New companies find it difficult to raise IPOs when there is no liquidity in the market. Oman has all the right ingredients to promote industries but it lacks a proper marketing framework. Unlike the popular misconception, it is cheaper to set up a plant in Oman than in Jebel Ali in the UAE - the variable costs are lower here. Technically everybody in the GCC imports the same machinery. Differences arise because of the marketing strategy and the pro-active bureaucracy present elsewhere.
Red tape is a constant source of complaint among investors.
Oman's infrastructure has also come in for criticism. Many believe that foreign investment holds the key, in terms of capital and expertise, but that not enough has been done to lure overseas investors. For a start, it is implementing a host of legislative changes designed to oil the wheels of private-sector activity. The banking law is being re-worked, and amendments have already been made to foreign investment laws and the commercial law. Even companies with 70 per cent foreign capital can be treated as an Omani company, paying 12 per cent tax which is very lucrative, especially for European companies where corporate tax rates are higher.