Oman
Oman is one of the oldest independent Arab countries. During the 19th century, it was considered the most powerful Arab entity, consisting of an emirate that stretched all the way to Zanzibar at the eastern edge of the African coast. Oman is s strategically placed at the mouth of the Gulf at the south-east corner of the Arabian Peninsula between Yemen and theUnited Arab Emirates.
Qaboos Bin Said Al Said has been Oman's sultan since he seized power in 1970. Under his rule, oil revenues have been used to develop the country's infrastructure and it makes up over 50% of Gross Domestic Product (GDP) and 75% of its export earnings.
UK companies operating in Oman include Carillion, Interserve, Taylor Woodrow, Atkins, Mott McDonald, Petrofac, Jacobs, Turner & Townsend, Shell, BP, Ultra Electronics, Babcock, CfBT, BAE and Rolls Royce. A number of British banks, law and accounting firms and smaller service organisations also operate successfully.
UK and Oman trade
UK’s main exports include:
The UK is Oman’s largest source of Foreign Direct Investment (FDI) with over £3 billion of investment, mainly in the hydrocarbons sector (BP and Shell).
Benefits for UK businesses exporting to Oman include:
Challenges
A high level of business loyalty and a long term approach are essential for success in this market. Challenges include:
Economic growth
There is significant government spending on large scale infrastructure projects in Oman as result of record oil and gas revenue and the government’s ‘Vision 2020’ strategy. Investment in the oil and gas sector continues to grow as this is Oman’s key economic priority. However, Oman remains outside the Organisation of Petroleum Exporting Countries (OPEC).
Oman’s economic policies aim to create more private sector jobs and encourage greater diversification by developing other sectors including:
Under ‘Vision 2020’, Oman has a massive infrastructure development programme underway. It includes large developmental projects worth about £50 billion, all in various stages of development:
Nearly £1 billion has been allocated in 2014 for the government capital spending plan for the sector.
There are supply chain opportunities to support the health development plan:
More projects will be announced when the next 5 year cycle starts.
Source : UK.GOV , BBC
Qaboos Bin Said Al Said has been Oman's sultan since he seized power in 1970. Under his rule, oil revenues have been used to develop the country's infrastructure and it makes up over 50% of Gross Domestic Product (GDP) and 75% of its export earnings.
UK companies operating in Oman include Carillion, Interserve, Taylor Woodrow, Atkins, Mott McDonald, Petrofac, Jacobs, Turner & Townsend, Shell, BP, Ultra Electronics, Babcock, CfBT, BAE and Rolls Royce. A number of British banks, law and accounting firms and smaller service organisations also operate successfully.
UK and Oman trade
UK’s main exports include:
- Machinery, tools and equipment.
- Construction products.
- Education and training.
- Business services.
- Defence equipment.
The UK is Oman’s largest source of Foreign Direct Investment (FDI) with over £3 billion of investment, mainly in the hydrocarbons sector (BP and Shell).
Benefits for UK businesses exporting to Oman include:
- UK is Oman’s biggest foreign investor.
- English is widely spoken and accepted as a business language.
- British standards are widely used.
- 7,000 UK residents make up the largest Western expatriate segment.
- majority of western tourists come from the UK.
Challenges
A high level of business loyalty and a long term approach are essential for success in this market. Challenges include:
- Time it takes to set up a local operation (if outside of the free trade zones) and to obtain the required government licenses.
- Local ownership requirements (if outside of the free trade zones).
- Omanisation – need to employ Omani nationals.
- Risk of payment delays.
Economic growth
There is significant government spending on large scale infrastructure projects in Oman as result of record oil and gas revenue and the government’s ‘Vision 2020’ strategy. Investment in the oil and gas sector continues to grow as this is Oman’s key economic priority. However, Oman remains outside the Organisation of Petroleum Exporting Countries (OPEC).
Oman’s economic policies aim to create more private sector jobs and encourage greater diversification by developing other sectors including:
- Petrochemical
- Metals and minerals
- Ports and logistics
- Fisheries
- Tourism
Under ‘Vision 2020’, Oman has a massive infrastructure development programme underway. It includes large developmental projects worth about £50 billion, all in various stages of development:
- New build ports, airports, roads, hotels and resorts
- Industrial and special economic zones
- New 2,244 km railway line connecting to the GCC rail network
- New hospitals and health centres
- Construction of 7 hospitals, 5 health complexes and 27 health centres.
- Expansion projects for some of the existing health institutions in all governorates.
Nearly £1 billion has been allocated in 2014 for the government capital spending plan for the sector.
There are supply chain opportunities to support the health development plan:
- Governance and leadership
- health information system and use of data
- Human Resources (HR) as a lack of expertise in advanced health care
- Technology including equipment, digital systems, surgical equipment
- Quality of care
More projects will be announced when the next 5 year cycle starts.
Source : UK.GOV , BBC