RESTRICTED  
  
WT/TPR/G/418  
13 Octob er 2021 
(21-7712) Page: 1/14 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
OMAN 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Oman  is 
attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Oman . WT/TPR/G/ 418 • Oman  
 
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  CONTENTS  
1   INTRODUCTION  3 
1.1   Sustainable Development and Renewed Renaissance  3 
1.2   Oman Second Vision 2040  3 
2   ECONOMIC DEVELOPMENT  4 
2.1   Economic Growth  4 
2.2   Diversification of the Economy  5 
2.3   Privatization  6 
3   INVESTMENT REGIME  6 
4   HUMAN RE SOURCE DEVELOPMENT  7 
5   IMPORTANT DEVELOPMENT PROJECTS  8 
5.1   Oman Logistics Strategy  8 
5.2   National Innovation Strategy  8 
6   TRADE POLICY DEVELOPMENT  8 
6.1   Objectives of Trade Policy  8 
6.2   Tariffs  9 
6.3   Other Measures Affecting Imports  9 
6.4   Measures Directly Affecting Exports  10 
6.5   Exports Subsidies and TRIMs  10 
7   SECTORAL DEVELOPMENT  10 
7.1   Agriculture and Fisheries  10 
7.2   Manufacturing  11 
7.3   Oil Sector and Mining  11 
7.4   Services  11 
7.5   Regional and Bilateral Trade Liberalization  12 
8   OMAN, WTO AND DOHA DEVELOPMENT AGENDA  12 
8.1   Oman and WTO  12 
8.2   Doha Development Agenda  12 
9   FUTURE DIRECTION OF OMAN'S TRADE POLICY  13 
10   ANNEX - TECHNICAL ASSISTANCE NEEDS OF OMAN  13 
 
 
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  1  INTRODUCTION  
1.1  Sustainable Development and Renewed Renaissance  
1.1.  The Government of the Sultanate of Oman continued to adopt a trade policy based on economic 
openness despite the world economic crisis and regional challenges this policy continues to be based 
on four pillars: sustainable development with a stable macroeconomic  framework; diversified, 
dynamic, and globalized economy, advanced human resource development, and efficient and 
competitive private sector.  
1.2.  Oman under the leadership of His Majesty Sultan Haitham bin Tarik will continue its renewed 
Renaissance march which  promises stability and growth.  
1.3.  Vision 2040 is the guide and key reference for planning activities in the next two decades. In 
his address to the nation, His Majesty Sultan Haitham bin Tarik focused on the Vision, and its 
expected contribution in devising the country 's economic, social and cultural goals, "in a manner 
that embodies a clear -cut vision and great expectation towards a more prosperous future ". 
1.4.  The Vision 2040 garnered wide community participation. The vision committees consisted of 
representati ves of the government, the private sector, civil society organizations, and citizens - in 
addition to experts, scholars, and specialists.  
1.2  Oman Second Vision 2040  
1.5.  In 2021, Oman launched its Vision 2040 enshrines the long -term goals of Oman. The vision 
identifies economic diversification, fiscal sustainability, private sector development, the attraction of 
sizable foreign direct investment, and international cooperation, among others, as national priorities 
to be realized in the next twenty years. The vision outlines twelve national priorities and their key 
performance indicators to help the country in its economic and social development.  
1.6.  The vision attaches great importance to governance and its related topics, given that it 
influences all national priorities  in terms of enforcing oversight, ensuring the effective use of national 
resources, hono uring principles of integrity, justice, transparency, and accountability to boost 
confidence in the national economy and promote competitiveness across all sectors unde r the rule 
of law.  
1.7.  While foreseeing the future progress and development aligned with an ambitious work system, 
its blueprint, which was unveiled last year, targets several economic indicators including a 
commitment to raise real GDP per capita by 90 % and r eal GDP growth by 5% annually during the 
next 20 years. It also targets to enhance the contribution of Foreign Direct Investment (FDI) to GDP 
by 10 %. Furthermore, it envisions the share of no -oil activities to grow to more than 90 % of GDP, 
as well as a 40 % contribution to job creation by the private sector.  
1.8.  The vision also foresees a society with flexible yet strong agencies, all -encompassing 
governance, effective supervision, swift justice, efficient performance, and active and ever -renewing 
media, aided by an empowered civil society that participates in all aspects of life, towards higher 
levels of human development.  
1.9.  The 10th Five-Year Plan is the first executive plan under Oman Vision 2040, which covers 
12 priorities under the four themes — a socie ty of creative individuals, a competitive economy, 
environmental and natural resources,  besides a state with responsible apparatus.  
