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The strong headwinds of 2017 in Oman’s oil and gas sector have spurred the authorities to develop new sources of revenue. Despite recovering to 2015 levels of $55 a barrel, the steep fall in prices that saw Omani crude fall from $103 per barrel in 2014 to $40 in 2016 has squeezed state finances and added urgency to diversification efforts. On the back of a drop in crude output – following an agreement with the Organisation of the Petroleum Exporting Countries (OPEC) – overall economic growth in Oman remained flat in 2017, at roughly 0.3%, its weakest performance since 2011. However forecasts suggest growth will recover to 2.8% over the course of 2018, as gas production – particularly at BP’s new Khazzan gas field – expands and the non-oil economy steadies. This chapter contains an interview with Yousuf Al Ojaili, President, BP Oman.

The Omani insurance market has witnessed robust growth in recent years, which has helped gradually boost penetration rates. As in many countries, compulsory motor insurance has long been the leading branch in the sector, but previously underdeveloped segments, including life and health, are now expanding rapidly; the former has seen significant gains as foreign insurers expand their presence, while the latter is set to receive a further boost as the obligation for private companies to provide health coverage for their employees is enforced. Additionally, new regulations have been implemented for companies and brokers, which should contribute to confidence in the sector.

The sultanate is home to a well-developed stock exchange, the Muscat Securities Market, which was founded in 1988. The equity market has seen a decline in initial public offering activity in recent years; however, it witnessed a resurgence in 2017 thanks to government-driven offerings, more of which are set to take place in 2018. On the debt side, there has been a recent uptick in issues and listings, while the sukuk (Islamic bond) market also appears to be developing. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, Group CEO, Ominvest.

Oman’s banking sector appears to have ridden out recent economic headwinds largely unscathed. While concerns over liquidity arose in the wake of the oil price slump due to the government’s status as an important depositor, the situation improved in 2017 as the Omani state borrowed from abroad to avoid withdrawing funds or pushing up funding costs through heavy local borrowing. The sector is top heavy, with the leading bank by assets much bigger than its nearest competitors, which has given rise to talk of consolidation. This has yet to happen, though, with plans for two institutions to join forces recently called off. However, the non-bank lending segment saw a merger in 2017. The burgeoning sharia-compliant banking industry, meanwhile, after encountering some growing pains from the outset, is expanding rapidly and moving towards sustained profitability. This chapter contains an interview with Tahir Salim Al Amri, Executive President, Central Bank of Oman; Abdul Razak Ali Issa, CEO, Bank Muscat; and Khalid Al Kayed, CEO, Bank Nizwa.

Oman’s economy benefits from large oil and gas reserves, including a sizeable new gas field that began production in late 2017. Located between Asia and Africa – and adjacent to major international shipping routes – the sultanate’s geographic location also makes it a natural regional logistics and manufacturing hub. The authorities are seeking to leverage such advantages in order to diversify the economy and reduce its reliance on hydrocarbons production, particularly in light of the fall in the price of oil over the 2014-15 period. The consequent decline in oil revenue negatively affected growth, as well as government accounts and finances. However, the authorities have so far been able to fund the deficit without difficulty through international borrowing. Furthermore, a partial oil price recovery in 2017 and 2018, as well as moves by the government to cut expenditure and boost revenue, are reducing immediate pressure on finances. This chapter contains an interview with Khalifa Al Barwani, CEO, National Centre for Statistics and Information.

Morocco has made great strides in boosting school enrolment, and ensuring access to education has been a primary goal in recent decades. However, the chief challenge over the medium terms is ensuring finish their studies with not just academic qualifications, but also the skills needed to successful enter and contribute to the labour force. In the wake of the Arab Spring, Moroccan citizens approved a new constitution that promised a range of rights, including universal health care and access to quality health services. The authorities have since taken a number of steps to increase coverage, reduce costs, improve quality, and extend services in rural and otherwise isolated areas. Challenges remain in rural areas, however, and funding efforts are likely to be concentrated on building new health facilities and addressing the significant staff shortages that leave some clinics and hospitals in disuse. Ayman Cheikh-Lahlou, President, Moroccan Pharmaceutical Industry Association, and CEO, Cooper Pharma; and Nawal Chraibi, Acting CEO, Moroccan Foundation for Advanced Science, Innovation and Research.