Friday 27 / December / 2024
Muscat: Foreign investors ploughed OMR7.4b into the country last year, almost a billion more than in 2015, according to government data.
The news was welcomed by analysts and experts as a healthy indicator that Oman is on the right track to diversify and grow.
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The economy witnessed an increase of OMR0.8b in Foreign Direct Investments last year, according to the National Centre for Statistics and Information (NCSI).
“A statistical bulletin referred to by the NCSI states that the amount of Direct Foreign Investments until the end of the fourth quarter of 2016 reached approximately OMR7,391,100,000,” the Ministry of Trade & Industry revealed.
The final quarter of 2016 alone saw an investment of OMR 717.5m.
According to the 2016 Annual Report by the Central Bank of Oman (CBO), the 2015 FDI investment based on data from the NCSI was OMR 6.67billion.
“It is good news that investments have been flowing into the country when it is most required. More than OMR7 billion is a healthy investment for Oman,” Fabio Scacciavillani, Chief Economist at Oman Investment Fund (OIF) said.
“It is not a surprise that oil and gas, which is both capital intensive and a major revenue generator for the country, is on top of the list. However, other sectors such as logistics through the major plans at Duqm, IT and broadband with fibre optics installations and the energy sector with rise in renewables and growing power demand, all need more investment,” he added.
Oil and gas exploration activities contributed to 47.9 per cent of the total amount of direct foreign investment, according to NCSI data. “Real estate, the rental sector and business projects increased by 8.5 per cent while other sectors increased by 12.8 per cent,” the ministry revealed.
For the first nine months of 2016, FDI stood at OMR7.02 billion, according to the NCSI.
The FDI in the manufacturing sector reached OMR986.4 million. Real estate and business activities received OMR622.2 million of foreign investment by the end of the third quarter. Other sectors together reported around OMR999.2 million, the NCSI release said.
The United Kingdom tops the list of investors in Oman, with a foreign direct investment of OMR2.797 billion, followed by the UAE at OMR924.8 million and Kuwait at OMR396.1 million.
The other major countries on the list include Qatar (OMR314.8m), Bahrain (OMR302.6m), India (OMR298.9m), the Netherlands (OMR230.6m), the US (OMR215.6m), and Switzerland (OMR178.2m).
Dr Anchan C K, an International Investment and Economic Advisor in Oman, believes the FDI flow shows the strength of Oman’s economy.
“Global flows of FDI dropped by 2 per cent to $1.75 trillion. Investment in developing countries declined even more by 14 per cent and flows to least developed countries and structurally weak economies remain volatile and low.
“The sustained FDI inflow to Oman underlines the strength of the local economy and its ability to create new opportunities for investors reaffirming its position as a preferred international investment destination in the Middle East,” he said.
