Only Oman by Ithraa Oman

From Logistics to Luban

Only Oman

Ancient History

Raising Our Game

10 Manufacturing 14 Logistics 18

Travel & Tourism

Agriculture & Fisheries

Get in Touch

Ancient History Benefitting from an unrivalled location at the nexus of east-west trade routes and at the gateway to the Gulf, the Sultanate of Oman neighbours some of the world’s fastest growing economies. Over the next 20 years, around three billion Asians will enter the ranks of the global middle-class, joining the consuming class with enormous implications for Oman’s economy, particularly in manufacturing, tourism, logistics, agriculture and fisheries. Indeed, this ancient seafaring nation with a vibrant culture and rich heritage has been welcoming traders and visitors for over 5,000 years and today, while cherishing its unique cultural identity is a highly competitive and future focused nation that is fully equipped to meet the demands of today’s fast moving global society.

Photography courtesy of Ministry of Tourism, National Business Centre, Sultan Qaboos University, Ithraa, Salma’s Chocolates, 23°North, DHL, Ahmed Al Shukaili, Alila Jabal Akhdar, Royal Opera House Muscat, Oman Convention & Exhibition Centre, National Hospitality Institute, Ministry of Agriculture & Fisheries, OAPGRC, Al Roya Magazine. Designed by Lamahat - www.studiolamahat.com

Main Prayer Hall at the Sultan Qaboos Grand Mosque

Only Oman

Ancient History

An Oasis of Political Stability and Tranquility

Oman also has a growing international reputation for

Oman is respected the world over for its role in international

academic excellence and leadership in research and

diplomacy. And highly regarded for its legal transparency,

innovation, with The Research Council funding scientific

orderly society and friendliness, Oman offers an enviable

investigation in plant genetic resources, health, energy,

lifestyle - an outstanding place to live, visit, work, do business,

the environment and education.

Export and Import Value 2015 3

Import: OMR 11,412,000,000

Export: OMR 13,404,000,000

49.5%

50.5%

invest and raise a family. Oman’s people, famous for their warmth and charm, Oman’s robust economy is guided by Vision 2020, a blueprint

friendliness and hospitality, have long been one of the

for growth and progress that steers the sultanate’s

country’s greatest assets. And today, the sultanate’s

economic diversification, the creation of a dynamic and

youthful demographic stands out as one of its major

international economy powered by local and international

strengths - educated, ambitious, tech-savvy,

talent, an efficient and competitive business community,

internationally-focused and multilingual, these young

and prosperity driven by non-hydrocarbons.

people are deeply proud of the sultanate’s achievements. Indeed, they are eager and willing to play their part in Oman’s continued development and success.

Sectors that Oman’s 9 Five-Year Development Plan th

(2016-20) highlight as having particular potential are: manufacturing; tourism; logistics; mining; and

Regarded as the jewel of Arabia, Oman is today the

agriculture and fisheries.

fastest growing tourism destination in the Middle East.

GDP at current market price (Mn.OMR) 26,850 (2015) GDP per capita OMR 6,456 (2015) Foreign direct investments OMR 7.5bn (2014) from 50 countries

Omani female and male age structure

Total Population October 2016

4,536,008

Total Trade Exchange OMR 24,816,000,000 (2015)

Expatriate

Omani

45.1%

54.9%

Its stunning natural landscape boasts beaches, mountains, Offering an open, transparent, trouble-free and stable

desert, wadis, fjords and desert islands while its clear seas

business-friendly environment, Oman actively courts

team with marine life. Rich in culture and heritage, there is

domestic and foreign investment in order to enhance

a wealth of ancient forts in addition to its four UNESCO

economic growth and development. In 2014, 50 countries

world heritage sites.

MONARCHY LED BY

placed US$19.78bn foreign direct investment into Oman. 1

Growing from its trading history, Oman has a dynamic enterprise culture driven by an active and fast-growing

HIS MAJESTY

Oman’s Major Cities

81.3% of all FDI investment came from nine countries.1 NCSI Foreign Investment Statistics Bulletin 2010 - 2014

SULTAN QABOOS

AMEInfo, 8 June 2014, Oman’s Al Rafd Fund Finances over 500 Projects, http://bit.ly/2i2x8cp 2

BIN SAID

NCSI Statistical Bulletin, October 2016

Muscat

start-up and SME community that enjoys generous

Sur

government support. Most recently, over US$36mn in financing was allocated to more than 500 small

Nizwa

businesses through the government-led Al Rafd Fund.2

Duqm Al Burami Salalah

Nation Fast Facts

Sohar

Pegged to US$ at 0.385 OMR Muscat

Capital City

309,500 square KM

Land Area

Omani Riyal (OMR)

Currency

Hot & humid summers with pleasant winters

GMT +4

Friday & Saturday

18 November

23 July

Average temperature

Time Zone

Weekend

National Day

Renaissance Day

Climate

Growing from its trading history, Oman has a dynamic enterprise culture driven by an active and fast-growing start-up and SME community that enjoys generous government support.

Photograph courtesy of Salim Al Hashli

Only Oman

Raising Our Game

Creating up-to-date, reliable information that is tailored to business needs

Raising Our Game The world’s economy is predicted to double in size by 2020 and this expansion will present significant new opportunities for Omani businesses – growing populations and rising prosperity; new technologies; the transition to a low carbon, circular economy; changes in age profiles; and the spread of international supply chains.

