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• Lafarge Vice President visit to Oman

• Dr.Farooq Abdullah meets Omani Businessmen

• OCIPED in the China Overseas Investment Fair

• Honorary Consulate of Oman in Spain meets Government High Officials

• OCIPED participated in the Women’s Forum in France

• OCIPED to Participate in the China Overseas Investment Fair

• Japanese Water Experts held the Seminar on 18th October

• The Omani Centre for Investment Promotion and Export Development is signing the Memorandum of Understanding in the Investment field with The Syrian Investment Authority

• Visit delegation from Republic of Yemen

• International Research Foundation Press Release - Oman’s Economic Freedom is Growing

• Oman Press Release on the Launch of The Global Competitiveness Report 2009-2010

• OCIPED develop Investment Promotion Strategy for Oman

• Non-oil omani origin exports set to achive target of ro 2.1 billion by 2010 inspite of global credit crunch

• OCIPED sees huge opportunities for trade with Libya

• OCIPED Received the Arab British Chamber of Commerce delegates

• Ociped welcomes extension of European Union Preferential Tariff System (GSP) for the benefit of Omani Exporters till 2011

• Ociped to provide Global Buyer Details through Matchmaker Software

• Film City Visit 

• Ociped Hails 74% Growth In Non-Oil Omani Origin Exports During First Half Of 2008

• WTO Report - June 2008

Lafarge Vice President visit to Oman

Mr. Jean Desazars, Executive Vice-President, of Lafarge Group visited Oman recently on OCIPED invitation and had meetings with H.E Ahmed Al Dheeb, Undersecretary, Ministry of Commerce & Industry and officials from Directorate General of Minerals, Oman Chamber of Commerce & Industry and Private Sector were arranged. The objective of the visit was to explore business opportunities in Oman.

Lafarge is the world leader in building material, they are number one in cement production, number two in aggregates and number three in concrete and gypsum. Their sales in 2008 were over 19 billion Euros. The company already has a presence in Oman as they are shareholders in Ready-mix LLC and are also exploring other opportunities.

Mrs. Nisreen Ahmed Jaffar commenting on his visit mentioned that as part of OCIPED activities we establish contacts with Multinational companies and invite them to Oman to explore business opportunities. She added that she met the CEO of Lafarge group in France during the women Globel Forum on October last year and invited them to visit Oman. She also mentioned that the discussions held were very encouraging and Lafarge, who are the global leaders in building materials are seriously exploring many viable options in Oman.

Dr.Farooq Abdullah meets Omani Businessmen

Oman India Business Council organized a reception and networking lunch in honor of the visiting Indian Minister Dr. Farooq Abdullah, Union Minister for New & Renewable Energy and the accompanying Indian business delegation at Al Jabreen ball room Intercontinental Hotel on last Wednesday 20 January. Leading corporate officials from Oman attended the event.

During the address to Dr. Farooq Abdullah highlighted the importance of renewable energy. He mentioned that it is a challenge for every government to maintain a balance between development and environment and in this context renewable energy has a great significance .. He appreciated the efforts of the Oman government in this direction and mentioned that both governments are exploring cooperation in this field. He requested the private sector companies from India and Oman to explore joint business opportunities in Oman, India and in rest of the world. He also mentioned that Oman with its strategic location at the junction of Middle East , African continent and Indian subcontinent is an ideal location.

Pankaj Khimji, Chairman of Oman India Business Council in his welcome address highlighted the historic relationship between Oman and India and urged the private sector for more cooperation. He also briefed the audience on Oman’s economy

Ms Gauri Singh Joint Secretary , Ministry of New & Renewable Energy, India made a presentation on the Renewable energy initiatives in India and Mr Ahmed Al Jahdhami., Privatization & Restructuring Director of Public Authority for Electricity & Water made a presentation on the renewable energy initiatives of Oman.

During the event Mrs. Nisreen Ahmed Jaffer, Director General of Investment Promotion, OCIPED presented a memento to the Indian Minister. Commenting on the event, Nisreen appreciated the efforts of the Oman India Business Council especially the Chairman Mr Pankaj Khimji and the Confederation of Indian Industry for organizing the event and mentioned that the event provided excellent platform for the Omani and Indian private sector to interact for cooperation in the field of renewable energy. She also added that renewable energy is identified as one of the priority sectors as per the Investment Promotion Strategy for Oman developed by OCIPED and we are working closely with Public Authority for Electricity and Water to promote the sector

OCIPED in the China Overseas Investment Fair

Eng. Nisreen Ahmed Jaffar, Director General for Investment Promotion, and Khalid Al Hashli, Director of Facilitation of OCIPED participated in the First China Overseas Investment Fair. The event was organized by China Industrial Overseas Development & Planning Association, Ministry of Foreign Affairs and China Development Bank at the World Trade Center, Beijing during November 3-4, 2009.
This Fair is the first event organized to promote overseas investment from China. Large number of organizations from public and private sector from China participated in the event. The forum also provided an effective interactive platform for overseas investment cooperation between China and countries all over the world.

During the event a paper on investment opportunities in Oman was presented in the main Forum and also in the special performance seminar for the sultanate of Oman. Oman was the only Arab country that took part in the Forum. The presentation focused on the investment opportunity in the seven priority sectors identified by OCIPED Investment promotion strategy recently finalized for China market. Many Chinese companies and international organizations visited Oman booth to acquaint themselves with the new developments and opportunities in Oman

Sultanate's Embassy in China, represented by His Excellency Ambassador Abdullah bin Hilal Al Saadi, and Mr. Salem Busaidi, First Secretary of the Sultanate's Embassy in Beijing, played a significant role in making this mission success. His Excellency visited Oman stall and discussed initiatives taken by OCIPED and the opportunity available to attract investment from China with OCIPED officials and with visitors to the booth..

