Oman’s GDP at market price fell from US$ 45.5 billion in 2008(Jan- Sept) to US$ 33.08 billion during the corresponding period in 2009. A substantial fall of 27.4%
Structure of GDP
Sl No.
Activity/ Sector
Share
1
Petroleum Sector
38%
2
Wholesale & retail trade
11%
3
Construction
6%
4
Public Administration & Defence
7%
5
Other activities
38%
Total
100%
Oil & Gas Sector
Crude oil production rose from 277 million barrels in 2008 to 297 million barrels during 2009. China, Thailand, Japan, South Korea, Taiwan, Malaysia and Singapore were the main destinations for Omani oil exports. Gas production rose from 1,069,630 MNSCF in 2008 to 1,097,660 MNSCF during 2009.
Export of Crude Oil by Major Countries (Jan-September 2009)
Country
Oil Export in million BBL
China
78
Japan
41
Thailand
33
Korea
25
Others
44
Taiwan
17
Malaysia
1.8
Singapore
4.1
Total
243.9
Latest Trade Figures
Non–Oil trade exchange by Major Countries (Figures in US$ million; Source: Omani Ministry of National Economy)
Jan-Sept
Total (Jan-Sept)
Change (09/08)in % age
2009
2008
A) Non-Oil OmaniExports
-18.5
3228.69
3960.6
UAE
-40.6
755.76
1272.2
India
-19.5
415.9
516.5
Saudi Arabia
-22.3
250.5
322.19
China
11
318.57
286.97
Singapore
47.4
202.02
137
Others
-9.8
1285.9
1425.5
B) Re-Exports from Oman
10.5
3375.28
3053.6
UAE
-21.2
1495.7
1897.69
Iran
25
403.00
322.45
Qatar
2695
144.78
5.18
Singapore
351.7
140.37
31.08
Saudi Arabia
267.1
161.62
44.03
Others
36.8
1029.78
752.91
(C) Imports
-22.5
13008.5
16788.38
UAE
-31
3175.34
4598.8
Japan
-28.8
1743.58
2449.62
United States
-11
887.33
996.89
China
-14.9
668.48
785.55
India
-8.6
744.6
814.8
Others
-18.9
5789.17
7142.70
Bilateral Trade
Year
Imports
India’s Share
%age
Export
India’s Share
%age
Total Trade
2009*
13008
745
5.7
18799
416
2.2
1161
2008
22312
1038
4.7
37563
950
2.5
1988
2007
15914
1036
6.5
24546
761
3.1
1797
* Please Note: Data of 2009 is up to September.
In January to September 2009 Omani exports to India fell from US$516 million in 2008 to US$ 416 million at 2009, a decrease of 19.5%. Value of Omani imports from India for the same period also fell from US$816 million in 2008 to US$745 million in 2009.A decrease of 8.6%.
Economic & Commercial Developments
2. Budget 2010
A growth oriented budget for 2010(Jan- Dec) was issued by a Royal Decree No. 1/2010.The Minister of National Economy announced that the 2010 budget will be based on a more optimistic oil price of $ 50 a barrel. Budgetary expenditure for 2010 is estimated at RO 7.18 billion, nearly 9% above the 2009 budget. Revenue is assumed at RO 6.380 billion, leaving a deficit of RO 810 million. Education remained the major thrust area with an allocation of 25.08% of total current expenditure and Health sector receives allocation of 12.08%.
3. National Heart Centre opened at the Royal Hospital
National Heart Centre-is coming up on the premises of the Royal Hospital. The 140-bed centre is the first of its kind in the sultanate and is expected to be among the top heart institutes in the GCC region.
4. Commercial Banks registered 4.2pc growth
On January 6, Central Bank of Oman (CBO) has released its report on review of the banking and other financial institutions in the country for last year ending November 2009. Total assets of commercial banks registered a moderate growth of 4.2 percent to 14,234.4 million rials in November 2009 compared to 13,656.7 million rials in November 2008. The Outstanding investments in securities decreased by 4 per cent to 1,564.6 million rials from 1,629.4 million in 2008.
