Message from Ambassadors

Why Invest in Oman
Khalid Hashil Al-Muslahi
Ambassador of the Sultanate of Oman to Japan
H.E. Khalid Al-Muslahi was born in Ibra, Oman in 1967, and earned his B.A. in Economics from Nottingham Trent University in the United Kingdom in 1992. After
entering the Foreign Ministry in 1993, he has worked in the office of the Foreign
Minister and the office of the Secretary General of the Foreign Ministry, and as Deputy Head of Mission in London. H.E. has been serving as the Ambassador of theSultanate of Oman to Japan since February 2008. Married and has 3 children.
Twitter: @muslahi

would like to express my thanks and appreciation to theJapan Institute for Overseas Investment (JOI) for publishing a report on the “Investment Opportunities in theSultanate of Oman” in this Edition of JOI’s magazine.

I

Japan were founded on mutual respect, and since the official establishment of the diplomatic relations in 1972, wehave shared reciprocal trust and friendship, political anddiplomatic cooperation for more than 40 years.

H.E. Prime Minister Shinzo Abe visited the Sultanate ofOman in January 2014 and met with His Majesty SultanQaboos bin Said. The two leaders expressed their satisfaction with the growing bilateral relations, as well as theintent to further strengthen partnership and cooperation between the two countries on all levels and fields. A joint
communiqué between Japan and Oman on strengthening of
the Comprehensive Partnership towards Stability and Prosperity was issued following Prime Minister Abe’s historic
visit and it covered cooperation in the political, security,economic, education and cultural fields.

Our interaction and cooperation have been growing rapidly
on various levels, particularly in trade and investment thathave been the backbone of a long and fruitful relationshipthat continues to prosper and grow. Japan was one of thefirst countries to receive Omani crude oil, and the export ofthis product and LNG as well as other hydrocarbon sources
has increased over the years, making Japan one of the mostimportant markets for Oman’s exports.

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ith nearly 400 years of friendly contacts, the historical relations between the Sultanate of Oman andO

man is ranked among Japan’s top trading partners
with the Middle East region and is the third biggest
market for Japanese exports. Japan, on the other hand, is
one of Oman’s top trading partners, and the bilateral trade
between the two nations has been expanding over the years.

The Sultanate of Oman is located in southwest Asia on thesouthern coast of the Arabian Peninshula. Comprising approximately 310,000 square kilometers of varied, striking
terrain, it is the third largest country in the Arabian Peninsula.
The country ranges from the fjord-like majesty of the Musandam Peninsula, to the fertile Batinah plain that inclines
southwest towards Muscat, from the vast sandy edge of theRub al-Khali (The Empty Quarter) through the mountains tothe lush, monsoon-heavy Salalah plain in the south.
The inhabitants of Oman have long prospered on IndianOcean trade. Sending dhows from its port at Sohar to tradewith merchants in far flung destinations, this former ancient
capital of Oman was at the time, one of the largest and mostimportant cities in the Arab world. Historical documents havereinforced this notion, revealing extensive trading ties withChina, India, and Mesopotamia, as well as the Eastern Mediterranean, the Nile Valley, and North Africa.
Photo upper left: Grand Mosque
Photo lower right: Nakhal Fort, North of Oman

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オマーン 特集For Japan, Oman has always been a reliable and stablesource of energy suppliers. Oman is among the 10 largest crude oil and LNG suppliers to Japan, and although oiland gas represent 99% of Japan’s total imports from Oman,
imports of fisheries and agriculture products from Oman toJapan is also significant. Out of Japan’s total imports of those
products from the Middle East and North Africa, Oman isthird for fisheries and fourth in agricultural products.
Oman is also a major importer of Japanese automobiles,machinery, chemicals, and appliances among other products. A number of Japanese corporations are engaged inimportant projects in Oman in the fields of oil and gas,electricity generation, water desalination and in shipping.
This vast trade and investment relationship makes Japan an
important partner to Oman.
One of the areas this economic diversification will be exemplified is in various developmental projects in Oman,and in technology transfer and human resources development. Cooperation with Japanese industries is set tobecome a major aspect of this new area of economic relations between our two countries.
Finance is another area of potential, as Japanese investments
and financing in Omani projects continue to expand andprovide mutual benefits. To create a more conductive environment for such activities, the Japan-Oman Agreement on
Avoidance of Double Taxation was signed in January 2014,
and we are very close to the signing of the bilateral Agreement for the protection and promotion of investment.
Furthermore, a Free Trade Agreement between the Gulf Cooperation Council (GCC) and Japan is under negotiations.

Oman is a sophisticated modern state that invites investment and encourages entrepreneurship. The
government has consciously fostered the country’s growth
while preserving its culture and heritage. The Basic Law of
the Sultanate of Oman establishes the national economy on
the principles of justice and free market, and is investingbillions of dollars in growing the country’s business base.
Through significant investment in the provision of transport and communications channels, commercial property
and ensuring easy access to both domestic and international markets, Oman continues to attract new businesses
operating in a variety of sectors.
Oman offers an ideal investment environment with its strategic location and its access to the markets in the Middle East,
Europe, the United States, and Asian and African markets.
Oman also ensures political and economic stability, a full

H.M. Sultan Qaboos confers the Omani Civil Order “SecondClass” on Prime Minister Shinzo Abe at the Baraka Palace inMuscat on Jan 9, 2014, during his visit to Oman.

convertible stable currency, free repatriation of capital andprofits, no personal income tax, free trade and open market
policies. Also, Oman has committed policy of privatizationand close relations between public and private sectors.
Furthermore, Oman offers excellent financial services andfinancial assistance to investors, such as a wide range ofcredit facilities and financial services that are provided toinvestors through our strong financial sector. Oman Development Bank provides government funding to help develop
the economy and offers soft loans to industry and the service sector. Muscat Securities Market is Oman’s wellestablished and regulated stock market and a potential
sources of new capital for the private sector.

INVEST IN OMAN
Key incentives• Custom Duty Exemption on import of plant equipment• Relief from custom duty on raw materials• Fully serviced land in industrial estates• Corporate tax holiday of up to 10 years• Export credit insurance through the export Guarantee
and Financing Agency
Foreign Capital Investment Law• 70% automatic foreign ownership• 100% ownership for specific projects• Tax parity and exemptions
More information on investment
Ithraa - The Public Authority for Investment
Promotion and Export Development		 tel: (+968) 24 62 33 00		 fax: (+968) 24 62 33 36		 www.ithraa.om

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