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This chapter contains an overview of the tax framework in which local and foreign investors operate. It also contains an interview with Kenneth Macfarlane, Country Senior Partner, PwC.

The government is increasingly focused on preventative care as Oman’s health care budget almost doubled for 2014, reaching $3.34bn. Rising rates of obesity and diabetes are among the chief challenges facing the sector as lifestyle changes bring rates for obesity in line with developed Western countries. While government spending accounts for about 78.7% of total health expenditure in the country, the private sector is expected to play an increasingly prominent role moving forward. The number of private hospitals in the sultanate has quadrupled in the last decade, going from three in 2004 to 12 in 2013, and as rapid population growth and cases of bed shortages continue, numerous investment opportunities are being presented in the private health care segment.

Oman has witnessed a dramatic improvement in enrolment and the duration spent in full-time education thanks in large part to reforms introduced in 1995 and 1998, which required 10 years of basic education and extended the number of school days from 160 to 180. In 1996 the government launched a programme to promote the development of private higher education institutions in the country, providing subsidies in the form of low-interest loans, land, and tax breaks. By 2012 there were 19 private colleges of higher education and seven private universities in the country. Meanwhile, a national research council was established in 2005 as part of the sultanate’s aim to move towards a knowledge-based economy with the target for research and development spending set at 2% of GDP by 2020. Moving forward, higher learning institutes and industry leaders are cooperating more closely to match training and technical skills with future industry needs. This chapter contains interviews with Rawiyah bint Saud Al Busaidiyah, Minister of Higher Education; and Sayyid Shihab bin Tariq Al Said, Chairman, The Research Council.

Arrivals at Muscat International Airport grew from 7.56m in 2012 to reach 8.31m in 2013, and this rising trend looks set to continue as the sultanate rolls out infrastructure development plans and increases its offerings for visitors. Across the country smaller airports are undergoing expansion that will allow larger planes to land, while rail development in the sultanate will see 2244 km of rail laid in the coming years, boosting connectivity with neighbouring countries. Oman is also looking to establish a presence in the international MICE segment, with the recently opened Oman Conference and Exhibition Centre leading the drive to attract more events to the sultanate. Luxury enclaves along the coast have boosted high-end offerings, and the sultanate is also keen to promote itself as a golf and sailing destination. This chapter contains an interview with Ahmed bin Nasser bin Hamad Al Mehrizi, Minister of Tourism.

Major investment in the telecoms and IT sector from both the public and private sectors has expanded coverage in Oman, with the number of pre-paid mobile subscribers reaching 5.37m in the first half of 2014. The government has recognised the potential of a vibrant IT sector and in line with its objective to diversify the economy away from hydrocarbons has marked the development of the sector as a key part of the Vision 2020 strategy. In an effort to transition many of its services online as part of its e-government initiative, the government had, as of September 2014, trained 90,000 employees in IT skills and awareness. Meanwhile, the Information Technology Authority (ITA) has adopted an incubation approach with efforts to encourage funding of IT start-ups from banks, venture capital funds and others while government guarantees regarding protection of IP rights in the sultanate are expected to attract further investment from international companies. This chapter contains an interview with Salim Sultan Al Razaiqi, CEO, Information Technology Authority.

Achieving self-sufficiency in agriculture and fisheries sector is driving expansion in Oman as the government finances a number of initiatives and invests in key infrastructure that will strengthen the sector moving forward. Adding value through processing is a key goal with the Oman Sugar refinery company’s 2013 announcement of a $200m sugar processing plant in Sohar a key point in this regard. Meanwhile, the Ministry of Agriculture and Fisheries is working to double the output of the fishing sector to 480,000 tonnes by 2020. Doing so would create 20,000 additional jobs, and the integrated fishing industrial zone at Duqm is set to be the largest such facility in the Middle East. This chapter contains an interview with Fuad bin Jaafar bin Mohammed Al Sajwani, Minister of Agriculture Fisheries Wealth.