. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/OMN/4 
25 October 2005 
 (05-4939) 
Committee on Subsidies and Countervailing Measures Original:   English 
  
 
 
SUBSIDIES  
 
Replies to Questions Posed by the UNITED STATES
1 Regarding the  
New and Full Notification of the SULTANATE OF OMAN2 
 
  The following communication, dated 24 October 2005, is being circulated at the request of the Delegation of the Sultanate of Oman.  
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Q1. Incentives for specific industries under the Law for the Organization and 
Encouragement of Industry (Royal Decree No. 1 of 1979) (LOEI) 
 Reply
 
  The Oman Development Bank (100 per cent gove rnment owned) provided soft loans to 
agricultural, industrial and services projects in acco rdance with the Royal Decr ee No. 18/97.  The soft 
loans were made available to all industries and en terprises on the basis of objective, published criteria, 
and were not sector- or enterprise- specific.  By  the end of 2005 no more such soft loans will be 
provided.  Oman maintained no subsidies within  the meaning of Article 1 of the Agreement on 
Subsidies and Countervailing Measures for natural ga s projects, petroleum and petrochemical sectors, 
or for the development of sectors dependent on gas as a major input.  
Q2.   Export-contingent preferential lending? 
 
Reply
 
  Similarly, there were no subsidies for expor t–oriented or import substitution industries.  
Oman is exercising the open market economy.  Expo rt orientation, performance or numerical levels 
were not the qualifying criteria. 
 
Q3.   Ministry of Commerce and Industr y local-content preferential lending? 
 
Reply
 
 
 This is not applicable criteria for lending.  
                                                     
 
1 G/SCM/Q2/OMN/3 
2 G/SCM/N/123/OMN G/SCM/Q2/OMN/4 
Page 2  
 
Q4. Five-year renewable income tax exemption?  And the custom duty exemptions of import 
of equipment? 
 
Reply
 
 
 The preferential rates of income tax for certain business is not a specific subsidy within the 
meaning of Article 2.1(a) of the Agreement.  Th e five-year renewable income tax and the customs 
duty exemptions on imports are provided to all indus tries and enterprises, whether owned by national 
or foreign investors.  Q5. Preferential allocation of government la nd and preferential purchasing by government? 
 
Reply
 
  The government land is leased to all industri es and enterprises against a specific price per 
meter and no preferential allocation of government la nd is given.  As far as government purchases, it 
is performed through tenders publis hed locally and internationally. 
 
Q6.   Industrial estates? 
 
Reply
 
 
 The Public Establishment for Industrial Esta tes (PEIE) was established by virtue of Royal 
Decree No. 4/93 promulgated on 3 January 1993 as a judicial personality enjoying administrative and financial autonomy.  Its objective is to assist in  the development and administration of the industrial 
estates, as well as encouraging the private sector to contribute to the industrialization derived in the 
Sultanate of Oman. 
  PEIE is managed by a board of directors which is chaired by H.E. the Minister of Commerce and Industry.  PEIE explore effective marketing channels for Omani produc ts and promote them 
through local and foreign exhibition, the media as well as permanent exhibition of the Omani products 
at Al-Rusayl.  Also, it organizes seminars and training programmes in order to spear industrial 
awareness among investors and consumers, and provi des them with administrative, marketing and 
technical advice if required.  Tenants and factories pay for these services to cover its costs.   Currently PEIE operates six industrial estates;  namely Al-Rusayl, Sohar, Raysut, Nizwa, 
Burami, Sur and Al-Mazunah free trade zone.  Sept ember 2003 marked the launch of the Knowledge 
Oasis Muscat (KOM), which is projected to be come the linchpin of the Omani information 
technology industry.  In January 2004, the natura l gas network reached Soha r and Raysut industrial 
estates.   As on all PEIE managed estates, Rusayl provides its tenants with first class facilities and services.  These include:  factory and office space, electricity, water, gas, telecommunication, sewage 
treatment, disposal of solid waste and other waste;  housing;  internal and external road networks, 
mosques, banks, restaurants, supermarket, post office and clinic.  Rusayl is also home to offices of the 
customs department and Royal Oman Policy.  
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