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Investment Opportunities in The Sultanate of Oman

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Investment Opportunities in The Sultanate of Oman
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Page 1: Investment Opportunities in The Sultanate of Oman

Investment Opportunities inThe Sultanate of Oman

Page 2: Investment Opportunities in The Sultanate of Oman

Agenda • About ITHRAA• About Oman • Why Invest in Oman • What are our target sectors• Logistic Sector in Oman• Investments Opportunity in Automotive Sector• Oman Marine Investment Opportunities• Information and Communication Technology

Page 3: Investment Opportunities in The Sultanate of Oman

About The Sultanate of Oman

Capital MuscatArea 309,500 Km2 Coastline 3,165 KmPopulation 3.8 Mn (2012)DGP USD 78 bn (2012)Currency 1 Omani Rial = 2.6 USD Natural Resources Oil, Natural Gas, Copper, Fish, Agriculture, TourismMajor Trading Partners UK, Japan, UAE, South Korea, China, EU, Thailand

Page 4: Investment Opportunities in The Sultanate of Oman

Oman‘s  access  to Global Markets• Regional Market worth more than 600 Bn USD and

global reach to 1.2 trillion of imports.

• Modern infrastructure transport facilities and business environment connected to key markets in India and East Africa.

• Abundant and competitive access to natural resources, energy, financing and labor.

• Ports: On major international shipping routes within 2 weeks of major ports.

• Airports: Oman is within 4 hours of South Asia, 5 hours flight of Africa and 6 to Europe.

Page 5: Investment Opportunities in The Sultanate of Oman

Oman’s  access  to Global Markets• Oman completed its agreement to the WTO in 2000.

• Oman is a Member of Greater Arab Free Trade Area (GAFTA).

• Oman has relations with Over 140 countries and is a member of 105 regional and international organizations (UN, FTA, GCC).

• Oman is a founding members in Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), which includes core members such as Australia, Kenya, India, Mauritius, Singapore and South Africa.

Page 6: Investment Opportunities in The Sultanate of Oman

Oman’s  Economic  Vision  2020

• Development of Human Resources.• Creation of Stable Macro Economic framework.• Competitive Private Sector.• Economic Diversification.

Page 7: Investment Opportunities in The Sultanate of Oman

About ITHRAA

Page 8: Investment Opportunities in The Sultanate of Oman

ITHRAA Vision & Mission

Our Vision Enhancing Oman Competitiveness

Our MissionTo attract and secure investment as well as facilitate and promote the export of Omani non-oil products and services.

Page 9: Investment Opportunities in The Sultanate of Oman

Our Values

We are committed to being

• Innovative • Communicative • Creative• Supportive• Collaborative • Customer Focused

Page 10: Investment Opportunities in The Sultanate of Oman

Why Invest in Oman

Page 11: Investment Opportunities in The Sultanate of Oman

Why Invest in Oman

Page 12: Investment Opportunities in The Sultanate of Oman

What are the Incentives

Page 13: Investment Opportunities in The Sultanate of Oman

Oman Investment Opportunity Sectors

Page 14: Investment Opportunities in The Sultanate of Oman

Overview  of  Oman’s  Economy

2000

2005

2012

Page 15: Investment Opportunities in The Sultanate of Oman

Oman’s  Global  Ranking

Page 16: Investment Opportunities in The Sultanate of Oman

Foreign Direct Investment 2005 - 2012

Source: foreign Investment Book, 7th issue – June 2013, National Center for Statistics & Information

Page 17: Investment Opportunities in The Sultanate of Oman

FDI By Industry 2012

Page 18: Investment Opportunities in The Sultanate of Oman

Economic Diversification

Page 19: Investment Opportunities in The Sultanate of Oman

Logistics Sector in Oman

Page 20: Investment Opportunities in The Sultanate of Oman

Railway

USD 15 Bn investment program to develop a national Railway system.

2,244 Km will be built to link major ports, Industrial Areas, Free Zones and GCC.

Road

Highway access to GCC markets.

USD 1.1 Bn worth of contracts awarded in 2011 in Oman for the road sector to develop modern transport infrastructure.