The statistics from the Chinese government and the United Nations show that in 2008, China’s overseas direct investment was 521.5 billion dollars, a 196.7% increase year-on-year. Further according to Chinese investment consultancy latest data till Feb, 2009 top ten Chinese enterprises investment was 62 billion dollars. Hence China is a huge market for FDI outflow and OCIPED will be closely liaising with Oman embassy and OCIPED representatives for more promotional plans in China.

Honorary Consulate of Oman in Spain meets Government High Officials
 

H.E. Anna Maria Honorary Consulate of Oman in Spain and OCIPED Representative was on an official visit to Oman during last week and met H.E. Maqbool Ali Sultan, Minister of Commerce & Industry, H.E. Dr. Mohammed Al Romhi, Minister of Oil & Gas, Sayyid Badr bin Hamed bin Hamoud al Busaidi, Secretary General Ministry of Foreign Affairs, and H.E. Hamood Sangoor, Executive President of Central Bank of Oman. They discussed various issues related to enhancing economic cooperation between the two countries.

H.E. Anna Maria also met Dr. Mehdi Ali Juma, Economic Expert and Mrs. Nisreen Ahmed Jaffar, Director General of Investment Promotion of OCIPED and discussed the various initiatives taken by OCIPED to attract investment from Spain and also for promoting export of Omani products.

OCIPED participated in the Women’s Forum in France

Eng. Nisreen Ahmed Jaffar , Director General for Investment Promotion of OCIPED, participated in the 5th Woman’s Forum for the Economy & Society Global Meeting as an official delegate from the Middle East at Deauville during 15th to 17th October.

The Women’s Forum was founded in 2005 by Ms. Aude Zieseniss de Thuin, to promote women’s vision on the economic and social issues of our time. They aim to become a hub of debate, sharing brainstorming and action where women and men from around the world and from all horizons to speak and exchange all major social and economic issues...

This year event was the 5th edition and the official delegation was Middle East. Over fifty leading and remarkable women from business, politics, academia, science & technology and art & media participated in the event . Apart from that there were many renowned speakers of Middle East origin. The total participation was over 1000 from about 80 countries. The organizers were able to gather excellent speakers and the topics of discussion varied from global business and politics to economy and society

Commenting on the event Nisreen mentioned that this forum considered to be women’s edition of the World Economic Forum and was excellently organized and managed. The organizers had the support of many international companies and it was an excellent opportunity to meet many senior executives from the multinational companies and promote Oman and to invite them to Oman to explore the business opportunities. She also added that during the visit she also met many of leading French companies in Paris which were identified by the Investment Promotion Strategy and they showed interest to invest in regain and discussed investment opportunities in Oman

OCIPED to Participate in the China Overseas Investment Fair

Eng. Nisreen Ahmed Jaffar , Director General for Investment Promotion, and Khalid Al Hashli, Director of Facilitation of OCIPED will participate in the First China Overseas Investment Fair hosted by China Industrial Overseas Development & Planning Association and China Development Bank in China at World Trade Center, Beijing during November 3-4, 2009.

The objective of the event is to promote the development and cooperation of China overseas investment. This Fair is the first event organized by them to promote overseas investment from China .... A large number of organizations from public and private sector is expected to participate in the event. The forum will provide an effective interactive platform for overseas investment cooperation between China and countries all over the world.

During the event Nisreen will be making a presentation on investment opportunities in Oman in main session and also in a special session and OCIPED will also participate in the exhibition. Commenting on the event Eng, Nisreen mentioned that in the recent past there is considerable interest from the Chinese companies, both large and SMEs, to establish a base in Oman and added further that many investment promoting agencies from China and abroad; international and regional economic organizations; foreign associations and chambers of commerce; Fortune 500; China large scale state-owned and private enterprises, many in small and medium-sized enterprises, will be attending the fair and participation in this forum will provide an opportunity to promote Oman and invite them to explore the business opportunity in Oman.

China is a target market in seven priority sector identified in OCIPED investment strategy and OCIPED paper will highlight the investment opportunities in these sectors.

Japanese Water Experts held the Seminar on 18th October

Eight Japanese companies made their presentations on the advanced technologies and practical experiences in financing for water projects, desalination, wastewater treatment, water re-use, environmental management and strategic business development at the seminar held on 18th October in the Oman Chamber of Commerce and Industry. Over hundred people attended from the government sectors as well as the private sectors. The private sectors included industries such as water desalination, wastewater treatment, food, agriculture, environment and etc.

After the seminar, business matching session was held for Omani businessmen who sought partnership with the Japanese companies. Large number of the businessmen attended this session and discussed the technological issues with the Japanese companies.

Also at the seminar Japan Cooperation Center for the Middle East (JCCME) advised the attendees that the Japanese Government and the League of Arab States have agree to hold the 1st Arab-Japan Economic Forum in Tokyo on 7 to 9 December 2009. As a part of this Economic Forum, Business Forum is scheduled on 8 December and topics to be discussed at the Business Forum are water, renewable energy, environment, basic industries, tourism and finance for investment.

This seminar was organized by JCCME in cooperation with the Omani Center for Investment Promotion & Export Development (OICPED) and the Oman Chamber of Commerce & Industry.

The Omani Centre for Investment Promotion and Export Development is signing the Memorandum of Understanding in the Investment field with The Syrian Investment Authority

The Omani Centre for Investment Promotion and Export Development has signed on 5th October 2009 The Memorandum of Understanding in the investment field with the Syrian Investment Authority, Dr Salem Nasser Al Ismaily CEO of the Centre represented Oman and Eng. Ahmed Khalid Abdulaziz Director General of the Syrian Investment Authority represented Syria, The Signing Ceremony was attended from Syria by Eng. Ziad Kamal Pedrow Eng/Ziad Kamal Pedrow – Director General of the industrial city of Adra, Eng/ Wael Abdul Karim Al Shikhawi from the Syrian Investment Authority, Mr. Joseph Stanom – The Omani Centre of Investment Promotion and Export Development’s Representative. Attendee representing Oman are Eng. Nisreen Ahmed Jafar – Director General of Investment Promotion in the centre and Mr. Aiman Al Ambosaidi Acting Director General of Export Development and Mr. Khalid Al Hashli Director of Investment Facilitation in the Centre.

