NEW POSSIBILITIES
The coming arrival of new FDI regulations that allow for more foreign investment should give Oman's private sector a boost, relieving pressure on the government and creating new economic activity.
Attracting foreign investment is a major part of Oman's drive for a more diversified economy. During the reign of Sultan Qaboos bin Said, the Omani government served as the main driver of investment, using its ample oil revenues to fund high levels of public spending across all levels of the economy. This strategy worked well while oil prices rose steadily for most of the past two decades, funding robust social services that have helped to dramatically increase the average Omani's level of education and standard of living.
The past few years have brought a dramatic shift, however, and the Sultanate is well aware that its previous levels of government spending are no longer sustainable. Plummeting oil prices have led to deficits and forced the Omani government to cut spending. To continue to meet investment needs, the Sultanate has begun to look elsewhere, reforming foreign investment laws and beginning the process of setting up a system that can stand on its own without government support.
Oman's previous FDI laws were fairly restrictive, placing limits on the amount foreign investors could own. But they have gradually been softening in recent years. Foreign investors are permitted to own up to 70% of an LLC, and although the Sultanate does not screen foreign investors, the Ministry of Commerce and industry (MoCI) has established a comprehensive approval process that can be slow at times. In recent years, the privatization of electric and telecommunications utilities has provided foreign investors with new opportunities to obtain full ownership; as these services have been opened up to the private sector, the Omani government has let foreign firms bid for full control in an effort to spur competition.
The easiest path for foreign investors has been the recent development of free zones. These industrial areas come with special incentives for foreign investment, including easily available land, full foreign ownership, exemptions from corporate and personal income taxes, and the elimination of restrictions on capital levels. The Omani government's goal with these zones was to create clusters of industry that took advantage of the Sultanate's ideal logistical location to generate new economic activity. Thus far, these free zones have been successful; Sohar, for example, has attracted more than half a billion USD in investment from more than a dozen foreign companies.
Now the Sultanate is ready to take the next step and make a bolder move to open up industries to foreign investment. New laws have been under consideration since at least 2013, but late 2016 and early 2017 saw the most concrete steps yet toward changing the investment environment. The government took as its primary goal bringing Oman's regulatory environment up to par with international standards for foreign investment, working in collaboration with the World Bank to meet its obligations as part of the World Trade Organization and other international organizations. Some of the most significant changes expected to come as part of the new FDI law are allowing foreign investors to fully own Omani-based companies and removing the minimum capital requirement for starting a business. The Omani government is also expected to develop new arbitration processes for foreign investors that comply with international standards.
The new law is still working its way through governmental processes, but early drafts have been met with approval from investors and business leaders. The MoCI undersecretary announced in September 2017 that the agency finalized the law and sent it to the Ministry of Legal Affairs for refinement, which has it on track to be passed in early 2018. FDI has already been trending up in recent years, with more than OMR7.4 billion coming into the Sultanate in 2016, an increase of almost USD1 billion over 2015. With the impending arrival of the new FDI law, both public and private parties anticipate that figure to grow significantly, giving Oman the economic boost needed to continue the gains of the past few decades.

TABLE OF CONTENTS
Focus: Oman-Iran Relations
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Abdullah Nasser Abdullah Al Bakri, Minister , Manpower (MoM)
TBY talks to Abdullah Nasser Abdullah Al Bakri, Minister of Manpower (MoM), on its ongoing efforts to boost Omanization across sectors, streamlining the employment process in the private sector, and developing human resources in the country.
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HE Talal Al Rahbi, Deputy Secretary General , Supreme Council for Planning (SCP)
TBY talks to HE Talal Al Rahbi, Deputy Secretary General of the Supreme Council for Planning (SCP), on its key responsibilities, ensuring a more sustainable policy, and the importance of economic diversification.
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Dr. Hilal Al-Qamshoey, Project Director, Oman National Spatial Strategy (ONSS)
TBY talks to Dr. Hilal Al-Qamshoey, Project Director of Oman National Spatial Strategy (ONSS), on the importance of addressing the challenges to growth, assessing potential, and attracting greater FDI.
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Khalid Al Yahmadi, CEO, Muscat National Development and Investment Company (ASAAS)
TBY talks to Khalid Al Yahmadi, CEO of Muscat National Development and Investment Company (ASAAS), on its projects to diversify Oman's economy, sectors with growth potential, and its goals for 2018.
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Khalifa Abdullah Al-Barwani, CEO, National Center for Statistics and Information (NCSI)
TBY talks to Khalifa Abdullah Al-Barwani, CEO of the National Center for Statistics and Information (NCSI), on the many benefits of its information apps, the growing focus on logistics, and supporting the public and private sectors with valuable data.