5. Inflation down by 0.7 per cent
According to a statistical report issued on 10 January by the National Economy Ministry, Sultanate’s inflation index decreased by 0.7 per cent in November 2009 as compared to 12.8 per cent during the corresponding period in 2008. Minister of National Economy Ahmed bin Abdulnabi Macki stated that Oman’s economy managed to register a positive average growth of 3.7% during 2009 despite decline in oil prices. Separately, a recent preliminary data released by the by the Ministry of National Economy on January 12 revealed that the GDP of Oman has declined by 27.4 as of third quarter of 2009 at current price level when compared to the corresponding period in 2008.
6. Investment exhibition to highlight sultanate
On January 10, Executive president of the Central Bank of Oman (CBO) inaugurated Investment Exhibition and Businessmen Forum held at the Oman International Exhibition and Trade Center. A number of investment companies, financial institutions, banks and real estate investment companies from the Sultanate took part in the exhibition.
7. Tender Board awarded tenders worth 87.53m RO
On January 11, Tender Board awarded tenders worth 87.53 million RO for recruitment, construction, maintenance, development and beautification of different Wilayats of the Sultanate. Two tenders have been floated for the third stage of a power plant in Barka and the second stage for the power plant in the Wilayat of Sohar. The operations of the two plants are expected to start in 2012.
8. Cargo traffic at Port Sultan Qaboos down 18.9%
As per the statistics published by the Ministry of National Economy on 13 January, Cargo movement at Port Sultan Qaboos fell by 18.9 per cent to 4,733.4 tonnes in November 2009 from 5834.3 tonnes during the corresponding period in 2008. The data showed that cargo movement at Salalah Port rose by 1.4 per cent to 3232.9 tonnes in November 2009 against 3188.5 tonnes in the same period in 2008.
9. Agreements inked for launch of bunker operations at Sohar Port
On January 17, Minister of Commerce and Industry and the Chairman of Sohar Industrial Port Maqbool Ali Sultan signed an agreement with Shell Marine Products, Oman Oil and Matrix Marine for establishing a world-class bunker plant in Sohar Industrial Port.
10. Oman to spend $6bn on power sector by 2016
On January 24, a seminar was organized in Muscat on the use of coal for power generation in place of expensive natural gas. The Public Authority for Electricity and water (PAEW) appointed the Japan International Cooperation Agency (JICA), to study strategies for rationalization of power consumption in the Sultanate. Sultanate planned to spend US $6bn in the next six years to meet the growing electricity demand and new power plants are being set up for the purpose stated by Chairman of PAEW.
11. 1.18-billion-rial real estate transactions in 2009
On January 25, Secretary of Property Registration in the Ministry of Housing announced that the total value of the real estate transactions in the Sultanate in 2009 amounted to 1.188 billion RO with a fall of 52.6 per cent compared to 2.5 billion RO in 2008.
12. CMA to set up corporate governance centre
The Capital Market Authority (CMA) announced on January 25 to set up a centre for corporate governance. The centre will train public joint stock, limited liability and family-controlled companies’ board members and chief executive officers in the Sultanate on implementing best corporate governance practices.
13. Oman Oil signed four aviation fuel deals
On January 28, Oman Oil Marketing Company has signed four exclusive aviation fuel contracts with leading international carriers; Kuwait Airways, Saudi Airlines, Tunis Airlines and Royal Jordanian effective from January 1 with a volume of approximately 800,000 liters a year.
14. Government sanctioned RO 45mn for 11 projects
On January 30, Ministry of Finance had sanctioned RO 45,077,000 for 11 agreements, including the installation, operation and maintenance of a mobile desalination plant, fabrication and inspection of a waste processor, building the Sultanate’s embassy and diplomat residence in Seoul.
15. Rural Areas Electricity Company announced to set up its first gas fired plant, with installed capacity of 120 MW, in Musandam region. The project would also have a desalination plant to produce 6,000 cubic meters of drinking water.
Trade & Investment-related news : With other countries
16. Philippines:
FRiENDi mobile, the new telecommunications provider in Oman established a partnership with Globe Telekom in Phillippines to provide a better service to the Filipino Community in Oman. The partnership with Globe is the third to be announced, following the previously launched partnership with IDEA Cellular of India and Dialog Telekom of Sri Lanka.
17. UK:
On January 23, 14 member British trade delegation from the major companies specialized in the development of airports and aviation paid a three-day visit to the Sultanate and met with a number of officials from the public and private sectors concerned with the aviation sector in the Sultanate and their counterparts in the airlines to discuss enhancing horizons of joint co-operation between the Sultanate and the Britain in various economic spheres and in the airports sector in particular.
