New laws to help Oman at­tract more for­eign in­vest­ments

Muscat Daily - - BUSINESS -

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

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