Economy
From The Report: Oman 2017
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Having endured low oil prices for the entire year, countries across the resource-rich GCC saw their balance sheets constrained in 2015, and in Oman’s case lower oil revenues led to a nominal GDP contraction of 13.8% and the largest deficit in more than a decade. Closing the fiscal gap is a government priority, with spending cuts, tax reform and increased private sector activity all expected to play a part in the process. The sultanate’s ambition, however, extends beyond the short-term issue of funding; over the longer term, the ability to restructure its economic base will be central to its future stability. This chapter contains an interview with Khalifa Al Barwani, CEO, National Centre for Statistics and Information.

Articles from this Chapter

Overview

New prospects: Preparing for a sustained period of reduced oil revenues
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Having endured low oil prices for the entire year, countries across the resource-rich GCC saw their balance sheets constrained in 2015. In Oman’s case, lower revenues from the petroleum sector led to a nominal GDP contraction of 13.8% and the country’s largest deficit in more than a decade. Closing the fiscal gap is a top priority for the government, whose ambition extends beyond the short-term issue of funding to restructuring the entire economic base. Spending cuts, taxation reform and boosting…

Interview

Platforms for progress: Khalifa Al Barwani, CEO, National Centre for Statistics and Information (NCSI), on the role of data acquisition and analysis in improving public services and attracting investment
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Interview: Khalifa Al Barwani How can accurate information and statistics help attract foreign direct investment (FDI)? KHALIFA AL BARWANI: Investors always look for accurate data and information because it helps them make the right decisions regarding investment levels, as well which sectors and locations to direct finances to. Population statistics are a simple example of this, as they are essential for allowing investors to identify the size of their potential market. Since its establishment…

Analysis

Changing the game: Domestic and regional reform of the tax system is ongoing
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Parliament’s vote to raise corporate taxes in May 2016 is among the most significant financial developments in Oman in recent years. A low-tax environment is a key incentive to invest across the GCC, and the tension between drawing growth-promoting investment and maintaining state revenues has made such increases a contentious issue for decades. The financial crisis of 2007-08 renewed the debate around taxation, but it was not until oil prices began a sustained fall in mid-2014 that GCC economies…

Analysis

Rules of attraction: Drawing increased investment is a top government priority
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Oman is taking steps to attract investors to the sultanate in a bid to diversify its economy away from a reliance on hydrocarbons. These include updating the legal framework for investment while continuing to stress the value of the country’s free zones and economic zones. Foreign direct investment (FDI) inflows to Oman grew to an estimated $822m in 2015, up from $739m in 2014, according to the UN Conference on Trade and Development. However, the levels seen over the past few years pale in comparison…