Doing business (9)
Bank Muscat, the leading financial services provider in Oman, has affirmed its readiness and alignment to promoting financial inclusion and digital payments across the Sultanate by providing various e-payment options to the general public at merchant partners across the Sultanate.
The bank continues to expand e-payment options available including Debit, Prepaid and Credit Cards, wearables, Mobile wallets and the Mobile Banking app as well as the latest QR-code-based payments that help retail outlets easily accept digital payments from the Mobile Banking app or Wallet of any bank in Oman.
Bank Muscat pointed out that businesses across the country including micro and small enterprises can easily implement QR-code-based payments in order to meet the latest regulations on the need for businesses to provide e-payment options to their customers.
Abdullah Hamood Al Jufaili, Assistant General Manager, Digital Banking, Bank Muscat, said: “Bank Muscat is encouraged by the rapid shift to digital payments and invites today's tech-savvy customers to use different e-payments options according to their convenience.
E-payments benefit our merchant partners, customers, and the general public by improving financial inclusion and offering convenient and highly secure payment options hence, it is important that businesses offer various e-payment options that will boost economic growth and development. QR-code-based payments are particularly helpful to small businesses in this regard.
We are confident that the ongoing digital transformation will help our nation and its people achieve the ambitious goals of Oman Vision 2040.”
The QR code scanning option allows merchant partners to accept e-payments from customers quickly and securely, irrespective of their bank or wallet. It has been seeing exponential growth since its recent launch with over 440 merchants already implementing the e-payment facility.
The security of transactions is enhanced by ensuring that payments are credited into the business’ account, without the need to handle physical cash and the inconvenience of maintaining small changes for customers. Payments can be easily initiated from a customer’s Mobile Banking application or Wallet application to the merchant’s account by scanning a QR code. A merchant can also request money from a customer using the Mobile Payments System registered mobile number / Alias / QR code.
It must be noted that customers of local banks can easily make payments, transfer money or request funds from others using the Central Bank of Oman’s Mobile Payment Clearing and Switching System (MPCSS).
Funds can be transferred instantaneously using one of the following modes. For person-to-person transfers, money can be sent or collected from the recipient’s default account or wallet. ‘Send money’ can be initiated by using a mobile number, Alias, or by QR code scanning, and ‘collect money’ can be initiated using recipient Alias/Mobile Number if both the sender and recipient are registered on MPCSS.
Bank Muscat customers have the facility to register on the MPCSS via both its BM Wallet and the mBanking app. Funds can be transferred instantly and at zero cost to both Bank Muscat and non-Bank Muscat accounts or wallets by using their MPCSS -registered mobile number/alias/QR code.
There is no need to enter an account number. Beneficiaries can be instead selected from one’s phone contact list to initiate a payment.
source: zawya
The foundation stones for two new projects worth more than OMR14 million were laid on Sunday in the Governorate of Muscat.
This was done for the construction of the sixth building in the Knowledge Oasis Muscat (KOM) and the facility building in Al Rusayl Industrial City.
These two projects are aimed to provide advanced services and facilities that will encourage local, regional and international investments in its various industrial cities.
The laying of the foundation stones was done under the auspices of Hilal bin Hamad Al Hasani, Chief Executive Officer of the Public Establishment for Industrial Estates – Madayn.
“These projects play a key role in contributing to the advancement of the industrial sector in the Sultanate, and eventually reflect positively on the national economy and the business environment,” Al Hasani said.
He added that: “In light of the rapid industrial growth in the country and to contribute in achieving Oman 2040 vision, Madayn alongside its investment arm – Shumookh Investment and Services Company, aim at developing the infrastructure in the various industrial cities across Oman.
These efforts play a major role in realising ‘live-work-play’ environments and developing advanced infrastructure that is able to compete globally and attract new investments and partnerships.”
Al Hasani calls upon Omani Small and Medium Enterprises (SMEs) registered with the Public Authority for Small and Medium Enterprises Development (Riyada) and the local companies to submit their proposals related to supply and construction services to the main contractor of the two projects in KOM and Al Rusayl.