MOU has elaborated on strengthening the linkages and interdependencies between the two parties in the area of investment cooperation and to work on the definition of investment opportunities and projects available in the two countries in order to activate investment in all areas provided for in the investment laws in both countries. The Parties will promote the exchange of visits and meetings between Syrian and Omani investors and encourage investment in various productive and service sectors and the establishment of forums in order to publicize the investment environment and opportunities for projects available in each of the two countries. Exchange of information, legislation and laws in force in the area of investment and participation in investment fairs in both countries and work to provide the necessary services and facilities to investors for the establishment and completion of investment projects in accordance with the legislation in force in the two countries and signed agreements with the relationship between them. Exchange of information and lists of projects for investment in both countries and the conditions for their implementation and follow-up completed. Formation of a joint committee of professionals in the Omani Center for Investment Promotion and Export Development, Oman and the investment in the Syrian Arab Republic for the implementation of this note and meet once a year alternately in both countries and, whenever necessary. Parties bear their respective financial costs of programs of cooperation resulting from this memorandum. The present Memorandum will take effect after thirty days from the date of the last action to complete the notifications of ratification by the legislation in force in each of the two countries and shall remain in force for a period of three years unless one of the parties shall notify the other party in writing three months before his desire to end it.

Visit delegation from Republic of Yemen

In the framework of the decisions of the Ninth Session the Oman – Yemen Joint Committee meeting held in Muscat on1st March 2009, it was agreed that officials of the Omani Center for Investment promotion and Export Development (OCIPED) and General Investment Authority (GIA) at Republic of Yemen to share the experiences on the mechanism of promoting the investment and other related issues. In this context OCIPED organized two days programme for Mr. Marwan Farag Bin Ghanem General Manager and Mr. Abdulwahab Ali, Head of Technical Office of GIA on 28 – 29 June 2009 to visit Oman and to meet with various government bodies in the Sultanate such as Ministry of Commerce and Industry, Oman Chamber of Commerce, Knowledge Oasis Muscat (KOM) and Takamul. OCIPED also shared with the GIA the experiences, the mechanism adopted by OCIPED to attract local and foreign investment. Additionally, OCIPED shared to them the law, regulation and incentives the Sultanate provided and the services provided to Omani Exporters.

International Research Foundation Press Release - Oman’s Economic Freedom is Growing

Muscat, Oman – Oman ranked 36th out of 141 countries in the Economic Freedom of the World: 2009 Annual Report, released today by the International Research Foundation, Oman.

Oman was rated 7.36 for economic freedom in this year’s report climbing up from 7.17 last year, building on the record in recent years. This saw the Sultanate’s ranking increase from 44th in the world last year to 36th this year. Oman, like its GCC neighbors performed strongly in this year’s index. Out of all Arab countries that participated in the index, Oman ranked 5th. First ranked in the Arab World was the UAE at 7.58 (ranked 19th in the world), Bahrain was second in the Arab World (7.56, 20th in the world) followed by Kuwait (7.46, 30th in the world) and Jordan (7.40, 34th in the world). Oman took fifth place in the Arab world. Egypt followed (6.68, 79th), then Tunisia (6.39, 90th), Morocco (6.16, 104th), Mauritania (6.05, 109th), Syria (5.76, 124th) and Algeria (5.34, 131st).

Out of all of the 5 subcategories of the index the majority of Arab countries scored highly on access to sound money, the Arab region’s average score was 7.86, the GCC’s 8.8 and Oman’s 9.1. The lowest performing category for the region was its size of government, measured by the level of government spending, taxation, enterprise and overall influence on individual choice – the average score for the region was 6.15, the GCC 6.35 and Oman 5.4.

This year’s report also includes new research that examines the likely impact of the global recession on levels of economic freedom. It suggests that economic freedom may decline in the short term in response to crises, but over a longer time, economic freedom has a tendency to increase after a banking crisis.

“Economic freedom is vitally important to building prosperity and reducing poverty so the finding that it may increase in the long run following a financial crisis is good news. The impact of the global financial crisis has been more limited in Oman than in many other economies. While the Sultanate has been affected primarily by changes in oil prices, it’s financial sector had only little exposure to the ‘toxic assets’ triggering the crisis.” said Dr Salem Ben Nasser Al-Ismaily, chairman of the International Research Foundation (IRF) the partner organization of the Frazer Institute, Canada.

The report ranks Hong Kong number one in the world, followed by Singapore then New Zealand. Zimbabwe once again has the lowest level of economic freedom among the 141 jurisdictions included in the study, followed by Myanmar, Angola, and Venezuela. The 2009 report is based on data from 2007, the most recent year for which comprehensive data available.

The annual peer-reviewed Economic Freedom of the World report is produced by the Fraser Institute, Canada’s leading economic think tank, in cooperation with independent institutes in 75 nations and territories.

The Economic Freedom of the World report uses 42 different measures to create an index ranking countries around the world based on policies that encourage economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of private property. Economic freedom is measured in five different areas: (1) size of government; (2) legal structure and security of property rights; (3) access to sound money; (4) freedom to trade internationally; and (5) regulation of credit, labor and business.

Research shows that individuals living in countries with high levels of economic freedom enjoy higher levels of prosperity, greater individual freedoms, and longer life spans. This year’s report also contains new research showing the impact of the global recession on levels of economic freedom.

“Economic freedom is the key building block of the most prosperous nations around the world. Countries with high levels of economic freedom are those in which people enjoy high standards of living and personal freedoms. Countries at the bottom of the index face the opposite situation; their citizens are often mired in poverty, are governed by totalitarian regimes and have few if any, individual rights or freedoms,” said Dr Salem Al-Ismaily.