Inspiring the next generation of entrepreneurs

Providing state-of-the-art business

through a network of business champions

incubation space

Government agencies such as the National Business Centre and Riyada are helping local business owners and entrepreneurs by

As other countries respond to the same opportunities, the competitive pressure Omani businesses face will undoubtedly intensify. Our collective response has to be to raise productivity, improve resource efficiency and concentrate on developing comparative advantages. While these factors will differentiate Oman from its competitors, what will truly underpin the sultanate’s future success are its skilled, well-trained and talented workforce, enterprise friendly environment and the encouragement of innovation and creativity.

Building peer-to-peer

Putting in place

mentoring networks

business-friendly regulation

Offering easier access to finance

Talent & Innovation

Entrepreneurial Energy

Two key elements will be critical in meeting the global

In our view, competitiveness is all about creating a culture of

challenges of tomorrow. The first is ensuring that Oman’s

initiative, creativity and risk-taking amongst Oman’s workforce

economy is driven by, and has the relevant supply of,

and youth. It is about using entrepreneurial energy to drive

high levels of skill, talent, innovation and creativity.

social and economic progress. In this regard, Oman is forging

Secondly, ensuring that the sultanate’s economy is continually

ahaead. More companies are exporting than ever before and

moving to the fore of technological change – change that is

the number of start-ups is rising year-on-year. Indeed, small

reshaping business across the globe.

firms and individual entrepreneurs are contributing substantially to Oman’s growing knowledge-based economy.

In addition to developing domestic talent we must understand drivers that influence international re-location decision-making.

The vibrant future face of Omani enterprise is one that is

Research suggests that location preferences of the highest

already starting in homes and schools across the country

skilled workers, those who drive innovation and national

as we nurture and develop the talents of our youth,

competitiveness, are shaped first and foremost by career

making sure they get the education and training they need

development opportunities. However, other key features

to answer the commercial challenges of tomorrow.

such as urban environment, diversity, tolerance, physical

In fact, the strong entrepreneurial spirit of Oman’s youth is

infrastructure, residential amenity and cultural ‘buzz’ all

already clearly evident as is their desire to contribute and play

play a role and are areas in which Oman excels.

their part in the country’s future. And supporting their ambition, much is being done to develop a culture that fosters young entrepreneurs.

Start-up founders in discussion at the National Business Centre on Knowledge Oasis Muscat

Only Oman

Raising Our Game

Society 2.0

Lifelong Learning

Fully exploiting technology is the single most important step

In a world of ever-accelerating competition, change and

Oman can take to improve business, education and the

opportunity Oman’s educational system is focusing on the

provision of public services across the sultanate.

goal of creating a culture of lifelong learning. At the heart of this is the commitment to a set of values and to a system

Passion

Welcoming

Oman is passionate about its

Oman is a culturally diverse

Our schools are in the vanguard of Oman’s ICT revolution.

of education that affords all people the opportunity to stretch

Indeed, the Information Technology Authority (ITA) manages

their minds to full capacity, from childhood through

nation that welcomes people

an impressive national program that provides government,

adulthood, learning more as the world itself changes.

of all nationalities and values

youth, education, research, innovation and vocational training. It is this passion that

their contribution to the

businesses, schools and colleges with the understanding and tools to take best advantage of what technology currently offers.

A culture of this kind has, as a basic foundation, the idea

life and development of

that education is important not only because of its career

the sultanate.

Oman clearly recognizes that technology enables businesses

and workplace contribution but also because of the positive

to secure new markets, improve performance and attract high

effect it has on every aspect of life. At its heart is the belief

value-added investment to the sultanate. This will be achieved

that educational opportunities should extend from our schools

by the government’s continuing and widespread investment in

and colleges into our homes, offices, libraries, art galleries and

ICT skills and training. In fact, research reveals that employment

museums; into every place where the individual can develop

in ICT is forecast to grow rapidly across Oman and it is

and mature in work and life.

retains citizens and attracts international talent and enterprise to the sultanate.

Quality

Confident

Oman offers its residents

Oman is both confident and

and visitors an unparalleled

comfortable vis-à-vis its

lifestyle, offering residents

important that we encourage our young people to undertake Oman encourages its people to value the acquisition of

related degree programs and careers.

knowledge and skills, while nurturing creativity, imagination

which they enjoy attractive

and an enquiring mind. In brief, we recognize that by

and affordable workspace

We are working hard to promote technology-related

improving skills we increase the chances of long-term

and living accommodation.

education and capture in the school curriculum the excitement

financial benefits for individuals, families, organizations

that students already have for technologies in their daily lives.

and our country.

Finally, and perhaps most importantly of all, in today’s rapidly changing environment organizations such as ITA are ensuring that Oman’s workforce is encouraged and able to develop the world class ICT skills they need at every stage of their career.

international role - a role

a secure environment in

science, technology, engineering and mathematics (STEM)

which is valued and respected by the international community.

National Characteristics

The sultanate’s future depends on it.

Recognition Oman is a place that develops and attracts innovative businesses, particularly in oil and gas, finance, logistics, mining, manufacturing, tourism, agriculture and fisheries, ICT and professional services. As a nation, we recognize and value the business community’s role in Oman’s continued development.

Beauty

1 - Oman Medical College students 2 - Lab Scientific Laboratory’s Jasim Al Mamari, a National Business Centre incubator program graduate

Oman is a nation of outstanding natural beauty from beaches, sea and wadis to deserts, mountains and fjords all populated with diverse, and in many cases unique, flora, fauna and wildlife.

Connected Oman is a well-connected nation with excellent transport infrastructure, providing residents and businesses world-wide links through land, air and sea.

Creativity Oman is a nation that encourages and celebrates the arts, in particular those that reflect and radiate its rich heritage and culture.