Talking on the sidelines of the event, Eng. Musallam Al Hudaifi, Chief Executive Officer of Shumookh Investment and Services – the investment arm of Madayn, stated that KOM 6 project in the KOM and the facility building in Al Rusayl Industrial City come in line with the key projects implemented by Shumookh.
“The total cost of developing KOM 6 building at the Knowledge Oasis Muscat is estimated at OMR10.3 million.
With a total building area of 51,000 sqm and 500 parking spaces on the two-floor basement, the project will consist of eight floors (two-floor basement + ground floor + six floors).
Besides, the building will comprise 21,000 sqm of the rental area that will provide a variety of services and facilities to the visitors and employees based at the Knowledge Oasis Muscat and its adjacent areas,” Al Hudaifi said.
Moreover, the total value of developing the facility building at Al Rusayl Industrial City is pegged at OMR4.2 million.
“With a total building area of 19,000 sqm and 230 parking spaces at the basement level, the facility building will consist of 10 floors (one-level basement + ground floor + eight floors).
Featuring a rental area of 8,500 sqm, the building will provide various facilities to the visitors and employees based at Al Rusayl Industrial City and the neighbouring areas,” the officials informed.
They added that the facilities will include banking services, travel agency, cafes, restaurants and groceries, in addition to office spaces for government and private bodies.
In addition to the KOM 6 building project and the facility building project in Al Rusayl, more projects will be announced soon in KOM, Al Mazunah Free Zone and the other industrial cities of Madayn.
source: timesofoman
Advisers and investors said that the Foreign Capital Investment Law will contribute to establishing new investment entities and open up investment and employment opportunities in the Sultanate, directly or indirectly.
The new law will help combat illicit trade and regulate the labour market, said observers, noting that the Sultanate’s business infrastructure is now ready to attract investments, with penalties stated in the new law serving as a deterent against fraud.
Ahmed bin Abdulkareem al-Hooti, Oman Chamber of Commerce and Industry (OCCI) Board Member, said that the Foreign Capital Investment Law is an element among a set of laws that regulate commercial and economic activities, as well as investment in general.
Al-Hooti pointed out that the Foreign Capital Investment Law also functions alongside the Law on Partnership Between Public and Private Sectors, Privatization Law, Investment Law and Bankruptcy Law. This is in addition to the establishment of the Commercial Arbitration Centre, which will help investors in decision making.
Meanwhile, Dr. Yousef bin Hamad al-Balushi, CEO of Investment Smart Portal, said that investment, in general, and foreign investment, in particular, assume great significance in any development process, and this prompts all countries to grab investment opportunities.
He added that there is currently an urgent need to speed up steps towards encouraging and attracting investments, locally and internationally, for a variety of realities dictated by the growing stage, which has almost attained its prime in infrastructure and legislations.
This, in turn, dictates transformation into a new model that is capable of yielding fruits, in terms of major investments, and maximizing benefits from the Sultanate’s preparedness and high status among world countries.
The Foreign Capital Investment Law enables the investor to exclusively own the land of a project or share it with another foreign investor or Omani investor, said Dr.
Adil al-Maqdadi, a former Associate Professor, Faculty of Law, Sultan Qaboos University (SQU), an advocate and legal adviser at the Office of Dr.
Ahmed Said al-Jahwari Legal Consultants. This law has not imposed any bottom-line capital for his company, unlike the previous law, which imposes a minimum of RO15,000 for approaching an investment venture.
source: omannews
Ithraa, Oman’s investment promotion and export development agency, unveiled the Invest in Oman portal on Monday at a ceremony held at the Implementation Support & Follow-up Unit (ISFU) in Muscat.
The first and only investment platform dedicated to driving and facilitating foreign investment into the Sultanate, Invest in Oman has been designed specifically to enable local companies and entrepreneurs showcase their projects and connect them with investors worldwide.
For potential international investors, the portal provides a wealth of information and guidance including details on the Sultanate’s pro-business environment, industry trends, workforce, intellectual capital, incentives, tax and available land. Importantly, it also provides guidance on the steps involved in investing in and setting up operations in Oman.
Speaking at the launch event, Azzan al Busaidi, CEO, Ithraa, stated: “The Invest in Oman portal has been developed in response to a growing demand for investment in large, as well as early stage Omani businesses.
