending global economic events, including the Jaipur G20 Trade and Investment Ministers’ Meeting, the ministerial panel at the B20 Summit in Delhi in 2023 and the World Trade Organisation’s Ministerial Conference in Abu Dhabi in 2024, has provided opportunities for networking and collaboration. Such involvement in high-profile events places Oman at the heart of discussions that will shape the future trajectory of global trade.
Where do you see opportunities for Oman to bolster foreign direct investment (FDI) inflows in 2024?
AL YOUSEF: Progress can be attributed partly to the determination to implement Oman Vision 2040 and efforts of the MCIPP under the theme of Renaissance 2.0, as well as the government’s forward-looking policies to facilitate the emergence of high-potential industries, particularly manufacturing, logistics, mining, tourism, agriculture, fisheries and renewable energy.
One example is the green hydrogen industry. The aim is to produce 1m tonnes of green hydrogen per year by 2030 and up to 8.5m tonnes per year by 2050. According to the International Energy Agency, this will surpass demand in Europe, and Oman is projected to become the largest exporter of green hydrogen in the Middle East by 2030, and the sixth largest globally.
Additionally, we are witnessing downstream investment from major manufacturers such as Japan’s Mitsui and Kobe Steel and India’s Jindal Shadeed, including a green steel manufacturing plant in the Special Economic Zone at Duqm. Other downstream opportunities include the $1.3bn United Solar polysilicon plant, which will be the largest of its kind in the region and will catalyse the development of both up- and downstream solar manufacturing. Once operational, it will generate substantial economic value, with expected exports of $2bn annually and $1.6bn in FDI within 18 months.
In what ways do you see the Made in Oman campaign impacting the manufacturing sector?
AL YOUSEF: The Made in Oman campaign is assisting non-oil exporters in exploring and penetrating markets worldwide. The Made in Oman logo is widely recognised as a symbol of quality and value in export markets. Omani products are now available in over 130 countries, and the volume of non-oil exports is on the rise, particularly in markets such as Saudi Arabia, the US and South Africa. This provides encouragement for Omani companies or those considering setting up in Oman, thanks to our robust connectivity and strategic location.
On a larger scale, the MCIIP, in partnership with the Oman Chamber of Commerce and Industry, has launched the Business Franchise Programme, an initiative designed to help businesses expand their reach. Over 300 participants had joined the first phase of the programme as of May 2024. Similarly, Future Fund Oman – launched by Oman Investment Authority in January 2024 – will provide $5.1bn in investment by 2029, with 90% of its capital allocated to new or existing projects. Of the remaining 10%, some 7% will be allocated to small and medium-sized enterprises, and 3% to start-ups.
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