1.10.  To reach a diversified and sustainable economy, interacting with new developments and 
variables, capable of competing in the  international community, ready to meet the needs of citizens 
present a nd future, the Ministry of Commerce , Industry and Investment Promotion  seeks to develop 
an action plan for the next phase, in line with its vision and its objectives in line with the Vision of 
Oman  2040, based in its methodology and programs on the terms of reference entrusted to this 
ministry and the tasks entrusted to it. Based on the Royal Decree No. 97/2020 to amend the name 
of the Ministry of Commerce  and Industry to the Ministry of Commerce  and Industry and Investment 
Promotion  and determine its terms of reference and adopt its organizational structure, according to 
four axes: serving the provinces and meeting the needs of their citizens, improving the quality of WT/TPR/G/ 418 • Oman  
 
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  services through digital transformation, granting the powers to operational departments to achieve 
decentralization, and contributing to the growth and sustaina bility of the national economy.  
2  ECONOMIC DEVELOPMENT  
2.1.  Despite, the Omani economy   already witnessing a slowdown, has been severely   hit by the dual 
shock of lockdown and a steep   decline in oil prices unleashed by the C OVID -19  pandemic. The 
Government under Om an Vision 2040 which is comprehensive and covers all aspects of development 
and real opportunity hopes to move to a new stage of progress.  
2.1  Economic Growth  
2.2.  Since  the second half of the year 2014, The Omani economy has been faced with falling crude 
oil price s witnessing  a slowdown during 2019, after registering robust growth in   the previous 
two years.  
2.3.  The average growth rate of GDP at current prices during the five years from 2014 to 2019 
was -1.38%. Nominal GDP fell by 4.3 % in 2019, with hydrocarbon and no  -hydrocarbon   activities 
contracting by 8.4 % and 1.5 %, respectively. Inflationary   conditions, however, continued to remain 
benign, providing a cushion to people at lower income   strata as well as supporting stability. Despite  
lower oil prices, fiscal and external accounts recorded   some improvement during the year, reflecting 
some success of the public policy on fostering   macroeconomic stability . Despite   OPEC+ extending 
the production cut agreement,   oil prices remained under pr essure in 2019 and   stood lower than 
those of the preceding year.  
2.4.  As per the preliminary data released by National Center for Statistics and Information (NCSI), 
Oman's nominal GDP showed a decline of 16.5 % during the third quarter of 2020 over the same 
period of the year 2019. The contraction was driven by a 24.4 % decline in the hydrocarbon sector 
coupled with the decline in the non -hydrocarbon sector by 12.4 % during the third  quarter of 2020.  
2.5.  The Sultanate Consumer Price Index (CPI) witnessed a year -on-year (Y-o-Y) negative growth 
of -0.9% during Jan uary-December 2020.  
2.6.  Another dimension of the success of Oman's economic diversification is exporting. The share 
of the oil and gas sector in Oman 's GDP was 33% ,  oil and gas   exports together accounted for 68.5 % 
of total merchandise exports . And the share of non -petroleum industrial activities on average was 
19%, while the share of agriculture and fisheries was 2%. The share of services sectors in GDP a t 
46% after two consecutive years of accelerated growth, non -petroleum exports fell sharply by 13.3 % 
from OMR 3,727 million in 2018 to OMR 3,230.6 million in 2019. The export of "products of chemical 
or allied industries ", "mineral products ", and "base metals & articles of base metals " together, which 
contributed ab out 64.5 % of total non -petroleum exports, witnessed a contraction of 17.3 %. 
2.7.  According to the data released by the National Centre  for Statistics and Information (NCSI), at 
the end of November 2020, Oman had a fiscal deficit of Rial Omani ( OMR) 3,023  billion, which has 
accelerated amid low pressure experienced by the Omani economy and has increased as 
2020 progressed. Several measures aimed at containing the outbreak of the COVID -19 pandemic in 
conjunction with a steep decline in oil prices have advers ely affected economic activities. Though 
economic activities have been largely resumed by the present, soci al distancing m easures continue  
to weigh on the economic outlook.  
2.8.  Despite all these challenges, the Government, however, continued to pursue reforms to 
reinstate macroeconomic stability in the Sultanate. Consequently, fiscal and current accounts 
recorded some improvements during the year , the government continues  to pursue macroeconomic 
stability through a combination of policies  which  include: (i) the  implementation of a value -added 
tax and amendments to several existing taxes, continuing to improve the domestic business 
environment, also the Government is making progress on its National Program for Fiscal Balance 
(Tawazun), which is overseen directly by Oman's Sultan and targets primary fiscal balance by 2024. 
It has identified fiscal measures with a potential impact of OMR  3.5 billion (about 14% of GDP and 
19% of non -oil GDP).  WT/TPR/G/ 418 • Oman  
 
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  2.9.  The measures  taken  by the Government   include  10% cut to civil and  security current 
expenditures, t he introduction  of VAT and, electricity and water tariff reform, further current 
spending cuts, and a cap on development spending.  