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Dr. Dhafir Awadh Al-Shanfari, CEO, Oman Authority for Partnership for Development (OAPFD)
TBY talks to Dr. Dhafir Awadh Al-Shanfari, CEO of Oman Authority for Partnership for Development (OAPFD), on the goals of the authority, its current projects, and its focus for the medium term.
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Khalid bin Al Safi Al Haribi, Acting CEO, Public Authority for SMEs Development (Riyada)
TBY talks to Khalid bin Al Safi Al Haribi, Acting CEO of the Public Authority for SMEs Development (Riyada), on instilling an entrepreneurship culture amongst Omanis, key areas for development, and doing more with less.
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Yaqoob Saif Al Kiyumi, CEO, Oman Power and Water Procurement Company (OPWP)
TBY talks to Yaqoob Saif Al Kiyumi, CEO of Oman Power and Water Procurement Company (OPWP), on the challenges of growing water and electricity demand, planning for renewable energy projects, and its key objectives in the long term.
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HE Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
TBY talks to HE Tahir Bin Salim Bin Abdullah Al Amri, Executive President of the Central Bank of Oman (CBO), on revising the country's FDI laws, financing the fiscal debt via issuing bonds, and its efforts to promote SMEs.
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HE Abdullah Salim Al Salmi, Executive President, Capital Market Authority (CMA)
TBY talks to HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority (CMA), on promoting greater activity in the financial services sector, encouraging investors to go beyond the banking sector, and its upcoming projects.
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Dr. Ashraf bin Nabhan Al Nabhani, Chairman, Muscat Securities Market (MSM)
TBY talks to Dr. Ashraf bin Nabhan Al Nabhani, Chairman of Muscat Securities Market (MSM), on the evolution and maturity of the stock market, increased privatization initiatives, and plans to demutualize.
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Murtaza Jariwala, Executive Director, Vanguard Engineering & Oilfield Service
TBY talks to Murtaza Jariwala, Executive Director of Vanguard Engineering & Oilfield Services, on manufacturing and value addition, successful long-term partnerships, and how to best thrive as a truly local company.
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Hilal Mohammed Hamoud Al Busaidi, CEO, Public Authority for Mining (PAM)
TBY talks to Hilal Mohammed Hamoud Al Busaidi, CEO of the Public Authority for Mining (PAM), on increasing metal exploration, sharing the risk with investors, and banking on the rare commodity of quality.
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Dr. Salim Sultan Al Ruzaiqi, CEO, Information Technology Authority (ITA)
TBY talks to Dr. Salim Sultan Al Ruzaiqi, CEO of Information Technology Authority (ITA), on facilitating the investment experience in Oman, taking a coordinated approach to cybersecurity, and giving young people the right exposure.
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Firas A. H. Al-Abduwani, Founder & CEO, Hussam Technology Company (HTC)
TBY talks to Firas A. H. Al-Abduwani, Founder & CEO, and Mohammed Al-Abduwani, COO of Hussam Technology Company (HTC), on making Oman a better place to do business, meeting an ever-expanding customer base, and diversifying one's project capacity.
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Sheikh Aimen Ahmed Sultan Al-Hosni, CEO, Oman Airports Management Company (OAMC)
TBY talks to Sheikh Aimen Ahmed Sultan Al-Hosni, CEO of Oman Airports Management Company (OAMC), on providing a functioning operational platform, top notch end-to-end logistics, and creating competitive advantages for Omani shippers.
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HE Hamed Said Al-Oufi, Undersecretary, Fisheries Wealth of the Ministry of Agriculture & Fisheries Wealth
TBY talks to HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth of the Ministry of Agriculture & Fisheries Wealth, on food security, opportunities for development in the industry, and new infrastructure projects.
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Eng. Saleh M. Al Shanfari, CEO, Oman Food Investment Holding Company (OFIC)
TBY talks to Eng. Saleh M. Al Shanfari, CEO of Oman Food Investment Holding Company (OFIC), on Oman's competitive advantages in food, growing demand for diverse food products, and becoming a regional food hub.
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Ahmed Akaak, Chairman, Oman National Livestock Development Company (ONLDC)
TBY talks to Ahmed Akaak, Chairman of the Oman National Livestock Development Company (ONLDC), on partnerships to boost the quality of animal feeds, the agriculture industry, and the Sultanate's national economy.
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HE Dr. Hamood Khalfan Al Harthi, Undersecretary of Education & Curriculum , Ministry of Education
TBY talks to HE Dr. Hamood Khalfan Al Harthi, Undersecretary of Education & Curriculum of the Ministry of Education, on meeting international standards, increasing the teaching staff, and implementing reforms.
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