UK Enterprise Ltd
Suite 1 Staple's House, Eleanor’s Cross, Dunstable, Bedfordshire LU6 1SU
tel +44 (0) 01444 220980
fax +44 (0) 01444 459680
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UK Enterprise Ltd Suite 1 Staple's House, Eleanor’s Cross, Dunstable, Bedfordshire LU6 1SU tel +44 (0) 01444 220980 fax +44 (0) 01444 459680 |
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Oman - Food & HospitalityOman is among the few countries in the world that are considered ideal for long-term investments. It is marked by modern infrastructure; a strong industrial base; a liberal investment environment; an export-oriented economy; a stable government with transparent corporate governance; the presence of institutions that protect investors and ensure their access to the market; attractive corporate tax and tax holidays; and laws and regulations that encourage enterprise. Business Infrastructure and ServicesOman has the necessary infrastructure and facilities in place to cater to companies looking for the proper environment to place their investments. HotelsA large number of new hotel projects are being implemented and in the pipeline, which cater to the business and tourist sectors alike. The Royal Opera HouseThe 80,000-square-meter Royal Opera House, comprising a commercial souq, five-star restaurants, coffee shops, high-end boutiques, lifestyle retail outlets, and an art exhibition gallery, will pave the way toward making Oman be known as a cultural destination that strongly supports and recognizes the importance of tradition, heritage and the arts. Oman Convention & Exhibition CentreThe new exhibition centre, which will include a five-star convention hotel, exhibition halls, car parks, and an energy centre, will be an important landmark that will attract investors. It will also enhance the potential investors’ confidence as it will complement their commercial, industrial, and tourism activities. Free ZonesThe growth of the industrial sector is strengthened by a network of industrial estates, parks and free zones. The presence of free zones has led to the development of industries as the foundation for expansion of downstream activity. TransportThe scale of investment across Oman’s transport sector is resulting in a high-quality internal transport network allied to strong external links, enhancing access to national and international markets. Presently, Oman boasts of excellent roads, a fully equipped international airport with other airport expansion and renovation and building projects in the pipeline, a number of domestic air terminals and ultra-modern port facilities. Telecommunications ServicesOman has an efficient state-of-the-art telecommunications system that is constantly upgraded with new technology. OMAN’S ECONOMY is based primarily on petroleum and natural gas, which are expected to account for 78% of the government's revenue. Consistently high oil prices mean that Oman’s economy, like the rest of the Gulf, is very strong and continues to grow year on year. Record budget surpluses are adding impetus to Oman’s ongoing infrastructure and industrial development programme. Oman's proven recoverable oil reserves are estimated at 4.8 billion barrels, though the Ministry of Oil and Gas estimates that there are potentially 38 billion barrels of recoverable oil. Oman has developed its natural gas industry to the point where liquefied natural gas (LNG) will account for an estimated 11% of government yearly revenues. Oil and gas exports provide the backbone of Oman’s economy but the key strand of current economic policy is to gradually decrease the country’s reliance on oil income through downstream oil industry development (petrochemicals/metals), port development, IT start-ups, fisheries, and a modern and expanded tourism industry.
