New laws to help Oman attract more foreign investments
The Omani government expects that the efforts made towards improving investment climate and economic diversification will lead to attract more domestic investment and foreign direct investment (FDI) especially after enacting new laws related to FDI, privatisation, public-private partnership, and bankruptcy.
‘The Royal Decrees promulgated recently with respect to FDI, notably foreign capital investment law, bankruptcy law, and public-private partnership law, would create new horizons and more potential opportunities for investment,’ the Ministry of Finance said in its 2020 budget statement issued on Wednesday.
The budget statement said that these new laws have been promulgated with the aim to enhance public-private investments and improve business environment and investment climate in the country. ‘This would result in the flow and stability of FDI,’ the statement added.
Oman’s 2020 budget framework aims at achieving a set of objectives and targeted rates of domestic investment and FDI.
As per the budget statement, total investments in the first three years of the ninth five-year development plan (2016-2020) estimated to be around RO22.8bn, which is 55.9 per cent of the total investments targeted in the same plan. The investment rate to GDP averaged 29.2 per cent over the period as compared with the targeted investment rate in the full ninth five-year development plan of 28 per cent.
The FDI totalled RO1.37bn during the first half of 2019, reaching RO11.65bn. Oil and gas extraction activity represents the larger proportion of FDI, accounting for 57 per cent of the total FDI.
‘Efforts are ongoing to achieve economic diversification through facilitating government process and enhancing business environment so as to attract more investments, in a way that leads to diversifying the sources of income and boosting GDP especially non-hydrocarbon GDP,’ the budget statement added.
Oil and gas sector accounts for 57 per cent of the total FDI which reached RO11.65bn in June 2019