Only Oman

Manufacturing

Manufacturing Manufacturing has been helping drive economic growth and raise living standards across the world for almost three centuries. Despite the protracted period of low growth in industrialized as well as in developing and emerging economies, there is no sign of an imminent recession in global industrial production. World manufacturing output rose by 2.1% in the first quarter of 2016 compared to the same period of the previous year.

Opportunities on Oman’s Doorstep: Demographics

Population Increase Emerging & developing countries

In Oman, manufacturing as we know it started in 1975 and currently the sector employs in excess of 71,000 people

Developed countries

and exports to 140 countries. In 2015, made in Oman non-oil exports reached US$8bn, up from US$680m in 2002 and accounted for 9.7% of Oman’s GDP.6

17.4%

Additional 1.1 Billion Customers

5.8% Multiplier For every US$1.00 of domestic manufacturing value-added destined for manufactured goods, final demand generates another US$3.60 of value-added elsewhere.7 That’s the highest multiplier effect of any economic sector. No sector does more to generate broad-scale economic growth - and, ultimately, higher living standards - than manufacturing.

As Oman-made products and manufacturing processes become more complex and productive, they create a host of skilled paraprofessional and professionals in non-manufacturing jobs such as logistics and transportation, construction, finance, retail, insurance and customer service. And as factories get smarter and more advanced the multiplier increases. In some advanced manufacturing sectors, such as electronic computer manufacturing, the multiplier effect can be as high as 16 to one, or 16x, meaning that every manufacturing job supports 15 other jobs.8

UNIDO - World Manufacturing Production Statistics for Quarter I, 2016

Development of Manufacturing Industries: Preparing for the Future – Oman’s Ministry of Commerce & Industry & UNIDO, 2015

NCSI Statistical Year Book 2016

MAPI Foundation, How Important is US Manufacturing Today? 13 September 2016, http://bit.ly/2dK7d6g

The Multiplier Effect: There are More Manufacturing Related Jobs than You Think, Keith D. Nosbusch and John A. Bernaden, Manufacturing Executive Leadership Journal, March 2012

0 2015

2020

2025

2030

Only Oman

Manufacturing

13 1 - Production at Reem Batteries & Power Appliances Company SAOC on Rusayl Industrial Estate 2 - A recent collection from up-and-coming designer, Anisa Zadjali 3 - Architect Nadia Maqbool of 23° North

Location 1

The process of choosing where, when and how to enter markets and where to invest is becoming extremely complex. Manufacturers are rethinking their location strategies and not simply following the path of lowest wages. Rock-bottom wages still matter in some segments, such as garment manufacturing, but in most manufacturing industries, hourly labour is less than 20% of costs. Where previously locations in South America and Asia with low wage structures made them hubs of global manufacturing. This is now changing and manufacturers are looking for four main ingredients:

National Asset

Small Urban Manufacturing

Talent

Manufacturing has been central to Oman’s economy and

Urban manufacturers tend to be small companies that produce

Access to talent is already an important factor in location

is key to the creation and retention of good paying jobs,

high value, design-oriented products. Their size and location in

decisions of manufacturers – more than the cost of wages.

providing a solid standard of living for Omani families.

cities keeps them directly in touch with customers so they can

Oman has a rich pool of human capital and managing it

A strong manufacturing industry is fundamental to the

identify and respond to the latest trends and demands in the

effectively will help enhance Oman’s competitive advantage.

country’s continued prosperity and vital to boosting the

market. Their urban location also allows them to draw on a

In turn, manufacturing can provide valuable employment

sultanate’s non-oil exports. Government has been working

highly skilled and versatile workforce.

opportunities and career paths for Oman’s youth.

economic growth and prosperity, integrating the work of

Oman is seeing growth in small urban manufacturing (SUM)

With the increasing speed and complexity of manufacturing

several public sector agencies to promote sustainability,

activities, from bespoke confectionery, jewellery and

industries, the need for more high-skill workers is growing

liveability, inward investment and economic competitiveness.

toiletries, high-fashion abayas to precision engineering,

and shortages of workers with training in technical and

1 Government friendly business regulations In partnership with the World Bank, Oman’s Ministry of Commerce & Industry has revised the sultanate’s Foreign Capital Investment Law.

hard to establish a new placed-based vision for Oman’s

where innovation in design is creating products that are

analytical specialties are appearing worldwide.

Government clearly recognizes that manufacturing’s success

capturing the attention of Omani consumers. SUMs are also

Oman’s manufacturers, schools and universities are

and ability to create jobs are dependent on having a skilled,

leveraging opportunities around the Circular Economy and

deepening dialogue to ensure that skills of their graduates

multilingual, internationally-focused workforce, a modern

green manufacturing where consumers prefer Oman-made

meet the needs of the sultanate’s industry.

infrastructure to transport Oman-made goods, a commitment

products that use recycled materials and whose workers live

to on-going improvement through energy efficiency and waste

locally and maintain a small carbon footprint.

2 Talent Today, Oman has 724,000+ registered school students11 and 68,000+ enrolled in higher education, 57% of these are women. Most are multilingual.12

Oman graduates 19,000+ higher education students annually.10 We must ensure that our manufacturers access

reduction and a stable supply of appropriate manufacturing workspace. Moreover, contributing to an increasingly

To capitalize on this potential, government has introduced

this valuable talent pool for the growing number of jobs in

competitive and attractive Omani manufacturing sector are

a range of programs to facilitate SUM workspace as well as

management, sales, marketing, accounting, R&D and

numerous public-private partnerships.

provide finance and start-up mentoring through the National

production posts and that graduates are aware of the many

Business Centre, Riyada and the SME Development Fund.

career opportunities in manufacturing.