Market ReportOverviewOman is one of the most stable countries in the region and enjoys farsighted leadership that has maintained pragmatic and creditable growth over the last 40 years. In a move to diversify and expand its economy, while reducing its reliance on hydrocarbon resources the Government has been developing tourism and industrial sectors and investing heavily in infrastructure development particularly in the areas of ports, airports, roads and utilities. These initiatives make Oman an attractive investment destination and an emerging market with tremendous potential. Oman emulates the successful business model of multi-use developments widely found across the whole Gulf region. These are small, integrated cities complete with hotels, residential units, retail and commercial space and entertainment and leisure facilities. UK companies can proudly point to several prime examples of achievements in the areas of design, engineering and execution. The UK has a long tradition of supplying an extensive range of construction equipment, materials and finishing products. The long-term 'Oman Vision 2020' development plan highlighted the need for the Omani economy to diversify through a process of Omanization, industrialization and privatization. Oman is developing its light manufacturing sector through industrial estates managed by the Public Establishment for Industrial Estates (PEIE). More than 333 projects operate in the industrial estates, with a total investment of over $6 billion. In addition to industrialization efforts, Oman is actively marketing itself as an upscale, environmentally conscious tourist destination. Through aggressive marketing campaigns and improved infrastructure, Oman hopes to triple the industry's contribution to GDP and eventually create over 114,000 tourism-related jobs. International investors are taking advantage of significant improvements in local infrastructure to develop ambitious new tourist projects. Investors hope to lure 3 million visitors annually with multi-faceted resort complexes located in Muscat, Sawadi, Yiti, Sifah, and Salalah. New InvestmentsThe sustained levels of economic growth and influx of foreign workers and companies into Oman has spurred an upsurge in the real estate market. Substantial investment in infrastructure, increased land distribution and more investor friendly ownership regulations provide further impetus to the property market. A number of major projects at an estimated investment of over $30 billion are underway or proposed in key sectors. The market is buoyant with opportunities in all areas of work such as design, supply, execution and management, both in short and medium terms. Food demand is growing rapidly as a result of the country's rising population. While the construction of hotels, resorts and prestigious residential properties in Oman is rapidly increasing the demand for a wide range of products, including kitchen and catering equipment, hotel supplies and other requirements of the hospitality industry. Hotel and Restaurant SectorAll these have opened up numerous business opportunities in the local market, and future prospects look brighter with the continued flow of multimillion-dollar investments in the industry. Through aggressive marketing campaigns and improved infrastructure, Oman hopes to triple the industry's contribution to GDP and eventually create over 114,000 tourism-related jobs. International investors are taking advantage of significant improvements in local infrastructure to develop ambitious new tourist projects. Investors hope to lure 3 million visitors annually with multi-faceted resort complexes located in Muscat, Sawadi, Yiti, Sifah, and Salalah. The Ministry of Tourism is moving forward on plans to construct 16 hotels and a convention centre within the next several years, which will alleviate chronic hotel room shortages in Muscat and other destinations, with a project value in excess of $11.5 billion. Specific projects include new resort villas, conference facilities, leisure resorts, golf courses and hotels as well as the refurbishment of some of the major existing international hotels. Multi-hotel complexes are planned for Muscat’s new convention centre, as well as in Salalah, Yiti, Sifah, and Duqm. The Wave, which represents the first opportunity for non-Gulf Cooperation Council (GCC) residents to purchase freehold property, is under construction, with units soon to be ready for occupancy. Blue City recently initiated construction in Sawadi, approximately 60 miles northwest of Muscat, and a feasibility study has been initiated for an approximately $1 billion healthcare city adjacent to Blue City. To support the expected increases in air traffic, the government will build a second runway and much-needed new terminal at Muscat International Airport, a new terminal and taxiway at Salalah Airport, and new airports at Sohar, Ras al-Hadd, and Duqm. Oman is focusing on its port infrastructure as well. The new terminal at Muscat International Airport would be completed by 2014 and will have the capacity to handle 12 million passengers annually. Further expansions planned in three subsequent phases will ultimately boost the airport’ capacity to 48 million passengers. Two of Oman's principal ports, Sohar and Salalah, are aggressively moving forward on expansion of their respective operations. The Port of Sohar, a joint venture between the Sultanate and the Port of Rotterdam, anchors the $14 billion industrial development planned for the region. Major Hotel Projects in Oman
