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OBG’s partner, PwC provides information relating to tax in Oman, including coverage of income tax laws, exemptions and administration. This chapter contains a viewpoint from Kenneth MacFarlane, Country Senior Partner, PwC.

Industrial zones, port developments, railways and fisheries projects are but a few examples of how public and private investments are transforming Oman’s regions. Some 87m sq metres of land has been allocated for industrial estates in Sohar, Salalah and Duqm, at a total investment of $9.4bn. The range of new industrial projects shows a clear development strategy aimed at regional economic diversification, which will continue to support the growth of the Omani economy and provide opportunities for local, regional and global investors. This chapter contains a dialogue with Andre Toet and Jamal Aziz, Group CEO and Sohar Freezone CEO, Sohar Port and Freezone; and interviews with Yahya bin Said bin Abdullah Al Jabri, Chairman, Special Economic Zone Authority at Duqm; and Ahmed Akaak, Acting CEO, Port of Salalah.

Though the global financial crisis and delays in hotel construction and infrastructure upgrades have hampered growth, the government and private sector are ramping up promotional activities, hospitality projects and other investments within the industry to meet new demand. Macroeconomic indicators show that the sultanate is on track for continuous, sustainable growth in both its business and leisure segments. With revenues from international visitors exceeding $1bn for the first time – the fourth highest in the MENA region – the sultanate has seen annual tourist numbers grow beyond the 2m mark. Investment in transportation infrastructure and the hotel segment offers long-term growth potential and a variety of opportunities for investors.

Major investments in schools and universities have highlighted Oman’s commitment to revamping its education system according to the needs of a diversified, knowledge-based economy. The government has spearheaded initiatives targeting higher education, vocational programmes and research facilities. Efforts are under way to better align graduates’ skills with the demands of the job market. While challenges remain with respect to improving educational standards, research opportunities and English-language training, the sector has demonstrated tenacity in accommodating the country’s growing youth population and enhancing the quality of its education system at all levels.

The health care sector was allocated 4% of the total 2013 budget, or some $1.3bn, which represented a 32% increase on 2012. The occurrence of non-communicable diseases has grown significantly in recent years, and the government has responded with plans for various large-scale projects, hospitals, health centres and prevention programmes, illustrating its commitment to addressing these challenges. At the same time, the government has complemented its health push with the recognition that the private sector must play a greater role. The trend toward private care is growing each year and the new medical cities and other facilities present opportunities for private players to break into the market.

Expansion of the highway network is set to boost sea-to-air connectivity and raise the sultanate’s profile as a logistics and trans-shipment destination. Development of aviation and port facilities has attracted significant foreign investment, with joint-venture opportunities in free zones and industrial zones, among others, progressing alongside the GCC rail project. This chapter contains interviews with Wayne Pearce, CEO, Oman Air; Melanie Schulz van Haegen, Dutch Minister of Infrastructure and the Environment; and Abdulrahman Al Hatmi, Director, Oman Rail Project.