3 Markets There are over 1 billion consumers on Oman’s doorstep,

The Public Establishment for Industrial Estates (PEIE),

GCC Common Market, Greater Arab Free Trade Area,

the umbrella organization for the management of industrial

and Free Trade Agreements with the USA and Singapore.

parks in Oman, introduced a long-term strategy for 2011-2025, which plans to add a total of 133 million square metres of new land to its current portfolio of industrial estates. The goal is to make the private sector the engine of growth

for Oman’s economy, and organizations across the country are helping PEIE to attract foreign participation to meet that end. In the coming period, PEIE intends to invest over

Infrastrcuture

US$180 million in large-scale extensions at its industrial parks,

Oman has invested heavily in infrastructure,

which will provide more than 500 new plots to investors.

for example, the Special Economic Zone Authority

Growth has surged in recent years, with total investment in

at Duqm, a project twice the size of Singapore.

industrial parks reaching US$11.5bn in 2012.9 PEIE Registers OMR4b Investment, Times of Oman, 21 May 2013, http://bit.ly/2jxuuMb

NCSI Statistical Yearbook 2016

Ibid

Only Oman

Logistics

Oman exports to more than 140 countries worldwide

The logistics sector clearly plays a vital role in Oman’s modern and ambitious economy and is key to increasing inward investment, non-oil exports and the nation’s competitiveness. Capitalizing on regional urbanization and its emerging middle class, Oman will spend in excess of US$50bn on infrastructure projects over the next 15 years, US$20bn of which is earmarked for the transport sector.

4.8

Moreover, the government’s investment in infrastructure

Oman’s logistics industry is expected to grow at a CAGR of

offers widespread and attractive opportunities for logistics

7% between 2015 and 2020.15 The key drivers for economic

providers, particularly those with a significant presence in

growth are the infrastructure investments in ports, free zones,

the global freight forwarding business. Investment in

industrial parks, roads, airports and rail network,

infrastructure is also expected to create 80,000 jobs in

economic diversification efforts and trade with GCC states,

logistics by 2020, rising to 300,000 by 2040.13

Asia and Africa.

Earning revenues of US$7.87bn in 2013 that are forecast to

Logistics is not only an important sector in its own right but

reach US$12.02bn in 2017, Oman’s logistics sector is already

also a critical enabler for businesses of all sizes operating

competitive, contributing 4.9% to the sultanate’s GDP in

across the sultanate - from the gypsum quarry in Thumrait,

2015. The industry is led by multinationals offering a

hypermarkets in Seeb, battery manufacturer in Rusayl,

comprehensive range of sophisticated logistics services,

the pelletizing plant in Sohar to the plastics exporter on

down to smaller national freight forwarders offering the

Salalah Free Zone. A well-oiled logistics sector provides

simple storage and shipping of merchandise.

Omani businesses and manufacturers with ways to increase

2009

7.8

6.3

2010

2011

10.7

9.8

9.2

7.8

2012

2013

2014

Increase in Oman’s Export Revenue - US$ billions

USA United Arab Emirates

China

India

efficiency, go greener and drive profits. Saudi Arabia

Oman’s Top 5 Export Markets

Oman Global Logistics Group, 2016

Analysis: Oman Logistics Industry’s Transformation, 21 March 2016, Arabiansupplychain.com http://bit.ly/2iRqHG0

Ibid

2015

Only Oman

Logistics

17 1 - Port of Salalah 2 - Oman Air taxiing at Muscat International Airport 3 - Omar Al Hsani, DHL 4 - Mina Al Sultan Qaboos Waterfront

Ports

Suez Canal

Khasab

Serving the emerging markets of the GCC, Asia, Africa and Iran are the deep-water ports of Salalah, Sohar and Duqm

Rail

and their respective free zones. Oman’s three key terminals

Oman continues to develop a national rail network: a modern, mixed traffic

offer businesses an attractive alternative to more costly ports

railway for the movement of freight and passenger services. This new railway

of call in the Gulf, saving time and fuel and providing access

Singapore

to other modes of transport. Sea transport accounts for more than 80% of freight which is expected to grow by 4.8% in 2016, this growth is being driven by increasing intra-region GCC trade as well as demand from Europe and the emerging

Jebel Ali

Sohar

Salalah

Duqm

US$ 24.62m

US$ 17.09m

US$ 4.47m

US$ 8.69m

Estimated annual costs for a weekly call for ultra-large container vessels

premier regional container hub. Oman’s position as a trade hub has been exploited further by the establishment of free zones adjacent to the ports of Salalah and Sohar. The 2,000+ square-kilometer special economic zone at Duqm (SEZAD)16 is another major initiative for Oman and, with world-class infrastructure, one that is expected to have a significant impact on Oman’s efforts to diversify the economy in line with Vision 2020. According to SEZAD’s master plan, there are numerous investment opportunities in Duqm, and over the next five years we expect it to receive between US$6bn and US$8bn of direct investment.17 The area around Duqm is mineral rich with vast limestone, gypsum, salt and dolomite deposits - this offers the possibility of it becoming a focus for mining and other associated industries.