The portal provides a platform to present world-class investment opportunities featuring high-growth companies in the Sultanate on a global scale.”
Ibrahim Said al Mamari, CEO, Invest Services Centre, said: “This initiative is a great milestone in the development of Oman’s business environment.
The “Invest in Oman” and “Invest Easy” platforms will play a major role in attracting further investment to support Oman’s ambitious economy. By launching this platform, business opportunities in Oman will be easily realised by local and overseas investors through a single window. Going forward, the Investment Services Centre and Ithraa will strive to constantly improve the portal’s offer.”
Highlighting some of the key reasons driving the interest of the international investment community to Oman, Mr Al Busaidi noted that the World Bank ranks Oman as one of the most cost-effective countries in the region for doing business in terms of labour, utilities, facilities, transportation, financing and taxes.
Ithraa’s CEO added: “On top of this, Oman is the ideal location for reaching the growing and emerging markets of the Middle East, Africa and Asia. By 2025 one billion people will enter the global consuming class and around 600 million of them will live in emerging markets on our doorstep. Companies that understand and respond to these shifting dynamics will experience tremendous benefits.”
Dr Dhafir Awadh al Shanfari, CEO, Public Authority for Privatization & Partnership, stated: “Invest in Oman is set to be the meeting place for project promoters and investors.
We greatly look forward to the impact it will have on our investment landscape and the benefits this will bring to the sultanate’s business community as they take their ambitions forward.”
The portal allows investors to self-certify, browse live investment opportunities, open dialogue with business founders, perform due diligence and establish working relationships with Oman-based businesses and investors. Given its role in attracting investment to the sultanate as well as promoting Oman’s non-oil exports, Ithraa works with a range of public and private sector organisations. And with regards enhancing the domestic business environment, Ithraa co-ordinates with ISFU. The Invest in Oman portal is of particular interest to ISFU, an initiative it intends to support and monitor through its various channels.
source: omanobserver
The Royal Decrees promulgating laws on bankruptcy, public-private partnership, privatisation and foreign capital investment will create a favourable regulatory environment for investment, in line with the future vision of the sultanate.
This was communicated by the Government Communication Center (GCC) in a statement issued in cooperation with the Ministry of Finance, the Ministry of Commerce and Industry and the Public Authority for Investment Promotion & Export Development (Ithraa). 'The Royal Decrees are part of the government's efforts to promote competitiveness of the national economy globally. Furthermore, these laws reflect the government's desire for the private sector to play a role in Oman's development and create better job opportunities for the national workforce,' GCC stated.
With world-class infrastructure, such as roads, ports, airports and special economic zones already in place coupled with sultanate's growing reputation as a logistics hub, the new regulatory environment is bound to get the attention of foreign investors, expediting the overall development in the country.
Foreign Capital Investment Law
Some of the objectives of the law, as underlined by GCC, include promoting the sultanate's position as an investment destination capable of attracting
foreign capital, enhance competitiveness in line with international indicators through the legislative system that governs business. Also, the aim is to streamline procedures and issue permits necessary for foreign investment within the country through the Investment Services Centre of the Ministry of Commerce and Industry.
The law will help offer incentives to attract foreign investment and grant the investor necessary guarantees for the project. 'For example, provide the foreign investment project with all advantages, incentives and guarantees granted to the national project in accordance with the applicable laws in the sultanate. A decision by the Council of Ministers may decide preferential treatment for foreign investors in accordance with the reciprocity principle,' it said.
Land and real estate required for the investment project may be allocated by way of a long-term lease or usufruct over the same, without being subject to the provisions of Royal Decree 5/81 regulating usufruct over Oman's land and the Land Law in accordance with the rules and provisions set out by the regulations after coordination with the relevant authorities.
Public-Private Partnership Law
The law will improve the national economy by encouraging the private sector to invest in infrastructure projects and public services, as well as contribute in the diversification of national income sources.
It will help lay out a regulatory framework to manage the process of public-private partnership in a transparent manner as well as improve the quality of public services and reduce their establishment and operation costs, which contributes to relieving the financial burden on the state's budget.
The law lays down all the parameters for establishing, launching and awarding public-private partnership projects.
