David Gledhill-CEO-Port of Salalah

Home grown: Domestic companies benefit from government programmes aimed at developing in-country value and local talent

  Since its emergence in 2011, the concept of in-country value (ICV) has proven to be one of Oman’s most influential exports, taking hold in energy industries across the GCC. The strategy launched by the Ministry of Oil and Gas (MOG) in 2013 has led to a significant number of training opportunities and sizeable economic returns. With international petroleum companies receiving favourable treatment for choosing local providers when it comes to sourcing goods and services, the programme has been responsible for boosting human resources and

Read more >
Emmanuel Macron-President of France

On the up: Value addition benefits from new developments, export growth and the merger of two sector giants

  The downstream segment is rapidly growing its refining and petrochemicals capacity, while plans are under way to bring gas-to-liquids (GTL) technology to Oman for the first time. As a backdrop to these developments, the integration of the Oman Oil Company (OOC) and the Oman Refineries and Petroleum Industries Company (ORPIC) into the newly rebraned OQ has re-energised both companies and spawned value-added initiatives. Refining & Petrochemicals Oman celebrated a significant year for refining in 2018, with the $2.1bn Sohar Refinery Improvement Project increasing key

Read more >
Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

On the home front: Focus on boosting locally produced materials and integrating the supply chain to meet growing demand

  With manufacturing identified as one of the priority sectors under Oman’s Industrial Strategy 2040, the government is seeking to reduce reliance on imports by increasing domestic production of construction materials such as cement, steel and aluminium. To this end, the National Programme for Enhancing Economic Diversification, or Tanfeedh, is supporting the establishment of cement and steel manufacturing centres in the Duqm Special Economic Zone (SEZ), Sohar Port and Freezone, and Raysut Industrial City. Cement Domestic cement production remains limited and dominated by few players,

Read more >
Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Integrated investment: Developers foresee mixed-use communities and new regulations boosting property uptake among expatriates

  As it eases its dependence on oil and gas, Oman has turned to integrated tourism complexes (ITCs) as a conduit for boosting construction, real estate and tourism activity. ITCs are mixed-use developments comprising residential areas, hotels, resorts, leisure activities such as golf, and other amenities, and are currently the only places where non-GCC nationals can purchase property in Oman. To date ITCs have proven a successful model in the country, generating around 3% of GDP as of 2018. A new wave of ITC developments

Read more >
Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Promising development: Companies take an integrated approach to grow downstream and processing facilities in the sector

  The abundance of mineral resources in Oman has long been known, however, its full potential has only recently been tapped. The non-metallic mineral limestone has a purity of 99.8%, the highest in the world, and gypsum, of which Oman is the largest exporter globally, provide a steady source of GDP for the sector. However, the most notable growth has been seen in metals. In 2019 the sultanate’s copper potential dominated headlines, with a number of companies embarking on exploratory projects across the country. However,

Read more >
Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

The next generation: A dedicated development and investment agency aims to strengthen infrastructure and advance human resources

  The Oman ICT Group (OICT Group) was founded in early 2019 under the auspices of the State General Reserve Fund, which is the largest of the country’s sovereign wealth funds. The group is a high-profile umbrella organisation that brings together companies and other public- and private-sector stakeholders involved in ICT to create an environment conducive to expansion of the sector. The integration of four companies under the OICT Group was being finalised as of the close of 2019. The firms are the Oman Broadband

Read more >
Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Adrenaline rush: Adventure activities, sports and events, and cultural heritage are looked to as new drivers of growth

  Niche tourism is a key feature of the National Tourism Strategy 2040 (NTS) created by the Ministry of Tourism (MoT) and the National Programme for Economic Diversification (Tanfeedh), the two initiatives that have guided the sector since 2016. Examples of niche segments include sports – sailing, fishing and adventure sports – as well as ecotourism, wildlife tourism and heritage tourism. “Of all the sectors targeted under Tanfeedh, tourism is in the best position to reduce economic dependency on hydrocarbons,” Khalid Ansari, CEO of Al

Read more >
George Richani-CEO-Al Ahli Bank of Kuwait

Foundations to build on: Major construction projects are supporting demand for locally manufactured building materials

Uncategorized

  Industry and manufacturing is one of the key sectors expected to contribute to the country’s economic diversification strategy. In order to support the development of the sector, the government has unveiled a range of initiatives to attract investment. Industrial activities registered growth of 1.5% in 2018, contributing OR5.53bn ($14.4bn) to GDP, compared to OR5.44bn ($14.1bn) in 2017. However, according to preliminary figures from the National Centre for Statistics and Information, industrial activities declined by 9.6% in the first half of 2019. The industrial sector

Read more >
Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Healthy appetite: Government and corporate bonds attract international investors

  After a hiatus of 18 months the government of Oman returned to the international debt market in August 2019 with the issuance of a $3bn dual-tranch bond, made up of $2.25bn worth of 10-year bonds and $750m worth of five-year bonds. The issuance attracted considerable interest from investors, with the overall issue oversubscribed, attracting orders of up to $13.6bn. As a result of this strong demand the sultanate was able to issue the debt at reasonable rates, with the five-year bonds being issued at 5% and the 10-year bonds at 6%. In terms of the regional distribution of the five-year bond purchases, 45% were

Read more >
Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Mixed fortunes: Central bank reforms and robust profitability support gradual consolidation of the banking sector

  The Omani banking sector comprises 16 conventional commercial banks, of which nine are branches of foreign financial institutions and seven are locally incorporated. In addition, there are two state-owned specialised banks and two local Islamic banks. Sharia-compliant banking, which was introduced in 2012, accounted for 13% of Oman’s banking sector in 2019. Indeed, in recent years the Islamic segment has grown faster than conventional banking, with this being evident in its net profits, which grew by 76% in 2018. Bank Muscat is the sultanate’s

Read more >