2.10.  The Government and other stakeholders have been continuously striving to promote 
diversifica tion in the economy through increased participation of the private sector and foreign 
investors. Oman provides excellent transportation and logistics infrastructure and a conducive 
business environment. Furthermore, Oman is strategically located in terms o f accessibility and 
hence, it offers immense potential to become a gateway to the Gulf and Asia region for multinational 
companies (MNCs) and global value chains (GVCs). The Government has implemented various 
structural reforms, including the promulgation of several important laws related to Foreign Capital 
Investment, Privatization, Public -Private Partnership, and Bankruptcy, in the recent past to improve 
the business environment and the functioning of the labour  market so that Oman could provide a 
competi tive edge to foreign investors. These reforms coupled with the existing potential and strategic 
location would facilitate higher inflows of FDI in the Sultanate, especially in non-hydrocarbon sectors.  
2.11.  The trade surplus grew to OMR 7,009 million in 2019 com pared to OMR 6,953 million in the 
previous year. The current account deficit declined to OMR 1,592 million in 2019 from 
OMR 1,648  million in the previous year.  
2.2  Diversification of the Economy  
2.12.  Due to the acceleration of the economic, financial, and social ch allenges encountered by the 
Sultanate of Oman to diversify the sources of the national economy and achieve the goals and 
objectives of the 9th Five Year Plan (2016 –2020), it was inevitable to launch an initiative to address 
and cope with these variables.  
2.13.  Therefore, the National Program for Enhancing Economic Diversification  broke forth, as this 
program addresses the challenges, difficulties, and issues that encounter the Government, private 
and civil parties, and bodies towards achieving the goals and objectives of the 9th Five Year Plan 
(2016 –2020), and to develop a detaile d road map with the partnership from all walks of the society 
to put into force the solution and follow up the implementation and completion thereof.  
2.14.  The National Program for Enhancing Economic Diversification  comes as a national i nitiative to 
be implement ed within the framework of the 9th Five Year Plan (2016 –2020) and to achieve the 
optimal benefit to be derived from what was realized in terms of the basic infrastructure during the 
previously implemented and subsequent five -year plans while focusing on th e basic sectors targeted 
under the economic diversity program according to the plan as determined under Royal D ecree 
No. RD 1/2016 namely; the manufacturing,  tourism, logistics , mining, and fishery . The Plan aims at 
increasing the  percentage  of these sector s participation in the Sultanate 's Gross Domestic Product 
(GDP) and increase investment in  promising sectors and generating more job opportunities.  
2.15.  The project aimed at expediting the execution of the plans in the field of boosting and 
enhancing economic diversity and help and render all possible support to the government to drive 
benefits from the best successful practices in the field of social and economic planning, allocate its 
budgets in projects with remarkable economic revenues and ad ded value that will help  avail job 
opportunities for  Omani citizens and to achieve the objectives, programs and policies for economic 
diversity, besides setting an integral and transparent plan to increase  foreign a nd internal 
investments  in the Sultanate of Oma n to help lift the degree of competitiveness in the different so cial 
and economic indicators,  support the related -parties  for the efficient execution of their projects and 
plans according to the best general accepted practices in addition to impr oving the efficiency and 
bridge  gaps of cooperation and participation among all concerned parties, to set indicators sufficient 
to measure certain goals and to serve as an accurate tool for follow -up and execution, determine 
certain  percent ages of non -governme nt capital investments, provided however that it will not be 
less than 80% to finance the sector 's key initiatives for the program and to increase the gross 
domestic product in the Sultanate of Oman.  
2.16.  Several reform measures have been implemented since the beginning of 2016, including 
optimizing government expenditures as well as increasing non -oil revenues through introducing 
certain measures such as : value -added tax, new excise duties, ex -pat levies, and fees and energy 
price reforms.  WT/TPR/G/ 418 • Oman  
 
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  2.17.  The share of non-petroleum activities in GDP  was 59.9% in 2014, 72.4 % in 2015, and 74.4 % 
in 2017. However, it dropped to  67.8% in 2018 in the context of lower oil prices.   On the other hand, 
the total exports of Oman decreased by 28 % from 2014 to 2019,  and the decline of non -oil exports 
during the same period was 22 %. 
2.3  Privatization  
2.18.  The privatization mandate remains to be of importance given Oman 's vision to have a larger 
contribution of the private sector in the economy. Post the roya l decree of the establishment of 
Oman Investment Authority, government companies are now part of the authority and it will pursue 
the privatization mandate going forward. The objectives of privatization are:  
• Opportunities to the private sector to contribut e to the development of the national 
economy and encouragement of foreign investment.  
• Creation of competition and enhancement of efficiency of resource utilization.  
• Increased employment opportunities for citizens in the private sector.  
• Reduction of financi al and administrative burden on the government.  
2.19.  Royal Decree  No.  51/2019. The law sets out procedures for the privatization of government 
facilities to expand the role of the private sector.  
2.20.  The privatization process has progressed in the electricity sect or, in the power and related 
water sector, in the telecommunications sector, in the transport sector, and wastewa ter and 
hazardous waste sectors.  
2.21.  Oman has issued Royal  Decree No. 52/2019 promulgates the Law on Partnership between 
Public and Private Sector.  The law encourages investments by the private sector in the public sector 
to encourage a diverse range of national income sources . 
