By Samuel Kutty — MUSCAT: MARCH 26 - Foreign direct investment (FDI) flow in the Sultanate during the first nine months of 2016 reached RO 7.02 billion. While the United Kingdom continues to be the top investor with a massive RO 2.79 billion during the period, the United Arab Emirates (UAE) and Kuwait followed with RO 924.8 million and RO 396.1 million investments, respectively. According to the National Centre for Statistics and Information, the FDI during the third quarter alone stood at RO 154 million. Analysts are optimistic that foreign investments into the country will witness substantial increase in the coming years, thanks to several measures including legislative measures being introduced by the government.
“The new foreign capital investment law and the broader economic diversification plans will definitely enhance investor confidence and provide improved business climate for attracting foreign direct investment in the country,” said Tariq al Lawati, a financial expert.
The proposed new law is based on international standards and foreign investors’ rights and obligations are clearly defined and well set out in the proposed law. Global agency Trading Economics in a research note forecast that FDI in Oman would reach RO 121.13 million by the end of 2016. It averaged RO 351.22 million from 1998 until 2015, reaching an all-time high of RO 1281 million in 2007.
FDI inflows to Oman in 2015 stood at $822 million in 2015 from $739 million in the previous year, registering an increase of 11 per cent.
FDI inflow in 2015 was 4.8 per cent of Oman’s GDP compared to 3.3 per cent of GDP in the previous year.
The overall balance of payments position registered a surplus of RO 235 million during 2015 giving rise to the accretion of foreign exchange reserves by the same amount.
As at the end of 2015, the gross foreign assets of the Central Bank of Oman stood at RO 6,745.8 million
providing import cover for around 8 months of merchandise goods.
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