Oil and Gas sector’s FDI share surpasses RO 14 billion
Published: 03:09 PM,Sep 26,2023 | EDITED : 08:09 PM,Sep 26,2023
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MUSCAT: Foreign Direct Investment (FDI) recorded a net inflow of RO 1.744 billion in 2022, compared to an inflow of RO 2.926 billion a year earlier, the Central Bank of Oman (CBO) stated in its newly issued 2022 Annual Report of Oman’s banking and financial sector.
The lower FDI inflows were a reflection of a transition in the investment climate as the business environment revived post-pandemic, the apex bank noted.
Nevertheless, the Sultanate of Oman remained an attractive destination for foreign investors, the CBO report said. One standout highlight of the report is the stellar performance of Oman's oil and gas sector, which saw a substantial 19.7 percent increase in FDI, constituting the lion's share of RO 14.166 billion (72.2 percent), demonstrating the resilience and attractiveness of Oman's energy industry to foreign investors.
Oman's manufacturing sector made significant strides as well, claiming a 7.9 percent share (RO 1.549 billion) of FDI. Financial intermediation closely followed with a 7.6 percent share (RO 1.481 billion), reflecting the strength of Oman's financial services sector.
Real estate, renting, and business activities also made their mark, recording a 5.3 percent share of FDI. Other sectors collectively accounted for the remaining 7.1 percent (RO 2.426 billion), showcasing a diversified investment portfolio in Oman.
The CBO report also highlighting the leading countries contributing to FDI in Oman. The United Kingdom emerged as the largest foreign direct investor, with investments reaching RO 10.156 billion by the end of 2022, a notable increase from the previous year. The United States followed closely with RO 2.735.8 billion, while the United Arab Emirates secured the third position with RO 1.083.4 billion.
Commenting on contribution of FDI in Oman’s overall fiscal performance during 2022, Tahir Salim al Amri, CBO Executive President, said: “The 2022 state’s general budget achieved remarkable positive fiscal performance in 2022, surpassing previous years, driven by higher oil prices, adoption of prudent policy measures and improved fiscal discipline. The government achieved fiscal sustainability by enhancing non-oil revenue, increasing spending efficiency, and controlling the budget deficit. This resulted in a fiscal surplus of 2.6 percent and a current account surplus of 5 percent of GDP in 2022. The external sector remained resilient, supported by strong growth in exports and sustained inflows of foreign direct investment (FDI).”
The lower FDI inflows were a reflection of a transition in the investment climate as the business environment revived post-pandemic, the apex bank noted.
Nevertheless, the Sultanate of Oman remained an attractive destination for foreign investors, the CBO report said. One standout highlight of the report is the stellar performance of Oman's oil and gas sector, which saw a substantial 19.7 percent increase in FDI, constituting the lion's share of RO 14.166 billion (72.2 percent), demonstrating the resilience and attractiveness of Oman's energy industry to foreign investors.
Oman's manufacturing sector made significant strides as well, claiming a 7.9 percent share (RO 1.549 billion) of FDI. Financial intermediation closely followed with a 7.6 percent share (RO 1.481 billion), reflecting the strength of Oman's financial services sector.
Real estate, renting, and business activities also made their mark, recording a 5.3 percent share of FDI. Other sectors collectively accounted for the remaining 7.1 percent (RO 2.426 billion), showcasing a diversified investment portfolio in Oman.
The CBO report also highlighting the leading countries contributing to FDI in Oman. The United Kingdom emerged as the largest foreign direct investor, with investments reaching RO 10.156 billion by the end of 2022, a notable increase from the previous year. The United States followed closely with RO 2.735.8 billion, while the United Arab Emirates secured the third position with RO 1.083.4 billion.
Commenting on contribution of FDI in Oman’s overall fiscal performance during 2022, Tahir Salim al Amri, CBO Executive President, said: “The 2022 state’s general budget achieved remarkable positive fiscal performance in 2022, surpassing previous years, driven by higher oil prices, adoption of prudent policy measures and improved fiscal discipline. The government achieved fiscal sustainability by enhancing non-oil revenue, increasing spending efficiency, and controlling the budget deficit. This resulted in a fiscal surplus of 2.6 percent and a current account surplus of 5 percent of GDP in 2022. The external sector remained resilient, supported by strong growth in exports and sustained inflows of foreign direct investment (FDI).”