Foreign investment, opportunities and challenges

Oman has always been attractive to tradesmen and businessmen since ancient times, driven by their desire to seize opportunities to strengthen and revitalize their business and solidify their position in a breeding and promising ground. Despite global economic changes and the challenges they bring, Oman, with its distinguished strategic location and trade history over the centuries has attracted attention for hosting investment delegations on a permanent basis.

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The Ministry of Commerce, Industry, and Investment Promotion has played a vital and distinctive role in creating an attractive, secure, and stimulating investment environment aimed at developing local value-added in the national economy through:

· ? Developing the necessary laws, legislations and policies in the Foreign Investment Law.

· ? Facilitating procedures.

· ? Reducing fees for the issuance of commercial registrations for foreign investors.

· ? Treating the foreign investor as the Omani investor with certain regulations in place.

· ? Mandatory employment of Omani staff (minimum of one).

· ? Providing incentives and facilities to the investor.

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Exceptional Opportunities?

Despite the inevitability of competition for foreign investment among Oman and its neighboring countries, Oman has been proactive in finding and preparing opportunities to promote foreign direct investment through:

·? ? ? ? ? ? ? Creating laws and legislations for foreign investors, such as the Foreign Capital Investment Law, Foreign Investment Guarantees, the Public-Private Partnership Law, the Commercial Companies Law and others...

·? ? ? ? ? ? ? Establishing new and advanced infrastructure that facilitates the movement of transport and expedite the transportation of goods through prepared ports, airports, and secure highways.

·? ? ? ? ? ? ? The presence of promising investment sectors for foreign investment, such as the tourism sector, the technology sector, the manufacturing sector, and renewable energy.

·? ? ? ? ? ? ? Offering tax exemptions and financial facilitations.

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Challenges breed determination and commitment.

There is no doubt that the trade and investment sector is going through numerous challenges that Oman must address to become the optimal destination for foreign investors, such as:

· ? Regional and international competition: Oman borders the Arab Gulf states to the west and several major countries in the northern and northeastern regions, leading to fierce competition in attracting foreign investment.

· ? Improved infrastructure: Improving infrastructure in some areas that need development, through paving and lighting roads and providing essential services on them.

· ? Training skilled national workforce to take over business operations.

· ? Diversification of economic sectors: Oman relies primarily on the oil and gas sector as a source of income. Diversifying into renewable sectors helps mitigate this challenge.

· ? Although Oman is far from conflict and fighting zones, it is affected by the global economy, which requires it to find effective solutions to ensure the stability of its national economy.

· ? Despite Oman being distant from conflict zones, it is still impacted by the global economy, which requires it to find effective solutions to ensure the stability of its national economy.

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The Sultanate of Oman, represented by the Ministry of Commerce, Industry and Investment Promotion, strives to create spacious investment spaces for foreigners. This is facilitated through various incentives and streamlined services, ensuring they are well-informed about expected opportunities, challenges and the mechanisms of working with the government and private sectors, in order to enhance its position to be a leading investment destination in the world.

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