Introduction:

The foreign investment survey is being jointly undertaken by the Ministry of National Economy, the Ministry of Commerce and Industry, and the Central Bank of Oman. The objective is to create a comprehensive database that will help create sound economic policies, and contribute to Oman’s lasting economic growth.

Investment is a vital ingredient for sustaining a healthy economy and, over the longer term, ensuring balanced economic growth, employment opportunities, and essential services for the people of Oman.

In the interests of economic diversification, greater emphasis is now being given to attracting foreign investment that will strengthen Oman’s economic infrastructure and competitiveness. Expanded investment will also have a direct impact on the local economy by creating demand for a broad range of industrial and consumer goods, resulting in job creation, economic growth, and opportunities for Omani entrepreneurs.

The Survey objectives:-

1. To create a database providing comprehensive, timely and reliable indicators of the contribution of foreign investment to the national economy, so as to enable policymakers to create a favorable investment climate that will attract investment to Oman in an increasingly globalized world economy.

2. To develop accurate measures of the volume of foreign investment in the Sultanate, in accordance with international statistical standards established by the International Monetary Fund.

3. To identify the role of foreign investment in the start-up and ongoing operations of foreign- and Omani-owned businesses.

4. To gain a better understanding of the distribution and impacts of foreign investment in different sectors of the economy.

5. To identify the principal countries of origin of foreign investment in the Omani economy.

6. To evaluate the impacts of foreign investment on employment, exports, imports, services, and private sector debt.

Confidentiality

        Information collected by means of the survey is protected against unauthorized public disclosure by the Statistical Act Issued by the Royal Decree No. 29/2001. Please be assured that the data gathered will be used only for compiling statistical aggregates and that the data will not be used for regulatory purposes.

COVERAGE

        A domestic firm may receive foreign capital in the form of foreign direct investment, foreign portfolio investment, or other debt capital, resulting in dividends, profits, interest, etc. accruing to the foreign investor as the return on investment. Domestic firms may, in turn, own foreign assets with corresponding characteristics – foreign direct investment, portfolio investment, and debt capital – generating similar returns.

KEY CONCEPTS

Foreign investment falls into three key categories:

1. Foreign direct investment (FDI), consisting of investments where the direct investor owns 10 % or more of the ordinary shares or voting power (in any locally incorporated enterprise) or the equivalent (in any unincorporated enterprise). It would, thus, cover subsidiaries, associates and branches.

2. Portfolio investment, consisting of investment in tradable instruments such as equities (excluding foreign direct investment), bonds and notes, money market instruments, and financial derivatives.

3. Other investments, including everything other than foreign direct and portfolio investment, such as trade credit, loans, deposits, etc.