GCC Country Economic Profile - Sultanate of Oman - EEAS

GCC Country Economic Profile -Sultanate of Oman

December 2021

A project implemented byGFA Consulting Group GmbHCentre for European Policy StudiesDMI Associates

GCC Country Economic Profile - Sultanate of Oman 02

Table of Contents

Sultanate of Oman Key FactsOman Economic Policies & EU – Oman EconomicRelationsGCC Merchandise Trade with EU27 & the WorldOman Merchandise Trade with EU27 & the WorldEU – Oman Trade by product & sub-productEconomic Competitiveness IndicatorsPopulation Structure & Availability of Human CapitalInvestment Opportunities by SectorImportant ContactsReferences

Regional Trade Agreements in force: GCC, GCC – Singapore, Pan-Arab Free TradeArea (PAFTA), United States - OmanAnnounced: EFTA – GCC, Australia – GCC, Japan - GCC

Government Following the death of His Majesty Sultan Qaboos bin Said in January 2020 he wassucceeded by Sultan Haitham bin Tariq bin Taimur Al-Said. His Majesty Sultan Haithamalso serves as prime minister, defence minister, finance minister, foreign affairs minister,and chair of the central bank. Under Sultan Qaboos, in 1996 Oman passed the Basic Lawof the State, containing more than 80 articles to clarify every aspect of the stateapparatus and to address the fundamental rights and duties of the Omani citizen. TheBasic Law guarantees the equality of all citizens before the law, freedom of religion andof speech, a free press, the right to a fair trial and the right to create nationalassociations. It lays down a legal framework for all future legislation and clarifies therules of succession. The Council of Oman (Majlis Oman) is made up of member of theState Council (MajlisA'Dawla) and Consultation /Shura Council (MajlisA'Shura) asstipulated in Article 58 of the Basic Law of the State. It assists the government in drawingup the general policies of the state. The ministers and their portfolio are officiallyannounced by a Royal Decree from His majesty Sultan Haitham bin Tariq bin Taimur Al-Said.

Membership in International Organisations ABEDA, AFESD, AMF, CAEU, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC (NGOs), IDA, IDB, IFAD,IFC, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, LAS, MIGA, NAM, OIC,OPCW, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO,WMO, WTO

Languages Arabic (official), English, Baluchi, Swahili, Urdu, Indian dialects

Economic Agreements


Sultanate of Oman Key Facts

Source:DG Trade

Population (millions)

GDP (Billions of Euros)

GDP per capita (Euros)

Real GDP growth (%)

Inflation rate (%)

Imports

Exports

Imports

Exports

4

55

12446

-6.4

-0.9

17.4

28.5

9.9

3.8

Sultanate of Oman - Key figures (2020) Merchandise Trade (2020, Billion Euros)

Trade in Services (2019, Billion Euros)

Oman Vision 2040 focuses on reshaping the roles of and relation betweenthe public, private and civil sectors to ensure effective economicmanagement, achieve a developed, diversified and sustainable nationaleconomy, ensure fair distribution of development gains amonggovernorates, and protect the nation’s natural resources and uniqueenvironment.

Economic Leadership and Management - solid and effective economiclegislative framework, Effective economic leadership with binding powersand a clear mandate to swiftly respond to development needs.Economic Diversification and Fiscal Sustainability - diversified, sustainableand competitive economy based on knowledge and innovation, adaptswith the industrial revolutions, and achieves fiscal sustainability.The Private Sector, Investment and International Cooperation - privatesector driving a competitive economy that is integrated with the worldeconomy.

COVID-19 and oil price related policies: measures aiming to maintain theemployment of Omani nationals and support private sector firms, Incentivesoffered to affected private sector, waiving of fines and penalties for latedisclosures, allowing the paying of taxes in instalments; Central Bank of Oman(CBO) announced a set of policy measures effective immediately to support thefinancial sector. Measures announced in 2021: the Authority SMEs Developmentextended the postponement of the installments of SMEs payable in Al Raffd Funduntil the end of 2021; Economic Stimulus Plan (ESP) which contains a mix ofpolicy support measures relating to the pandemic and structural reforms topromote economic diversification: incentives pertaining to taxes and fees,incentives to improve business and investment environment, incentives to boostSMEs, incentives for the labor market, and banking incentives to alleviate theimpact of COVID-19 on the economy.In 2019, Oman ranked 53rd in global competitiveness out of 141 countries. TheOman infrastructure ranked 28th. In Information and CommunicationTechnology adoption, Oman ranked 66th.