Environment Impact AssessmentThe application of international environmental standards is instrumental in enhancing the Omani environmental regulations, eco-tourism and eco-design, marine ecology and tourist developments. The Environmental Impact Assessment is imperative to ensure that decision-makers consider environmental and social impacts before deciding whether to proceed with new projects. The goal is to identify innovative solutions for the planning and implementation of environmentally-friendly systems and procedures. The ways and means to reduce adverse impacts and shape projects to suit the local environment are to be found by predicting environmental impacts at an early stage in project planning and design. Both environmental and economic benefits can be achieved through the use of Environment Impact Assessment such as reduced cost and time of project implementation and design, avoided treatment costs and impacts of laws and regulations. Oman Food SectorOman development policy puts emphasis on the growth in ?trade and industry sectors of non-oil division such as agriculture, fishing, ?industry and mining. The challenge of the scheme is to branch out the ?economy and moderate its dependence on oil exports. Agriculture, livestock and fisheries are among the oldest and most important sectors of the Omani economy. They play a vital part in feeding the population, providing employment for large numbers of Omanis and helping to boost the country's GDP. With a coastline over 1,700 kilometres long, Oman is also one of the main fish-producing countries in the region and the fisheries sector is among its most promising sectors. Oman's ?situated between the Gulf of Oman and the Arabian Sea, creating fishing as ?second only to farming as an economic activity in pre-oil, presenting a range ?of catches such as tuna, shark, bluefish, sardines, abalone, lobster and ?oysters.? In 2007 the Sultanate landed around 151,000 tonnes of fish with a value of RO87 million – a 3% rise on the 2006 figure of 145,000 tonnes, which was valued at RO70 million. The Seventh Five-year Plan (2006-2010) targets included reinforcing the fisheries infrastructure, achieving an average annual 3% GDP growth rate. As non-oil export revenue, fishing is one of the most promising ?trades. Several economic campaigns were launched aiming to develop the fishing ?sector. The course of these campaigns is to encourage private-?sector investment by allocating generous amounts of cash support for private ?industry to be disbursed mainly though official development banks. Such as ?Oman Bank for Agriculture and Fisheries that provides loans at good rates for ?those within its repetitive activity. Youth Vessels Project was also launched with the purpose of modernising ?the traditional fishing sector facilities. Its idea is to provide the youth with soft ?loans to purchase the necessary fishing equipments and build boats. ?Training centres have been operational since 2004 in Al Khabourah and ?Salalah: training the students in navigation systems, quality control and vessel ?repairs. An average growth in fish exports of around 5% is predicted if these targets can be met. Agriculture, for its part, aimed to maintain an average annual productivity growth rate of around 2.6% during the years of the Five-year Plan (2006-2010). Its other aims include: developing, protecting and increasing the productivity of agriculture and livestock resources. The Ministry of Agriculture has spared no effort in improving and enhancing the different development programmes and plans of agricultural production. It also tries to keep the farmers up-to-date in the new techniques and assist them financially to implement their agricultural projects. For example, the greenhouse cultivation is one of the most successful techniques used to grow crops, particularly vegetable all around the world. In Oman, Nizwa itself has more than 103 of greenhouses that use this technique owned by 46 farmers. The total production of these greenhouses amounts to approximately 100 tonnes of vegetables. The indigenous livestock production in the Sultanate is on the increase. The production of red meat, poultry, eggs and milk now stands at 12,800 tonnes, 23,000 tonnes, 185 million and 135 million litres per year respectively. The total number of animals in 2009 increased and it stood at 326,420 for cows, 126,970 (camels), 1.6 million (goats), and 379, 966 (sheep). Oman estimates that it is 53% self-sufficient in milk production, 46% in beef, and 44% in eggs. The Ministry of Agriculture has had good results with its Animal Feed Manufacturing from farm residue, improved programmes for cows, goats and sheep in association with the Sultanate’s Agriculture Research Centres. An Animal Feed Plant coming up in Romais will be another boost to the livestock owners’ activities in the country. Agriculture and its allied sectors have received special care in Sultanate’s allocations of $140 million in 2009. The additional $70 million is being invested into modern irrigation system, agricultural automation and livestock breeding technologies, as well as use of environment-friendly pest control means supporting the research programmes on developing the agricultural sector. The Sultanate's food security strategy covers increasing the local production of food. The establishment of a holding company for agriculture investment and work on the implantation of wheat in the Sultanate are both underway. A technological food centre will also be set up in collaboration with respective authorities in India in addition to fish farming. The current plan includes the construction of 56 warehouses (RO.42 million), construction of wheat silos with capacity of 200,000 tons in Sohar and 100,000 tons in Salalah. The Sultanate has taken a number of measures to reduce the inflation in food products through enhancing the role of the Public Authority for Warehouses and Food Reserves and purchase of 200,000 tons of rice that will suffice for two years, providing subsidy for the wheat price through the flourmills , importing quantities of basic materials, constituting a committee for food security to measure the availability of basic food products and enhancing the supervisory role to combat monopoly at the market. With its growing local expatriate population, however, as well as the entry of more tourists into the country, food demand in the Sultanate of Oman is rapidly increasing every year. There has also been a marked increase in the number of new hypermarkets and groceries in all parts of the country to serve the population's food requirements. Using an Agent or DistributorThe market is import-oriented, highly competitive and promotes an 'agent' culture. The success of a product, to a great extent, depends on the agent. As in other Gulf countries, personal contact is the key to success in trade relationships. Major end-users and the Omani Commercial Law encourage vendors to engage a registered local agent. An amendment to the Agency law has removed the requirement for exclusive agents. In special cases, as when the government has directly approached a foreign firm, the agency requirement may be waived altogether. Market EntryPartnership Strategy
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