IMF Delegates - Middle East

Oman

HE Ahmed Macki

Tel: +968 738270
Fax: +968 736324
P.O. Box: 506 Muscat, Postal Code: 113

Country profile
The main avenues for economic growth in Oman include a diversified, dynamic, open and globalized economy; privatization and free market policies will contribute to the creation of a strong, efficient and competitive private sector; and human resource development policies and job creation. Accordingly, our economic policies are geared towards giving a more pronounced role to the private sector. Other areas of focus include diversifying the productive base; promotion of exports - especially non-oil exports; and encouraging foreign direct investment and domestic investment in order to enhance capital formation.

Oman occupies a strategic geographical location on the Arabian Peninsula at the entrance of the Arabian Gulf (the source of two-thirds of the world's oil exports) and the junction of the three large continents of Asia, Europe and Africa. This unique position provides easy access to markets in the Middle East, India, South-East Asia, and Europe.
Oman is a land of stunning and varied unspoiled landscapes with extensive clean and safe beaches, a rich cultural heritage, dramatic terrain, fascinating marine life, and abundant scenic beauty. Oman has a glorious 12,000 year history of civilization, which is evident in UNISCO-listed forts, castles and towers. It is devoted to preserving its natural wealth with conservation projects such as turtle breeding beaches, bird sanctuaries and the Arabian Oryx reserve.

Economic profile
Oman's natural resources include petroleum, natural gas, chromium, copper, asbestos, marble, limestone, and gypsum. Oman's economy is stable and one of the strongest growing economies in the Middle East with a very attractive investment climate. The strong performance of the economy over the last few years has substantiated by the IMF, which attributed this performance not only to increases in oil prices, but to the prudent and stable macroeconomic, financial and structural policies that lead to price stability and a stable exchange rate in a liberal economic environment.

The oil sector accounted for about 43% of GDP by the end of 2001. According to the target of the current Sixth Five Year Plan (2001-2005), the relative share of oil sector is expected to decrease to 35% in 2005. The Sixth Five Year Plan aims at achieving diversification and a growth rate in the non-oil sector of 5.2%.

Major economic policies are directed towards diversification, and these are mainly geared towards promoting tourism and export-oriented industries within the framework of a more dominant role for the private sector and the development of infrastructure. The key sectors where privatization is currently pursued include electricity, water, telecommunications, aviation, and wastewater.

The government is actively engaged in adopting liberal investor-friendly economic policies and measures to encourage local and foreign entrepreneurs. The investment climate has been improved through the introduction of appropriate investor-friendly laws and regulations. In addition, Oman offers political stability, natural resources, modern infrastructure and scenic beauty. By offering multiple first class incentives, the government is looking to local and foreign investment especially in natural gas related projects, industry and tourism.



Saudi Arabia