Economic Development Objectives

Economic national priorities:

Current Economic Status


Oman Economic Policies & EU – OmanEconomic Relations

Economic and political cooperation between the EU and the GCCcountries: the framework is provided by the 1988 EU-GCC cooperationagreement that seeks to improve trade relations and stability in a strategicpart of Europe's neighbourhood. The agreement created a Joint Counciland a Joint Co-operation Committee which meet annually. The two sidesmeet on an annual basis to discuss trade, amongst other topics, within theEU-GCC Joint Co-operation Committee held in Riyadh or Brussels.

EU and Oman: In 2018, the European External Action Service (EEAS) andthe Ministry of Foreign Affairs of the Sultanate of Oman signed acooperation arrangement to enhance their dialogue in order to achievecommon goals and objectives in areas of mutual interest.

Trade negotiations: The EU and Gulf Cooperation Council launchednegotiations for a Free Trade Agreement (FTA) in 1990. The FTA is foreseento provide for a progressive and reciprocal liberalisation of trade in goodsand services. The negotiations have faced several challenges and wereeffectively halted in 2008, when the GCC countries suspended all ongoingnegotiations in which they were involved. While periodic informal contactshave taken place since then to test whether a basis might be found toresume and conclude negotiations, these have not been successful. Inparallel with the negotiations, the prospective EU-GCC FTA was subject to asustainability impact assessment.

EU - Oman Economic Relations


Oman Economic Policies & EU – OmanEconomic Relations

Source:https://ec.europa.eu/trade/policy/countries-and-regions/regions/gulf-region/

GCC Merchandise Trade with EU27 & the World


Source:Eurostat Comext

GCC Merchandise Trade with EU27 & the World




Oman Merchandise Trade with EU27 &the World



EU – Oman Major Trade flows by HSsection



EU – Oman Major Trade flows by HSsection

7202 Ferro-alloys

7404 Waste and scrap, of copper

(excl. ingots or other similar unwrought

shapes, of remelted copper waste and

scrap, ashes and residues containing

copper, and waste and scrap of

primary cells, primary batteries and

electric accumulators)

72SS Confidential trade of chapter 72

XV Base metals

and articles

thereof

(HS 72-83)

XVI Machinery

and appliances

(HS 84-85)

2020 EU Imports from Oman 2020 EU Exports to Oman

VI Products of

the chemical or

allied industries

(HS 28-38)

Source:Eurostat Comext Note: Products ordered by value

8481 Taps, cocks, valves and similar

appliances for pipes, boiler shells, tanks, vats

or the like, incl. pressure-reducing valves and

thermostatically controlled valves; parts

thereof

8413 Pumps for liquids, whether or not fitted

with a measuring device (excl. ceramic

pumps and secretion aspirating pumps for

medical use and medical pumps carried on or

implanted in the body); liquid elevators (excl.

pumps); parts thereof

8502 Electric generating sets and rotary

converters

3102 Mineral or chemical nitrogenous

fertilisers (excl. those in tablets or similar

forms, or in packages with a gross

weight of <= 10 kg)

3303 Perfumes and toilet waters (excl.

aftershave lotions, personal deodorants

and hair lotions)

3301 Essential oils, whether or not

terpeneless, incl. concretes and

absolutes; resinoids; extracted

oleoresins; concentrates of essential oils

in fats, fixed oils, waxes or the like,

obtained by enfleurage or maceration;

terpenic by-products of the

deterpenation of essential oils; aqueous

distillates and aqueous solutions of

essential oils

VI Products of

the chemical or

allied industries

(HS 28-38)

3303 Perfumes and toilet waters (excl.

aftershave lotions, personal deodorants and

hair lotions)

3824 Prepared binders for foundry moulds or

cores; chemical products and preparations

for the chemical or allied industries, incl.

mixtures of natural products, n.e.s.

