Economic Environment& Investment Opportunities

in Oman

The Public Authority for Investment Promotion & Exports Development

(PAIPED)

Economic Environment & Investment Opportunities

in Oman

Oman Overview

How we support investor

Priority Sectors

Why Oman

Economic Climate

FreeZones & Ports

Area 309,500 Km2

Capital City Muscat

Population 3.3 Mn (2011)

Coastline 3,165 Km

GDP USD 73 bn (2011)

Currency Omani Rial = USD 2.58

Natural Resources oil, natural gas, copper, fish, agriculture, tourism

Major Trading Partners

UK, Japan, UAE, South Korea, China, EU, Thailand

International relationships

Oman has relations with over 140 countries and is a member of over 105 regional and international organizations ( UN, WTO, FTA, GCC, GAFTA).

PAIPED is a government authority established in 1997

Aiming to facilitate investment in Oman and develop exports of products

and services of Omani origins from Oman to overseas market.

PAIPED works closely with all government agencies to ensure Omans

competitiveness as the best place to conduct business.

With its networks of representatives all over the world, PAIPED has the

network to assist any business established in Oman grow in the

international market

Creation of wealth through

Investment Promotion

and Export Development

Individuals right to choose in Commercial Transactions.

Ability to Voluntary Exchange of Goods and Services.

Freedom to Compete.

Protection of personal, intellectual and property rights.

Ability to access to sound money.

Providing information on investment climate, laws, procedures and also project

specific information.

Organizing visit program and matchmaking meetings for foreign investors.

Assisting investors to obtain various government approvals.

Reviewing the project proposals prepared by the investors and advising them on the

appropriate entry strategy for setting up operations.

Assisting local investors to identify potential foreign partner and vice versa.

Supporting the existing companies to identify international partners.

Chemicals &

Pharmaceuticals

Plastics

Tourism Metals

ICT

Marine

Auto-motive Services

Why Oman?

Strategic Location

Stable economic

framework

Comprehensive

legal framework

Excellent infrastructure

Educated young

workforce

Cooperation Agreements

Free Trade and open

market policy

Incentives Package

Competitive Utility Rates

Tax Exemption for 5years.

ZERO personal

income tax

Free Repatriation of Capital &

profits

100% Foreign

Ownership

One-Stop-Shop

Global Ranking

(World Economic Freedom Index 2012) Fraser institute 144 countries 20

(Doing Business Index 2012)World Bank Group 183 countries 47

(Global Competitiveness Index 2012/2013) World Economic Forum 142 countries 32

WTO Membership.

AGCC Common Market Jan. 2008 (Market Potential of 29 Million).

Arab Free Trade Zone with effect from Year 2005 (18 Countries with a

Population of 300 million).

Free Trade Agreement with USA.

Free Trade Agreement between AGCC and Singapore.

73Billion US $

Source: The National Center for Information & statistics Publications 2012

Source: The National Center for Information & statistics Publications 2012

Petroleum activities

Non-Petroleum

Agriculture & Fishing 2%

Industry- 32%

Services 33%

Oil

Gas

50 % 50%

Source: foreign Investment Book, 6th issue 2012, National Center for Statistics & Information

Foreign Direct Investment 2005 - 2010

0

2

4

6

8

10

12

14

16

18

2011 2010 2009 2008 2007 2006 2005

Bill

ion

USD

0% 10% 20% 30% 40% 50% 60%

Oil & Gas

Manufacturing

Finacial Intermediation

Real estate

Trade

Transport

Constuction

Hotels & Resturants

Electricity & Water

Other

Source: foreign Investment Book, 6th issue 2012, National Center for Statistics & Information

UK36 %

USA16 %

UAE15 %

India4%

Kuwait4%

Qatar3%

Bahrain3%

Mauritius2%

Netherlands2%

Other15 %

Source: foreign Investment Book, 6th issue 2012, National Center for Statistics & Information

Om

an E

con

om

ic V

isio

n Development of Human Resources.

Creation of Stable macro economic framework.

Competitive private sector.

Economic diversification

Industrial Estates

Ports

Free Zones

Public Establishment for Industrial Estates (PEIE)

Total Area: 73 Mn M2

Total Investment: USD 10 billion

Investors = 1200

Rusayl

Nizwa

Mazyouna

Sur

SoharBuraimi

Raysout

KOM

Muscat

Industrial Estates

Investment Opportunities

Township

Facility Management

Logistics & Warehouse

Green projects

Knowledge Advance

Technology

Infrastructure

Supporting tech-oriented businesses.

home to over 60 Intl & local firms like Oracle, HP, Motorola, Microsoft, and Huawei as well as dynamic hi-tech start-ups.

Incentives: 100% foreign ownership

High speed Internet access

Highly competitive telco rates

No personal income tax .

Conference rooms

Duty-free access of products from Oman to GCC countries

Knowledge Oasis Muscat

Saudi Arabia

Sea of Oman

UAE

Yemen

Indian Ocean

Sohar Port &

FreeZone

Sohar Port

21 Km2

Sohar FreeZone

45 km2Industrial

Estate

20 km2

Airport

20 km2

Railway

Station

Sohar Port & Free Zone

8 km

3 K

m

Logistics

Petrochemicals

IndustryMetals &

Minerals

Energy &

Water

Maritime & Industrial

Education

Port of SoharA gateway to a regional consuming market

Sohar FreeZone

Direct access to Logistics Cluster in the port.

Investment in Infrastructure = USD 65 million

Expected industrial investments this year = USD 65 million.

Sohar FreeZone

Logistics 200 ha

Manufacturing

50 haDownstream

industries 250 ha

Investment Opportunities

R&D

Steel industries

Metals Manufacturing

Downstream petrochemicals

Logistics & Packaging

Automotive-related

Food Processing

Health care

Sohar FreeZone

Saudi Arabia

Sea of Oman

UAE

Yemen

Indian Ocean

DUQM

Saudi Arabia

Sea of Oman

UAE

Yemen

Indian Ocean

Salalah Port

& Free Zone

Salalah is at the center of a regional market

worth more than USD 600 B in East Africa,

the Indian Subcontinent and the Gulf

6 M TEUs container capacity, to be increased

to 15 M in the future.

Over 3,000 Commercial Vessel Calls per

annum- 24/7 operation throughout the year

Global ranking container terminal and highly

efficient general cargo terminal

54 direct port connections.

Oceania

South

Asia

Far East

Europe

Africa

Middle

East

The 19 km2 Free Zone has an operational

infrastructure and is Investor ready

Investment value = USD 3.5 Billion from

several leading international companies

Phase I: 200 hectare completed:

Methanol, PET, Automotive parts, Luxury

Yachts Petrochemical industries.

Phase II: 265 hectare under development

will attract investments on logistics, light &

medium industries

www.ociped.com

(+968) 24 62 3333

(+968) 24 62 3300

i n v e s t @ o c i p e d . c o m

Thank You