Privatisation Law
The law aims to encourage the implementation of government policies relating to expanding the role of the private sector in ownership and management of various economic activities.
The GCC expects that it will also encourage attracting investment, expertise, technology and knowledge as well as raise resource management efficiency, improve services and create high-quality job opportunities.
Bankruptcy Law
The law will create a legislative and legal framework that promotes the business environment by restructuring the procedures that enable business people to overcome the debt stage.
It will also cover foreign companies operating in the sultanate as well as support distressed businesses to revive and resume their economic activity.
It will help set a 'pre-preventive' composition stage called 'Restructuring' through which the concerned parties cooperate with distressed business people aiming to support them to re-structure their business as well as encourage investment and entrepreneurship.
Source: menafn
Oman is upgrading its infrastructure – more specifically – ports, as a gateway to economic diversification. A steep decline in global oil prices between 2014 to 2017 weakened the Sultanate’s monetary funds. An alternative strategy applied to accelerate economic growth was to increase the role of private sectors and establish more SMEs. Imports and exports are essential cogs in the industrial wheel, and the Sultanate has been revamping its ports in Muscat, Duqm, Salalah and Sohar, to not just increase its industrial production, but also to exploit the Sultanate’s strategic location to its advantage in transforming Oman into a hub for foreign investment and international trade.
Ports and Free Zones
In line with Oman’s agenda to increase foreign investment, Oman has established free zones adjacent to some of its ports. These free zones will be the direct centers for the majority of Oman’s foreign direct investments (FDIs). International companies and investors will be allowed to establish their businesses within the free zones. Its proximity to ports is a calculated benefit – of ease in imports and exports – that will entice further foreign investment.
The various free zones established by Oman are:
- Salalah Free Zone
- Salalah Port
- Sohar Industrial port
- Sohar Free Zone
- Mazyona Free Zone
- Musandam Free Zone
- Duqm Port
- Duqm Free Zone
Oil Tanker Attacks and Significance of Duqm Port
The tanker attack allegedly carried out by Iran have led to a rise in U.S – Iran tensions. Subsequently, the Strait of Hormuz has become a volatile route for trade. Shipping companies may be wary of utilizing the trade route. This gives Oman the opportunity to present an alternative and safer trade route in the form of Duqm. With direct access to the Arabian sea, Duqm port’s tactical location may urge shipping companies to redirect their trade via Oman’s coastal line. This, in turn, will promote the Sultanate as a major player in foreign investment and trade.
Foreign Investment Regulation
Oman has issued several policies to encourage foreign investment, such as:
- Competitive service prices
- Exemption of tax for five years (extension may be granted in some cases)
- No income taxes
- Exchange of foreign currency at a fixed rate
- 100% Ownership of company within free zones
These incentives have been tailored specifically to allow for ease of trade, encouraging foreign investors to utilize Oman’s ports and free zones.
Foreign Investment vs. SMEs
While some may consider the growing number of foreign direct investments (FDIs) and companies as a threat to budding SMEs within the Sultanate, they pose none. In order to avoid competition between well-established foreign companies and the up and coming Omani enterprises, the country has limited FDI’s reach to its free zones, adjacent to its trading ports. FDIs within the main cities require the investor to find an Omani sponsor. Oman, as part of its economic diversification agenda, wants its SMEs and local industries to flourish, and carefully lays down policies that ultimately benefit its locals, whilst still managing to extend a fair offer to its foreign investors.
source: businessliveme
The Ministry of Commerce and Industry said that it is setting up Investment Services Information Centre as first front for local and foreign investment.
This is decided in view of the outcome of the study about the reality of investment in the Sultanate as well as the government’s approach to strengthen roles of various sectors and support the idea of economic diversification.
The Investment Services Centre is aimed at developing investment environment in the Sultanate and making establishment of projects of various types easy by increasing transparency and speed of procedures and services, promoting foreign direct investment in Oman and overcoming obstacles being faced by the investors.
Engineer Ibrahim Bin Saeed Al Mamari, Chief Executive Officer, Investment Services Centre, said: "The vision of the Ministry of Commerce and Industry is to work through this centre seriously and address the challenges in the investment in the Sultanate of Oman.