Airports

Expansions:(Passenger Capacity/ year)

Muscat Airport: 12MnSalalah Airport: 2Mn

Under Construction (Passenger Capacity/year)

Sohar: 500KDuqm: 500KRas Al Had: 500KAdam: 250K

Oman’s  Infrastructure Port

Extensions:Salalah PortSohar Port

Development Port of Sultan QaboosPort of Duqm

Page 21: Investment Opportunities in The Sultanate of Oman

Port of Salalah

• One of the fastest growing ports in the Middle East and largest deep water facility on the Indian ocean.

• Over 3000 Commercial Vessel Calls per annum, 24/7 operation throughout the year.

• A 30 years concession agreement (government & APM).

• 54 direct port connections and can be reached by the majority of global ports within 2 weeks.

Page 22: Investment Opportunities in The Sultanate of Oman

• The 19 km2 Free Zone has an operational infrastructure and is ready for Investor to invest.

• Investment value = USD 3.5 Bn from several leading international companies.

• Phase I: 200 hectare completed: Methanol, PET, Automotive parts, Luxury Yachts and Petrochemical Industries.

• Phase II: 265 hectare under development will attract investments on logistics, light & medium industries

Commercial & Residential Area – SalalahPort

Page 23: Investment Opportunities in The Sultanate of Oman

DUQM Special Economic Zone Investment opportunities

• Petrochemicals• Building & Construction Materials

(Cement)• Minerals • (Basalt Fiber, Glass• Fishery & Aquaculture• Logistics• Automotive• Life sciences• Food & Beverages• Supporting services.• ICT

Commercial & Residential Area Infrastructure Manufacturing

• Power generation plant• Water desalination Station• Roads• Waste management• Facilities • Industrial liquid treatment plant• Airport & Industrial area operators

• Commercial Centers• Hotels & Resorts • Entertainment • Fisheries Port & Other facilities • Public Parks & Rock Garden• Land Development • Inter and intra Bus & Taxi Stations • Consulting Services • Government Buildings • Environmental Lab• Private Health Clinics• Private School

Page 24: Investment Opportunities in The Sultanate of Oman

Port of Duqm

• Infrastructure costs of nearly 300mn USD is underway for the port.

• The port will be operated by the internationally known and well regarded Consortium Antwerp Port.

• Oil & Gas and Mineral extraction & processing activities are focused in Duqm. Onshore and offshore drilling will be located there.

• One of the first rail lines to be completed will link Duqm to Muscat and Salalah with 901Km.

Page 25: Investment Opportunities in The Sultanate of Oman

Oman DRYDOC Company (ODC)• ODC was established in September 2006, by the Government of the Sultanate of Oman

with 100% investment and is operated by Daewoo Shipbuilding & Marine Engineering Company Limited (DSME) of Korea

• ODC yard stretches over 1,277,000 square meters of land and 1,139,000 square meters of sea surface with 2,800 m length of quays.

• It has six workshops and 5 quays.

• Second largest dry dock in region with quays extending 4 Km.

• Is one of the biggest and most modern ship repair yards in the Middle East.

Source: www.omandrydock.com

Page 26: Investment Opportunities in The Sultanate of Oman

Port of Sohar

• Strategically located at the Arabian Gulf at the entry point to the Arabian Gulf, before the strait of Hurmoz.

• Undergoing one of the largest port development projects in the world (over 14 Bn USD)

• The deepest draft in the region up to 23 meters.

• Biggest manufacturing and Steel manufacturing cluster in Oman.

Page 27: Investment Opportunities in The Sultanate of Oman

Port of Sohar – A gateway to Regional Consuming Market

Direct Access to logistics Cluster in the Port.

Page 28: Investment Opportunities in The Sultanate of Oman

Port of Sultan Qaboos

• Repurposed to handle greater volume of cruise ships.

• Climate-controlled cruise terminal for passengers upon arrival with full amenities (immigration, customs, baggage screening and collection).

• Entry and exit terminal have semblance to a high standard airport with duty-free shopping as well.

