Analysis Economy Oil cuts hurt Oman GDP, say experts Oman’s GDP growth is set to slow this year as oil production cuts act as a “significant drag” on economic activity. Growth is forecast to slow from 4.3 percent in 2022 to 1.8 percent this year, according to analysts at BMI, formerly Fitch Solutions. This is below the 10-year historical average of 3.1 percent before […] July 5, 2023
Economy Oman to set up two new free zones in economic city Oman will establish two new free zones in Khazaen Economic City in the governorate of South Al Batinah, as part of the Gulf nation’s aim to attract industrial investments and boost economic growth. The free zones – one for light and medium industries and logistical activities, and the other for business and trade – will […] July 4, 2023
Development Oman signs concession pact for potash ore mining Oman’s ministry of energy and minerals has signed a concession agreement for the exploration and mining of potash ore with local firm Sinbad Mining Resources Company. The concession area (No. 53-A) is located in the swamp area of Umm Assameem, state-owned Oman News Agency reported. The ministry announced in March that it is working on […] June 28, 2023
Markets Oman’s $260m fund to boost stock market liquidity Oman Investment Authority (OIA), the state-owned sovereign wealth fund, has allocated OMR100 million ($260.14 million) to boost liquidity in the Muscat Stock Exchange (MSX). A new liquidity fund initiative has been launched in cooperation with the National Programme for Financial Sustainability and Financial Sector Development, state-run Oman News Agency reported. Aoun Abbas Al Bahrani, the […] June 26, 2023
Opinion Economy Oman is on the up but not out of the woods The government must push ahead with reforms June 23, 2023
Energy Oman signs two green hydrogen deals worth $10bn Hydrom, a subsidiary of state-owned Energy Development Oman, has signed agreements worth $10 billion to develop two new green hydrogen production projects. The deals were signed with the Posco-Engie and Hyport Duqm consortiums, state news agency Oman News Agency reported. The projects, located in the Al Wusta governorate, are expected to have a total production […] June 22, 2023
Aviation SalamAir targets long-haul flights with Airbus A330neo SalamAir, Oman’s first low-cost airline, will lease three Airbus A330neo aircraft from Dublin-headquartered Avolon to expand its fleet and network. The three new Airbus A330neo wide-body aircraft will have a dual-class configuration with 365 economy seats and 12 premium flatbed seats. The two companies signed the agreement on Tuesday June 20, the first day of […] June 21, 2023
Economy Oman’s economy to slow in 2023 but inflation is tamed Oman’s real gross domestic product (GDP) growth is anticipated to slow down to 1.3 percent in 2023 but rebound to 2.7 percent in 2024, the International Monetary Fund (IMF) said in a statement. The projections are based on oil production cuts by Opec+, moderate growth in the non-hydrocarbon sector due to recovering but still subdued […] June 20, 2023
Energy Oman ready to be global hydrogen player Oman will need cumulative investment of around $33 billion if it wants to scale up production of renewable hydrogen to 1 million tonnes by 2030. The sultanate is on track to become the sixth-largest exporter of hydrogen globally and the largest in the Middle East by 2030, according to analysis by the Paris-based International Energy […] June 19, 2023
Energy Bangladesh to sign 10-year LNG deal with Oman Bangladesh’s state-owned company Petrobangla is set to sign a long-term supply deal for additional stocks of liquefied natural gas (LNG) from Oman Trading International, an official at Petrobangla said. Under the new contract, the South Asian nation will begin receiving an additional 0.5 million to 1.5 million metric tonnes per year of LNG from January […] June 19, 2023
Oil & Gas China’s Unipec sale of Oman crude caps prices China’s Unipec, the trading arm of top Asian refiner Sinopec, has emerged as a major seller of August-loading Oman crude this month, a move that has helped to cap benchmark prices despite Saudi Arabia’s plans to cut output next month. Unipec, according to trade sources and data collated by Reuters, has sold eight million barrels […] June 13, 2023
Economy Oil drives Oman’s budget surplus higher to $1.4bn Oman registered a budget surplus of OMR520 million ($1.35 billion) year to date at the end of April compared to OMR468 million a year earlier, the finance ministry said in its latest fiscal performance bulletin. Total revenue during the period reached OMR4.4 billion, up four percent year-on-year, primarily due to a 53 growth in net […] June 9, 2023
Renewable Energy Oman signs 3 green hydrogen projects worth over $20bn Hydrogen Oman SPC (Hydrom), a subsidiary of Energy Development Oman, has signed three deals to develop green hydrogen projects with investments worth over $20 billion. The three projects were signed with the consortia of Amnah, Green Energy Oman and BP Oman. They are expected to yield a total production capacity of half a million tonnes […] June 2, 2023
Oman unveils $5.2bn startup fund and plans for new city Oman is planning to set up an investment fund with a capital of OMR2 billion ($5.2 billion) to support economic diversification. The news was first reported by state-owned Oman News Agency, citing a decree by Sultan Haitham Bin Tariq Al Said. The Oman Future Fund will allocate a percentage of its capital to stimulate the […] June 1, 2023
Banking & Finance Sohar International Bank and HSBC Oman to merge Sohar International Bank and HSBC Bank Oman have signed a binding merger agreement following talks that started in June 2022. All assets and liabilities of HSBC Bank Oman will be transferred to Sohar International upon the conclusion of the deal. The banks, which did not disclose the deal value, said that upon completion HSBC Oman […] May 31, 2023
Analysis Tourism Oman tourism goals face an uphill road to success Mounting competition from Saudi Arabia, limited connectivity and a low profile are among the challenges to Oman’s progress on meeting its 2040 tourism goals. “We’ve done great [as an industry] but I think we can do better,” said Amir Golbarg, senior vice-president of operations, Middle East and Africa, at Minor Hotels. “With its landscape, people, […] May 29, 2023
Banking & Finance Consortium to make bid for Oman’s Ahli Bank Oman International Development and Investment Company (Ominvest) is heading a consortium to acquire Ahli Bank in Oman. The consortium will make a cash offer of 185 baisas ($0.48) per share, representing a 28 percent premium over the bank’s average one-year market price of 144 baisas, the investment firm said in a statement to the Muscat […] May 17, 2023
Logistics Oman and UAE explore transport of minerals by rail Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, has signed an agreement with Brazilian mining firm Vale to explore transporting iron ore and its derivatives by rail. The railway line will connect Vale’s industrial complex in Sohar Port and Freezone in Oman to its planned mega-industrial complex in the […] May 14, 2023
Economy Oman’s Q1 budget surplus at $1.2bn on higher oil revenue Oman reported a budget surplus of OMR450 million ($1.17 billion) in the first quarter of 2023, driven by a nine percent rise in net oil revenue amid higher oil prices and increased production. Net oil revenue reached OMR1.71 billion in Q1 2023, based on an average price of $85 per barrel, from OMR1.57 billion in […] May 10, 2023
Manufacturing Oman’s Salalah Free Zone to get $230m processing plant Salalah Free Zone, a subsidiary of Asyad Group, has signed an agreement with the Chinese silicon industry company, Besto Hengda Oman, to establish a project for processing ferrous alloys and high-quality recycled wrapping paper. The project will be built on an area of 300,000 sq m, with an investment worth $230 million (OMR88.5 million), state-run […] April 26, 2023