3  INVESTMENT REGIME  
3.1.  The investment regime is a priority area of Oman 's economic development. As a matter of 
conscious policy, Oman actively promotes both domestic and foreign investment to enhance 
economic growth and development.  
3.2.  In October 2020 Oman has formed National Competitiveness Committee . This committee 's 
mandate is to supervise efforts aimed at raising the competitivenes s of the Sultanate in th e 
international indices . It also proposes the necessary policies and laws to improve the Sultanate 's 
compe titiveness internally  and collaborate with other concerned parties to achieve this aim. The 
Committee will focus on the international indicators included in Oman Vision 2040 to assess 
performance in the next stage.  
3.3.  In 2019, the Foreign Capital Investment Law was promulgated by  Sultani Decree No. 50/2019. 
It aims to boost and promote foreign capital investments in the Sultanate by expanding investment 
sectors. Oman provides an open and liberal investment policy aimed at attracting and facilitating 
investments. It offers investme nt-friendly legislation, a free -market economy, and a stable 
macroeconomic environment.  
3.4.  Repatriation of capital and profits is not restricted. Under the Foreign Capital Investment Law, 
expropriation or confiscation of foreign investment is prohibited excep t in the case of public interest 
but that only against fair compensation.  
3.5.   Oman 's former Public Authority for Export Development and Investment Promotion  (PAIPED)  
was transformed to the Ministry of Commerce & Industry  and Investment Promotion with the 
issuance of the Royal Decree No. 97/2020 . The Ministry aims to contribute to the promotion of 
investment opportunities in Oman and to bring quality investments in the sectors of economic 
diversification. And sponsoring and sustaining national and foreign inves tments by creating the right 
environment for their success and development . WT/TPR/G/ 418 • Oman  
 
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  3.6.  A One -Stop-Shop has been provided by Oman in t he Ministry of Commerce, Industry and 
Investment P romotion for assisting domestic and foreign investors in meeting all formalities rel ated 
to investments. This enables investors to set up companies in a very short time, minimizing 
paperwork and costs.  
3.7.  Oman is a member of international institutions concerned with investment protection and 
guarantees such as the International Center for Se ttlement of Investment Disputes and Multinational 
Investment Guarantee Agency.  
3.8.  Oman is an attractive destination for foreign direct investment because of its political stability, 
strategic location, highly developed infrastructure, and business -friendly economic policies.  
3.9.  Foreign direct investment (FDI) reached OMR 15.06 million  at the end of the first quarter 
of 2020.  
4  HUMAN RESOURCE DEVELOPMENT  
4.1.  The principles of the Blessed Renaissance relied on the Sultanate 's real wealth, the Omani 
citizen, who is the core and target of the development process. To turn this principle into reality, 
investments have continued to be made in the Omani people since the early seventies to develop 
the education and training systems. Policies and programs aime d at providin g Omanis with 
knowledge, skills, and experience have also been initiated. The Sultanate has paid great attention 
to the health and intellectual dimension of the Omani people . 
4.2.  In the Human Development Report 2019, the Sultanate has been ranked 5th in the Gulf region 
and 47th in the Arab world on the Global Human Development Report. Oman 's HDI value for 2019 is 
0.813  - which puts the country in the very high human development category  - positioning it at 60 
out of 189 countries and territories.  
4.3.  Between 2000 and 2019, Oman 's HDI value increased from 0.693 to 0.813, an increase 
of 17.3%. This achievement due to the great achievements made by the Sultanate in the health and 
education sectors . 
4.4.  According to  Oman Vision 2040, the focus in this area is to develop the human resources and 
capabilities of Omani people to generate and manage technological changes eff iciently, in addition 
to face the continuously changing local and international conditions.  
4.5.  The human resource development strategy of Oman is b ased on:  
• Achieving a balance between population and economic growth by reducing the population 
growth rate to less than 3 %. 
• Provision of health services and reduction of the rate of mortality.  
• Dissemination, encouragement and patronage of knowledge and dev elopment of 
education.  
• Establishing post -secondary and technical education system and vocational training.  
• Creating employment opportunities for Omanis in the public and private sectors.  
• Increasing the efficiency of the labour  market by narrowing differences between public 
and private sectors.  
4.6.  These objectives are sought to be achieved by expansion of university edu cation, raising 
enrolment rates in higher education and professional institutions. The Government gives top priori ty 
in allocating resources for the implementation of programs relating to the education and training 
sectors . WT/TPR/G/ 418 • Oman  
 
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  4.7.  A number of high -grade educational institutions are operating in Oman, the best of which is 
the Sultan Qaboos University. Sultan Qaboos University  (SQU) is ranked number 1 in Oman. SQU  is 
ranked at number 379 in the wor ld's top universities according to  the London -based Quacquarelli   
Symonds (QS). The university is also ranked number 10 in the QS Arab Region 2019  ranking, and 
also placed in the 151 -200 bracket in the QS Subject Matter Ranking.  