The full report is available at www.freetheworld.com

Oman scores in key components of economic freedom (from 1 to 10 where a higher value indicates a higher level of economic freedom):

• Size of government: changed to 5.41 from 5.51 in the last year’s report
• Legal structures and security of property rights: changed to 7.34 from 7.05
• Access to sound money: changed to 9.09 from 8.79
• Freedom to trade internationally: changed to 7.33 from 7.07
• Regulation of credit, labour and business: changed to 7.64 from 7.45

“Oman’s individual ratings on each of the five main components of the index are encouraging. Oman has improved year on year in all components with increases of at least 0.2 points, with the exception of Size of Government. The increase in the ratings could mean significant boosts in inward investment to Oman as the index is often used, by members of the World Bank, as an indicator of a country’s investment climate said Dr Salem Al-Ismaily.

International Rankings
In this year’s main index, Hong Kong retains the highest rating for economic freedom, 8.97 out of 10. The other top scorers are: Singapore (8.66), New Zealand (8.30), Switzerland (8.19), Chile (8.14), United States (8.06), Ireland (7.98), Canada (7.91), Australia tied with the United Kingdom (7.89), and Estonia (7.81).

The rankings and scores of other large economies include Taiwan, tied for 16th with Finland and Mauritius (7.62); (Germany, 27 (7.50); Japan, 28 (7.46); South Korea, 32 (7.45); France 33 (7.43); Spain, 39 (7.32); Sweden, 40 (7.28); Italy, 61 (6.95); Mexico, 68 (6.85); Israel, 78 (6.69), China, 82 (6.54), Russia, 83 (6.50), India, 86 (6.45); Argentina, 105 (6.10), and Brazil, 111 (6.00).

Several countries have substantially increased their ratings and improved their relative levels of economic freedom during the past decade. Estonia has increased by nearly 2.0 since 1995 and it is now one of the freest economies in the world, ranking 11th overall. Lithuania and Latvia have increased their ratings by similar magnitudes since 1995 and their 2007 ratings are now greater than 7.0. The ratings of Cyprus, Hungary, Kuwait, and Korea have also improved substantially and their ratings are now 7.25 or more. Two African economies, Ghana and Zambia, have become substantially freer with ratings of 6.97 and 7.16, respectively.

But not all of the news is good. Economic freedom is regressing in several other countries. The rating of Zimbabwe has fallen by 3.18 while Argentina has declined by 0.80 since 1995. During the same period, the ratings for Malaysia and the Philippines have also fallen. Since 2000, the rating of Venezuela has declined by more than 1.5, down to 4.07. During the same period, Nepal’s rating dropped to 5.18 from 5.62. The United States has also declined by almost seven-tenths of a point to 7.88 from 8.55 in 2000, which has sent the accompanying ranking down to 7th from 2nd in 2000.

Economic Freedom and the Global Recession
The 2008 edition of the Economic Freedom of the World report includes new research that examines the likely impact of the global recession on levels of economic freedom.

The study looked at banking crises that took place in Norway and Sweden during the 1990s and found that although economic freedom may decline in the short term in response to crises, over a longer time, economic freedom has a tendency to increase after a banking crisis. In the case of Norway and Sweden, the banking crisis did not distract these countries from continuing with their market-based reform policies.

“Even though a banking crisis can be very painful, it is an illusion that they can be fully ruled out by better government regulation. In fact, a case can be made that perverse regulations in combination with the creation of too much liquidity played a key role in the creation of the current crisis,” said Fred McMahon, director of the Centre for Globalization Studies at the Fraser Institute.

“The short-term response of governments will almost surely reduce economic freedom but history shows that this need not be the case over the long term. Several countries that have experienced financial crises have moved toward greater economic freedom in subsequent years. The impact on economic freedom depends on what we learn from the crisis. Will we move toward institutions and policies more consistent with economic freedom? Or will we politicize, micromanage, and expand the size and role of government? If we choose to follow the latter route, our destiny will be like the generation of 1930; we will face a lost decade of stagnation and decline.”

About the Economic Freedom Index
Economic Freedom of the World measures the degree to which the policies and institutions of countries are supportive of economic freedom.

This year’s publication ranks 141 nations representing 95% of the world’s population for 2008, the most recent year for which data are available. The report also updates data in earlier reports in instances where data have been revised.

Oman Press Release on the Launch of The Global Competitiveness Report 2009-2010
Oman Moves Closer Towards an Innovation Driven Economy

Published yesterday, 8th September 2009, the World’s Economic Forum Report shows that Oman has developed significantly through 2008 to a place where improvements in competitiveness need to come more from increased innovation and business sophistication.

The World Economic Forum, highly reputed for its annual Davos Summits, wrote its 30th edition of The Global Competitiveness Report, ahead of the Annual Meeting of New Champions in Dalian, China, which starts on the 10th September. This meeting in Dalian, will bring together over 1,300 industry, government and thought leaders to debate and define the course needed to re-launch growth after the economic crisis.

Reviving economic growth remains the priority for policy-makers and business leaders in 2009. While government stimulus programmes are critical in the near term, entrepreneurship, innovation and technology will drive a transformational recovery for the long term.

Today’s difficult economic environment underscores the importance of not losing sight of long-term competitiveness fundamentals. These are about having in place the institutions, policies and factors, which drive the level of productivity in an economy, and in turn this determines the level of prosperity that the economy can reach.

Yesterday’s report captures these fundamentals in its Global Competitiveness Index, which measures 12 ‘Pillars of Competitiveness’. These pillars are grouped into 3 sub-indices which include first, Basic Requirements of Competitiveness - such as institutions, infrastructure, macroeconomic stability, health and primary education. Second come the Efficiency Enhancers such as higher education and training, goods and labour market efficiency, financial market sophistication, technological readiness and market size. Third are Innovation and Sophistication Factors.

