| Minister of Commerce and Industry, HE Maqbool Ali Sultan |
 |
Diversification of
the economy away from oil and gas is a top priority for Oman’s
leadership. Minister of Commerce and Industry, HE Maqbool Ali Sultan,
believes that the country is well-equipped to meet the challenge. The
government has invested heavily to provide the right infrastructure
for ongoing development, and has moved to create an environment where
the private sector can flourish. It is now looking at a number of core
areas that will ease the pressure on the hydrocarbons sector and create
vital employment for the country’s youth.
As a nation with a long history of trading, it is natural that
the government is especially looking to bolster this particular niche.
“Trade is very important in our economic diversification drive
away from oil and this is one area we are concentrating on,” he
says.
“The government’s aim is to privatise, giving the private
sector a bigger role and making trade one of the main sectors in the
economy. We started building ports, such as the Sultan Qaboos port and
the Salalah port, which is one of the biggest container ports and is
world class. Now we are building the third port, which is in Sohar,
in the north. The Salalah port is playing a major role in bringing trade
again into Oman and the planned Salalah free zone is one example of
how we are taking concrete steps to attract trade, investment and build
industry.”
As well as trade, the government has targeted other key areas,
such as large-scale industrial projects, based on utilising the country’s
vast natural gas reserves, alongside foreign investors. In terms of
job creation, one of the great hopes for the future is tourism.
“Apart from building our industrial capacity and products, I see
the tourism sector as a major area of potential. Tourism will not only
bring equity but it will also provide training and employment for our
people. It will open up markets for us all over the world.”
Mr Maqbool believes that Oman can thrive in the more competitive
environment it faces under the WTO. Another key strategy is to promote
business links across the Gulf region, through the GCC. “In order
to succeed in this globalisation age of the World Trade Organisation,
we have to strengthen our commercial ties in the region. We are starting
with a unified customs agreement, giving us a customs union with the
other Arab countries. By 2007 we will have a free trade area, and then
we will move to a second stage of the customs union, which could mean
monetary union.”
“I
see the tourism sector as a major area of potential”
Oman is looking to harness investment and technical know-how
from overseas to help in the diversification drive. A peaceful nation,
with a stable economic and political background, Oman offers something
unique. “We are keen on obtaining joint ventures and partnerships
and we need to show our strength, security and stability to encourage
them,” he says. “We want to tell the people that we are part
of the Arab world and we are proud to be a part of the Arab world, but
we are far from the centre of the problems.
In this way, Oman is different.”
One of the major projects that will determine the long-term success
of the country’s diversification efforts is the Salalah port initiative
and the proposed free trade zone. Already the port has jumped to be
one of the world’s leading maritime facilities and ranks as one
of the top 10 transhipment hubs, handling close to a million containers
a year. Its strategic location at the intersection between the Gulf,
Indian Ocean, Africa and Suez, makes it an ideal gateway and bridge
to Europe. The port handles some of the world’s largest ships and
is expanding its capacity to cope with the next generation of vessels.
Jack Helton, Chief Executive of Salalah Port Services, a public-private
sector partnership with a 30-year concession to manage the port, firmly
believes Salalah has great potential. He says the success of the area
will be determined ultimately by an integrated programme of development
linking transport, tourism and trade.
“If we want a successful free zone, we need an international airport,
and for the airport to be successful, it needs tourism. It’s a
package,” he adds.
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