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As rapid industrialisation continues in the sultanate, the utilities sector looks set to be a growth driver in terms of both construction contracts and private investment. In 2013 the Authority for Electricity Regulation reported that operators approved 276 projects worth $357.34m, and the numerous water and power plant projects in the pipeline bode well for future investors. Of particular interest is the renewable segment where progressive policies are in place to drive future growth and reduce dependence on hydrocarbons. The sultanate is capitalising on its high solar densities with solar energy currently being used in enhanced oil recovery schemes, while a funding grant from the Oman Research Council has enabled research into the use of concentrated solar power in desalination plants, with plans in place to develop an operational system by the end of 2015. This chapter contains interviews with Hassan Ali AbdulHussein, CEO, Haya Water; and Omar Al Wahaibi, CEO, Electricity Holding Company.

Oil and gas remain key economic contributors in Oman, with hydrocarbons accounting for 85.7% of government revenues in 2013. New partnerships with the private sector have led to some of the most advanced enhanced oil recovery (EOR) projects in the world with the use of solar-fired EOR technologies playing an increasingly important role in the sector. The sultanate is expected to substantially increase its domestic supply of natural gas in the coming years via production at the Khazzan tight gas reserves. Downstream, new refinery and petrochemical developments at Duqm and Sohar will see Oman capitalise on its geographic location. Although falling world oil prices have created a stormier forecast for hydrocarbons export revenues, rising domestic demand, along with targeted economic diversification policies that aim to reduce oil’s share of GDP to 9% by 2020, should ensure that the country avoids the worst of global market shocks over the longer term. This chapter contains interviews with Salim Nasser Said Al Aufi, Undersecretary, Ministry of Oil and Gas; and Harib Al Kitani, CEO, Oman LNG.

Oman’s insurance sector has continued to expand and was the second fastest-growing insurance market among GCC countries from 2007 to 2013. Gross written premiums reached $942.5m by year-end 2013, a 10.44% increase year-on-year from 2012, with the motor segment accounting for 41% of this total in both years. In August 2014 the Capital Market Authority (CMA), the industry regulator, introduced a number of amendments to Oman’s insurance law, requiring underwriters to raise their minimum paid-up capital to $25.9m – up from $12.9m previously – and to list a certain percentage of their shares on the Muscat Securities Market (MSM). Legislation passed by the Central Bank of Oman in recent years has paved the way for an increase in sharia-compliant products in the insurance market. This chapter contains an interview with Abduladheem Al Lawati, Chairman, Oman Insurance Association.

Capital markets in Oman continued to post healthy growth over the course of 2013 and 2014 with strong fundamentals, steadily increasing economic diversification and prudent market regulation and oversight driving expansion. In mid-2013 the Capital Market Authority launched the MSM Sharia Index which tracks sharia-compliant stocks, and in August 2014 insurance sector reforms were introduced aimed at encouraging more corporate listings. Government plans to float $517.9m of sukuk will go ahead in 2015 and have the potential to jumpstart further issuances in the sector. Smaller companies look set to benefit from Oman’s growing capital markets as the regulator moves to attract greater SME participation through a range of incentives including the expected introduction of an SME index and the CMA’s roll-out of a comprehensive SME strategy in 2015. This chapter contains interviews with Sheikh Abdullah bin Al Salmi, Executive President, Capital Market Authority (CMA); and Khalid M Al Zubair, Managing Director, The Zubair Corporation; and Chairman, Ominvest.

The Omani banking sector once again posted solid growth in 2013 and the first half of 2014 as steadily growing demand for financial services continues to expand the sector. Government initiatives to boost entrepreneurship and the establishment of small and medium-sized enterprises (SMEs) has resulted in a Central Bank drive requiring local banks to increase lending to SMEs to at least 5% of their loan books by 2015. While this presents a challenge to the sector, the outlook remains positive, with deposits and credit issuance rising. Moreover, the emergence of the sharia-compliant segment presents strong growth potential for local banks. With 3.6% of total banking assets in the sultanate being held by sharia-compliant entities at the end of 2013, the sector, which in September 2014 comprised two Islamic banks and five Islamic “windows” operated by conventional banks, is expected to expand rapidly in the coming years. This chapter contains interviews with Hamood Al Zadjali, Executive President, Central Bank of Oman (CBO); and AbdulRazak Ali Issa, CEO, Bank Muscat.

In 2013 and the first half of 2014 Oman’s economy continued to expand on the back of rising public and private investment, strong oil and gas revenues, and steadily increasing levels of non-oil activity. The sultanate’s GDP rose from $78.3bn in 2012 to $80.57bn in 2013, and while the recent slump in oil prices is a concern, heavy investment in a variety of enhanced oil recovery techniques has boosted output in recent years. Moreover, increasing levels of non-oil activity is high on the agenda with the Oman Vision 2020 long-term development plan aiming to ensure economic and financial stability by boosting private sector participation, diversifying the economy and investing in the Omani workforce. Incoming visitors are increasingly being considered a key source of revenue for Oman with the tourism sector’s contribution to GDP forecast to jump to 8.2% by 2024, from 6.4% in 2013. This chapter contains interviews with Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry; and Tariq Al Farsi, CEO, Al Raffd Fund.