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Muted investor sentiment since 2016 has slowed activity on Oman’s stock market. Downgrades by all three major ratings agencies and constricted spending have taken their toll on trading volumes, nudging the index into a negative trend over 2018. However, some parts of the market are benefitting from this scenario. Bonds and sukuk (Islamic bonds) have become a more inviting prospect for investors, and the two financial instruments have seen an increase in turnover during 2018. Regulations concerning real estate could also boost the popularity of a new financial instrument. Rising oil prices may prompt a return of more traditional market drivers, possibly reinvigorating the capital market over the coming year. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, Group CEO, Ominvest.

Oman’s banking sector has weathered the economic downturn resulting from the 2014-15 hydrocarbons price drop without a significant erosion in asset quality, and returned to its long-term trend of deposit and loan growth. As a result of firmer oil prices and a broadly positive outlook for the sultanate’s economy, the industry is preparing for a new phase of credit expansion. However, challenges remain. Recent years have seen banks struggle to meet previous levels of profitability, and an ongoing process of regulatory reform is placing a strain on the bottom line of some institutions. This chapter contains interviews with Tahir bin Salim Al Amri, Executive President, Central Bank of Oman; and Waleed Al Hashar, CEO, Bank Muscat.

Like other GCC states, Oman’s economy is largely driven by oil and gas activity. However, with fewer and more complex hydrocarbons reserves than its neighbours, it is under greater pressure to diversify its economic base. The scale of this challenge was highlighted by recent falling oil prices, which led to the largest fiscal deficit in more than a decade. Nevertheless, a combination of government reforms, increased diversification efforts and a recovery in oil prices means that the sultanate’s economy is showing improvements across most major indicators for 2019. The government is therefore well positioned to continue with its most ambitious reform agenda since the original modernisation phase in the 1970s. This chapter contains interviews with Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry; Salaam Said Al Shaksy, Member of the State Council and CEO, Alizz Islamic Bank; Ahmed Al Musalmi, Board Member, Special Economic Zone Authority at Duqm, and CEO, Bank Sohar; and Khalifa Al Barwani, CEO, National Centre for Statistics and Information.

This chapter introduces the reader to the different aspects of the legal system in Algeria, in partnership with Gide Loyrette Nouel. It also contains an interview Samy Laghouati, Partner, Gide Loyrette Nouel.

In conjunction with Mazars, this chapter explores the taxation system and Algeria’s efforts to build an investor-friendly environment. It also contains a viewpoint with Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria.