Oman

While lower prices may limit new investments in Oman’s upstream energy sector, Iran’s return to international markets is likely to have a mixed effect on the sultanate’s economy. 

While weaker growth and uncertainty have cast a shadow over Oman’s retail sector during the past 18 months, activity is expected to pick up in the medium term on the back of a rapid rise in leasable space, supported by increased government spending.

The opening of a multimillion-dollar cardiac centre outside of Muscat in May marked the latest milestone in Oman’s drive to broaden the scope of its health care sector.

From the start of this year, Oman has doubled gas tariffs for industrial producers, with the move expected to squeeze margins for operators.  However, the higher prices may spur a move towards greater efficiency, which could benefit the sector over the long-term. 

Legislation regulating Oman’s sharia-compliant insurance market has moved a step closer to being finalised after the State Council approved a draft law that will help encourage new investment in the takaful (Islamic insurance) industry. 

Major investments in agri-businesses this year look set to help Oman improve food security and develop an export capacity in processed foods from its new hub in the northern port city of Sohar. The expansion will also produce spin-off benefits for the freight and packaging sectors.