Oman

With a reduction in mobile tariffs forthcoming, Omani telecoms companies are looking for new ways to attract customers by offering more advanced services at lower rates. The Ministerial Committee of the GCC Council announced in early February that tariffs on calls made to GCC countries while roaming in the region would be reduced.

Speculation is mounting that Oman’s insurance sector will witness further mergers and acquisitions if margins remain tight in the coming year. While the introduction of sharia-compliant insurance is expected to drive expansion in the industry, questions remain about both the length of time it will take for insurers to develop new products and whether take up will meet expectations.

Further progress towards the construction of a national rail network, along with long-awaited expansions in the port system, are highlighting Oman’s potential to become a lynchpin for commercial transport in the GCC. A special body will be set up within the Ministry of Transport and Communications to facilitate the installation of a new rail network in the Sultanate, Ahmed bin Mohammed Al Futaisi, the transport and communications minister, said.

The introduction of a real estate regulatory agency in Oman is expected to instil greater confidence among foreign investors and promote better practices in this growing segment. Early this month the Council of Ministers took a first step towards getting the agency off the ground: it directed that a committee be formed to gauge the opinions of players involved in the sector to determine exactly what the agency could contribute

With forecasts predicting solid economic growth in 2011 and a political system that remained stable in spite of unrest rocking much of the Middle East, Oman looks set to see increased investor interest in the coming years.

Oman’s economy looks set for a period of solid expansion, with the state’s pump-priming efforts of the past year having a positive impact on growth. Much of the same is expected in 2012 as the government increasing its spending to create jobs and improve key infrastructure.