Investment Opportunities in The Sultanate of Oman Agenda • About ITHRAA • About Oman • Why Invest in Oman • What are our target sectors • Logistic Sector in Oman • Investments Opportunity in Automotive Sector • Oman Marine Investment Opportunities • Information and Communication Technology About The Sultanate of Oman Capital Muscat Area 309,500 Km2 Coastline 3,165 Km Population 3.8 Mn (2012) DGP USD 78 bn (2012) Currency 1 Omani Rial = 2.6 USD Natural Resources Oil, Natural Gas, Copper, Fish, Agriculture, Tourism Major Trading Partners UK, Japan, UAE, South Korea, China, EU, Thailand Oman‘s access to Global Markets • Regional Market worth more than 600 Bn USD and global reach to 1.2 trillion of imports. • Modern infrastructure transport facilities and business environment connected to key markets in India and East Africa. • Abundant and competitive access to natural resources, energy, financing and labor. • Ports: On major international shipping routes within 2 weeks of major ports. • Airports: Oman is within 4 hours of South Asia, 5 hours flight of Africa and 6 to Europe. Oman’s access to Global Markets • Oman completed its agreement to the WTO in 2000. • Oman is a Member of Greater Arab Free Trade Area (GAFTA). • Oman has relations with Over 140 countries and is a member of 105 regional and international organizations (UN, FTA, GCC). • Oman is a founding members in Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), which includes core members such as Australia, Kenya, India, Mauritius, Singapore and South Africa. Oman’s Economic Vision 2020 • Development of Human Resources. • Creation of Stable Macro Economic framework. • Competitive Private Sector. • Economic Diversification. About ITHRAA ITHRAA Vision & Mission Our Vision Enhancing Oman Competitiveness Our Mission To attract and secure investment as well as facilitate and promote the export of Omani non-oil products and services. Our Values We are committed to being • Innovative • Communicative • Creative • Supportive • Collaborative • Customer Focused Why Invest in Oman Why Invest in Oman What are the Incentives Oman Investment Opportunity Sectors Overview of Oman’s Economy 2012 2005 2000 Oman’s Global Ranking Foreign Direct Investment 2005 - 2012 Source: foreign Investment Book, 7th issue – June 2013, National Center for Statistics & Information FDI By Industry 2012 Economic Diversification Logistics Sector in Oman Oman’s Infrastructure Port Airports Road Railway Extensions: Expansions: Highway access to GCC USD 15 Bn investment Salalah Port (Passenger Capacity/ year) markets. program to develop a national Sohar Port Railway system. Muscat Airport: 12Mn Salalah Airport: 2Mn USD 1.1 Bn worth of contracts Development awarded in 2011 in Oman for 2,244 Km will be built to link Port of Sultan Qaboos Under Construction the road sector to develop major ports, Industrial Areas, Port of Duqm (Passenger Capacity/year) modern transport infrastructure. Free Zones and GCC. Sohar: 500K Duqm: 500K Ras Al Had: 500K Adam: 250K Port of Salalah • One of the fastest growing ports in the Middle East and largest deep water facility on the Indian ocean. • Over 3000 Commercial Vessel Calls per annum, 24/7 operation throughout the year. • A 30 years concession agreement (government & APM). • 54 direct port connections and can be reached by the majority of global ports within 2 weeks. Commercial & Residential Area – Salalah Port • The 19 km2 Free Zone has an operational infrastructure and is ready for Investor to invest. • Investment value = USD 3.5 Bn from several leading international companies. • Phase I: 200 hectare completed: Methanol, PET, Automotive parts, Luxury Yachts and Petrochemical Industries. • Phase II: 265 hectare under development will attract investments on logistics, light & medium industries DUQM Special Economic Zone Investment opportunities Commercial & Residential Area Infrastructure Manufacturing • Commercial Centers • Petrochemicals • Power generation plant • Hotels & Resorts • Building & Construction Materials • Water desalination Station • Entertainment (Cement) • Roads • Fisheries Port & Other facilities • Minerals • Waste management • Public Parks & Rock Garden • (Basalt Fiber, Glass • Facilities • Land Development • Fishery & Aquaculture • Industrial liquid treatment plant • Inter and intra Bus & Taxi Stations • Logistics • Airport & Industrial area operators • Consulting Services • Automotive • Government Buildings • Life sciences • Environmental Lab • Food & Beverages • Private Health Clinics • Supporting services. • Private School • ICT Port of Duqm • Infrastructure costs of nearly 300mn USD is underway for the port. • The port will be operated by the internationally known and well regarded Consortium Antwerp Port. • Oil & Gas and Mineral