Interview: Qais Al Yousef
Which measures have been taken to create a pro-enterprise environment?
QAIS AL YOUSEF: Highlighting the sultanate’s progress in efforts to expand opportunities in the business environment and attract foreign direct investment (FDI), Oman was named fourth in the FDI Standouts Watchlist 2023, a study that assesses the world’s top-50 investment destinations. The National Programme for Investment and Exports Development, known locally as Nezdaher, has been helping international and domestic companies establish and expand their commercial footprint since March 2021. A fully fledged Invest Oman centre will complement the work of Nezdaher. The centre launched in February 2023 and is a one-stop shop with all the resources necessary to make investment decisions.
Another example of how we are creating a more enterprise-friendly environment is Invest Easy, the government’s portal for registering new businesses. Via Invest Easy, investors can obtain licences from 18 leading authorities and approval for more than 1500 economic activities in a single e-transaction. Since the launch of the new licensing service in April 2021, more than 570,000 licences have been issued – 40,000 of which were awarded to international investors.
Elsewhere, the Economic Stimulus Plan (ESP) launched in March 2021 offers tax incentives, fee reductions and waivers. For instance, the fee to obtain an industrial licence was reduced from $2597 to $129 – a 95% decrease. The programme also allows foreign companies to own land over 5000 sq metres for commercial and commercial-residential purposes.
Where do you identify the most exciting prospects for investors in the coming years?
AL YOUSEF: There are a wealth of opportunities emerging in mining, manufacturing, tourism, logistics, agriculture and fisheries, and specifically in renewable energy. The government has developed an ecosystem to ensure renewable energy projects enjoy every possible success. For example, Hydrogen Oman, known as Hydrom, a national energy company launched in 2022, has the mandate to orchestrate and plan the development of the green hydrogen segment. Another example is Hy-Fly, a national alliance of major public and private institutions created to facilitate the local production, transport, utilisation and export of green hydrogen. Investors can also draw on the support provided by the Tawazun Offset Programme, which promotes capacity building for green investment opportunities.
What factors are behind the recent increase in the country’s non-oil exports?
AL YOUSEF: Oman exports to over 130 countries and non-oil exports, especially to major markets, have been rising in recent years. Exports grew by 41.9% to $19.1bn in 2022, up from $13.5bn in 2021. For example, exports to India reached $2.2bn, up 78% from 2021. Exports to the US reached $2.2bn in 2022, up 32% from 2021, while exports to Saudi Arabia were valued at $2.2bn in 2022, an increase of 55% over the same period.
The ministry manages a variety of trade issues ranging from tariff barriers in certain markets to changing standards and regulations. We convey this information to local companies, helping to alleviate potential trade bottlenecks. In a post-Covid-19 pandemic world, exports are essential to safeguard future growth.
How do you see Oman’s target of net zero by 2050 impacting businesses that operate in the sultanate?
AL YOUSEF: The green transition presents significant opportunities for Omani enterprises in areas such as manufacturing, logistics, green building, waste conversion, and solar and wind energy. It also opens up market possibilities in the cosmetics, pharmaceuticals, fashion and food segments. Research shows that growing global demand for and provision of sustainable products and services bolsters sales growth, market share, brand value and reputation. It is a win-win scenario.
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