Investing in Oman | Supporting Enterprise
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Choose Oman Introduction As Chairman of the Public Authority for Investment Promotion and Export Development (Ithraa), I am delighted to welcome you to the Sultanate of Oman.
skilled, young and multi-lingual workforce and competitively priced operating costs mean the Sultanate is well placed to compete effectively with other locations in the region.
Over the past 40 years Oman has reinvented itself and today is one of the region’s most exciting locations and home to some of the world’s leading companies.
Oman is investing billions of dollars in growing the country’s business base. Indeed, through significant investment in the provision of transport and communications channels, commercial property and ensuring easy access to both domestic and international markets the Sultanate continues to attract new businesses operating in a variety of sectors.
Oman is an ideal place to live and work; its consistent and strong economic performance has created an environment that will benefit any company that invests or re-locates here. Our
Our modern and mixed economy has gained a welldeserved global reputation for success. This is thanks to our workforce, infrastructure, geographic location, innovative and entrepreneurial business community and close public – private sector relationship. We welcome you to Oman.
Dr. Salem ben Nasser Al Ismaily Chairman
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The Ithraa organized B-2-B matchmaking meetings were excellent and helped promote Omani textiles. Karan Sadana Chief Executive Officer Oman Textile Mills Co. LLC
Helping You
Our aim
Ithraa is Oman’s investment promotion and export development agency. We are committed to being recognized on a global scale as the economic development engine driving job creation, growth, exports of non-oil products, strategic investment and prosperity in the Sultanate. We are intent on paving the way for Oman to become a leader in the Innovation Economy and one of the most business friendly, productive and competitive economic development climates in the world.
• Develop and maintain a valuable network of partners worldwide to attract investment and create employment
We employ seasoned and knowledgeable investment and export professionals and with representatives in major markets, we have the global expertise and reach to assist your company. Moreover, our range of investment and export assistance programs help companies of all sizes realize their potential.
• Help existing and new Omani companies increase exports and expand the visibility of their business in the global marketplace • Simplify the process of international trade from Oman We provide an extensive, free and confidential package of assistance to help identify the full range of hard and soft benefits of choosing Oman as a business location as well as assist Oman-based firms explore international export markets.
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Vale came to Oman in 2007 and supported by the country’s nurturing business environment, we have invested over US$2 billion to establish a Pelletizing Plant and Distribution Centre that is today at the forefront of the Sultanate’s economic diversification process. Marcos Beluco Country Manager Vale
Why Oman?
Business
Oman is a smart, dynamic and welcoming nation that offers a quality of life unparalleled by any other country in the Gulf, providing a true community with world class amenities for businesses and people. Oman’s cost of living is lower than many of its regional competitors, and a combination of market access and economic diversity provides the resources a company needs to flourish.
Oman is home to major companies including Air Liquide, Jindal Power & Steel, Larsen & Toubro, Microsoft, Huawei, Oracle and Vale.
The Sultanate’s unique character can be attributed to its people, location, infrastructure, collaborative business community, government support, and an unprecedented array of cultural and sporting activities. We boast some great reasons why you should invest, move, relocate and study here. Indeed, there are a host of economic reasons to move your business to Oman, coupled with the many advantages of an Oman lifestyle.
