MUSCAT -- A total of 109 new industries were registered in the first half of this year, according to records at the Ministry of Commerce and Industry. The number of industrial facilities reached 2,539 by the end of August, with investments totalling RO 25.46 billion.
According to Ali bin Saif al Hadi, Secretary to the Industrial Registrar at the ministry, the industrial facilities are exempted from customs duties on imports and income taxes. Moreover, the workforce needed by these facilities is determined according to the size of the projects and actual needs. Oman witnessed significant developments in the manufacturing sector and local products succeeded in attracting foreign investment in the industrial sector.
The industrial activities contributed 16.5 per cent of gross domestic product (GDP) at RO 4,967 million in 2012, while the figure stood at RO 3,883.5 million in 2011, with chemicals and oil products sectors attracting the bulk of fund inflows.
The ministry provides many incentives for industrial projects such as exemption from customs duties on imported machinery, equipment, spare parts, raw materials, semi-manufactured materials and packaging materials and exemption from income tax for a period of five years from the date of commencement of production. Also they will be entitled to reduced electricity tariffs of 12 baisas per kilowatt/hour from August 1 to till end of March every year in Dhofar, and from September 1 to the end of April every year in other governorates, while the tariff from April 1 to the end of July in Dhofar and from May 1 to the end of August in other governorates will be 24 baisas per kilowatt/hour. In addition to these, they are offered discounted rents at the industrial zones in Al Rusayl, Sohar, Al Ma'rifa Oasis and Muscat. Investors can apply for an industrial licence to establish a new project or expand an existing one, or to move a project to another site.
© Oman Daily Observer 2013
