COUNTRY FOCUS – OMAN ARAB NATIONS A modern Oman plans for the future
and communication. It shares borders with its strong trading partners – the United Arab Emirates, Saudi Arabia and Yemen – although much of Oman’s trade occurs by sea, with Muscat’s Port of Sultan Qaboos playing an important role connecting the Persian Gulf, India, the Far East and eastern and southern Africa.
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The future beyond hydrocarbons The Omani Government depends heavily on oil revenue through the state-owned Petroleum Development of Oman (PDO), which is the nation’s biggest hydrocarbon exploration and production company. PDO is responsible for oil extraction and processing that accounts for more than 70 per cent of the country’s crude-oil production and nearly all of its natural-gas supply. Around two-thirds of Oman’s total
energy consumption comes from natural gas. Gas provides the fuel for industrial projects, besides of and power generation and desalination plants. Oman also exports significant amounts of liquefied natural gas. Oman does not have the same oil
reserves as neighbouring countries and its extraction costs are higher because of Oman’s complex geology − exploration and production are expensive. In
he Sultanate of Oman is a modern country with well developed infrastructure in transport
2009 Oman used enhanced oil recovery techniques helped increase oil production, but with estimates suggesting that resources may be depleted by 2022, the country is aiming to diversify its economy. Oman’s Sohar Aluminium, operating
since 2008, is a smelter owned by Oman Oil (40 per cent), Abu Dhabi Water and Electricity Authority (ADWEA − 40 per cent) and Rio Tinto Alcan (20 per cent). It aims to help the country’s economy diversity and, as the newest fully operational aluminium smelter in the Gulf, Sohar Aluminium is already the 10th most cost-efficient smelter in the world. Australian company Austin Engineering Limited is currently contracted by Sohar Aluminium to make their busbars for a 1.2 kilometre- long potline and other key assemblies for aluminium smelter projects.
A welcoming nation In Oman, full foreign ownership of business is permitted, subject to approval by the Ministerial Cabinet. The country also offers many incentives to foreign investors, such as tax exemptions for five years (renewable for another five years, subject to conditions) for enterprises that contribute to Oman’s economy. Furthermore, foreign companies that have special agreements or contracts with the government are allowed to have a branch office in the country. Other benefits for investors include the absence of personal income tax and foreign exchange controls, tax and import duty exemptions, provision of plots of land at nominal lease charges in specified areas and reduced utility charges. Tourism shows great potential
Copper and chromium are the main extracts from Oman’s mining industry.
as the country has good climate, natural diversity and an abundance of archaeological and historical remains. Oman already has high standard hotels, but many new projects are under way, such as is Al Madina A’Zarqa (formerly
ABOVE: The port of Sur in Oman. Photo by: Andries Oudshoorn.
LEFT: Craftswoman in northern Oman. Photo by: Thomas Schoch.
known as Blue City), a megacity project that will include retail properties, shopping centres, restaurants, more than 20 hotels, marina, golf parks, hospitals, schools and a university. Due to new foreign ownership
regulations under the Omani Land Law, foreign investors are entitled to purchase freehold properties in specially- designated tourism complexes – Al Madina A’Zarqa is one such example. Non-Omani buyers (and immediate family) can also apply for a residency visas when purchasing property. Despite of the Global Financial
Crisis and the drop in oil prices in 2008, Oman kept a positive GDP growth in 2009 largely due to the implementation of the policies to stimulate investments and economy diversification plans, with fiscal and monetary policies that support domestic demand. The country also has plans to develop its human resources and increase the skills of the workforce. Oman has so far been successful in reducing its dependence on oil, proving that the nation is committed to its development goals and a sustainable economy. p
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