3002 Human blood; animal blood prepared

for therapeutic, prophylactic or diagnostic

uses; antisera and other blood fractions and

immunological products, whether or not

modified or obtained by means of

biotechnological processes; vaccines, toxins,

cultures of micro-organisms (excl. yeasts) and

similar products

V Mineral

products

(HS 25-27)

2515 Marble, travertine, ecaussine and

other calcareous monumental or

building stone of an apparent specific

gravity of >= 2,5, and alabaster,

whether or not roughly trimmed or

merely cut, by sawing or otherwise, into

blocks or slabs of a square or

rectangular shape (excl. in the form of

granules, chippings or powder)

2710 Petroleum oils and oils obtained

from bituminous minerals (excl. crude);

preparations containing >= 70% by

weight of petroleum oils or of oils

obtained from bituminous minerals,

these oils being the basic constituents

of the preparations, n.e.s.; waste oils

containing mainly petroleum or

bituminous minerals

2610 Chromium ores and concentrates

XVII Transport

equipment (HS

86-89)

8708 Parts and accessories for tractors,

motor vehicles for the transport of ten or

more persons, motor cars and other motor

vehicles principally designed for the

transport of persons, motor vehicles for the

transport of goods and special purpose

motor vehicles of heading 8701 to 8705,

n.e.s.

8704 Motor vehicles for the transport of

goods, incl. chassis with engine and cab

8701 Tractors

Airports: 13 (2013)

Annual passenger traffic on registered air carriers: 10,438,241 (2018)

Annual freight traffic on registered air carriers: 510.43 million mt-km (2018)

Major seaports: Mina' Qaboos, Salalah, Sohar; Container port (TEUs): Salalah (4,109,000) (2019);

LNG export terminal: Qalhat

ICT

Broadband - fixed subscriptions: 473,070

Subscriptions per 100 inhabitants: 13.31 (2019 est.)

Telephones - fixed lines: 592,196


Telephones - mobile cellular: 6,383,458



Economic Competitiveness Indicators

WEF Global Competitiveness Index, 2019 53

Indicator Out of # Countries

Source WEF, The Global Competitiveness Report 2019

Ranking

Fraser Institute – Economic Freedom, 2021 Report

Global Foreign Direct Investment Attractiveness Index, 2020

United Nations e-Government Survey, 2020

Global Innovation Index, 2021

102

57

50

76

141

165

109

193

132

Infrastructure – Key Figures


Population Structure & Availability ofHuman Capital

Population (million) 4

Population (2021 est.)

Population growth rate

Birth rate

Death rate

1.89%

22.58 births/1,000 population

3.25 deaths/1,000 population

total population: 95.7%

male: 97%

female: 92.7%

total: 14 years

male: 14 years

female: 15 years

Literacy (age 15 and over can read and write) 2017:

School life duration (primary to tertiary education) 2019:

Labor force:2.255 million (2016 est.) (about 60% of the labor force is non-

national)

Unemployment, total (% of the total labor force): N/A

Human Capital Availability

0-14 years 30.15% (male 561,791/female 533,949)

Age structure (2020 est.)

15-24 years

25-54 years

55-64 years

65 years and over

17.35% (male 331,000/female 299,516)

44.81% (male 928,812/female 699,821)

4.02% (male 77,558/female 68,427)

3.68% (male 64,152/female 69,663)


Investment Opportunities by Sector

Financial ServicesCapital investmentsInsurance services

Services opportunities: Managing activities, advertisements,and Public relations, Operating trips, MICE, Operating hotels,Operating recreational restaurants, Al Mawj Recreation Place,Muscat Golf Club, Blue City, Rass Al Had, Al Seefa. Recreation,Al Salam Recreation, Conferences center, Shinas Recreation,Ras Al Hamra Recreation.

