MUSCAT -- OCIPED has developed an investment promotion strategy for Oman in close co-ordination with various Ministries and organisations. The main aim of the strategy is 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 of the study is 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 channelised both sectorially and geographically in order to make optimal use of resources. In this context, the study has after critically analysing over thirty sectors have identified ten priority sectors for Oman.
These sectors include manufacturing such as plastics, metals , chemicals and pharmaceuticals, automotive parts and marine related activities and service sector activities such as tourism, ICI, 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 organisations that are responsible for the forward planning and management of particular sectors of the economy. These organisations 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 organisations are to be considered as sector champions leading to the development of their sector and the most visible organisation within the sector. OCIPED shall seek to work closely with such organisations 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 co-ordinate its promotional activities. The study has also come out with specific policy advocacy issues to be addressed and the facilitation and after care services to be provided to the Investors.
Commenting on the study Dr Mehdi al 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 co-ordination not only with various ministries, public organisations and private sector in Oman but also with many international organisations. In the era of globalisation, it is very important to improve the business environment and OCIPED is playing a very significant role in addressing the policy advocacy issues.
The centre works as a link between the government, international organisations 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 co-operation 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 per cent and the FDI flow is also encouraging. She also added that many international and economic organisations have praised Oman's prudent economic policies and programmes and have expressed confidence that Oman is well-positioned to continue its growth path even during this present global economic scenario.
By A Staff Reporter
© Oman Daily Observer 2009
