Oman

Oman’s economy has become more competitive in the past 12 months, according to a recent report, and is steadily making the transition from having an efficiency-driven economic base to an innovation-powered one, a process that will gain further momentum thanks to increased government budget outlays.

With a recent milestone achieved in aluminium production and major expansions planned in the steel sector, Oman is becoming an increasingly prominent player in the global metals industry.

Since issuing a decree to establish an Islamic financial services sector in May, Oman has seen a flurry of activity as banks have started gearing up to move into the new market. As well as the establishment of new Islamic banks, the sector is also seeing an upsurge of sharia-compliant services at convention institutions as well as movements in other financial services to offer Islamic products.

The lifting of a rating agency’s temporary cloud over the Oman economy and a healthy forecast for GDP growth have combined to create an air of optimism in the Sultanate. On July 20 Standard & Poor’s removed Oman from CreditWatch, with the country’s long-term local and foreign currency rating at A, and the short-term rating at A-1.

Efforts to deepen the penetration of information and communications technology (ICT) in everyday life in Oman are gathering pace, with state-backed investments targeting improved and faster access to advanced applications. The government has been stepping up spending on ICT as part of its policy – formally launched in 2002 – of providing the private sector with the tools to expand and diversify as well as putting in place a state e-infrastructure to improve services provision to the public and promote the development of a knowledge-based economy.

The Omani government has opened its doors to Islamic banking, with Sultan Qaboos bin Said Al Said issuing a royal directive in early May allowing for the roll-out of sharia-compliant financial services and institutions.