Message from Ambassadors

Oman Offers an Attractive
Investment Environment
Mohamed Said Al Busaidi
Ambassador of the Sultanate of Oman to Japan
His Excellency Dr. Mohamed Said Al Busaidi was appointed Ambassador Extraordinary and Plenipotentiary of theSultanate of Oman to Japan in 2018. Prior to assuming his duties in Japan, Ambassador Al Busaidi started his career
as the Professor of Physics at Sultan Qaboos University and joined the Ministry of Foreign Affairs in 2009 and held
prominent positions such as the Chief of the North American Affairs Department.

Introduction
The Sultanate of Oman is located in Southwest Asia on
the southeastern coast of the Arabian Peninsula and built
a long-term prosperity as the centre of dominant traderoutes with extensive trading ties between ancientcivilisations in China, India, and Mesopotamia, as well as
the Eastern Mediterranean, the Nile Valley, and North
Africa over the Sultanate’s long history. Even in thepresent-day Oman’s strategic geographic location,
situated outside the Strait of Hormuz, is a pivot point forfast and safe access to many of the world’s leadingmarkets. Under the wise leadership of the late Sultan, His
Majesty Sultan Qaboos transformed Oman into a modernand prosperous nation, rightfully proclaimed to be anoasis for peace and henceforth one of the most attractive
places in the world for business investments and tourism.

Current Economic Overview of OmanThe International Monetary Fund has predicted thatOman will become the fastest growing economy in theGCC region in 2020. The Sultanate’s real GDP is
projected to grow by more than six percent in 2020.
Governmental proactive and balanced policy initiatives
combined with its rich natural and human resources spursustainable economic growth. Over the longer term, probusiness reforms such as foreign ownership, FDI, SME
support and PPP laws are expected to increase trade andinvestment. Numerous, divers and dynamic private andgovernment-initiated projects are under implementationin various sectors including industry, manufacturing,logistics, agriculture, mining, textiles, retail, tourism,fisheries, transport, communication, oil, gas, tourism andreal estate.
Under the wise leadership of His Majesty Haitham
bin Tarik the Sultan of Oman, fortified by Vision 2040
24

2020.3strategy, the Sultanate continues to focus on diversifying
its economy by boosting non-oil revenue and aims tofurther grow the economic sectors by fostering technology,
promoting responsible ecosystems, and ongoingenhancement of the competitiveness of its free industrial/
trade zones. Oman’s controlled economic development
program, the transparent business environment, stable
political climate and diversification of the economy areexpected to yield positive results on the development of
the Sultanate’s economy.

Investment Environment in Oman
To attract substantial foreign direct investments, Oman
continues to systematically liberalize its economy and has
introduced tailored policy and legislative changes thathave successfully and steadily attracted prodigious
foreign investment. To help support investors and boost
the development of commerce and investment of the nonoil products in Oman, The Public Authority for Investment
Promotion & Export Development (Ithraa) wasestablished. Ithraa also aims to support and sustain
investment projects by providing guidance and advice.
Oman has created a favourable climate for new
investments by developing a free, competitive economy
with equal opportunities for all.
The Sultanate can offer;• Up to 100% foreign ownership.
• Provision of industrial land at economical leaserates.
• Developed and equipped lands with basic services(water, electricity, telecom, roads)• Provision of loans with low interest rates and easy
payback periods through ODB.
• Exemption from customs duty on import of plant
equipment, spare parts, raw materials semi-

processed materials, packaging materials directly
required for industrial production.
• Relief from customs duty on raw materials for up
to 10 years.
• Exemption from personal income tax.
• Corporate tax holiday of up to 10 years.
• Full repatriation of capital, net profit royalties.
• Export credit insurance through export.
• Guarantee Financing Agency.

Free Trade Zones/Areas
The Sultanate established several free zones; AlMazyounah Free Zone, Sohar Free Trade Zone,
Knowledge Oasis Muscat Free Trade Zone, Salalah Port
Free Trade Zone, and Duqm Special Economic Zone.
Among those with a land area of 2,000 square
kilometres and 90-kilometres of coastline along theArabian Sea, the Duqm Special Economic Zone is thelargest in the Middle East and North Africa region andone of the most promising investments in Oman. It is amodel of an integrated economic development composedof sectors containing a deep-water port; a dry dock; aregional airport; a heavy or medium and light industries
zone, including a refinery and petrochemical complex; aresidential and commercial area; a tourism area; a logistic
services area; and an industrial fisheries area with adesignated port. The special economic zone isadministered, regulated and developed by the Duqm
Special Economic Zone Authority, a financially andadministratively independent government entity which
provides various services for investors such as registration,
licenses, visa and residency for non-Omanis as the role of“one-stop shop”.

Dolphin watching and cycling adventure are parts of unforgettable experience

Investment Opportunity for JapaneseIndustries
The friendship between the peoples of Japan and theSultanate of Oman extends to nearly 400 years with thisyear marking the 48th formal anniversary of theestablishment of diplomatic relations in 1972. The
Omani-Japanese relations were founded on mutual
respect and have developed with reciprocal trust andcontinue to expand rapidly in various fields, particularly
in energy, trade and investments, finance, knowledgetransfer and human resource. Trade exchange between
the two countries increased by 17.86% over the previousyear.
Oman and Japan signed in January 2014 anagreement for the avoidance of double taxation, followedby the Agreement for The Reciprocal Promotion andProtection of Investment in June 2015. These two bilateralagreements greatly cultivate more favourable environment
for our two countries to invest in various industries andsectors. Oman presents an obvious competitive advantage
to Japanese companies looking to establish a base in theregion to enter the fast-growing Gulf Cooperation
Countries, African and Southwest Asian markets.
Embassy of the Sultanate of Oman in Japan
Tel: 03-5468-1088

E-mail: info@omanembassy.jp

Ithraa: The Public Authority for Investment
Promotion and Export Development
Oman’s Modern Road Network

Tel: 968-24 62 33 00, www.ithraa.om

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