New investment law to be more liberal and flexible, says Central Bank of Oman Chief

Muscat: Oman’s new investment law is expected to be more liberal and flexible, according to Central Bank of Oman chief Chief Hamood Sangour Al Zadjali.
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Speaking exclusively to the Times of Oman’s Arabic sister paper Al Shabiba, Al Zadjali said: “Competent authorities are in the process of drafting a new investment law in the Sultanate, which is expected to be more liberal and flexible, to will make it easier to do business in Oman.”

Commenting on the economic activity front of the Sultanate, CBO Chief Al Zadjali said the Sultanate is witnessing a slowdown in economic activity. The latest available data for the first quarter of this year indicates a continuing decline in GDP due to the steep drop in value added petroleum activities and given the continuing low levels of oil prices.

Al Zadjali said some non-oil sectors have managed to grow at different rates, but the significant decrease in the added value of the wholesale and retail sectors and the manufacture of basic chemicals had led to a slight decline in the total added value generated from these activities.

He further noted that the government has adopted the initiative to pursue a balanced policy in terms of spending and diversifying its funding resources in order to deal with the deficit in the general budget and current account, which has led to maintaining the liquidity of the local banks at appropriate levels, as well as to get the much needed external financing.

Al Zadjali concluded that with economic diversification initiatives going forward in various sectors of the economy, including the strengthening of the role of the private sector and stimulating foreign investment, as well as continuing government spending on strategic projects, Oman’s economy will be able, in the foreseeable future to bring about a structural change in its activities.