Oman

An extensive study to develop a long-term strategy for tourism is underway in Oman after the minister responsible for the sector acknowledged that although solid progress had been made in recent years, the industry has not yet reached its full potential.

Public transport in Oman has been earmarked for a major funding boost under the 2013 budget, and a planned national rail network is set to receive the lion’s share of the spend. Oman’s $15bn rail network system will provide links between domestic production and logistics hubs, while supporting efforts to open up trade links across the region.

The recently released Islamic Banking Regulatory Framework (IBRF), a 500-page document setting out the regulations that will govern Oman’s financial sector, is set to open the door for both conventional and Islamic banks to market sharia-compliant products. In a statement accompanying the regulations, the Central Bank of Oman described the IBRF as “a detailed and comprehensive document covering all aspects of Islamic banking”.

The Omani economy saw another good year in 2012, with high levels of growth on the back of increased hydrocarbons production and solid results from the private sector. However, unemployment remains a concern for the authorities.

While all Omanis are entitled to free health services, there has been an increasing move towards private health care, with both foreign and local care providers entering the market. The most recent entrant to the sector is the Saudi-based Shifa Al Jazeera Medical Group, which announced on November 18 it would be investing $259m to establish 13 hospitals and medical centres across the Sultanate over the next few years.

With mobile penetration already well above 100%, the increasing popularity of high-speed mobile and fixed broadband is proving to be the key to growth in the Omani telecoms sector. Increasing operating costs and declining text usage are cutting into profits, however.