The GCI is derived from secondary data on a number of economic variables and an Expert Opinion Survey that polled 12,614 Business Executives from the private sector in 133 countries. The International Research Foundation (IRF), a non-governmental, independent non-profit think-tank based in Muscat, is the local partner of the World Economic Forum, which administered the Expert Opinion Survey to168 private sector Chief Executives and senior managers from the Sultanate, 22% being Omani nationals and 78% Expatiates. This was the highest response from the GCC region this year. The online survey asked 139 questions, grouped according to the 12 ‘Pillars of Competitiveness’, with respondents using a 1 to 7 scale to answer the questions. The responses were compiled into an index score ranging from 1 to 7, with 7 representing the highest level of competitiveness.

Switzerland tops the overall ranking in 1st place out of the 133 countries. The United States falls one place to 2nd position, with weakening in its financial markets and macroeconomic stability. Singapore, Sweden and Denmark round out the top five. European economies continue to prevail in the top 10 with Finland, Germany and the Netherlands following suit. The United Kingdom, while remaining very competitive, has continued its fall from last year, moving down one more place this year to 13th, mainly attributable to continuing weakening of its financial markets. The People’s Republic of China continues to lead the way among large developing economies, improving by one place this year, solidifying its position among the top 30. Among the three other large BRIC economies, Brazil and India also improve, while Russia falls by 12 places. Several Asian economies perform strongly with Japan, Hong Kong SAR, Republic of Korea and Taiwan in the top 20.

A number of countries in the Middle East region are in the upper half of the rankings, led by Qatar (22nd), United Arab Emirates (23rd), Saudi Arabia (28th), Bahrain (38th), Kuwait (39th) and Oman (41st). Within the Middle East, the lowest rankings in competitiveness were held by Syria (94th) and Egypt (70th).

The Global Competitiveness Report argues that different economies will need to focus on improving different pillars of competitiveness depending on their stage of development. It presents three stages of development. First an economy is ‘Factor Driven’ competing on the price of its factor endowments. This is mostly unskilled labour and natural resources, associated with low levels of productivity and low wages. Enhancing competitiveness in such economies hinges on the Basic Requirements of Competitiveness. Then, as an economy develops, it becomes more ‘Efficiency Driven’, developing more efficient production processes and increasing product quality. Wage levels rise with development. Improvements in competitiveness are driven by strengthening the Efficiency Enhancers. Next, productivity is only increased if organisations are ‘Innovation Driven’, where competitiveness improvements are driven by innovation in both products and production processes.

The report discerns Oman to be in transition from an Efficiency Driven to an Innovation Driven stage, thanks to increases in GDP per capita over recent years and the reduction of the share of minerals in total exports of goods and services. Of the GCC nations, Oman has made the greatest gains in terms of stage of development, joining Bahrain at this transitional stage and following the UAE, which is classified as fully in the Innovation Driven stage. Kuwait, Saudi Arabia and Qatar are at the earlier stage of development transitioning from Factor Driven to Efficiency Driven.

Given its recently improved stage of development, the Sultanate needs to increase productivity more through improvements in the Efficiency Enhancers and Innovation and Sophistication Factors, such as higher education and training, goods and labour market efficiency, financial market sophistication, technological readiness, market size through exports, business sophistication and innovation; rather than through improvements in institutions, infrastructure, macroeconomic stability and health and primary education.

Yet, the report shows that the Sultanate’s relative strengths are in the Basic Requirements of Competitiveness. It scored 5.3 out of 7 on the index and ranked 25th in the world in its Basic Requirements for competitiveness. It ranked 7th in the world for its macroeconomic stability and the strength of its institutions. The one factor amongst the Basic Requirements where it scored poorly, according to the report, was health and primary education, it ranked 92nd in the world. This finding is at odds with the other reports, which show that in primary education, Oman is ranked on the top twenty in the world, based on UN secondary data.

When it comes to Efficiency Enhancers towards increased competitiveness, Oman scored 4.18 out of 7 and was ranked 53rd in the World, a weaker score than for the Basic Requirements. Here it scored relatively well in terms of its labour and goods market efficiency and financial market sophistication, but performed poorly in terms of market size (domestic and external) and higher education and training. In terms of Innovation and Sophistication Factors, the Sultanate scored an even lower 3.75 out of 7 and ranked 52nd in the World. Yet given the Sultanate’s improved stage of development, the Efficiency Enhancers and Innovation and Sophistication Factors are what will drive improvements in competitiveness more than the Basic requirements. The report shows this is where the Sultanate should focus its efforts at becoming more competitive in order to increase productivity.

According to the Global Competitiveness Index, the Sultanate overall index score declined this year by 2% compared to last year from 4.6 out of 7 to 4.5, moving from 38th ranked last year to 41st this year. Oman improved this year in 7 of the 12 ‘Pillars of Competitiveness’, the greatest improvements being made in infrastructure developments and greater technological readiness. Significant improvements were also made, according to the Index, in the strength of the nation’s institutions, labour market efficiency and expansion of the market size as the domestic economy grew and new export markets were found. Goods market efficiency and financial market sophistication were stable from year to year.

Oman saw declines this year in 5 of the 12 ‘Pillars of Competitiveness’. The greatest declines were felt, according to the Expert Opinion survey, in the Basic Requirement of health and primary education together with innovation. Significant declines were also seen in macroeconomic stability thanks to the high inflation during 2008, the uncertainty of the currency peg to the US Dollar and the subsequent financial crisis. Declines occurred in business sophistication and higher education and training. Higher education and training, business sophistication and innovation are 3 ‘Pillars of Competitiveness’ that the Sultanate needs to improve to see productivity in the economy increase.

Looking in greater detail, 18 of the 139 factors became competitive advantages for the Sultanate during this year, thanks to improvements. They include strengthening of property rights, the efficacy of corporate boards of directors, protection of minority shareholders’ rights, reduction of the business impact of malaria, a shortening of the time it takes to start a business, more flexibility of wage determination, improved hiring and firing practices, more financing through local equity, less restriction of capital flows, greater soundness of the banks, stronger regulation of the security exchanges and higher mobile phone subscription. These improvements all work to increase the productivity of resources in the economy of the Sultanate.

