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Oman’s cultural heritage is renowned throughout the region and beyond, and much of the government’s effort in relation to it has been exerted on its preservation and ensuring that the sultanate’s young population is imbued with the richness of its past. The nation’s youth are also the principal target of a drive to enhance Oman’s sporting infrastructure and proficiency, a strategy that has already established the sultanate as a growing destination for international sporting events. Indeed, a significant level of government funding has been set aside for sport development, with the 2011-15 five-year plan investing some $64m in infrastructure development, including improvements to sports complexes and clubs, as well as for new facilities.

Farming and fishing play important roles in the Omani economy: more than half the local population and some 7.8% of expatriate workers are employed in these industries. This is despite the historic challenge of an arid climate and scarcity of water for crop cultivation, which have traditionally limited development. However, the implementation of modern irrigation techniques in recent times has enabled total agricultural output to grow from 989,000 tonnes in 2005 to 1.2m tonnes in 2008. Fishing is also set for good growth. More than 36,000 Omani nationals are employed in the fishing industry using traditional capture fishing methods. The government is now offering a wide array of financial and business development incentives to encourage investment and expand the segment. This chapter includes an interview with Fuad Jaffer Al Sajwani, Minister of Agriculture and Fisheries Wealth.

As part of a strategy to diversify the economy away from the oil and gas sector, efforts are continuing apace within the industrial sector. In particular, the government is working to expand steel production, as regional demand is expected to increase in line with large-scale projects underway in the GCC region. The aluminium industry, for example, is showing signs of good growth, with new rolling plants expected to become operational by the end of 2013. In retail, a number of factors continue to shape the market. While competition has increased as more companies have set up retail outlets, salaries have also grown, boosting consumer spending as a consequence. In spite of some labour difficulties and increased competition, the retail sector presents a variety of investment opportunities – not only in the larger, more traditional segments, but also in a number of niche markets. This chapter includes an interview with Khalil Abdullah Al Khonji, Chairman of the Oman Chamber of Commerce & Industry (OCCI).

While Oman’s property market remained relatively slow in 2011, the sector is showing signs of steady growth. In fact, property prices are now reported to be roughly three times what they were before the global slowdown. Overall, real estate contributed almost 4% to GDP in the first quarter of 2012. The sector does face challenges, most notably the shortage of affordable homes. Indeed, about 400,000 new units will be required by 2022 to meet the burgeoning housing demands of Omanis and foreign nationals. However, ongoing developments throughout the wider economy are affecting real estate in beneficial ways. Major investment in infrastructure is opening up new areas for development, and the burgeoning logistics sector is creating opportunities for warehousing and light industrial facilities.

A range of construction projects lies at the heart of Oman’s growing economic development. The construction sector contributed more than OR307m ($800m) to the economy during the first quarter of 2012, showing growth of almost 4% when compared to the same period in 2011. While many projects in Muscat are focused on increasing the city’s tourism appeal, construction related to industrial and transport expansion is growing substantially in cities such as Sohar, Salalah and Duqm. The development of new road networks and upgrades to existing routes is also planned, and other infrastructure projects involve upgrading the seaports. However, as the construction sector expands, challenges remain. Perhaps foremost of these is the relatively high level of competition of both local and foreign bidders. This chapter includes an interview with Sultan bin Hamdoon Al Harthi, Chairman of the Muscat Municipality.

Increasing demand for power and water and an expanding role for private sector firms are the two most significant factors currently affecting Oman’s utilities sector. This is motivating the government to expand capacity, which in turn is bringing about a restructuring in the sector, creating new opportunities for private and international firms. Efforts are also under way to encourage energy conservation and develop renewable energy sources and green building practices to increase power and water efficiency. Furthermore, international partners have shown themselves willing to invest in solar energy projects, developing the sector through research and educational institutions. This chapter includes an interview with John Cunneen, Executive Director for the Authority for Electricity Regulation (AER).