Page 29: Investment Opportunities in The Sultanate of Oman

Airports Building four new air ports (USD 478mn) and undertaking large scale expansion for the existing airports (USD 4.94bn)

Airport expansion:� Muscat International Airport:

increasing capacity to 12mn per annum by the end of 2014 (48mn by 2050).

� Salalah Airport: able to handle 100,000 MT of cargo & 1mn passenger.

New Airport Development

Sohar Airport - estimated capacity of 50,000 tons of air cargo & 500,000 passengers.

Duqm Airport - able to support 500,000 passengers per year .

Adam Airport – 250,000 per year to the Dakhliliyaregion.

Ras A Hadd airport – able to handle 500,000 passengers per year

Page 30: Investment Opportunities in The Sultanate of Oman

Railway • Railway focus on linking major GCC markets.

• Oman is investing USD 15bn in the development of an extensive rail system linking all major ports and cities (1061km by 2017).

• Railway connecting with other GCC countries is expected to create capacity for 8800 tons of freight daily. Sohar-Muscat 260Km

Muscat-Duqm 526km

Sohar-Buraimi 140km

Sohar-Khatmat melaha 58km

Duqm-Salalah 646km

Page 31: Investment Opportunities in The Sultanate of Oman

Logistic Clip

Page 32: Investment Opportunities in The Sultanate of Oman

Investment Opportunities in Automotive Sector

Page 33: Investment Opportunities in The Sultanate of Oman

Agenda • Definition of the automotive sector• The automotive Market • Radiator • Parts for Diesel & Semi-Diesel Engines• Lead acid accumulators• Sparks-ignition type engines parts• Transmissions for motor vehicles • Spark plugs

Page 34: Investment Opportunities in The Sultanate of Oman

Automotive Sector Definition

The automotive industry is a wide range of companies and organizations involved in the design, development, manufacture, marketing, and selling of motor vehicles

Page 35: Investment Opportunities in The Sultanate of Oman

The Automotive Market

• Regionally• Fast growing market • High ratio of car ownership per household

• GCC countries• High consumption vehicle market• Fast growing population • Favorable oil price

Page 36: Investment Opportunities in The Sultanate of Oman

Radiator

Market Assessment

• Several existing local manufacturers (i.e. Dolphin)

• 2009, 5 million worth of radiators exported from Oman.

• GCC estimated value of sales 5.5% to 10% of total demand.

Page 37: Investment Opportunities in The Sultanate of Oman

Parts for Diesel & Semi-Diesel Engines

• In 2010, 4.5 Mn worth of this product were re-exported from Oman.

• Estimated value of sales for this product group represent 1.6% to 10% of total GCC demand

Page 38: Investment Opportunities in The Sultanate of Oman

Lead Acid Accumulators

• A well established local manufacturer Known as ReemBattery is producing around 1.2 - 1.7 million batteries, export 85% of the batteries.

• In 2010 almost 27 Mn USD worth of batteries were exported from Oman.

• Number of batteries imported to GCC countries in 2009 was around 4.3 Mn USD.

Page 39: Investment Opportunities in The Sultanate of Oman

Parts of Spark Ignition type engines

A range of casts iron parts including pistons, piston rings, cylinder heads, fuel inlet valves, valves, carburetors, nozzles etc.

Spark-ignition engines are those which use petrol opposed to diesel

A piston is a disk or short cylinder fitting closely within a tube in which it moves up and down against a liquid or a gas

Page 40: Investment Opportunities in The Sultanate of Oman

Transmissions for motor vehicles

This product group includes transmissions for either manual or automatic vehicles. The transmission on a vehicle is an automotive assembly of gears and associated parts by which power is transmitted from the engine to a driving axle and is also known as a gearbox.

Page 41: Investment Opportunities in The Sultanate of Oman

Spark plugs

The purpose of a spark plug is to provide a place for an electric spark that is hot enough to ignite the air/fuel mixture inside the combustion chamber of an internal combustion engine.

Page 42: Investment Opportunities in The Sultanate of Oman

Safety Glass

• The existing market for safety glass in Oman around 200,000 units in 2010.

