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Oman beckons entrepreneurs

KOCHI: Khalil Bin Abdullah Bin Mohammed Al Khonji, Chairman of the Oman Chamber of Commerce and Industry, said here on Friday that Oman provided immense opportunities for foreign investments, which could go up to 100 per cent ownership in certain strategic investment projects. He was addressing a business meet organised by the Kerala Chamber of Commerce

With corporate tax not exceeding 12 per cent, an added incentive in starting a business venture was that there was no corporate tax for the first five years, Mr. Al Khonji said. Oman has a free trade agreement with the U.S. that helps the country to undertake export activities to the U.S. without customs duty. The free trade zone in Salalah and Sohar industrial area also offers a lot of facilities to the investors.

Oman exempts customs duty on imports of machinery and spare parts for investment purposes. Raw and semi- processed material for the manufacturing sector is also exempted. There is also free transfer of capital funds and profits, Mr. Al Khonji said.

Oman, being a member of the Great Arab Trade Zone, also facilitates export of locally manufactured products to 18 Arab countries without custom duty. Also, its membership in the Indian Ocean Rim Association for Regional Cooperation opens more markets for an entrepreneur.

Oman had put 58 sectors under 100 per cent ‘Omanisation’ and many other sectors had started giving preference to locals, which unsettled the opportunities for foreigners. Industries dealing in food, groceries, transportation, etc., employed only locals. However, a lot of expertise was required in many other fields, specially information technology, construction and tourism.

New developments in Oman such as the construction of a new port in Tuqum, which is being built with a loan of $600 million from a Japanese bank, will provide opportunities.

Tourism constitutes less than one per cent of the GDP of Oman, said Mr. Al Khonji. This is the most potential area of opportunity in Oman where entrepreneurs are invited to start resorts and hotels, he said. Oman, unlike the other Arab nations, enjoys a three-month monsoon and has agricultural products with special emphasis on fruits such as mangoes, coconuts and the like. Southern Oman has a climate similar to Kerala while northern Oman is cold, said Mr. Al Khonji.

E. S. Jose, the Chamber President, presided over the meet.

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