Road Reinforcing Oman’s strong transport and logistics offer, an additional 1,223kms were added to the sultanate’s roads in 2015. Indeed, the recently opened 680km road between Oman and Saudi Arabia which runs through Rub Al-Khali will increase road freight by providing a more direct route between the two countries as well as reducing the number of border crossings. The highway on the Oman side is about 160km long, starting from Tanam in Ibri and ending at the Saudi border. From Saudi Arabia, it stretches 247km from the Omani border to the Shaybah Oil Field and 319km from

development areas with the population centres of the country and

the launch of Salam Air, the sultanate’s first low-cost carrier, will all help further facilitate international trade and the

Welcome to Duqm, www.duqm.gov.om Chinese Investors to Build Industrial Park at Oman’s Duqm Port, 23 May 2016, Reuters, http://reut.rs/2b2I6Yi

An Investment Opportunities Forum on Railway Project, 15 September 2014, Oman Rail News & Events, https://www.omanrail.om/news/19

Ramlet Khelah

and international rail-based logistics solution for intermodal containers, bulk minerals and liquids, break bulk and industrial freight, bulk minerals/liquids and passengers. The railway network will be a major step in Oman’s journey to become a key logistics hub for the region and the gateway to the GCC. Haima

The Oman Rail Project offers a unique opportunity for the country

Duqm

to enhance local capacity – people and industry – whilst substantially contributing to the overall wealth of the country through In Country Value and wider socio-economic benefits. Once completed,

projects costing in the region of US$13 to US$15bn.

airports, the growing number of Oman Air destinations and

Ibra

with the GCC. It will provide customers with an efficient domestic

Air

ports, free zones, logistics hubs, mineral resource and petroleum

the estimated total length of the railway network will

Recent investment in Muscat, Salalah, Sohar and Duqm

Muscat

To achieve this, Oman Rail will link the sultanate’s three main deep-water

Shaybah to the Batha-Haradh road, which leads to Riyadh.

development of Oman’s logistics sector.

Buraimi

and will form part of the wider GCC Railway Network.

markets of Asia and Africa. Today, Salalah Container Port competes with Abu Dhabi as the

Sohar

system will connect the centres of population and growth drivers of Oman

be 2,135km. It is one of Oman’s largest infrastructure

Mazyounah

Oil Field

Thumrait

Gas Field Minerals Cities/Towns

Salalah

Ports Free Zones/Logistics Areas

Only Oman

Travel & Tourism

Travel & Tourism In 2012, the tourism sector achieved the global milestone of one billion international arrivals. Today, the travel and tourism industry outperforms manufacturing, retail, financial services and communications. International tourist arrivals grew by 4.4% in 2015 to reach a total of 1.184bn, according to the latest UNWTO World Tourism Barometer. 19

Worldwide, the tourism sector generates US$1.5tr in exports and contributes nearly 9.8% of world GDP, making it the world’s largest industry. On the job front, it employs 284 million. This means one in 11 jobs on the planet are supported by travel and tourism. It is big business.20 Worth US$1.8bn at the end of 2014, tourism’s direct contribution to GDP is expected to increase from around 2% to 5% by 2020. Moreover, the sector aims to create in excess of 100,000 jobs by 2024.21

Outstanding Offer

Visitor Numbers Up

From north to south, Oman offers an array of diverse tourism

Despite lower oil prices and rising global economic uncertainty,

experiences. For the leisure traveller there are five-star hotels,

numbers for Oman’s tourism sector in 2015 were healthy,

luxury beach resorts and spas, desert camps and mountain

growing on the back of a strong 2014. As of October 2016,

retreats. Oman’s rich heritage, history and traditions – from

a total of 2.5mn tourists (not including onboard cruise ship

forts, souqs and UNESCO world heritage sites to galleries,

tourists) visited the sultanate.22

12.4%

Others 45.8%

museums and the Royal Opera House Muscat – are a strong draw for the cultural explorer. Indeed, Oman’s ancient capital,

Experiential Tourism

Nizwa, was 2015’s Capital of Islamic Culture. Oman’s stunning

What is driving this growth? Travellers are looking for real

and varied landscape presents a treasure chest of opportunities

experiences in non-traditional destinations. They want

for the sightseeing safaris while the adventurous visitor can

meaningful, life-enhancing experiences and are keen to

sail, dive, windsurf, fish, climb and more. And set to play an

interact with local people. In brief, they want to be inspired.

important part in business tourism is the state-of-the-art

This offers exciting opportunities for Oman given its wealth

Oman Convention & Exhibition Centre (OCEC).

of unique cultural and outstanding natural assets.

1 ,47

o isit

the

8 ,09

t ors

Vis

ta sul

GCC

0 n2

19.2% 4

ta sul

1 20

Europe

Where are they from?

22.6%

Asia International Tourist Arrivals up 4% Reach a Record 1.2 billion in 2015, 18 January 2016, World Tourism Organization, http://bit.ly/1JUxji5

Ibid

Oman Sets Prudent and Realistic Goals for Ninth Five-Year Plan, Muscat Daily, 18 January 2016, http://bit.ly/2jpJfjZ

Number of Tourists to Oman Rises in 2016, Times of Oman, 26 December 2016, http://bit.ly/2iz6WpD

Only Oman

Travel & Tourism

21 1 - Alila Jabal Akhdar 2 - Misfat Al Abriyeen 3 - The Royal Opera House Muscat

Quality Build There are approximately 39 tourism projects in various stages

of design, construction or tendering, these include the OCEC, Wadi Bani Habib and the Al Hoota Cave redevelopment, Madinat Al Irfan, Mina Al Sultan Qaboos Waterfront, Duqm frontier town and the development of Ras Al Hadd. Omran-led, Madinat Al Irfan is a world-class smart city project that covers over 7.4mn square metres – an ambitious urban project that will have business parks, hospitals, schools, hotels, housing as well as strategic transport links to Muscat International Airport (MIA). Upon completion, the development is expected to contribute around