5  IMPORTANT DEVELOPMENT PROJECTS  
5.1  Oman Logistic s Strategy  
5.1.  Oman has formulated a national logistics strategy 2040 in 2015 that has been implemented by 
Oman Logistics Center. The Center is working in cooperation with  government agencies and the 
private sector to enable the implementation of several initiatives from the Trade Facilitation 
Agreement of the World Trade Organization. Following are the most important achievements during 
the period 2014 -20 which are related  to the trade policies : 
• Key highlights of the  WTO Trade Facilitation Agreement  (TFA) implementation in Oman: 
Advance Rulings were implemented, Post -Clearance Audit was implemented, Pre -arrival 
processing was implemented: 22% of import shipments are now cus toms cleared before 
arrival, Electronic Access to information on requirements for trade was implemented, 
Customs and other control agencies apply Risk Management and have significantly 
reduced inspections, Customs clearances can be carried out with electro nic copies only.  
• Single Window was implemented in Oman. The Bayan system connects Customs, other 
Government control agencies, and traders and provides paperless clearances.  
• TIR Convention (The Customs Convention on the International Transport of Goods unde r 
Cover of TIR Carnets) was ratified and made operational in Oman. The Convention 
significantly facilitates movements of cross -border trade in the sub -region.  
• The Government mandated all border crossing points and related Government control 
agencies to pro vide service 24/7. Border services are streamlined under "one-stop-shops " 
to minimize inspections.  
5.2  National Innovation Strategy  
5.2.  The vision and progress of Oman in its endeavour  to become one of the top 20 countries in 
innovation by 2040.  
5.3.  Oman has launched a National Innovation Strategy, driven by a combination of 
condition -driven and future -foresight approaches using the Delphi approach. In 2015, the ranking 
of the Sultanate had  improved by 21 points since 2013 then ranked 69 from 141 countries. The 
increase of programs, research and innovation activities, and an encouraging environment all 
positively contributed to this achievement. The four pillars of the National Innovation Sy stem are 
human capital, institutional and community integration, economic diversification, and IP and 
knowledge transfer. Oman 's targets are illustrated below across a range of performance indexes. 
Oman aims to create an enabling environment, create jobs, economic diversification, and enhance 
living standards. If the Sultanate maintained the level of a 2 -point increase annually in Innovation, 
then Oman will become among the leading countries in the next 25 years.  
6  TRADE POLICY DEVELOPMENT  
6.1  Objectives  of Trade  Policy  
6.1.  The trade policy of the Sultanate of Oman is rooted in the principles and rules of the multilateral 
trading system. As an old trading nation, Oman is conscious of and recognizes that a rule -based 
international trading system and   open and liberal markets are important for the world economy, for 
economic development, and for raising the living standards of people around the world, especially 
for the populations of developing countries.  WT/TPR/G/ 418 • Oman  
 
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  6.2.  It is in its firm belief in the foregoing principles tha t the Sultanate of Oman joined the World 
Trade Organization in 2000. Even before joining the WTO, Oman had in practice been following the 
rules and basic principles of the multilateral trading system. Since it acceded to the WTO, Oman has 
strictly abided b y the provisions of the WTO agreements and it expects all WTO Members to adhere 
to the mutually agreed rules. Oman strongly believes that adherence to WTO rules would ensure 
expansion and liberalization of international trade for the welfare and prosperity  of people around 
the world. An open and liberal trade policy is welfare -oriented and people -centric.  
6.3.  The broad objectives of Oman 's trade policy are:  Expansion of trade leading to the economic 
development of the country, Expansion, and growth of productio n of tradable goods and services, 
Securing greater market access  for Omani goods and services, c reation and expansion of 
employment o pportunities for Omani people, e nsuring availability of goods and services at 
reasonable prices in the domestic mark et, protecting t he interests of consumers, and r aising the 
living standards of the people of Oman.  
6.4.  The Ministry of Commerce, Industry & Investment Promotion is the focal point for the 
formulation and implementation of Oman 's trade policies. Proposals for the form ulation of specific 
trade policies are initiated by the Ministry, where relevant in consultation with concerned Ministries. 
The proposals after approval by the Council of Ministers are implemented, as appropriate, either by 
the issuance of Royal  decrees, s ubject to the approval of His Majesty the Sultan or by Ministerial 
decisions.  
6.5.  The importance of trade policy is reflective of Oman 's high dependence on foreign trade; the 
trade to GDP ratio of Oman is 81.5 as of the end of 2019.  
6.2  Tariffs  
6.6.  Oman has a simple, uncomplicated tariff regime. Tariffs are the main instrument of Oman 's 
trade policy. These apply to imports on most favoured nation  (MFN) basis, except for imports from 
WTO Members with which Oman has regional trade agreements or free -trade arrangements.  
6.7.  Oman has bound import tariffs on all agricultural and non -agricultural products with no 
exceptions. The simple average of its bound tariffs for all products is 13.7 %, that for agricultural 
products is 27.7% and for non -agricultural products, it is 11.6%. The non -agricultural products of 
Oman are a little more than 88 %. As a result of binding 100 % of its tariffs, Oman provides stable 
and predictable conditions o f access to its market for WTO  Members. Bound tariffs for 
non-agricultural products range from 0 to 25 %. However, for more than 97 % of non -agricultural 
products, these are 15 % or less.  