18. Qatar:
On January 3, Sultanate and Qatar signed a MoU for mutual recognition of hall marking of precious metals and co-operation in the field of Standardization and monitoring of precious metals and stones.
19. Syria:
On January 12 Minister of National Economy Ahmed bin Abdulnabi Macki led the Omani side for the 5th meeting of the Joint Omani- Syrian Committee held in Damascus. Three MoUs in planning, environment, radio and television were signed on the sidelines of the meetings.
20. Nepal:
Trade talks between Oman Chamber of Commerce and Industry and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) took place on January 2 and discussed establishment of joint ventures in industries, cooperation in the tourism sector and the possibility of importing Nepalese manpower in some sectors in the Sultanate.
21. WTO:
A delegation from World Trade Organization led by Hakeem Bin Hamouda, Director of Training and Technical Cooperation Institute called on Commerce and Industry Minister Maqbool Bin Ali Bin Sultan and discussed cooperation, technical back-up and capacity building on WTO Issues, role of the organization in global economic crisis and the latest development in Doha Summit. The WTO experts also called on Khalil Abdullah Al Khonji, Chairman of Oman Chamber of Commerce and Industry (OCCI).
22. Iran:
On 20 January, President of Iranian Chamber of Commerce had held talks with Khalil bin Abdulla Al Khonji, Chairman of OCCI. During the visit Iranian Chamber of Commerce signed a MoU with OCCI to encourage trade and investment cooperation between the two countries.
23. Kuwait:
On January 18, Abdel Mohsen Al Mudag, Minister of Oil from Kuwait visited Oman to take part in the 2-day Third Middle East Petroleum and Gas Conference held in Muscat.
24. Netherland:
On 19 January, Dutch Minister of Economic Affairs Ms. Maria Van der Hoeven paid a two-day visit to Oman. The Minister signed a MoU on mutual cooperation with the Minister of Commerce and Industry of Oman and discussed investment and trade cooperation between the two countries.
25. Spain:
Spanish Minister of Tourism Juan Fernando visited Oman on 30 January- 2 February. During his visit Spanish Minister held talks with his Omani counterpart Rajiha Bint Abdulamir on bilateral cooperation. Undersecretary at the Omani Ministry of Tourism, Mohammed Al-Tobi, stated that Oman and Spain discussed ways to activate cooperation through the exchange of information and expertise, as well as strategies to promote infrastructure development and investment projects in the tourism sector.
26. Italy:
Italian firm Sering Ingegeneria won a contract to evaluate the feasibility of establishing a commercial port at Shinas, northern Batinah coast. The consultancy study will provide a blueprint for the development of a new marine gateway that will also stimulate investment inflows into the tourism, commercial and real estate sectors.
Bilateral:
27. Dr. Farooq Abdullah, Union Minister of New and Renewable Energy led a business delegation to Oman from 20-22 January. During his visit Dr. Abdullah met with Maqbool Ali Sultan, Minister of Commerce and Industry, Mohamed Khamis Hamdan Al Araimi, Undersecretary Environment and Climate Affairs in the Ministry of Environment and Climate Affairs and received Azhan Haroun Al Kindi, Chairman, Oman Environment Holding Company. Dr. Abdullah also addressed a business meet arranged by the Omani Centre for Investment Promotion and Export Development (OCIPED).
28. Maqbool Ali Sultan, Minister of Commerce and Industry accompanied by Abdullah bin Khalil Al Khonji, Chairman of Oman Chamber of Commerce and Industry (OCCI), Dr. Salim bin Nassir Al Ismaeli, Executive President of Oman Centre for Investment Promotion and Export Development (OCIPED) and other Omani businessmen left for India to participate in the Partnership Summit meeting at Chennai from 22-24 January. Minister of Commerce stated that a $ 100 million Oman-India Investment Fund whose corpus will be launched soon and Oman looked forward to investing in India’s Small and medium enterprises.
29. On January 31, Bank Sohar has tied up with Axis Bank to offer special products and services for the non-resident Indian (NRI) community based in the Sultanate.
Source: Commercial Section, Embassy of India, Muscat