Logistics supportTransportAirports and new ports extensions

Tourism, Education, Healthcare

Manufacturing,Transport & Logistics

Information & Communications Technology

Areas for investment: information technology consultancy,management system of data center, call center ofcomprehensive training, program improvement, businessprocedures recourses. Opportunities in: electronic legislation,higher education, the one station services, national statisticsvia internet, electronic tenders.


Important Contacts

Ithraa provides advice, guidance

and support in the areas of

exporting, property, business plan

development and engagement

with strategic business and

governmental partners

Al Kharijiya Street

Muscat, Oman

Tel: (+968) 24 62 33 00

Ithraa (The Public

Authority for Investment

Promotion and Export

Development

https://ithraa.om/

Agency Contact Information

Invest Easy

Public Authority for

Small and Medium

Enterprises

Development -

Riyada

Support Provided Website

Online access to over a dozen

government organisations to secure

business licenses and permits

www.business.gov.om 112 | Muscat Location: Al Wadi Al

Kabeer - Commercial Area

P.O.Box: 2955

Phone: 00968-2481 7210

Call Center: +968 2481 7210

[email protected]

Riyada is the Sultanate of Oman's

arm for the development of small

and medium enterprises and the

strengthening of their contribution

to the local economy through a

wide range of business advisory

services and training programs.

https://riyada.om/en-

us/Pages/home.aspx

Riyada Public Authority for Small

and Medium Enterprises

Development

P.O. Box - 1252

PC 111, Al Athaiba

Sultanate of Oman

Oman Chamber of

Commerce &

Industry

Non-government institution

representing business

establishments in Oman

www.chamberoman.om Oman Chamber of Commerce &

Industry – Muscat P.O. Box 1400

Postal Code 112, Ruwi

Sultanate of Oman

Tel: (00968) 24763700

Oman Embassy in

Brussels, BelgiumOman Embassy to the EU Embassy of Oman, Belgium

Avenue Franklin Roosevelt 236

1000 Brussels, Belgium

Tel. (+32) 2 679 70 10

[email protected]

https://www.kdipa.gov.kw/en/

https://www.kdipa.gov.kw/en/

https://www.kuwaitchamber.org.kw/echamber/website/index.jsp?language=en

https://www.kuwaitchamber.org.kw/echamber/website/index.jsp?language=en

tel:+96824817210

mailto:[email protected]

https://kuwait.diplomatie.belgium.be/en





References

Ben Jelili, Riadh ‘Global Foreign Direct Investment Country Attractiveness Index 2020’

Fraser Institute ‘Economic Freedom of the World Annual Report 2021’

IMF Policy Responses to COVID-19

United Nations ‘E-Government Survey 2020 Digital Government in the Decade of Action

for Sustainable Development’

World Economic Forum ‘The Global Competitiveness Report 2019’

WIPO (2021), ‘Global Innovation Index 2021 – Tracking Innovation through the COVID-19

Crisis’


About the EU-GCC Dialogue onEconomic Diversification ProjectThe EU-GCC Dialogue on Economic Diversification is a project funded by theEuropean Commission Service for Foreign Policy Instruments under the PartnershipInstrument. The project contributes to stronger EU-GCC relations by supporting the GCCcountries in the ongoing process of economic diversification away from hydrocarbon-dependent sectors, including by funding regular EU-GCC Business Fora.

The purpose of this project is to promote climate-friendly trade, investment,and economic affairs-related policy analysis, dialogue, and cooperationbetween stakeholders from the EU and GCC at both regional and countrylevels in the context of the GCC economic diversification process.

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Authors

This publication was produced with the financial support of the European Union. Its contentsare the sole responsibility of the authors and do not necessarily reflect the views of theEuropean Union.

Douglas AitkenheadTeam LeaderE-mail: [email protected]

Daniela StratulativTrade and Foreign Direct Investment ExpertE-mail: [email protected]

Designed by Rania NseirEvent Management & Communications ExpertEU-GCC Dialogue on Economic Diversification Project

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https://ec.europa.eu/fpi/what-we-do/advancing-eu-interests-and-values-world_en

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GCC Country Economic Profile - Sultanate of Oman - EEAS

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