• At the centre of one of the largest trading areas in the world: the east-west nexus joining markets in Europe, Asia and North America
• Ranked as the world’s 33rd most competitive country in the World Economic Forum’s Global Competitiveness Report 2013-2014 • More than US $77 billion gross domestic product (GDP)
• Less than two hours from the major business centres of Asia • Some of the most strategically placed ports in the Gulf
• Muscat International Airport is one of the Gulf’s fastest growing airports, handling 7,546,000 passengers in 2012, up 16.5% on 2011 • Over 1 billion consumers on Oman’s doorstep • 4 million people and over 238,668 registered businesses • Some of the most competitively priced commercial office property and salary rates in the Gulf • Fifty-five tertiary institutes with strong industry links across the Sultanate • Leading advanced telecommunications infrastructure supporting interconnected domestic and international networks • An innovation park with strong links to business and education • A thriving R&D culture 5
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Lifestyle • House rental prices are well below the Gulf’s regional average • Oman is considered as one of the best places in the Gulf to bring up a family • Situated directly on a road and sea network, giving direct access to points across the region and the world • Affordable city living • 3,165 kilometres of stunning public shoreline • Outstanding state and private schools • Over 3,000 5 star hotel rooms at properties including some of the best resorts in the world • In 2012, Monocle magazine voted Oman one of the world’s best tourist destinations • In 2012, Lonely Planet voted Muscat the second best tourist destination in the world
• The Sultanate’s economic potential for your company is matched by an excellent quality of life that ensures high levels of staff retention for investors
Our Services Whether you are looking to set-up in Oman or are an existing Oman-based firm seeking advice on export markets we will work with you to ensure that your individual business requirements are met. As global competition for investment increases and export markets become more challenging it is critical that we continually develop and enhance the services we offer our clients. In this regard, Ithraa’s Investment, Export and Research Directorates specialize in providing sector and subsector market research and business intelligence.
Research • Helping you to make the business case • Bespoke research to support business plan development and expansion • Local industry and sector profiling and market validation • Demographic and labour market analysis to show your potential workforce
Property • Helping you find the right property • Property advice from offices and industrial estates to technology park • Practical support including organized property viewings
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Networks
Recruitment
• Helping you develop your business
• Helping you to find the right people
• Identifying suitable opportunities to add value to your business by engaging with Oman-based investors, government departments, industry bodies, professional intermediaries, universities and strategic partners
• HR and recruitment advice on attracting the best talent
• Introductions to businesses and organizations to help you make the right contacts • Advice on collaboration possibilities with companies, universities and government • Identifying potential sources of financial support including loans and institutional investors with the aim of assisting you in your business development • Liaising with professional intermediaries and partners to offer additional services including legal, banking, accounting, recruitment and ICT
Relocation • Helping you with the practicalities • Assistance with a range of issues from familiarization visits to marketing and PR support • Visit co-ordination - bespoke packages for management to meet key decision makers and experience the best of Oman including site visits
The great role played by Ithraa shouldn’t go unrecognized. They work hard with Omani manufacturers, helping them understand the importance of international trade shows and the benefits these can deliver. They also provide key insight into how we can better position our produc ts internationally. Ahmed bin Awad Al Shanfari Al Shanfari Marble Co. LLC
Because of our unique alliance with government departments, Ithraa is able to offer a much easier route to your investment opportunities, with fewer conversations along the way. We will support your business through the planning process. 7
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A Billion Reasons to Invest
Manufacturing
That is how many consumers would be on your doorstep because of Oman’s strategic location and we have excellent road, sea and air links that make it easy and cost effective to reach that customer base.
Oman has consistently been a regional leader in industry, which currently composes 17.6% of the Sultanate’s economy and employs over 61,000 workers. Oman’s manufacturing base continues to change with the economy, recently adding jobs in food and beverage, mining, metals, plastics and automotive spare parts.
Oman is the ideal business location for businesses interested in the growing and emerging markets of the Middle East, East Africa and the Indian sub-continent. From headquarters and back-offices to manufacturing and logistics, Oman offers people and businesses an outstanding place to live, work, invest and visit. We have an excellent talent pool of people; our roads, ports and airports are ranked as some of the best in the world and we boast world-class ICT, manufacturing and business properties. We offer everything an ambitious company needs to succeed.
We’re an export-oriented business and what we look for from an IPA is not monetary support so much as knowledge and guidance about Oman’s trading partners, and a longterm view about conducting business. That’s what we found in Ithraa, a service to help us cultivate repeat export business and trading relations that last. Dilip Shanbhag General Manager Sun Packaging Co. LLC
From 148 countries worldwide, the World Economic Forum’s Global Competitive Index ranks Oman 33 in the world. In 2012, the Sultanate produced more than US$10.66 billion in goods and services and has access to markets exceeding 1.5 billion consumers which continues to grow in size and diversity. Our successful and continuing economic growth has also significantly enhanced the Sultanate’s leisure, housing, industrial and office provisions, strengthening Oman’s ability to attract and retain talent, offering you outstanding market opportunities.
