Entrance Strategy to Oman Market for CEE Companies
Comparing Oman 2010 with Oman 2018, shows that Sultan Qaboos Strategy in taking the peaceful side in the chaos of Middle Eastern Political and Social Challenges was the best strategy that a leader could do.
Main income of the Sultanate of Oman comes from oil industry. Crude oil and natural gas accounted for about 73 percent of the government’s revenue in 2017. Oman witnessed an increase in nominal GDP by an estimated 8.7 percent in 2017 and at the time that many of its neighbors have been challenging with the internal or international wars, Omanis, tried to do their businesses.
According to the National Centre of Statistics and Information, foreign direct investment (FDI) in the Sultanate at the end of 2017 exceeded OMR 9.34 billion (USD 24 billion). Sector wise, the oil and gas exploration attracted foreign investment of more than OMR 5 billion, while financial intermediation secured FDI of OMR 1.41 billion. The United Kingdom tops the list of investors in Oman, with a foreign direct investment of OMR 4.45 billion, followed by the UAE at OMR 1 billion, and Kuwait at OMR 416.5 million in foreign investment.
Why is Oman Important for CEE Producers?
Oman Population is about 4.6, so the market of Oman, solely, is not an big market. But the following reasons makes the country a great location for extending your business.
- Oman as a gateway to India, East Africa and GCC Countries.
- Lower costs of doing business in Oman, comparing to Other GCC countries.
- Having access to more than 56 Million GCC Residents.
Challenges of business in Oman:
Of particular concern for many international firms in Oman is the “Omanization” process, wherein the government sets quotas for Omani employment on a sectoral basis. Many companies, both Omani and international, have noted that some of the quotas are difficult to satisfy and are applied inconsistently.
- Company registration can be slow.
- Scarcity of natural gas feedstock for new projects.
- Capital projects and infrastructure expansions are being greatly impacted by slowdowns and deferrals of government spending as a result of the sustained lower oil prices and the industry is witnessing a significant number of challenges due to shrinking budgets. Payment delays are also being reported.
- Expansions of Oman’s tax regime (as described above), increases in government service fees, and pressures of Omanization that add to the cost of doing business in Oman.
How we can Help you?
Our Top Notch strategy relies on Finding the most reliable partners for your company in the Market of Oman. Our Office in Oman, takes the responsibility of being your representative office (PRO).
Financial Support of your business and also back office Services.
To know more about the available Opportunities of Cooperation with Oman, you can check our Platform through: