Oman

Islamic financial products, first authorised by the Omani government in 2011, are set to take off later this year, with the banking, real estate and insurance sectors all expected to see benefits. However, competition is also forecast to increase as both sharia-compliant and conventional banks vie for customers.

The utilities sector is turning to private and foreign investors to help spur the growth needed to meet local demand. The construction of 16 power and water projects worth $3.1bn are slated to increase water desalination capacity in the country, as well as improve wastewater treatment and conservation awareness.

Efforts to expand the reach of broadband internet to encompass the entire country are expected to help Oman meet the needs of its growing economy, but the sheer size of the country and the scope of laying out necessary infrastructure present significant challenges.

With Muscat having been named the Arab Tourism Capital for 2012 and the country becoming increasingly popular with visitors from around the globe, Oman’s tourism sector is gaining attention from local and international investors who are building new hotel and property developments. To go along with the accommodation offerings, there is also a need for additional entertainment and leisure facilities to fill niche markets and create demand.

Higher-than-forecast oil revenues should allow Oman to sustain economic growth for the rest of the year, as well as put its budget into the black. There is, however, a serious caveat. A weakening of global markets and any delays to the state’s efforts to strengthen its economic base could negatively impact year-end figures.

In a move that is expected to strengthen food security in Oman, the Public Authority for Stores and Food Reserves (PASFR) announced in late May that it was planning to standardise the prices of certain essential items in different parts of the Sultanate.