The full copy of the report is available on the World Economic Forum website
http://www.weforum.org/en/initiatives/gcp/index.htm

OCIPED develop Investment Promotion Strategy for Oman

OCIPED has developed the investment promotion strategy for Oman in close coordination with various ministries and other organizations. The aim of the study was to assess the Omani economic, business and policy environment and to develop a strategy to promote Oman as an investment destination and to identify the mechanism necessary to deliver the strategy. The study provides a framework to generate interest by investors and ultimately bring new business investment in Oman. The purpose was also to go beyond attracting investment, and seeks to contribute and support the wider development goals and objectives of the government particularly for economic diversification and private sector development.

It is very important that the promotional activities has to be channelized both sectorially and geographically in order to make optimal use of resources. In this context, the study has after critically analyzing over thirty sectors have identified ten priority sectors for Oman. These sectors include manufacturing such as plastics, metals , chemicals & pharmaceuticals, automotive parts and marine related activities and service sector activities such as tourism, ICT, professional service and financial services has been identified. Renewable energy especially solar power is also another sector identified as a priority area for promotion. The selection of priority sector was based on a detailed assessment of activities regarding economic and investment performance, and trends, the suitability of activities for attracting investment, Oman’s competitive strengths of the factors of investment, compatibility with trade and investment agreements and above all synergy with the strategic development goals of Oman.

The study also identified twenty six target countries for promotion from different continents. The selection of target countries was based on a number of factors including the level of sector activities within countries, the level of foreign direct investment outflows from these countries and the degree of culture, economic and historic linkages between Oman and the potential target country.

The study has taken into consideration the number of ministries and national organizations that are responsible for the forward planning and management of particular sectors of the economy. These organizations therefore play an important role in creating the suitable climate for investment as well as determining the development paths of sectors and ultimately encouraging sector investment opportunities. These national organizations are to be considered as sector champions leading to the development of their sector and the most visible organization within the sector. OCIPED shall seek to work closely with such organizations in order to ensure that actions and objectives are aligned. Apart from sector champions for each sector the study also defined specific national and international partners for each sector and for target countries with whom OCIPED to coordinate its promotional activities. The study has also come out with specific policy advocacy issues to addressed and the facilitation and after care services to be provided to the investors.

Commenting on the study Dr Mehdi Ali Juma, Acting CEO of OCIPED mentioned that this study is one of the important mile stones for OCIPED and added that OCIPED has developed the Export Development Strategy for Oman about ten years back and this strategy has clearly given a direction for OCIPED to focus its promotional efforts for developing export market for non oil Omani origin products. Dr Mehdi mentioned that implementation of investment promotion strategy will be challenging as this initiative would require close coordination not only with various ministries, public organizations and private sector in Oman but also with many international organizations. In the era of globalization, it is very important to improve the business environment and OCIPED is playing a very significant role in addressing the policy advocacy issues. The Center works as a link between the government, international organizations and the private sector and play the role of a catalyst. He also mentioned that recently a separate division has been formed within OCIPED focusing in this aspect.

Nisreen Ahmed Jaffer, Director General of Investment Promotion thanked officials from various ministries, public and private sector for their full cooperation and support in developing the strategy. She added that the present global situation will not have any significant impact on the conclusions of the study as the selection of target sectors and countries have been identified based on robust process of assessment of the key competitive and comparative advantage of Oman. Though she agreed that in the present situation it will be harder to attract investments however she is confident that this will only be for a short term. In this context, she mentioned that during the year 2008 the Gross Domestic product has grown over 40 % and the FDI flow is also encouraging. She also added that many international and economic organizations have praised Oman’s prudent economic policies and programs and have expressed confidence that Oman is well-positioned to continue its growth path even during this present global economic scenario. On the Investment strategy, she added that OCIPED is already in dialogue with various ministries and national organizations to embark on the implementation of the strategy and will be organizing various promotional activities in Oman and abroad to promote investment opportunities identified in the study.

Non-oil omani origin exports set to achive target of ro 2.1 billion by 2010 inspite of global credit crunch

Mr.Faris Al Farsi Acting Director General of Export Development, The Omani Centre for investment promotion and Export Development (OCIPED) expressed the confidence that in spite of the global credit crunch the value of Non-Oil Omani origin exports will meet the target set for 2010 as per the Export Strategy prepared by OCIPED. Mr.Faris is upbeat as Non-Oil Omani Origin exports touched RO. 1963 Million during the year 2008 as against RO. 1291 Million during the year 2007 registering an impressive growth rate of 52%.

Value of Non-oil Omani origin exports by the Sultanate of Oman
during 2007 and 2008
Source: Ministry of National Economy

The export performance have been in line with the export strategy adopted by OCIPED, which has identified thrust products and target markets for the period 2006 – 2010.
There are different reasons for the recent growth such as:

• Increase in oil prices during 2007 and 2008.

• Reduction in import tariffs in the target markets

• Information provided to exporters on trade opportunities

• Awareness created on the trade rules and procedures through workshops/ Seminars.

• Market intelligence provided by Ociped

• OCIPED's participation in Exhibitions/fairs

• OCIPED's initiative in conducting market studies in target markets and later inviting Buyers from the target markets.

The quality of our exports:

Mr.Aiman Ambusaidi Director of Export Development of OCIPED, informed that the Sultanate of Oman manufactures a wide range of competitive and high caliber products, ideal for markets anywhere in the world. While Omani products offer competitive prices, it is the quality controls that make them able to compete in international markets. The Directorate General of Specifications and Measurements is an authority established to ensure that the standard of goods made in Oman stays consistently high. The regulations laid down for Omani products meet Gulf Co-operation Council requirements and are on par with the strictest, worldwide. Every factory must satisfy the authorities about their ability to meet these specifications before starting commercial production. Manufacturing units have implemented current industrial management techniques and several industries have been awarded the ISO 9000 series accreditation.