Khasab

US$1.1bn annually to GDP.23

The Rise of Asia

New Airports

Designed to transform Port Sultan Qaboos into a major

We live in what experts call the ‘Asian Century’. If the current

The development of accommodation as well as transport

tourism-based mixed-use waterfront destination, the first

growth track continues, by 2050, Asia’s per capita income

links to and within the sultanate will be vital to the future

phase of US$1.3bn Mina Al Sultan Qaboos Waterfront

could rise 600% in purchasing power parity matching Europe

expansion of Oman’s tourism sector. In this regard,

project was launched in November 2016. The first phase

and other Western markets. Over the next two decades,

Oman Airports Management Company is involved in the

of Mina Al Sultan Qaboos Waterfront consists of a

around three billion Asians will enter the ranks of the global

development of Muscat International Airport (MIA) and

fisherman’s wharf, fish souq, a five-star marina hotel,

middle-class, joining the ‘consuming class’ with enormous

Salalah International Airport (SAIA) as well as regional

a four-star family hotel, hotel-operated residential apartments,

implications for the global economy and Oman’s tourism

airports in Duqm, Sohar and Ras Al Hadd.

starter apartments for first time home buyers, destination

sector. Asia has been one of the powerhouses of the world

shopping, waterside restaurants and cafes, boutiques, offices,

outboundtravel market in recent years. Overall, World Travel

At an estimated US$4.7bn in project costs, the new MIA

entertainment and cultural facilities as well as super yacht and

Monitor predicts international tourism growth of 4.3% for

development is billed as the single biggest civil construction

a leisure boat marina.

2016. The strongest growth can be expected from Asia

undertaking in Oman’s modern history.27 The expansion and

(+6.1%).25

modernization will increase the airport’s capacity to handle

The project, built on land provided by the government,

Sohar Muscat Ras Al Hadd International Airports Regional Airports

Duqm

12 million passengers per annum with further potential to

is expected to bring social and economic benefits and

During this period, China has emerged as one of the global

accommodate up to four times that number. The expansion

create about 12,000 direct and 7,000 indirect jobs.24

leaders in the outbound travel sector, together with Japan,

project includes an extension of the existing runway to

South Korea, India and Taiwan. China and Japan now account

4 kilometre, plus a 4 kilometre runway at the new terminal.

Business Events

for about 50% of all Asian outbound travel. The Economist

This will mean a future airport with two runways each

With one in three of all tourists in the GCC a business

Intelligence Unit predicts that by 2020, China will be the

capable of handling 40 flights per hour including the Airbus

traveller, the region’s business event industry is showing

GCC’s most important economic partner. This growing

A380s, the largest passenger jet currently in operation.

continuous growth and is set to expand even further while

relationship will undoubtedly help foster increasing business

The new terminal will also have approximately 18,000m2

attracting high-profile global events and state-of-the-art

and leisure travel from the emerging economies of China

of commercial space.

infrastructural investments. As an important generator of

and India to Oman.

income, employment, international prestige and foreign

The new US$991mn SAIA opened in June 2015 and has the

investment, the business event industry in general,

capacity to handle 1 million passengers per annum, with future

and Omran’s development of the OCEC in particular,

expansion plans to extend capacity to 6 million passengers

represents a key driver of Oman’s economic development

annually. 28 The airport also has a runway capable of handling

strategy. The industry also has the added benefit of a high

Airbus A380s, and a gross floor area in the terminal of 65,638m2.

Salalah

3hrs

7hrs

15hrs

per capita budget potential.

Oman Air’s International Network

Ten Plots Released for Investments at Madinat Al Irfan project: Omran, Muscat Daily, 29 September 2016, http://bit.ly/2dF2DGE

Phase 1 Mina Al Sultan Qaboos Waterfront will Launch on Wednesday, The Big 5 Hub, 14 November 2016, http://bit.ly/2iRoLNL

ITB World Travel Trends Report 2015 – 2016, December 2015, http://bit.ly/1Pvvm8i

The GCC in 2020 Outlook for the Gulf and the Global Economy, The Economist Intelligence Unit, March 2009, http://bit.ly/2jtSknQ

Phase One of Muscat International Airport Built at Cost of OMR 700 Million Opens, Ventures Onsite, 16 December 2014, http://bit.ly/2j0gDdX

New Airport Built at Cost of OMR 365 Million Opens in Salalah, Times of Oman, 11 November 2015, http://bit.ly/2ieXVxa

An artist’s impression of the Oman Convention & Exhibition Centre

Only Oman

Agriculture & Fisheries

Agriculture & Fisheries The GCC population is set to surpass 50 million by 2020 – a rapid rise from 41.7 million in 2010. This increase will spur on growth and demand in most sectors, particularly in the food industry. However, with land and water scarcity limiting agricultural production in the GCC this means food imports are large, forming 90% of the region’s food requirements. 29

Rising Demand Population growth and the increase in the number of tourists

To counter price fluctuation arising from external factors,

as well as per capita income will see food consumption in the

Oman’s Public Authority for Stores & Food Reserves works

region reach 54.1 million tonnes by 2017. This represents a

toward streamlining the procurement and supply of essential

compound annual growth rate of 301% from 2012 to 2017.

food commodities. Meeting the increasing demand for food is

Indeed, this investment has raised Oman’s self-sufficiency

In 2015, Oman’s fish production rose by 21.7% reaching

Experts estimate that GCC food import demand will reach

both a challenge for government and an opportunity for the

in overall food production by 32.8% as of 2013. The sultanate

257,000 tons compared to 211,000 tons in 2014.35

US$53.1bn by 2020, up from US$25.8bn just a decade ago.31

sultanate’s private sector to expand within the market.

is estimated to be 75.7% self-sufficient in vegetable production.

