Trade Exchange Between GCC and India

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Oman- Austria Investment Opportunities Under
H.E.Sh. Abdulla bin Salim Al-Rawas
President of Oman Chamber of Commerce and
Industry. March 20th, 2004, Muscat
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by Jamal R. Al-Maimani Econ. Researcher, OCCI

• Oman and Austria
• Investment Opportunities
• 20th March 2004

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Economic Indicators - Oman 2002

• Land Area 309,500 km2
• Population 2.331 million
• Population Density 7.7 per km2
• Oil Reserve 5.74 bil. Brls.
• Natural Gas Reserves 29.8 tril. cu .ft.
• Exchange Rate One RO2.6 ROOmani Rial

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Economic Indicators - Oman 2002

• GDP at Current Price US 20.3 bil.
• GDP Per Capita US 7795
• Non-Oil Activities US 12.3 bil.
• Net Oil Gas Revenue US 5.9 bil
• Oil and Gas of Total Revenue. US 75.6
• Average Oil Production 897,000 bbl
• Percentage of Public Rev./GDP 38.5
• Percentage of Public Expend/GDP 37.6
• Total Export US 11.2 bil.
• Total Imports US 6.3 bil.
• Trade Balance US 4.9 bil

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Economic Indicators - Oman 2002

• Shares of other sectors as percentage of GDP
  ()
  
• a) Oil and Gas 41.7
• b) Total Services 47.3
• c) Total Industry 11.0
• Mining 0.2
• Manufacturing 7.7
• Construction 2.1
• Electricity Water 1

Agriculture Fishery Share 2.1
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US Million
Economic Indicators, Oman
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Quantitative Indicators two decades graph
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Quantitative Indicators Future Plans
Contribution 2020-2000

• Sector 2020 2000
• Oil 9 25.9
• Gas 10 5
• Agriculture Fishery 5.1 4.5
• Mining Quarry 2.0 0.6
• Manufacturing 15 6.8
• Electricity Water 2 4.3
• Construction Real Estate 10 6.9
• Trade Tourism 18 17.8
• Base year 1993

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Omans Economy as Part of the World Economy
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Features of Investment in Oman

• Member country in WTO.
• GCC unified custom duty 5 with expected GCC
  Currency Union in 2010.
  
• Free economy and full competitiveness
• Freedom of Money Transfer
• Excellent Infrastructure
• Opportunities Privatization
• Promotion and Protection Agreements
• Knowledge Oasis Muscat Information Technology
  base Phase one ( two buildings), Phase two
  (additional buildings),ICT Colleges (Two),
  Incubators Facilities.

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Investment incentives

• Soft loans
• Stable currency.
• Transfer of capital Funds and profits.
• Exemption from custom duties on many imported
  parts that directly used in manufacturing.
  
• Foreign equity ownership up to 100.
• Zero tax on personal income.
• Exemption from corporate income tax up to 10
  yrs.
  
• Export Guarantee Agency.
• Industrial area ready-built factories of various
  sized.

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Investment Opportunities Agriculture and Fishery
Sectors

• Honeybee Keeping.
• Animal Fodder Manufacturing.
• Dates Processing Plant.
• Water Farming Project.
• Agriculture Marketing Project
• Vanilla Cultivation
• Coconut Processing Plant

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Investment Opportunities Industrial Sector

• Soya Protein Concentration
• Herbal and Aromatic Extraction
• Specially Bio Fertilizers
• Narrow Cold Rolling Plant
• Round Ac Ducts
• Ferro Chloride
• Teflon lines/Sleeved Industrial Valves.
• Glass Reinforced Gypsum Panels
• Acrylic Bathroom Products.
• PVC Insulation Panels.
• Ceramic Electrical Insulators.
• Leaf Springs.
• Bio-Degradable Plastic Products.
• Crushed Stone Unit.
• Extraction of Ground Minerals.

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Investment Opportunities ..Cont. Tourism Sector

• Camping Areas in many regions.
• Youth Accommodations in many regions.
• Development ancient Villages.
• Tourist Caves.
• Golf Playground.
• Mountains Walkways.
• Developing and enhancing of Water Springs.
• Front seaside development.
• Scientific Centers Facilities.
• Tourist Resorts in many regions.
• Amusement Parks in Salalah.
• Hotel in Island of Mosaira.
• The Wave Beach front hotels, Golf course,
  marina, spa, and villas.
  

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Investment Opportunities ..Cont. Privatization

• A) Electricity Water
• Manah Power Plant 270 megawatts
• Al-Kamel Power 285 megawatts.
• Barka Power Desalination Plant 427 megawatts
  and 3800 cubic meters/hour
  
• Dofar Power Company 200 megawatts.
• B) Telecommunication
• Licensing an additional cellular mobile company
• Partial divestment share in Omantel (telecom
  Comp)
  
• Public private data network, prepaid cards,
  leased line and VAS providers.
  
