Advertisers (1) Oman LNG LLC (2) PEIE (3) Elixir Holistic Centre (4) HYATT (5) Hilton Salalah (6) OMAN FIBER OPTIC CO. SAOG (7) Oman Tourism A Special International Report Prepared by The Washington Times Advertising Department Written by Ayan Ahmed Project Director Hala Nasreddine For more information, call The Washington Times International Advertising Department at (202) 636-3035 (202) 635-0103 fax e-mail: natlad@wt.infi.net Copyright © 2000 News World Communications, Inc.		Promoting industrialization by giving it a boost Industry in Oman received a boost with the setup of the Public Establishment for Industrial Estates (PEIE) in 1993. The PEIE, an umbrella organization for all industrial estates, was established by Royal Decree after the decade-long success of the Rusayl Industrial Estate Authority (RIEA), the first industrial estate in Oman. Back in 1985, RIEA had a modest number of 12 factories; presently it is a bustling estate, boasting more than 100 factories that manufacture a wide assortment of consumer as well as industrial products. The objective of PEIE is to develop and administer industrial parks, which the Ministry of Commerce and Industry establishes, and to encourage the private sector to contribute to the industrialization drive in Oman. Manufacturing is one of the main sectors for diversification of the economy. By the year 2000, the government hopes this sector’s share of Gross Domestic Product (GDP) will increase. Currently, the sector’s contribution to the national GDP remains relatively small at 8 percent. Growth in the sector is likely to be determined by the export markets and the new entrants into the sector in Oman. These are to include a liquefied natural gas plant and downstream industries such as petrochemicals and fertilizers. PEIE is staffed with a team of well-experienced professionals, who make up the body set up to govern and coordinate the efforts of all the industrial estates in Oman. These professionals are readily accessible and want to help potential investors as well as the established factories to ensure a smooth and easy-going approach to industrialization. “We train, educate and participate highly in the ‘Omanization’ effort. More than 90 percent of our more than 11,000 employees are Omanis,” says Ahmed Hassan Al-Dheeb, the managing director of PEIE. Powers and duties of the PEIE include determining and distributing land plots for the industries set up at the estates while observing the technical conditions as set up by the competent authorities, issuing business licenses to the industrial installations and contributing in promoting products of the estates through exhibitions, advertisements and media campaigns. It also holds training courses and seminars for spreading industrial awareness among investors. At present, four industrial estates are operating under PEIE all over Oman, namely in Rusayl, Sohar, Raysut and Nizwa. More estates are planned in other rural towns like Sur, Buraimi and Khasab to be built. All the existing estates are well planned and provided with essential infrastructure services including roads, water, electricity, gas, telecommunications, sewage treatment plants and collection and disposal of solid garbage. Well-maintained landscaping captivates the eye on all the existing estates, which are adorned by trees, shrubs and grass and the paved passageways running through them. “We are now an establishment of the government; soon we will become a privatized company, hopefully in the coming year,” says Al-Dheeb. He says the biggest challenge is “that neighboring countries are doing the same thing and attracting the same foreign investors… it is a competitive service,” Al-Dheeb adds. The following is a breakdown of some functioning industrial estates: The Rusayl Industrial Estate, as previously mentioned is the first industrial estate established in the Sultanate. There are 92 industries in operation with 40 projects currently under evaluation. Major factories at the Rusayl are producing chemicals, electric and building materials, paints, textiles and garments, computer stationery, aluminum products, car batteries, steel structures and poly products to name a few. Interestingly, some of the garments made here are shipped to the U.S. market under name brands such as the Gap and distributed to famous U.S. store chains such as Sears, according to their managing director. Sohar Industrial Estate has 21 industries in production. Forty-four projects are expected to be productive soon, making Sohar a very rapidly growing estate. This estate produces a wide range of products such as foodstuffs, biscuits, wafers and tomato ketchup; detergents; leather footwear; furniture; toothpaste and engine oil. The factories that will open soon will produce jewelry, roof sheets, baby food, and sweets. Raysut Industrial Estate is one of the most significant industrial parks in Oman, because it is ideally located close to southern city of Salalah, which is just a mile or so off of the Arabian Sea coast. Industries at Raysut estate are zoned so that highly polluting industries are kept far away from other clean and foodstuff factories. Five industries currently manufacture school stationary, ice and fish, shoes, garments, and box files. Four additional industries are being constructed which are expected to produce flour and frozen chickens. Nizwa Industrial Estate was inaugurated at the end of 1994. It is a newly developed estate with five pre-built industrial sheds under construction at present. Products to be manufactured are ceramic tiles, leather suitcases, novelties, military badges, medical drugs, chemicals, disinfectants and surgical gloves. Al-Dheeb wants U.S, citizens to know, “There are many services available here in Oman. The atmosphere here is totally different then the others in the Gulf area, we can help create more investment opportunities for those interested,” he says.		Table of Contents (1) The backbone to Oman’s structural growth is Sultan Qaboos (2) Rapid growth continues into a new century (3) U.S. and Oman: An enduring relationship (4) A message from H.E. Ambassador Abdulla Bin Mohamed Al-Dhahab (5) US Ambassador John B. Craig comments on 200-year relationship (6) Why should the U.S. invest in Oman? (7) Coordination paves the way for diversification (8) National economy is moving toward growth (9) A potential successor speaks out briefly on foreign affairs (10) New port breaks into top 20 league (11) Promoting industrialization by giving it a boost (12) OFO seeks to be a global market leader (13) Al-Felaij Castle Theatre awakens cultural enlightenment (14) Y2K problem is not much of a threat (15) Historical Frankincense of Oman (16) LNG emerges as a major contributor to the national economy (17) OMAN AT A GLANCE (18) Omani women enjoy liberation as they hold to traditions (19) The Grand Hyatt Muscat: A youthful hotel possessing old heritage and millennium flare (20) Oman: The Hidden Jewel of the Arabian Peninsula (21) What Can Tourists See and Do in Oman?