6.8.  The applied tariffs of Oman are very low, at 4.8 %. It may be argued that there is quite a gap 
between bound and applied tariffs. However, that is neither unusual  nor against WTO rules. The 
GATT/WTO rules clearly say that import duties should not be higher than bound rates, which means 
that these can be lower than the bound rates. The rules do not say and do not imply, directly or 
indirectly, that the applied tarif fs should be at or close to bound rates.  
6.9.  All Oman tariffs are at ad valorem  rates. There are no specific duties. Oman also does not apply 
any tariff quotas.  
6.3  Other Measure s Affecting Imports  
6.10.  Oman has bound other duties and charges at zero in its Schedule of  Tariff Concessions and 
Commitments and it is strictly abiding by this commitment. Similarly, Oman starts to apply internal 
taxes to imports such as VAT, sales tax, or excise duties according to the decision between the 
GCC member S tates, also this will he lp the g overnment to solve the financial effect by the lower 
prices of oil. Concerning regulations and requirements affecting the internal sale, purchase, 
transportation, distribution, or use of products, Oman is committed to the disciplines of Article III  of 
the GATT 1994.  
6.11.  Oman has no prohibitions or quantitative restrictions on imports except a few which are 
justified under Articles XX and XXI of the GATT 1994, for security, health or safety reasons or WT/TPR/G/ 418 • Oman  
 
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  necessary to protect public morals. Oman has been sub mitting periodic notifications on Quantitative 
Restrictions to the WTO Secretariat.  
6.12.  As for the valuation of imported goods, Oman has implemented the WTO Agreement on 
Customs Valuation, through the GCC Common Customs Law and its Implementing Regulations. It  
may be of interest to WTO Members to know that Oman does not use import licen ces for any purpose.  
6.13.  Preferential rules of origin apply to imports from the GCC member States and Arab countries 
members of the Pan Arab Free -Trade Area as well as imports from t he United States of America and 
Singapore and EFTA member States. 
6.4  Measures Directly Affecting Exports  
6.14.  Oman does not apply any export duties. However, it reserves the right to apply export duties, 
as permissible under WTO rules, if and when it is deemed nec essary. There are no export licensing 
requirements or procedures nor any export performance requirements. Export prohibitions are very 
few, relating to antiques, ancient manuscripts  and old coin s. Three species of fish are subject to 
export restrictions du ring breeding and reproduction season, for environmental reasons.  
6.15.  There are no special procedures or requirements for exports. Any firm or individual, Omani 
or foreign, which has relevant commercial registration can engage in export trade.  
6.5  Exports Subsidie s and TRIMs  
6.16.  In terms of its commitment at the time of its accession to WTO, Oman does not provide, 
maintain or introduce any prohibited subsidies as defined in the WTO Agreement on Subsidies and 
Countervailing Measures.  
6.17.  Oman does provide domestic subsidies to industries in the form of soft loans by Oman 
Development Bank. However, these are non -specific, available to all industries and all enterprises.  
6.18.  Credit Oman (formally known as: Export Credit Guarantee Agency of Oman) provides export 
and domest ic credit insurance services for goods and services to promote Oman 's non -oil export and 
domestic trade against commercial and non -commercial risks  . 
6.19.  Oman does not apply any prohibited trade -related investment measures (TRIMs).  
7  SECTORAL DEVELOPMENT  
7.1  Agriculture and Fisheries  
7.1.  Agriculture and fisheries are a smaller sector of Oman 's economy. The Agriculture and  Fisheries 
share to  the GDP was 79 % in 2019. In terms of nominal GDP, agriculture sector  growth during 
2018-19 was 3.43 %, and fisheri es sector  growth during 2018 -19 was 4.80 %. However, this sector 
has a big social impact in terms of rural development, food security, and employment  in the 
countryside . 
7.2.  The main target of Oman 's agriculture sector is to achieve food security. Because of that it 
does   not grant any export subsidies . Oman is 83% self -sufficient in vegetables, 28% in fruit, 51% 
in red meat, 54% in poultry, 67% in milk and milk products and 57% sufficient in eggs . 
7.3.  To improve the agriculture sector, the Ministry of A griculture and Fisheries and Water 
Resources carried out many research and extension activities to educate the farmers and increase 
their awareness. In 2019, the Ministry complete d research projects, and  are still on-going . These 
research activities includ e genetic resources, toxic residuals, soil and water management, and 
biological control. The Ministry also implemented about extension activities in 2019 . WT/TPR/G/ 418 • Oman  
 
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  7.2  Manufacturing  
7.4.  The manufacturing sector growth from 2014 to 2019 was around 0.1 . The decline rate in 2 019 
was 4.6%. The share of manufacturing in Oman 's GDP in 2019 was 10.5 %. 
