Speeding up economic diversification is a perfect answer to current challenges

Muscat: The current economic challenges are a stark reminder of the importance and criticality of diversification of not only Government’s sources of revenue but also the whole ecosystem needs to adapt to the current situation to ensure sustainability in this challenging environment.Oman is witnessing transformational changes including the taxation reforms taking the economy in the right direction.
This was the conclusion at the panel discussion titled “Oil and Beyond - Future Omani Economy” at the ninth Annual International Conference organised by the ICAI Muscat Chapter. The panel discussion was moderated by Eng. Saleh Mohammed Al Shanfari, CEO of Oman Food Investments Holding at which Sheikh Talal Al Mamari, CEO of Omantel, Khaled Al Kayed, CEO of Bank Nizwa, T Ganesh, CFO of Bank Muscat and Sanjay Kawatra, Partner of EY were co-panelists.
The conference was inaugurated by Said Saleh Al Kiyumi, the Chairman of Oman Chamber of Commerce and Industry, in the presence of Indian Ambassador Indra Mani Pandey. The conference was also addressed by Dr, Ahmed Mohsin Al Ghassani, Dean of CBFS, Honorable Dr. K. Rahman Khan, former Indian Minister and a member of upper house of Indian parliament and S.B. Zaware, Chairman of Accounting Standards Board of ICAI.
The panelists also commended the excellent fiscal balance management by the Government which has been able to bring down budget break-even oil price from $105 per barrel in 2015 to a current level approximately $ 75 per barrel by prudent optimisation of the Government expenditure.
The diversification strategy accelerated by the Government in early 1990s has delivered positive results which is evident by the fact that non-oil GDP has impressively grown as compared to Oil GDP which has registered a continuous decline.
Special Economic Zones and Free Zones in Oman have started attracting huge investments in the manufacturing and logistics sectors. International investors specially Chinese and Indian companies have shown enormous interest to shift part of their production bases to Oman due to the very competitive energy prices offered in Oman with a very low rate of taxation, tax exemptions and investor friendly environment.
In his welcome address, Mubeen Khan, Chairman of ICAI Muscat Chapter said that the chapter is working to organise a mega conference in association of other stakeholders to promote Indian investments in the Sultanate in which senior executive from top Indian corporates would be invited and hosted by the chapter in Muscat.