It is expected that by 2020, the direct return from fishing

Oman’s Agricultural Census of 2012-13 recorded 256,000

and fish processing activities to be around US$1.9bn.36

The region’s rising incomes will also impact the demand for food consumption. By 2017, the GCC GDP is expected to be

Self-sufficiency

farmers, 44,521 licensed fishermen, more than 2,800 labourers

Public spending on agriculture, forestry and fishing rose

involved in fish transport and 2,500 at fish installations.33

A majority of the upcoming processing plants will be located

US$1.8tn, up from US$1.1tn in 2010. Per capita income is

29.8% from US$124.3m in 2013 to US$161.3m in

predicted to increase to US$36,839 by 2017, up from

2014, and almost twice the US$85.9m allocated in

Blue Revolution

the largest multi-purpose fisheries facility in the Middle East.

US$27,304 in 2010. Improved transportation and consumer

2010. This rapid increase in expenditure is indicative of

Oman is the largest fresh fish producer in the GCC. In 2015,

The planned US$250m fisheries centre will accommodate 60

perceptions regarding quality and safety are also changing

the importance the government places on agriculture

fish exports rose by 42.4% to 110,000 tons, compared to

processing plants, storage facilities, landing areas, boat repair

food consumption patterns.32

and fisheries.

77,000 tons in 2014.34

shops, aquaculture projects and research and training centres.

at the Fisheries Industrial Zone at the Port of Duqm, set to be

Investment in the sector will also promote SME growth around The GCC in 2020: Resources for the Future, Economist Intelligence Unit, 2010, http://bit.ly/2j6zmHu

Food, Bahrain Economic Development Board, http://bit.ly/2ii4a6O

Government investments into Oman’s budding fisheries and

the major developing port cities of Sohar, Duqm and Salalah.37

aquaculture segments have drawn international investor

Alpen Capital, 28 April 2015, GCC Food Industry, http://bit.ly/2izpZ23

attention. The Ministry of Agriculture & Fisheries allocated

Oman plans to begin high-end aquaculture activities,

Ibid

US$331m during Oman’s 8 Five-Year Development Plan,

centering on oyster, mussel and seaweed farming. Once the

Oman Builds its Food Processing Sector, Industrysourcing.com, 28 January 2015, http://bit.ly/2j7lp8e

specifically for fisheries development, and US$1.3bn of

water area is allotted, the sultanate will be the first country

government investment is expected by 2020. Across the

in the region to exploit the rapidly growing global seaweed

Oman’s 9th Five Year Development Plan (2016 – 2020) Prudent & Realistic Goals, Oman Arab Bank, http://bit.ly/1StgXj1

sultanate, 10 new fishing ports are under development,

farming industry, the total annual commercial value of which

Full Basket: Food Processing Promises to Serve Growing Regional Appetites, Oxford Business Group, The Report: Oman 2014, http://bit.ly/2i3Dfbs

and by 2020 this would increase the number to 31.

is estimated at US$6bn, according to FAO figures.38

31 32 33

NCSI Statistical Yearbook 2016

Ibid

35 36 37

A Guide to the Seaweed Industry, FAO Fisheries Technical Paper 441, http://www.fao.org/3/a-y4765e.pdf

Only Oman

Agriculture & Fisheries

25 1 - Omani Kawakawa 2 - Frankincense-infused chocolate by Salma’s Chocolates 3 - Member of Oman Agriculture Association inspects local produce

Targeting Youth 1

The Ministry of Agriculture & Fisheries plans to allocate 50,000 agricultural plots in Al Maghsar, south of Musannah as a first step in setting up integrated agriculture and aquaculture projects aimed at Oman’s youth and SME owners.42 The initiative is part of the Ministry’s efforts to ensure the integrated management of agricultural and fisheries resources according to pre-set government strategies and plans. Each farm will measure 10 feddans (4.2ha) and be divided into three parts for production of targeted crops. Each will feature greenhouses, open plant areas and aquaculture

National Fisheries Development Strategy 2013-20

Local Food Start-ups

Omani Millennials

units. Plots are expected to grow potatoes, onions,

In 2013 the government launched the National Fisheries

The growing demand for safe, local food is leading to

Today’s 18-35 year-old Omanis want more information about

watermelons, melons, carrots, tomatoes, cucumber,

Development Strategy 2013-20 – designed to accelerate the

increased opportunity for Omani food start-ups, which in

their food – where it comes from and what is in it. As a result,

capsicum, strawberry and beans. A total of 1,200

development of Oman’s fisheries sector. Investments of over

turn is fuelling job creation. There is an understanding

more health-conscious product development, with thoughtful

square metres will be earmarked for aquaculture units.

US$1.3bn were apportioned for the fisheries sector with the

that the profit potential from robust consumer demand

ingredient choices are emerging. While weight management

Irrigated water will be recycled and used in the units.

goal of boosting domestic employment and increasing the

for local food is real and here to stay. Even large fast food

will be addressed, it will not be in terms of ‘diet’ products.

industry’s contribution to GDP.39 A core objective of the

chains are no longer content to be fast; they now want to

Instead, products focused on delivering satiety, energy and

Growing Careers

strategy is to more than double the output from the sector

be casual, local and green, tapping into an alert and

positive nutrition, without empty calories will be produced.

