Oman is among the few countries in the world that are considered ideal for long-term investments. It posses a modern infrastructure, a strong industrial base, a stable government, and, most notably, the institutions that protects investors and ensures their access to the market.

Poised at the entrance to the Gulf, the source of two-third of the world's oil exports, Oman is in the middle of the East-West trade routes, ensuring easy access to markets in the Middle East, India, South-East Asia, Africa and Europe. Membership of various regional associations has further uniformed the trade routes. Oman membership in World Trade Organization (WTO) ensures its adherence to international trade norms and practices. Oman is also a member of the Indian Ocean Rim Associations for Regional Cooperation, which opens up a potential market of over 1500 million consumers. In addition, membership of the Arab Gulf Cooperation Council ensures duty-free export of products within the member countries.

Policies for business success

Oman is one of the most progressive countries in the Middle East. In this regard, it has worked at creating the right climate for new investments by developing a free, competitive economy with equal opportunities for all, and shaping laws and regulations that encourage enterprise.

A stable and farsighted government is behind all that Oman has to offer. The Omani Rial is pegged to the US dollar and is freely convertible. Liberal investor-friendly policies have been implemented, while procedures for clearances and approval have been simplified. Education and vocational training have been given priority, to ensure that a professionally trained workforce is being developed. The abundant local labor can be harnessed and trained to specific requirements. In addition, investors have easy access to a skilled and disciplined external workforce.

Business incentives

Oman offers unmatched incentives to foreign investor which aim at guaranteeing the long-term objectives that serves the interests of the investor's community as well as the country and its people. Business incentives offered to inverters in Oman include, among many, the followings:

• Up to 100% foreign ownership.
• Provision of soft loans with low interest rates and easy payback periods.
• Exemption from customs duty on import of plant and equipment.
• Relief from customs duty on raw materials for up to 10 years.
• No personal income tax.
• Corporate tax holiday of up to 10 years.
• Full repatriation of capital, net profit and royalties.
• Export credit insurance through export.
• Guarantee and Financing Agency.

Business infrastructure

Investors are assured of a reliable and efficient infrastructure that includes transport, telecommunications and support services that are comparable to the best in the world.

Transport
Excellent roads, a fully equipped international airport, a number of domestic air terminals at important centers and ultra-modern port facilities connect you to the world. Mina Sultan Qaboos, Muscat, is a well-established port that is equipped to handle any kind of ship efficiently. Salalah Port, Salalah, is one of the largest transshipment ports in the world. With world-class facilities, it functions as a strategic cargo hub on the main East-West ocean routes. Major shipping lines offer fast transit times to world markets from the port. By sea, it takes just a day or two to reach East Africa and India. The soon-to-be established free-trade zone near Salalah Port will further help industry. Sohar port, now under construction, is another facility that Oman offers to link itself with the rest of the world and will more than meet the demands of the industries that are fast developing in the surrounding areas.

Telecommunications Services
Oman is served by an efficient, state-of-the art telecommunications system that is constantly upgraded with new technology. The transmission network in steadily being replaced with fiber optic cables. Satellite links allow investors to send and access data rapidly. The full range of Internet services is available, making global information and quick communication freely accessible to all.

Industrial Estates
Five industrial estates, with another underway, provide complete support systems to industry in different parts of the Sultanate. These estates offer a comprehensive range of services that could extend to their own gas-fueled power stations and water supply, and housing complexes for the workforce complete with shops, supermarket and cinema.

Access to Capital
A well-organized private banking sector provides a wide range of financial services and credit facilities to investors. Industrial Bank of Oman, a specialized bank, also offers advisory services and may consider equity participation in industrial projects. Institutions like Oman Development Bank channelises government funding to help the private development of the economy, offering soft loans to small-scale industries and the service sector. Muscat Securities Market, the established and regulated stock market, is a potential source of new capital for the private sector, helping investors raise capital from the public for new and expansion of projects.

Project opportunity
An abundant supply of energy, relatively low labor costs and inexpensive long-term use of land for industrial purposes are just a few more reasons to do business in the Sultanate. Natural resources offer a variety of industrial possibilities. Oman has large reserves of natural gas that already feed major projects like Oman LNG. This plentiful supply of gas can be made available as a source of energy to various polyolefin and aluminum projects, or as feedstock to other small industries.

Specific industrial projects
The government has also identified other specific industrial projects that can be undertaken successfully in the Sultanate based on the natural competitive advantages of the country and the demand in the region. The projects range from the manufacturing of PVC resins to high-tech molecular sieves.

Tourism as an industry is gaining ground in the Sultanate. The unique topography, rich marine life and ancient heritage all offer a fascinating range of activities and sights. Each year Oman is attracting more and more tourists. The government is actively engaged in expanding and developing tourism in the Sultanate, and is seeking private sector participation in a number of related projects. In addition, there is considerable potential in agriculture and fisheries for the processing industry.

Cosmopolitan lifestyle
Oman offers residents endless ways to relax. With a 1700 km long coastline, many unspoiled beaches invite exploration. In a land that changes from plains to mountains, desert to sea, dry wadis to the lush greenery of Dhofar, the possibilities of outdoor activity are vast. Oman extends the same dedication it puts into industrial development to the preservation of its natural wealth, with conservation projects like the turtle breeding beaches, the bird sanctuaries and the Arabian Oryx reserve.

Muscat, the capital area, offers a cosmopolitan lifestyle with a wide range of social and recreational activities. Hotels, restaurants, malls and clubs cater to a variety of tastes and interests. Indoor and outdoor sports facilities range from squash to water sports, diving and snorkeling. The city also offers international standards of education and state-of-the-art health care facilities. Dhofar, the southern region, with its semi-tropical weather and monsoon season, offers a refreshing retreat for those who want to escape the fast-pace of life and enjoy some of the best and unspoiled scenery southern Arabia can offer.

The Way In

Setting up a business in Oman is easier than many investors would imagine. The Omani Center for Investment Promotion (OCIPED) provides support services for new business ventures in the Sultanate. OCIPED was established to provide investors with the information and practical help they need. Among the main goals of OCIPED is to assist investors with feasibility studies, setting up operations and identifying export markets for finished goods. OCIPED also coordinates with other agencies that will be of assistance. Some of the many doors that OCIPED can open for investors are:

• Ministry of Commerce and Industry
• Oman Chamber of Commerce and Industry
• Oman Development Bank
• Export Guarantee and Financing Agency
• Public Establishment for Industrial Estates
• Muscat Security Market
• Commercial Court
• Ministry of Social Affairs, Labor and Vocation Training

To get more information about investment in Oman or to speak to an OCIPED representative, we encourage you to visit the official OCIPED website http://www.ociped.com/invfram.htm or write to the followings:

Ms. Hunaina Al Mughairy
OCIPED Commercial Advisor
866 U.N. Plaza, Suite #540
New York, NY 10017 - USA
Tel: 00 1212 3553505 Fax: 00 1212 7524529
E-mail: hunaina@ociped.com