It is also meant to find suitable solutions by opening direct channels with investors, and taking recommendations into account. It will help the investment sector in the Sultanate."
"From very first day, we started on the basis of the study about the performance of the portal InvestEasy to learn about the major challenges being faced by the investors.
This also helped us in knowing that to which level we have reached in the integrated electronic connectivity with all organisations concerned with the commercial registration, licensing and issuing permits of different times.
We have actually wanted to complete the procedures of investment swiftly without any hassle," he added.
"We would also look into the service and how it complies with the international standards in making the it more transparent so that environment for investment can be made more attractive to take advantage of the competitive atmosphere of the Sultanate.
This is important for Oman to gain its position both at regional and international levels," he pointed out.
He said that practically, eight government organisations have been linked with the system of ‘Invest Easy’ at different levels with the plan to link them completely.”
Al Mamari said that recently, a number of improvements have been made in the services provided through "Invest Easy” portal for commercial registration, commercial agencies, licenses etc.
These improvements are aimed at simplifying and making business environment suitable.
He said that 10 per cent of work on the plan is over. The next phase is called "Invest Easy Version 2", will also include Intellectual Property, licenses, permits, connectivity with other organisations and annual reports. It will also have mobile application and a dashboard.
Al Mamari said that the coming phase required concerted efforts of all parties involved in the success of the investment in the Sultanate. The Investment Services Centre has developed an ambitious plan which includes the main partners of the public and private sectors.
It is aimed at constructive dialogue and creation of joint platform where all can work in the interest of investment and removal of all obstacles.
He said that the plan would be announced shortly. For the plan a set of discussions with the concerned organisations were held and their recommendations were taken into account. It would make Oman as suitable place of local as well as foreign investments.
He said that the centre was working directly under the guidance of the honourable minister in coordination with the implementation and follow up unit so that whatever has come out in these discussions are implemented in toto to achieve the objectives.
He said that the centre was currently working on restructuring its administrative set up and developing strategies which are consistent with the role of the centre, in line with the investment and the business environment of the world at the regional and international levels.
The centre is also working to understand major challenges related to the Sultanate's position on business map in the annual report of the World Bank and to work to improve the its regional and international status gradually.
He said that to achieve this goal, the centre was working currently on developing a mechanism which divides investment projects into two one is Funnel Strategy and the second is Implementation Process. It is aimed at identifying strategic projects and focus on it without ignoring others.
He said that this strategy depended on the international standards agreed upon with the main partners.
Engineer Ibrahim Al Mamari said that the centre would include a specialised team for studies and planning to make a base as a solid ground for the development of investment plans and programmes.
Source: Timesofoman
The Sultanate of Oman is a beautiful place known for its sandy beaches, spectacular waterfalls, and unique cultural and architectural heritage.
Strategically located in the south-eastern coast of the Arabian Peninsula, it occupies 300,000 sq. km of area of which 1700 sq. km are covered by the coastline making it a marine country.
It is the part of Gulf Co-operation Council (GCC) and is considered as one of the most important logistics centres of the region.
Oman has achieved a stable balance between remaining true to its roots and being a globalized country.
It has been focusing on driving economic growth and is now considered a high-income economy by The World Bank. The Sultanate of Oman is working towards formulating policies that would not only decrease the dependency of the economy on the export of oil but will also secure FDI’s from foreign investors. Let’s see some of the reasons that make setting up a business in Oman such a lucrative option for you.
Reasons to Choose Oman As A Business Destination
World Bank issued its annual Doing Business report for 2019 in which the Sultanate was ranked 78 in the Ease of doing Businessglobally.
The International Monetary Fund (IMF) also has stated Oman to become the fastest growing economy in the GCC region and the sultanate’s real GDP is expected to increase by 5% in the year 2019. Some of the key features that makes Oman a very beneficial option are highlighted below:
1.Strategically Located
Oman also holds the status of a marine country and due to its tactical location, controls one of the most important naval trade routes in the world, the trade route between the Arabian Gulf and the Indian Ocean.
The location makes Oman the confluence of the African and Asian continents, which lead to various financial and business opportunities.
