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Middle EastJanuary 2 2006

What the bankers say: Oman

The Banker invites CEOs from around the world to discuss the economic climate in their country and institution, and their hopes for the future
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BankMuscat
Abdul Razak Ali Issa, Chief Executive

1. What makes your country attractive to investors?

The economic, social and political environment in Oman makes it an attractive destination for investors: Oman has political stability, its economy has been growing steadily and the inflation rate in the country is among the lowest in the world. The indicators of social development from healthcare to education show the major strides that the country has made over the past three decades. Oman’s young population can provide manpower that is competitive in terms of cost and quality.

The country also has a robust legal system that protects intellectual property rights and an environment that welcomes overseas investments. This has been made possible through the visionary leadership of His Majesty, Sultan Qaboos bin Said, and the progressive policies of his government.

 2. What are the economic prospects for your country over the next three to five years?

The economy of Oman depends substantially on oil, which like most of the GCC countries is the major revenue-earner for the national exchequer. Oil prices are likely to stay at a comfortable level over the next three to five years. To reduce the nation’s dependence on oil, the government has been pursuing a policy of economic diversification. This has been encapsulated in a ‘Vision 2020’ programme. Under this, the government intends to spend up to $10bn on infrastructure, development and tourism projects. The investments already made by the government in this regard are also expected to start bearing fruit over the next five years. The economic prospects of the country therefore look bullish in the short term.

 3. How do you foresee the financial sector in your country changing?

The emergence of the Gulf Co-operation Council (GCC) as a common economic bloc by the turn of the decade and the advent of WTO membership would bring about added competition in the financial sector. We see further consolidation in the Omani financial sector and large Omani banks gearing up to expand their operations in the GCC region. The Omani financial sector is also likely to make significant investments in technology to compete effectively in the changing environment.

 4. What role will your bank play in your country’s future development?

BankMuscat, as the largest bank in the Sultanate of Oman, is tightly knit with the country’s economy and its future. The bank has been at the forefront of the country’s financial institutions supporting and actively participating in key government initiatives from infrastructure development projects to privatisation. We see an excellent economic future for Oman, and BankMuscat will remain an integral part of it.

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Read more about:  Middle East , Oman