• Licensing of local and international fixed
  operators.
  

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Investment Opportunities cont. Privatization

• Sea Ports Air Ports
• Salalah Port of 30 years concession (mangmengt
  and operation) reached 3 million TEUs in 2003
  (20 Government and 30 AP Moller Group)
  
• Sohar Port cooperation with Rotterdam Port in
  Netherlands.
  
• Seeb and Salalah airports (Bahwan Group, ABB and
  BAA).
  

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Downstream Projects

• Urea Project Oman India Fertilizer Co. in Sur
  City 1.0 Billion
  
• Sohar Refinery Govt Oman and Oman Oil, 1.3
  billion.
  
• Sohar Polypropylene, 2 billion.
• Sohar Aluminum Smelter Oman Oil, ADWEA and Other
  Intl Partners, 2.5 billion
  
• Sohar Fertilizer Project Suhail Bahwan Group,
  600 million.
  
• Oman Polypropylene Project (OOC and LG) 300
  million.
  
• Methanol Project Omzest Group and Ferrostaal,
  400 million.

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Omans Foreign Trade Partners
In 2002 Omans exports reached to 123 markets in
the world whereas, imports were from 125 countr
ies
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Trade Exchange Oman-Austria (US)

• Year Exports Imports
• 1998 23870 10 Million
• 1999 10818 10.25 Million
• 2000 61477 12.5 Million
• 2001 64000 15 Million
• 2002 75577 12.4 Million
• 2003 83920 12.4 Million

There is a big gap between exports
to Austria and imports from Austria
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Major Imported Items from Austria, 2002

• Products Value
• Vehicles and related items 4 million
• Diary Products 0.91 million
• Mixtures used in industry 0.564 million
• Gramophone records 0.315 million
• Other Products Tubes and pipes - Games disc
  operated - Ceramic construction goods - Medicine
  - Machines - Anti Oxidizing and anti compound
  stabilized - Flavor water.

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Major Exported Items to Austria, 2002

• Products Value
• Personal unclassified Items 28,000
• Private Cars 19,500
• Fish 11,598
• Aeroplanes 9,919
• Other ProductsJewelry, base metal, plywood,
  parts machinery, commercial catalogues, school
  and colleges books.

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Omani products Exportable to Austria

• Shoes
• Socks
• Wooden furniture
• Metallic furniture
• Sanitary napkins
• Computer stationary
• LNG
• Oxygen Nitrogen
• Perfume
• Cosmetics

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Omani products Exportable to Austria

• Plastic products
• Flexible rigid foam
• UP.V.C pipes
• Films
• Fiber glass
• Marble chips, powder, tiles
• Gypsums
• Glass bottles
• Beds seats

• Paints
• Detergents
• Insecticide
• Chemical products
• Hydrochloric acid
• Fertilizers
• Pharmaceutical products.
• Medical supplies

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Omani Products Exportable to Austria

• Water heaters
• Copper cables cathodes
• Cans
• Switch boards
• Switchgears
• Air conditioners
• Oil air filters
• Pumps
• Car batteries
• Aluminum profiles

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Future Cooperation

• Member country in WTO since October 2000, member
  No 133.
  
• GCC unified customs union of 5 with a future
  aim of GCC Currency Union in 2010.
  
• Grand Arab Free Trade Zone of Zero custom duty
  by 2005.
  
• GCC\EU free Trade agreement in the process to be
  finalized between the two sides.
  
• Gulf market of 29 million consumers with high
  purchasing power.
  
• Growing neighbor markets Iran Yemen of 84
  million consumer and total of 278 million people
  of the Middle East.

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Recommendations

• Improving the actual cooperation through
• Exchanging of trade delegations
• Participating in the international trade fairs in
  two countries
  
• Promoting trade opportunities in both countries
• Exchanging information related to trade and
  investment.
  
• Establishing joint venture projects.
• Developing SMEs.
• Benefiting from Omani Ports and
• the upcoming free zone for
• the re-export and the re-distribution
• purpose.

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Areas of Cooperation

• Food processing and Manufacturing of lather and
  textile.
  
• Higher Education and Human Resource Development.
• Tourism.
• Energy and Petrochemical.
• Information Technology.
• Pharmaceuticals.
• Infrastructure.
• Communications.
• Privatization.
• SME Development.
• This can be done through establishing joint
  venture projects in areas mentioned above.

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RegardsOman Chamber of Commerce and Industry

• Thank You