2.Availability of Numerous Amenities
A strong infrastructure, commercial connectivity, and security are some of the steps taken by the Ministry of Foreign Affairs and Commerce which encourages entrepreneurs to seize the investment opportunities and contribute to the development of the economy.
3.A Developing Economy
The economy of Oman has grown by leaps and bound over the years. The Sultanate has made huge social and economic improvements and has seen achievements such as multi-lane highways, equipped hospitals, state-of-the-art schools, and universities etc.
Oman is also looking to leverage its position as a beautiful country with rich cultural heritage and focus towards tourism.
4.Revenue Generation from Non-Oil Products.
Although the discovery of oil was very crucial to Oman’s economy at the initial phase, it is focusing more towards diversifying the economy and investments in the foreign sector and incorporation of businesses in Oman are encouraged.
Non-Oil revenue for Oman is to form 16.5 % of GDP in 2019.
5.Easy Tax Rates
You don't have to pay any income or individual tax. A company only needs to pay a flat rate of 15% corporate tax after establishment.
All goods move freely across the GCC without any customs duties.
6.A Step towards the Growth of Oman (Vision 2040)
Oman’s vision 2040 strategy aims to develop multiple sectors like infrastructure, tourism, technology, hotel, transport, manufacturing, and mining industry. This initiative forecasts an increase of 31 billion riyals by 2040.
7.Ongoing Projects of Oman
For the prosperity of the economy, Oman has many projects which are ongoing or in the pipeline in different sectors. Some of the projects which are nearing completion are Salalah LPG Project, Mina Sultan Qaboos Waterfront etc.
It is very clear that there are many benefits of setting up a business in Oman.
The location, the government incentive and the future vision for Oman, all provide a very conducive environment for you to start a business in Oman and help the Omani economy.
Source: businesssetup
Recent legislative reforms by the Omani government are creating burgeoning opportunities for foreign direct investment in the Sultanate, it emerged recently.
Under the current law, foreign investors are required to have a local shareholder that owns at least 35% of the foreign company. In many instances, this acts as a deterrent to investors who express a tendency to prefer full ownership of their business.
In a bid to open up the market and encourage more international companies to set up a base on its soil, Oman is looking to allow 100% foreign ownership and remove the minimum capital requirement of USD 389K (OMR 150K).
The new foreign capital investment law is in its third and final drafting stage, and according to analysts is poised to attract swathes of international firms operating in a variety of sectors from transport and logistics, to construction, technology, industrial and financial services.
According to leading independent research firm Arabian Monitor, Oman’s logistics sector is set to see significant growth, as the government announced the establishment of a new government holding company to manage its investments in ports, free zones, rail, maritime and land transport.
Acting as the government's development arm, the ‘Oman Global Logistics Group’ will play a pivotal role in creating major growth opportunities for the sector. It will also focus on realising the National Logistics Strategy, under the direct supervision of the Ministry of Transport and Communication.
According to Arabian Monitor, the logistics industry in Oman accounted for around 13% of GDP in 2015 (USD 8B) and is likely to grow at an annual growth rate of 7% between 2016 and 2020.
The firm sees infrastructure investments associated with national logistics development plans, economic diversification efforts and increased trade with other countries as key drivers for growth.
It anticipates sea transport to grow by 4.8% in 2016, driven by the increasing intra-regional GCC trade and demand from Asia, Europe, and Africa. Currently the segment accounts for 80% of freight shipped to and from the Sultanate.
The new 680km highway between Oman and Saudi Arabia which opened this year is a major milestone in improving road transport efficiency by providing a direct route between the two countries and reducing the number of border crossings.
However, logistics infrastructure in the Sultanate, especially outside urban areas, remains largely inefficient. Meanwhile, the country continues to face chronic challenges of skilled labour shortage to support the growing requirements of the market, which according to Arabian Monitor, “could hold back the sector’s growth.”
To remain competitive in the region and globally, Oman will need to invest heavily in developing and upskilling its local workforce, while also attracting top talent from more experienced regions such as Europe, Asia and the Americas.
With surging competition from neighbouring UAE and Saudi Arabia, and other countries with a similar portfolio and investment scenarios, the Sultanate will need to foster a fair, competitive and flexible business environment for both local and foreign investment to flourish.