Doing Business Oman offers a business cost advantage over many countries in the region. According to the World Bank, Oman is ranked as one of the most cost-effective countries in the Middle East for doing business in terms of the combined impact of significant business cost components including labour, utilities, facility, transportation, financing costs and taxes.
Sectors Oman’s economy thrives on a combination of mature (oil and gas, manufacturing and agriculture and fisheries) and emerging (tourism, mining, logistics, food and beverage, info-tech, aquaculture, retail and R&D) sectors. Indeed, you may be surprised to discover the variety of quality products and services made in Oman. Moreover, supporting these businesses are first class and competitively priced industrial, warehouse, manufacturing units and office space in Rusayl, Sohar, Al Buraimi, Nizwa, Raysut, Sur, the Port of Sohar, Salalah Port, the Duqm Special Economic Zone Authority, Salalah Free Zone, Al Mazunah Free Zone and Oman’s flagship technology park, Knowledge Oasis Muscat.
Tourism Tourism arrivals to Oman continue to show strong growth. International Air Transports Association data for 2012 showed a 8% rise in total arrivals of which tourism arrivals accounted for an estimated 1.8 million passenger movements. In addition, government reforms to Tourist Visas has led to a rise in short-break road touring arrivals from neighbouring countries. The total passenger traffic including transit and transfer passengers through Muscat International Airport has increased by 10% to 2,224,480 passengers at the end of September 2013. The statistics released by the Public Authority for Civil Aviation (PACA) pointed out that the number of arrival passengers increased by 9% to 3,145,068 passengers at the end of September 2013 compared to 2,877,033 passengers for the same period of 2012.
Logistics Oman is a key player in the region’s logistics business. In the past 20 years, it has become a major crossroads of the Gulf’s global trade. Consequently, the Sultanate offers one of the most competitive and cost-effective transportation centres in the Gulf. • Central location with air, road and water distribution capacity • Major container ports in the region • Global gateway to international business centres • Ports capable of handling ocean-going ships • Links to the Indian Ocean via Duqm and Salalah and to the Straits of Hormuz via Sohar and Muscat
ICT Oman’s ICT community is maturing, as the number of international and domestic tenants on Knowledge Oasis Muscat, Oman’s flagship technology park, increases. Established and emerging companies, alongside Muscat’s prominent universities and entrepreneurship facilities, vibrant tech culture and initiatives, and business incubators are all helping make Oman a key player in the regional technology scene.
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It was thanks to Ithraa’s assistance at the Boston Sea Food Fair that we got a fast and thorough introduction to the US market. Bernard Durin General Manager, Al Marsa Fisheries LLC
Business & Financial Services
• Skilled employees
• Skills - links to universities for graduate and postgraduate
Oman offers one of the largest, most diverse pools of business and financial service expertise in the Gulf with specializations in:
• Fit for purpose premises
• Recruitment - links to colleges for craft skills. Links to specialist providers for soft skills
• Accounting • Advertising • Banking • Legal services • Management services • R&D • Marketing
Investor Support Ithraa works with government organizations and businesses based in Oman and internationally to provide a comprehensive range of business support. In this regard, we offer specialist investor advice geared exclusively to support international companies looking to invest in Oman.
Do I Need Investor Development Support? This service is based on company-specific need. Research and experience has shown us companies that successfully compete in global markets have the following common needs:
• Superior innovation capability • Competitive advantage in getting to market • Financial investment Ithraa gives you access to every possible resource to maximize your competitiveness.
How does it Work? Your company is assigned an Investment Team who will have an in-depth conversation with you and your team about your company’s ambitions and the challenges you face. All discussions are in strict confidence. Our team can marshal all public and private sector resources into a support package to help you meet your needs. These resources can include:
• Property - our industrial/commercial property knowledge links with government organizations to support planning applications • Innovation - links to industry R&D centres, university R&D and technical institutions • Marketing - links to Ithraa trade representatives and export marketing programs • Finance - access to institutional and private investors and government funds • Catalyst - we act as a one-stop-shop between your company and the vast resources of Oman’s public sector able to support you 9
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Does Size Matter?