extraction & processing activities are focused in Duqm. Onshore and offshore drilling will be located there. • One of the first rail lines to be completed will link Duqm to Muscat and Salalah with 901Km. Oman DRYDOC Company (ODC) • ODC was established in September 2006, by the Government of the Sultanate of Oman with 100% investment and is operated by Daewoo Shipbuilding & Marine Engineering Company Limited (DSME) of Korea • ODC yard stretches over 1,277,000 square meters of land and 1,139,000 square meters of sea surface with 2,800 m length of quays. • It has six workshops and 5 quays. • Second largest dry dock in region with quays extending 4 Km. • Is one of the biggest and most modern ship repair yards in the Middle East. Source: www.omandrydock.com Port of Sohar • Strategically located at the Arabian Gulf at the entry point to the Arabian Gulf, before the strait of Hurmoz. • Undergoing one of the largest port development projects in the world (over 14 Bn USD) • The deepest draft in the region up to 23 meters. • Biggest manufacturing and Steel manufacturing cluster in Oman. Port of Sohar – A gateway to Regional Consuming Market Direct Access to logistics Cluster in the Port. Port of Sultan Qaboos • Repurposed to handle greater volume of cruise ships. • Climate-controlled cruise terminal for passengers upon arrival with full amenities (immigration, customs, baggage screening and collection). • Entry and exit terminal have semblance to a high standard airport with duty-free shopping as well. Airports Building four new air ports (USD 478mn) and undertaking large scale expansion for the existing airports (USD 4.94bn) Airport expansion: ° Muscat International Airport: New Airport Development increasing capacity to 12mn per Sohar Airport - estimated capacity of 50,000 tons of air annum by the end of 2014 cargo & 500,000 passengers. (48mn by 2050). Duqm Airport - able to support 500,000 passengers per year . Adam Airport – 250,000 per year to the Dakhliliya ° Salalah Airport: able to handle region. 100,000 MT of cargo & 1mn Ras A Hadd airport – able to handle 500,000 passenger. passengers per year Railway • Railway focus on linking major GCC markets. • Oman is investing USD 15bn in the development of an extensive rail system linking all major ports and cities (1061km by 2017). • Railway connecting with other GCC countries is expected to create capacity for 8800 tons of freight daily. Sohar-Muscat 260Km Muscat-Duqm 526km Sohar-Buraimi 140km Sohar-Khatmat melaha 58km Duqm-Salalah 646km Logistic Clip Investment Opportunities in Automotive Sector Agenda • Definition of the automotive sector • The automotive Market • Radiator • Parts for Diesel & Semi-Diesel Engines • Lead acid accumulators • Sparks-ignition type engines parts • Transmissions for motor vehicles • Spark plugs Automotive Sector Definition The automotive industry is a wide range of companies and organizations involved in the design, development, manufacture, marketing, and selling of motor vehicles The Automotive Market • Regionally • Fast growing market • High ratio of car ownership per household • GCC countries • High consumption vehicle market • Fast growing population • Favorable oil price Radiator Market Assessment • Several existing local manufacturers (i.e. Dolphin) • 2009, 5 million worth of radiators exported from Oman. • GCC estimated value of sales 5.5% to 10% of total demand. Parts for Diesel & Semi-Diesel Engines • In 2010, 4.5 Mn worth of this product were re- exported from Oman. • Estimated value of sales for this product group represent 1.6% to 10% of total GCC demand Lead Acid Accumulators • A well established local manufacturer Known as Reem Battery is producing around 1.2 - 1.7 million batteries, export 85% of the batteries. • In 2010 almost 27 Mn USD worth of batteries were exported from Oman. • Number of batteries imported to GCC countries in 2009 was around 4.3 Mn USD. Parts of Spark Ignition type engines A range of casts iron parts including pistons, piston rings, cylinder heads, fuel inlet valves, valves, carburetors, nozzles etc. Spark-ignition engines are those which use petrol opposed to diesel A piston is a disk or short cylinder fitting closely within a tube in which it moves up and down against a liquid or a gas Transmissions for motor vehicles This product group includes transmissions for either manual or automatic vehicles. The transmission on a vehicle is an automotive assembly of gears and associated parts by which power is transmitted from the engine to a driving axle and is also known as a gearbox. Spark plugs The purpose of a spark plug is to provide a place for an electric spark that is hot enough to ignite the air/fuel mixture inside the combustion chamber of an internal combustion engine. Safety Glass • The existing