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.		Why should the U.S. invest in Oman? The U.S. should invest in Oman for various reasons, including its location, political stability, national policies and infrastructure. Oman’s excellent geographical location makes it a gateway to the Arabian Gulf. It is at a focal point of two continents: (East) Africa and (South) Asia, two areas that combined are considered a huge export market and an ideal point for distribution and communications with neighboring and international markets. Oman has always been known for its political stability in the Gulf region. It has close relations with other Gulf Cooperation Council (GCC) members and other nations of the world outside the Middle East. With a free market economic system, Oman enjoys a stable monetary policy that keeps inflation under control. Unfortunately, because of Oman’s continued stability and reluctance to draw attention to itself, some Washington policy-makers tend to take Oman for granted. The Sultanate has an ambitious policy for privatization. A systematic process of privatization focuses on encouraging and promoting private sector’s participation in providing public services that previously have been exclusively handled by the government, as well as privatization in other sectors of the economy. Oman has a duty-free access to the GCC markets, which with a total population of about 18 million, constitutes a great purchasing power. All products originating from Oman are exempted from customs duty if the value added to the product is not less than 40 percent and the shareholding of GCC nationals in the company responsible for export is at least 51 percent. Other advantages to investing in Oman are the availability of (1) adequate infrastructure facilities, such as completed paved roads, seaports and airports. (2) advanced banking services, with 18 commercial banks, seven local banks and 11 foreign ones. There are also three specialized banks and 39 foreign money exchangers. 3) advanced communication networks that cover all major parts of Oman, allowing communication with a large number of foreign countries. (4) a well-established securities market with a view to develop and promote the economic development of Oman, to regulate transactions in securities and to build confidence among investors locally and internationally. Foreign investors can raise capital through the security markets. In a recent public speech to his nation, His Majesty Sultan Qaboos said “We have to encourage others to invest in Oman in accordance with the principles governing these investments.” Adding that these investments will not be forthcoming “unless we facilitate them in a manner that will be beneficial to us, and not necessarily in amounts that may only come with inherent disadvantages.” Investments, he stressed, will benefit Oman and diminish the dependence on oil as the main source of the nation’s hard currency earnings. Foreign investment is welcome as long as it is in a development enterprise and is accompanied by foreign expertise. The following are areas where foreign participation is accepted: Industrial development projects Agricultural and fisheries development projects Civil construction and electro mechanical works Mining Oil exploration and processing projects Medicine Law Accountancy Engineering And consultancy in specified fields Foreign businesses in Oman should be registered according to the following forms: Joint venture, limited partnership, joint stock company, or general partnership. The Ministry of Commerce and Industry has coordinated all these types of investments. However, to ease the path of entry to potential international investors, the royal decree No 59/96 was recently issued to establish a center for investment and export promotion (OCIPED) which will act as a one-stop shop by helping and guiding local and foreign investors.		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?