• Almost 62 Mn units were imported into the GCC in 2009.

• In 2010, around 10.5 Mn USD worth of this product were re-exported

Page 43: Investment Opportunities in The Sultanate of Oman

Ball bearings

• The number of imported parts into the GCC under this code in 2008 was around 27 Mn.

• The GCC is a net importer of ball bearings at over 200 Mn USD worth in 2010.

Ball bearings are rolling elements that separate the

bearing race with balls.

Page 44: Investment Opportunities in The Sultanate of Oman

Oil or Petrol Filter

• The existing local manufacturer serves a small part of the existing local market (300,000 filters out of total demand 2.98 Mnper annum)

• Demand in the GCC in 2008 was around 95.6 Mn units.

Page 45: Investment Opportunities in The Sultanate of Oman

Fuel pumps, Lubricating pumps or cooling pumps

• Significant market in Oman at around 1.8 million units in 2010.• Around 38 million units imported into the GCC under this code

in 2010

Page 46: Investment Opportunities in The Sultanate of Oman

Manufacturing Clip

Page 47: Investment Opportunities in The Sultanate of Oman

Oman Marine Investment Opportunities

Page 48: Investment Opportunities in The Sultanate of Oman

Background • Oman fisheries production grown faster rate than world

production and it is the largest producer in the GCC.

• Traditional fisheries account for the bulk of production (tones), approximately 89%.

• Limited No. of industrial fishing License (7 companies for demersal species, 15 for pelagic species).

• Traditional fisheries catch: yellow fin tuna, barracuda, sail fish mackerel and large and small jacks.

• Commercial fisheries catch: ribbon fish, Crocker, Sea bram, emperor and grouper

Page 49: Investment Opportunities in The Sultanate of Oman

Aquaculture in Oman • Commercial production only began in 2003

• Main culture system practiced in Oman:– Cage culture – Integrated farming system – Tuna farming

Oman only producer in the Middle East

Page 50: Investment Opportunities in The Sultanate of Oman

Identified Investment Opportunities 9 Aquaculture 9Marina9 Biotechnology 9Consultancy Service 9Manufacture of fish feed 9 Fishing9 Fish processing 9 Leisure ship & boat

building and maintenance

9 Harbour and Port Development

9 Pearl Cultivation 9 Shellfish and mulluscs

within abalone 9 Tuna fattening

Page 51: Investment Opportunities in The Sultanate of Oman

Information and Communication Technology

Page 52: Investment Opportunities in The Sultanate of Oman

IT Sector

• KOM:  Technology  park  dedicated  to  Oman’s  entrepreneurs,  SME’s,  multinational corporation and top technical educational institutions offering exemption from corporate & personal taxes duty-free goods from GCC.

• Principal player in Oman IT market: IBM, HP, Oracle and Microsoft.

• Oman IT Sector compared to the global market is over represented in the hardware activities and under represented in services.

Page 53: Investment Opportunities in The Sultanate of Oman

Knowledge Oasis – Muscat

Page 54: Investment Opportunities in The Sultanate of Oman

Telecommunication• TRA: encouraging the use & development of

telecommunication services, promoting investment and regulating the market.

• Two licensed telecommunication providers: Omantel and Nawras.

• In 2012 the Sultanate declared that it will invest USD 130.3mn to support growth of communication provider.

• Growing sector • Fixed broadband 48.6% growth (2010-2011)• Mobile broadband 94% growth (2010-2011)

IndicatorOman Rank (total=144)

Network Reediness Index 40

Political &regulatory Environment 34

Business & Innovation Environment 33

Readiness 56

Usage 37

Economic Impacts 61

Social impacts 34

Page 55: Investment Opportunities in The Sultanate of Oman

ICT Investment Opportunity

• Facility based international gateway • Facility based access networks• International cable system • Internet access service • Audio text service • Resale of basic public mobile telecommunication

Page 56: Investment Opportunities in The Sultanate of Oman

Thank You

Please Visit Our Websitewww.Ithraa.om


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