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The country’s water and power sectors have undergone a steady liberalisation process since legislation outlining privatisation was passed in 2004, and this has generally been considered as a success. As one of the most open in the region to foreign investment and private ownership of assets, Oman’s utilities sector is expanding strongly to meet growing demand for power and water. There are some major schemes in the pipeline at various stages of planning and construction. Opportunities for generation continue, and more may also open up in the downstream power sector if the government pushes ahead with liberalisation.

Oil and gas still take centre stage in Oman, accounting for more than half of GDP and 85% of government revenues. After a slump in 2000-07 as fields depleted, oil production is once again increasing, boosted by discoveries of new reserves and improved extraction techniques that glean more from old fields. Meanwhile, the government is looking to improve in-country value and the Omanisation of its workforce. This chapter contains interviews with Nabil Al Ghassani, CEO, Takamul Investment Company; and Mulham Al Jarf, Deputy CEO, Oman Oil Company.

With a steady stream of new entrants in the past decade and growth from a small base, Oman’s insurance market is a competitive one. Several factors are boosting the industry, with sharia-compliant lines of insurance looking set to enhance the sector’s potential and automobile coverage boosted by record vehicle sales. Further to this, the sultanate’s infrastructure spending is combining with job growth to present an opportunity significant enough to attract multiple new entrants the market, further adding to competition. However, as the government considers mandating health coverage, there is still potential in the market. This chapter contains an interview with Lloyd East, CEO, Al Ahlia Insurance and Board Member, Oman Insurance

Despite being a stable and growing bourse for a number of years, authorities see a broader, deeper market as a strategic goal to help create economic opportunity. Sustained dedication to that cause has paid off in recent years, chiefly in the form of an increased flow of initial public offerings. The inclusion of sharia-compliant instruments looks set to take off, meaning diversification of the market should continue. This chapter contains an interview with Sheikh Abdullah Al Salmi, 
 Executive President, Capital Markets Authority; and a viewpoint from Shaheen Al Balushi, CEO, Oman Orix.

High capital adequacy and profitability define the banking sector in Oman. Aggregate net profits from local banks and foreign branches rose 15.6% in 2012 to $786.1m, up from $683.8m in 2011 with local banks accounting for 96.1% of the total. Consumer spending is driving lending markets as the wealth of the population increases, and banks are looking to meet this demand. New support for SMEs, an important part of the drive to diversify the economy away from hydrocarbons, should help change banks’ portfolios. Demand for Islamic services has led to the creation of a new segment, with the two newest entrants into the banking sector being Islamic institutions, whose licences were granted after the 2011 decision to allow sharia-compliant financial institutions to operate in the sultanate. This chapter contains an interview with Hamood Al Zadjali, Executive President, Central Bank of Oman.

The sultanate’s economy continues to enjoy the benefits of petroleum wealth, which has provided budget surpluses in most years and served as a backbone for growth. However, planning is well under way for an era in which oil will not be the main economic driver, with the twin goals of diversification and creating an increased number of private sector jobs at the top of the government’s current agenda. This chapter contains an interview with Sayyid Faisal Al Said, Director-General of Marketing & Media, Public Authority for Investment Promotion and Export Development.