7.5.  The industrial strategy 2040 has set a target of raising the share of manufacturing to 15% of 
the GDP by 2040.  
7.6.  The Industrial strategy (2021 -2040) envisages an annual growth rate of 5.3% at constant 
prices.  
7.7.  The manufacturing sector is largely based on products of chemical and allied industries, articles 
of base metals, plastic, rubber and articles thereof and textiles, clothing and made -ups. 
7.3  Oil Sector and Mining  
7.8.  Volatility in international oil prices has considerable implications for Oman 's international trade 
and the economy, underpinning the need to reduce dependence on the petroleum sector . Oil and 
gas sector dominates Oman 's economy. Its share in GDP in 2019 was 34.4%. The importance of this 
sector can be gauged from the fact that net oil and gas revenues as a  percentage  of GDP were 
28.7% in 2019, and represent 79.6% of government revenues. The share of oil and gas in Oman 's 
exports in 2019 was about 68.5 %. 
7.9.  Oman exported 87. 6% of crude oil production in 2019, with China remaining as a top 
destination. Oman 's natural gas production registered a marginal increase of 1.1 % in 2019 . 
7.10.  The production of crude oil declined by 3.4 % in 2019, giving a daily average of 
843,000 barrels.  
7.11.  The petroleum sector constituted 68.5 % of total merchandise exports in 2019, higher as  
compared to 65.4 % in 2018. The non-petroleum  exports also contracted this year by  13.3% 
compared to last year, while the re -exports  fell by 20.9 %. The non -petroleum  export s constituted a 
share of 21.7 % of total merchandise exports. Non -petroleum  exports and re -exports together 
constituted  31.5% of total merchandise exports in  2019 compared to 34.6 % in 2018 . 
7.12.  Oman has pursued a policy of economic diversification by utilizing more and more 
hydrocarbon resources to develop value -added industries based on oil and gas. These include 
petrochemical and energy -intensive industries.  
7.13.  Mining and quarrying is a relatively small sector of Oman 's economy but it  has a big potential. 
Oman is pursuing a policy of exploiting this sector within the framework of its economic  
diversification strategy. Some  companies are conducting mineral exploitation and operations in 
Oman. The major mining products are limestone, gyp sum, marble, iron , and chromite.  
7.4  Services  
7.14.  Services are an important and growing sector of Oman 's economy. It comprises mainly 
banking and financial services, telecommunication services, tourism, and related services and 
business services.  
7.15.  The share of serv ices in GDP 48.1% in 2019. The value -added in the services sector in 2019 
declined by 0.8 % over the previous year. Oman has made specific commitments in 10 sectors and 
97 sub -sectors of services.  
7.16.  The banking sector comprises 18 banks, which include 9 local  commercial banks, 9 foreign 
banks and two specialized banks (Oman Housing Bank and Oman Development Bank). Since Oman 's 
accession to the WTO in November 2000, 9 foreign banks were licensed in Oman and remained the 
same number until the end of 2019 . WT/TPR/G/ 418 • Oman  
 
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  7.17.  The fi nancial services sector (other than banking) includes 5 non -bank financial and leasing 
companies, 20 insurance companies (of which 11 are local and 9 foreign), 15 insurance and 
reinsurance brokers, 48 money exchange establishments, and 20 stockbrokers . 
7.18.  The telecommunication services sector is regulated by the Telecommunications Regulatory 
Authority (TRA ). The Ministry of Transport, Communication & information technology  role is to 
formulate policies related to the sector. Currently, there are three companie s offering landline 
telephone and internet services namely Omantel, N awras, and a consortium of Awas r Oman and 
PCCW International. There are two mobi le operators namely Oman Mobile , Ooredoo Telecom and 
Vodafone . 
7.19.  Tourism and related services development is an important government objective aimed at 
diversification of the economy. The Ministry of Tourism & Heritage is responsible for the 
comprehensive development of the sector.  
7.5  Regional and Bilateral Trade Liberalization  
7.20.  In line with the WTO co mmitments and complementarity to the efforts in the WTO, Oman is 
also engaged in strengthening its bilateral ties with several countries and economic blocs. Oman has 
free trade agreements with GPAFTA , the United States . It is also part of the GCC Agreement. 
Furthermore, GCC  has free trade agreements with Singapore & EFTA States.  
8  OMAN, WTO AND DOHA DEVELOPMENT AGENDA  
8.1  Oman and WTO  
8.1.  Oman became a Member of WTO since  November 2000 becoming the 139th Member of the 
organization. It was in the belief that the WTO provides a framework of mutually agreed, legally 
enforceable rules for the conduct of world trade, an effective mechanism for the implementation and 
enforcement of these rules, an elaborate and well -functioning system of dispute settlement, and a 
multilateral forum for trade negotiations.  
8.2.  Oman believes the  WTO is the best available forum for liberalization and expansion of 
international trade and a bulwark against protectionism. The rule -based system of the WTO is of 
benefit to all Members, but in p articular to the smaller, developing countries. The WTO has stood 
the test of time and proved its utility and effectiveness in the Great Recession of the first decade of 
this century.  
