MUSCAT: Oman's commitment to fostering a welcoming investment climate is bearing fruit, with foreign direct investment (FDI) witnessing a robust 26.6% year-on-year jump in the third quarter of 2023. Data released by the National Centre for Statistics and Information (NCSI) reveals a total inflow of RO 4.8 billion ($12.6 billion) during the period, marking a significant step toward economic diversification and sustained growth.
The UK emerged as the leading source of foreign investment, pouring in a significant RO 2.4 billion ($6.2 billion). The United States followed closely behind with RO 1.4 billion ($3.9 billion), while the UAE contributed RO 160 million ($420 million), showcasing Oman’s growing appeal across diverse markets.
Sector-wise, the oil and gas industry remained the magnet for foreign capital, attracting 52.8% of the total FDI. However, diversification efforts are gaining traction, with real estate, leasing, and business activities capturing a promising 15.6% share, followed by the financial intermediation sector at 10.5%.
This positive trend aligns with the government's strategic vision to unlock Oman's full economic potential. By streamlining investment procedures, fostering a business-friendly environment, and actively forging international partnerships, Oman is successfully positioning itself as a hub for global investors seeking attractive returns and long-term stability.
Meanwhile, data released last week by the Directorate General - Customs painted a positive picture for Oman's economic diversification efforts, with non-oil exports rising 1.4% to reach RO 6.768 billion in the first half of 2023 compared to the same period last year.
The figures, highlighting growing international demand for Omani goods, come as Oman continues its push to reduce reliance on hydrocarbon revenues. Key export destinations included Saudi Arabia (RO 981 million), the United Arab Emirates (RO 865 million), and India (RO 719 million).
While overall imports edged up slightly by 0.5% to RO 13.639 billion, the trade deficit narrowed marginally to RO 6.871 billion, indicating improvement in Oman's external balance. The UAE retained its position as the leading source of imports (RO 3.628 billion), followed by Saudi Arabia (RO 1.713 billion) and China (RO 978 million).
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