investment opportunities in the sultanate of oman
TRANSCRIPT
Investment Opportunities inThe 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
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
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.
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.
Oman’s Economic Vision 2020
• Development of Human Resources.• Creation of Stable Macro Economic framework.• Competitive Private Sector.• Economic Diversification.
About ITHRAA
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.
Our Values
We are committed to being
• Innovative • Communicative • Creative• Supportive• Collaborative • Customer Focused
Why Invest in Oman
Why Invest in Oman
What are the Incentives
Oman Investment Opportunity Sectors
Overview of Oman’s Economy
2000
2005
2012
Oman’s Global Ranking
Foreign Direct Investment 2005 - 2012
Source: foreign Investment Book, 7th issue – June 2013, National Center for Statistics & Information
FDI By Industry 2012
Economic Diversification
Logistics Sector in 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
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.
• 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
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
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.
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
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.
Port of Sohar – A gateway to Regional Consuming Market
Direct Access to logistics Cluster in the Port.
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.
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
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
Logistic Clip
Investment Opportunities in Automotive Sector
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
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
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
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.
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
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.
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
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.
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.
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
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.
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.
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
Manufacturing Clip
Oman Marine Investment Opportunities
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
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
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
Information and Communication Technology
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.
Knowledge Oasis – Muscat
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 ®ulatory Environment 34
Business & Innovation Environment 33
Readiness 56
Usage 37
Economic Impacts 61
Social impacts 34
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
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