Role of OCIPED

Further, Mr.Aiman explained the Role played by the Directorate-General of Export Development (DGED) in achieving the export growth:

1. To develop Strategy for Non-Oil Omani origin exports.
2. To provide Trade and Market Information to the exporters:

• Trade Statistics for International Business Developments through TradeMap

• Business information for going global through ProductMap.

• Comprehensive source of tariffs and market access measures through Market Access Map

• Countries market analysis profile through Country Map

• Generalized System of Preferences for Omani Products.

• Market Reports for select products in target countries

3. To organize matchmaking meetings between Omani exporters and international importers by participating in the international exhibitions, Trade Missions and inviting
    buyers.

4. To Organize Workshop / Seminars on International Trade.

OCIPED has identified 29 thrust sector products for focused promotional efforts. These thrust products together accounted for 70% of total Omani origin non oil exports.

Mr.Emaad Al Shukeily, Marketing Researcher at OCIPED, informed that the specialists in Directorate General of Export Development (DGED) undertake field visits to the exporting Omani factories so as to facilitate and streamline coordination between OCIPED and the exporting factories. The visits familiarized OCIPED with problems and obstacles encountered by the factories as far as export is concerned. The field visits also get the factories acquainted with the developments and latest information on the activities and services of OCIPED. These monthly visits were made by the specialists of the centre who managed to visit the marketing managers and general managers in these factories and discussed with them ways on how to increase their exports and participation in the specialized exhibitions promoted by OCIPED and make maximum use of the center’s representative network abroad.

Mr.Emaad further added that given the important role the private sector plays in the economic development and trade in the Sultanate, the OCIPED pays special attention to involve this sector to share the opinion and take the appropriate decision on the issues of export and export development. Export Development Working Group has been formed with the senior officials from various industrial sectors and other supporting sectors. The group meets at regular intervals to discuss issues affecting exports and suggest suitable export support services for the exporters.

Mr.Aiman Ambusaidi, added that as an innovative service to Omani exporters, OCIPED has launched Match Maker service by which Omani exporters of thrust products have started receiving addresses of 10 importers on a daily basis in their email. The market Study in Libya for 24 products is underway and should be ready by second half of 2009.

Mr.Faris Al Faris informed that OCIPED has set out an export target of RO 2117 Million for Non-Oil Omani origin products by 2010 and expressed the confidence that this can be easily met in spite of the global credit crunch.

Mr.Faris thanked the Omani exporters for keeping the momentum in increasing Omani origin exports.

OCIPED sees huge opportunities for trade with Libya

Dr. Salem Al Ismaily CEO of the Omani Centre for Investment Promotion and Export Development (OCIPED) sees promising opportunity for increasing trade with Great Socialist People’s Libyan Arab Jamahiriya. According to the Export Strategy for the development of Non-Oil Omani origin Exports conducted by OCIPED a number of thrust products and target markets have been identified. OCIPED have been regularly conducting market studies in target markets such as Yemen, Syria, Kenya, Tanzania, Iran and Sudan and have later organized matchmaking meetings between the Omani exporters and importers in the target markets. This exercise has resulted in increasing Non-Oil Omani origin exports to these target markets as is evident below.

Dr. Salem added that Libya with a population of 6.2 Million, GDP at current prices (2007) of US$ 62.06 Billion, Imports of over US$ 11 billion (2007) offers excellent market opportunity for Omani exporters. Moreover, no customs duty is levied by Libya on Omani products entering Libya as per the Greater Arab Free Trade Agreement (GAFTA).

 Libya- The rising star in North Africa

Libyan economy benefitted from the lifting of sanctions and embargo in 2003, 2004 and has grown impressively in the last five years. Post 2003, there has been a slew of structural and policy changes that gave a fillip to the economy. Libya had greater access to international markets- this proved positive for both their exports and imports. The Libyan Government initiated a string of policy changes to attract private investment in commerce, make business more attractive and attract foreign investment in the country. Today, Libya has one of the fastest growing economies in Africa.

Oil accounts for over 1/3rd of the Libyan economy, followed by education and healthcare services. The other key sectors in the economy are trade, hospitality and construction. All these sectors grew at double digits during the last 3 years.

Large Government expenditure and private participation to boost economic growth in Libya:

Libya has embarked a large infrastructure and construction projects to build a stronger economy. The power output is set to double from 4,700MW to 9,700MW within the next five years at a projected cost of $7.5 Bn. The Libyan government has an ambitious project of the “Great Manmade River Project” the largest water development scheme in the world. This scheme is being built to bring water from large aquifers under the Sahara to coastal cities at an estimated cost of $30 Bn. The government is also planning the construction of 50,000 to 60,000 houses under the housing for all scheme along with revamping of around 334,450 sq.meters of existing office space by 2012. New airports are being planned at Tripoli and Benghazi and upgrade to 13 other airports at an estimated cost of $2.1 billion. All these construction projects will give a big fillip to building materials, electrical and engineering products.

The government is also opening up services sector with foreign participation. China, Italy, Russia, UK and USA are already participating in Libya’s growth by investing in various sectors. The opening up of the banking sector will auger well for exporters as they would have international banks to look for export payments. Valetta Bank (Malta), British Arab Commercial Bank (UK), Bawag PSK (Austria), HSBC, International Arab Bank (Egypt), the Swiss Bank Channel, and the Housing Bank of Amman are some examples of international banks going to open offices in Libya.

Mr. Faris Nasser Al Farsi, Acting Director General of Export Development of OCIPED, whose directorate is responsible for export development of Non-oil Omani origin exports, informed that unfortunately, the Omani exporters have not looked at Libya seriously in the past. The Sultanate of Oman exported just around $ 6 Million worth of products to Libya in 2007 that accounted for less than 1% of total Libyan imports. Exports of Omani origin products in 2007 to Libya are the lowest amongst key Greater Arab Free Trade Agreement (GAFTA) countries. Considering the potential of the Libyan market and the Free Trade Agreement under GAFTA, this would increase manifold times in the future.