8.3.  Oman is an active participant in the regular activities of the WTO. It p articipates in the  meetings 
and deliberations of important Councils and Committees of the WTO, in particular the General 
Council, the Council for Trade in Goods, the Council for Trade in Services, the TRIPS Council, the 
Committee on Trade and Development, and various other Committees and Working Parties.  
8.4.  Oman has joined the group  of Recently -Acceded Member (RAM). In this context, Oman 
supports the RAMs Group position referring to the exceptionally significant and extensive 
commitments made by the group memb ers upon accession as compared to those made by members 
that joined the WTO during previous rounds of negotiations and reflecting the group's concerns on 
the current workflow of the negotiations within the  Doha Development Asenda  DDA. 
8.5.  Oman collaborates wit h all Members of the WTO on important ongoing activities. It collaborates 
closely with developing countries, with members of the Arab Group, and in particular with its 
GCC partners.  
8.2  Doha Development Agenda  
8.6.  Oman  attended the Doha Ministerial Conference in 2 001 as a full Member of the WTO and had 
supported the Doha Ministerial Declaration and the program of work including the subjects for 
negotiations. The DDA negotiations were launched with great promise. Its objectives are laudable. 
However, it is a matter of regret that even after around 20 years these objectives  yet to be realized . WT/TPR/G/ 418 • Oman  
 
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  8.7.  Oman had been actively participating in different areas of negotiations, of course focusing on 
its particular interests. Oman has  also made contributions in different areas, inc luding in -built 
contributions during its accession process. Oman could consider further contributions commensurate 
with its position as a small developing country with a narrow export base (other than oil). Oman 's 
objectives in the negotiations are greater  and liberal market access on a predictable basis for its 
non-oil exports. Additional objectives include improvement of WTO rules and dispute settlement 
procedures where relevant.  
8.8.  Oman continues to support the original objectives of the DDA which should re main undiluted. 
The interests of developing countries must remain at the heart of DDA negotiations.  
8.9.  Fisheries negotiations are very important for Oman. The fishing sector is one of its strategic 
sectors and key to  Oman 's economic diversification efforts.  
8.10.  Special and Differential treatment provisions are an integral part of the WTO  agreements and 
the mandate in p aragraph 44 of the Doha declaration to strengthen and making them more precise, 
effective, and operational should be given the same level of importance as other issues in the  
12th Ministerial Conference  (MC12 ) package.  
8.11.  Oman needs to make sure that  the Joint Statement Initiatives  (JSIs) do not undermine the 
Multilateral Trading System and consensus -based decision making.  
8.12.  On Trade and C OVID -19, O man believes that access to the affordable vaccine should be a 
priority to all Members of the WTO in the coming ministerial  Conference . 
8.13.  Regarding the Moratorium on E -Commerce. It is important to extend the moratorium, but it 
is equally important to re -invigorate the 1998 E -Commerce Work Program.  
8.14.  Oman looks forward to a successful conclusion of the Doha  Round.  Which  would enhance the 
status and credibility of the WTO.  
9  FUTURE DIRECTION OF OMAN'S TRADE POLICY  
9.1.  Oman will  continue to pursue an open and liberal tr ade policy based on the principles and rules 
of the multilateral trading system. It will continue to abide b y its WTO commitments and continue 
to work with other WTO Members to ensure that all Members fulfil their commitments in letter and 
spirit. Oman wou ld cooperate with other countries to strengthen the WTO, especially its rather 
tarnished negotiating functions.  
9.2.  Oman will  continue with its policy of considering the WTO as the primary forum for trade 
negotiations. Oman has and would selectively conclude preferential trade agreements within the 
framework of the GCC. However, Oman considers preferential regional trade agreeme nts as 
complementary to the multilateral trading system and not a substitute for it.  
10  ANNEX  - TECHNICAL ASSISTANCE NEEDS OF OMAN  
10.1.  Oman is grateful to the WTO Secretariat for providing technical assistance in the past years. 
However, technical assistance is always needed and is welcomed by Oman. Below are the priority 
needs of Oman:  
• More training facilities for Omani officials in Trade Policy Courses.  
• Organization of general and subject -specific trade policy seminars, and workshops in 
Oman.  
• Organization of more regional seminars, workshops and trade policy courses in the 
GCC region.  
• Organization of trade policy seminars for the business community in Oman.  WT/TPR/G/ 418 • Oman  
 
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  • Help and assistance in meeting numerous notification obligations.  
• Upon request, to prepare b ackground papers and notes on different subjects and issues 
under discussion in the WTO Councils and Committees and the multilateral trade 
negotiations.  
• Upon request, to prepare technical and explanatory notes on specific dispute settlement 
cases.  
• More tra ining facilities for Omani officials in Trade and Environment  Courses  . 
• Organization of  Trade and Environment   seminars, workshops and symposium in Oman . 
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