Oman's FDI surges to RO 22.961 billion, led by oil and gas exploration

MUSCAT, DEC 24

Oman's economy witnessed a significant boost until the third quarter of 2023 as foreign direct investment (FDI) showed remarkable growth, underscoring the country's increasing attractiveness as an investment destination. Until the end of Q3 2023, Oman’s FDI amounted to RO 22.961 billion, with a financial inflow of RO 4.821 billion compared to the investment volume of RO 19.615 billion during the same period last year. The latest monthly bulletin provided by the National Centre for Statistics and Information (NCSI) highlights a surge in FDI, primarily spearheaded by the flourishing oil and gas exploration sector.

A standout performer, the oil and gas exploration sector experienced a staggering 41.5% increase in value compared to the previous year. The sector attracted substantial investment, amounting to a total of RO 17.672 billion until end of Q3 2023. This growth serves as a strong testament to the robustness and potential of Oman's oil and gas industry.

Despite challenges faced by various sectors, the financial intermediation industry recorded a positive 2.1% increase in FDI reaching RO 1.530 billion until the end of Q3. This sector encompasses activities such as banking and investment services, and it showcased resilience in attracting foreign investors.

On the other hand, the manufacturing sector experienced an 18.1% decline in FDI during the third quarter of 2023. The investment in the sector amounts to RO 1.406 billion until end of Q3 2023. Global economic uncertainties and disruptions in supply chains played a significant role in this decline.

The real estate sector witnessed a marginal dip of 0.5% in FDI compared to the previous year. This sector, with an investment volume of RO 1.035 billion until end of Q3 and specifically focusing on renting and business activities, exhibited resilience despite challenges in the global real estate market.

In terms of FDI by country, the United Kingdom emerged as the top investor, witnessing a substantial 26.5% increase in investment value reaching RO 11.521 billion until end of Q3. The United States of America followed closely behind, experiencing a remarkable 54.2% surge in investment amounting to RO 3.881 billion until end of Q3 2023. These leading global economies' interest in investing in Oman reflects the country's favorable business climate and potential for attractive returns on investment.

Furthermore, Oman's economic ties with neighbouring countries were further deepened during Q3 2023. The United Arab Emirates (UAE) demonstrated a 14.3% increase in investment with RO 1.275 billion, fostering economic cooperation between the two nations. Investments from Kuwait reaches RO 922.3 million. Bahrain recorded an astounding 93.2% growth in investment amounting to RO 732.6 million, showcasing the strengthening economic ties within the Gulf region.

Meanwhile, the value of investments from other countries: From China amounted to RO 594.5 million, from Qatar RO 442.3 million, from the Netherlands RO 374.7 million, from Switzerland RO 288.3 million and from India RO 277.8 million. The value of direct foreign investments from other countries reached RO 2.650 billion.

The surge in FDI during Q3 2023 positions Oman as a promising investment destination, despite the challenges faced by certain sectors. The growth and stability exhibited in the oil and gas exploration sector, along with the resilience of the financial intermediation industry, reiterate the country's potential for sustained economic growth and diversification. Oman's supportive policies, investor-friendly environment, and strategic location continue to attract foreign investors, fostering sustainable development and prosperity for the nation.