OCIPED’s Market Study in Libya to help Omani exporters

Mr. Faris stated that OCIPED has identified Libya as a target market and has started a Market Study in Libya covering 32 Omani products with Avalon Consulting. The study will cover

 1. Market Review in Libya
 2. Import Characteristics
 3. Commercial and Logistics Issues
 4. Obtain feedback from key importers and other players in Libya on Omani exports in terms of

        • quality
        • quantity
        • delivery schedules/logistics
        • commercial issues
        • Willingness to consider increased volumes from Omani sources. Factors which will drive the same

 5. Conclusions will be drawn for each of the 32 identified products on

      • Overall potential for imports
      • Major product categories which are imported and their technical specifications
      • Key current supply sources
      • Prices and duties
      • Logistics costs and implications for Omani exporters
      • Identify at least 3 to 5 major importers for each of these products, with the contact persons and e-mail
        address.
      • Find out from these importers their perspectives on imports from Omani sources
      • Willingness on increased sourcing from Oman, key factors which would drive the same.

As part of this engagement, OCIPED plans to organize seminars on Exporting to Libya in Muscat and Salalah sometime in August 2009 to spread awareness of Libya as a good potential market to the exporting community. This would be followed by a Buyer Seller meeting in Tripoli and Bengazi during October/November 2009 in Libya. Avalon Consulting is already in the processing of short listing 4-5 potential partners for each product category. These names have been passed on to Omani exporters who are free to contact the importers in Libya.

Dr.Salem Al Ismaily hoped that the Libya market study will realize OCIPED’s goal of increasing Non-Oil Omani origin exports to Libya as has been the case for Yemen, Syria, Kenya, Tanzania, Iran and Sudan. This strategy will help to diversify Oman’s export market and offset the impact of global financial crisis.

OCIPED Received the Arab British Chamber of Commerce delegates

"Sir Roger Tomkys, Chairman and Dr Afnan Al Shuaiby, Secretary General & Chief Executive and the accompanying delegates of the Arab British Chamber of Commerce ABCC, paid a visit to OCIPED on 18th February 2009. Dr. Salem Nasser Al Ismaily - CEO of the Omani Center of Investment Promotion and Export Development presented a paper on Oman economy and investment opportunities . During the meeting opportunities and ways to coordinate and to enhance the private sector relationship between Oman and U K were discussed.

Commenting on the visit Dr Salem mentioned that Oman and UK have long lasting relationship and UK is the number one country in terms of FDI in Oman and further added that visit by such high level delegation will definably boost the economic relations ships ".A concept note is being prepared on enhancing cooperation between OCIPED and ABCC.

OCIPED participation in the Investment Forum in Japan in 2- 4 March 2009

Over 800 Japanese companies participated in the Investment Promotion Forum organized by Japan Cooperation Centre for Middle East in Tokyo and Osaka during the first week of March. The objective of the Forum was to boost investment and technology transfer from Japan to MENA region. From Oman side The Ambassador of Oman in Japan H.E Khalid Al Muslahi, Mrs Nisreen Ahmed Jaffer, Director General of Investment Promotion, Mrs. Nasra Al Nazwani, Economic Researcher of OCIPED and OCIPED Representative in Japan participated in the event. A Presentation was made on Oman economy and investment opportunities in downstream projects focusing on Metal, Plastic and Chemical Sectors. Apart from Oman sixteen other countires from the MENA region also participated in the forum. The forum provided an excellent platform to showcase the developments which are taking place in the region and the opportunities available for investment in various sectors.

As part of the program the organizers had also made arrangements for business meetings and Ms Nasra Al Nizwani, Investment Promotion Department of OCIPED and Mr. Moriya the representative of OCIPED in Japan had meetings with more than twenty Japanese companies and discussed specific investment opportunities in Oman.

Nisreen while complementing JCCME for organizing the event in a professional manner at a time of the global credit crunch, mentioned that the large number of participation by the Japanese companies , much more than the expectations of the organizers JCCME , and the attractive projections of IMF on the positive 4% growth in economy of the MENA countries, has generated a serious interest of Japanese companies to invest in the MENA region.

Ociped welcomes extension of European Union Preferential Tariff System (GSP) for the benefit of Omani Exporters till 2011

Film City Visit 

Ociped Hails 74% Growth In Non-Oil Omani Origin Exports During First Half Of 2008

The Directorate General of Export Development (DGED) of The Omani Centre for Investment Promotion and Export Development (OCIPED) whose role is to develop non-oil exports of Omani origin is happy to announce the significant growth achieved by the Sultanate of Oman in its Non-Oil Omani origin exports during the first half of 2008. The value of Non-Oil Omani origin exports has touched RO. 932.8 Million during January – June 2008 as against RO. 535.2 Million during the same period in 2007 registering an impressive growth rate of 74.3%.
 

Non-oil Omani origin exports
by the Sultanate of Oman during the period January to June

The export performance have been in line with the export strategy adopted by OCIPED, which has identified thrust products and target markets for the period 2006 – 2010.
 

Dr. Salem Al Ismaily, CEO of OCIPED stated that during 2008 OCIPED has undertaken several steps to assist Omani exporters. OCIPED participated in a number of product exhibitions, conducted market Studies and organized match making meetings between Omani businessmen and their counter parts.

 Ociped also invited buyers from various countries & arranged buyer seller meets and organized seminars and workshops on international trade related topics.

Dr. Salem added that, given the important role the private sector plays in the development of trade in the Sultanate, OCIPED pays special attention to involve this sector to share the opinion and take appropriate decision on the issues of export and export development. Officials from the Directorate General of Export Development of OCIPED often visit the private sector industries and advise them on various aspects of international trading / marketing.

OCIPED has set out an export target of RO 1.2 Billion for Non-Oil Omani origin products by 2008 and RO 2.7 billion by 2010. Dr. Salem expressed his confidence in achieving the target of Non-oil Omani origin exports by 2008 given the fact that there has been a substantial growth of 74.3% during the first half of 2008.