Agriculture is the world’s largest industry.

to more than 462,000 tonnes by 2020 and create an

environmentally conscience millennial market. The fact

estimated 20,000 jobs. The impact of new fishing and

researchers quantify the amount of food produced on small

There is also a rising demand from Omani millennials for

over US$1.3tn worth of food annually.43 Pasture and

processing is estimated to total over US$1.9bn by 2020.40

urban farms is testament to the burgeoning local-foods

clean and sustainably caught and 100% traceable food.

cropland occupy around 50% of the Earth’s habitable

It employs more than 1 billion people and generates

movement and its data-hungry supporters. Whether urban

These young, educated, environmental and health-conscious

land and provide habitat and food for a multitude of

The strategy also details a number of areas for private

farms ultimately produce more food or not they certainly

consumers are looking for food that is produced locally,

species.44 Given its importance and the challenges

investment in the sultanate’s fisheries sector, an industry

play a vital role in creating more awareness about food –

packed in BPA-free packaging, non-GMO and preservative,

agriculture faces with climate change, population

that currently sustains the livelihoods of approximately

where it comes from, what it takes to produce and how to

additive and gluten free. Presenting exciting opportunities

growth, urbanization as well as food and water

46,837. Opportunities identified include the

prepare and eat it.

for Oman’s burgeoning food sector.

security, there has never been a greater need for

development and operation of boatyards, marine construction

innovative, sustainable farming.

activities, operation and management of fishing fleets, fish processing and value added activities, logistics and

Working in agriculture means more than just toiling

storage, activities related to the trade and export of fish,

the land. For Oman’s highly skilled and ambitious

supply of fishing gear, equipment and spare parts,

youth there are agricultural career opportunities in

ice production, fish feed for aquaculture, hatcheries,

permaculture design, biodynamic farming,

supply of technology, diving services providers, fish farm

food packaging and marketing, ICT, forecasting,

operation and consultancy and training services.

logistics, quality assurance, urban farming, food preparation and environmental sciences.

Ministry Allocates OMR 500 million for Fisheries Development, Times of Oman, 21 March 2015, http://bit.ly/2jgvZtN

Oman Plans to Double Fisheries Industry, Foodnavigator.com, 25 March 2014, http://bit.ly/2iq6yGh

NCSI Statistical Yearbook 2016

Ministry of Agriculture and Fisheries to Start Integrated Agricultural Projects, Muscat Daily, 9 October 2016, http://bit.ly/2iVzKZ3

Sustainable Agriculture, World Wildlife Fund, http://wwf.to/1ECB0Co

Sustainability Pathways: Livestock & Landscapes, 2012, The Food & Agricultural Organization of the United Nations (FAO), http://bit.ly/2c0Z8us

Only Oman

Get in Touch

Brand Oman: Government and business are partnering to help differentiate Oman from other places and facilitate the promotion of the sultanate’s place product offer. In simple terms, Oman’s brand image is a complex bundle of functional, emotional, relational and strategic elements that collectively generate a unique set of associations in the public’s mind. It is impossible to sum up Oman’s brand in a word – it is multi-dimensional and constantly changing – we are an evolving story. Fully aware that trying to create a brand artificially is dangerous, we are working on reality, not image. It is this approach that will generate real global interest in Oman. Only Oman Oman is a smart, dynamic and welcoming nation that offers

We boast some great reasons why you should invest, move,

a quality of life unparalleled by any other country in the Gulf,

relocate and study here. Indeed, our goal is to give you access

providing a true community with world-class amenities for

to every possible resource to maximize your competitiveness.

businesses and people. Oman’s cost of living is lower than many of its regional competitors, and a combination of market

More and more people are choosing Oman – it is a country

access and economic diversity provides the resources any

that will open your eyes to new experiences and exciting

company needs to flourish.

business possibilities. With opportunities across a number of sectors it could be the ideal home for your business to

The sultanate’s unique character can be attributed to its people, history, location, infrastructure, collaborative business community, government support and an

grow and develop.

Ithraa Formed in 1996, Ithraa is Oman’s award-winning inward investment and export development agency. We are an ambitious organization committed to promoting the business benefits of Oman to a global audience. We are a team of seasoned and knowledgeable investment and export professionals with business contacts worldwide. Our experience, expertise and global reach helps companies of all sizes realize their potential. Vision

Reasons to Invest

Promoting the sultanate as the best destination for

Oman is the ideal business location for businesses interested

investment and trade in the world.

in the growing and emerging markets of the Middle East, Africa and Asia. From headquarters and back-offices to

Mission

manufacturing and logistics, Oman offers people and

To attract sustainable investment and promote the export

businesses an outstanding place to live, work, invest and

of Omani non-oil goods and services that support the

visit. We have an excellent talent pool of people our roads,

sultanate’s ambitions for growth and prosperity.

ports and airports are ranked as some of the best in the world and we boast world-class ICT, manufacturing and

unprecedented array of cultural and sporting activities.

business properties. We offer everything an ambitious

Ambition • Increase investment in Oman’s growth sectors. • Boost the impact, presence and visibility of Oman’s non-oil exports in international markets. • Enhance the skills of Oman’s workforce • Attract international talent. • Assist in simplifying the process of international trade from Oman.

www.ithraa.om Ithraa | PO Box 25, Wadi Kabir, 117, Sultanate of Oman. T +968 24 62 33 80 | F +968 24 62 33 36 | E info@ithraa.om @ithraaoman

company needs to succeed. Moreover, our successful and continuing economic growth has also significantly enhanced Oman’s leisure, housing, industrial and office provisions, strengthening Oman’s ability to attract and retain investment and talent, offering you outstanding market opportunities. Get in touch and talk to us today.