Lifelong Learning
Promoting Exports
Our Investment Directorate supports multinationals through to SMEs.
Ithraa has an excellent network of organizations who work to provide a range of learning opportunities for companies based in Oman. Indeed, the Sultanate boasts some of the best tertiary and professional training institutes in the Gulf - all with strong links to business.
Ithraa’s Export Directorate is working with partners from across the Sultanate’s public and private sector to help strengthen Oman’s non-oil exporters.
Premises, Planning & Permits Ithraa helps investors with locating premises as well as obtaining all relevant building, industrial and environmental permits.
Financial Support Whilst Ithraa does not give direct financial assistance, we can help you determine which sources of finance are appropriate to your situation and direct you to the relevant body and investment partner.
Skilled Workforce Oman has a workforce with an outstanding reputation for being highly-skilled, multilingual and diverse and has particular expertise in oil and gas, tourism, manufacturing, ICT, logistics, shipping, mining and agriculture and fisheries. Oman is home to a number of top performing universities - featuring centres of research excellence in sectors such as biomedical science, water desalination, genetics, engineering and tourism - all enjoying strong relationships with domestic and international companies.
Our non-oil exports to the world have risen from US$709 million in 2002 to US$9.33 billion in 2012 registering a Compounded Annual Growth Rate of 29.53%. But there is still great potential for Omani companies to do even better overseas. And we are particularly focused on helping domestic firms penetrate large, vibrant and fast-growing economies, particularly in Africa, the Middle East and Asia. Omani products are also penetrating the mature markets of Europe and the US. Indeed, as a result of the US – Oman Free Trade Agreement, non-oil exports to the United States increased by 94.1% between 2011 and 2012.
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Providing Help & Support
Trade Up Workshops
Omani companies that are new to exporting often need help getting started. Even companies that are aware of global opportunities often prefer operating within the confines of Oman’s market, where they have successfully grown their businesses.
In response to these challenges, Ithraa’s Export Directorate has created the Trade Up Seminar Program which is designed to help Omani enterprises that are new to overseas trade take the plunge, as well as assist those already trading overseas to increase sales. Through the Trade Up Series, we have tapped into the experiences of seasoned exporters to give businesses ideas and advice on how to avoid the main pitfalls and build a successful book of export business.
Ithraa’s Export Directorate is also taking a proactive approach to supporting Omani businesses’ export efforts, ensuring, for example, that Omani firms are well-represented at important trade events around the world. We understand that Omani companies require assistance expanding into foreign markets due to their own internal constraints and perceived trade barriers. Businesses have suggested that challenges with customs and compliance, distributors, intellectual property protection, financing, marketing, packaging and cultural barriers are some of the biggest barriers to becoming exporters.
In co-operation with other agencies and professionals, the Trade Up Series helps exporters with services and advice on topics that include: • • • •
Basics of the commercial transaction Market research and overseas markets Trade financing Documentation
• • • •
One of the best things Ithraa does is the ‘one-stop-shop’, where a single application by a foreign investor covers all ministries. Arafat Abu Isnaineh Executive Director, Omani Marble Co. LLC
Logistics Packaging Design Marketing
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Choose Oman More and more people are choosing Oman – it is a country that will open your eyes to new experiences and exciting possibilities. With opportunities across a number of sectors it could be the ideal opportunity for your business to grow and develop.
It was a successful trip for Apex and we’ve received a lot of enquiries from potential customers who have shown interest in placing orders. Naveed Sumar Chief Executive Officer Apex Textile Marketing SFZCO
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Ithraa facilitated our participation at Marmomacc in Verona and we were pleased with the show’s attendance especially the quality of visitor. We’re returning home with genuine enquiries. Zayed bin Said Al Risi Marketing Manager Gulf Stone Company SAOG
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An outstanding place to live and work
For further information contact: The Public Authority for Investment Promotion & Export Development (Ithraa) PO Box 25, Wadi Kabir, 117, Sultanate of Oman. Tel: (+968) 24 62 33 00 Fax: (+968) 24 62 33 36 www.ithraa.om
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