There is anticipation and anxiety among businessmen as Oman draws closer to joining the World Trade Organisation (WTO).
The Sultanate hopes to become a member of the world body by November.
"Oman has fulfilled all conditions necessary to join the WTO, particularly those concerning the opening up of its markets and liberalisation of trade," says Commerce and Industry Minister Maqbool bin Ali Sultan.
But businessmen are worried: Will the WTO open the floodgates for foreign products which will eat up the local producers' legitimate home market, or will membership open up a window of opportunity for Oman's industrial sector?
Oman today enjoys a good industrial base with factories churning out products which meet international quality and the local market is hardly big enough for these ambitious projects.
strialists and businessmen do not hesitate to admit that it is a case of export or perish. [QQ]Those who had the vision to look beyond the borders are already reaping the benefits of global trade.
Rusayl Industrial Estate, near Muscat, has factories busy producing various products for the international markets and their chief executives are beaming with success.
They have found markets in Europe, Africa, Americas, Russia and the Sub-continent for their products. Iran and Iraq are seen by them as markets with huge potential.
However, there are also many who are, drawn down by severe competition from local and foreign rivals, unable to meet the expectation of investors by the very nature of their business or due to poor planning.
Though the government has ruled out protection to local industries, it is believed to be thinking of measures to curb the dumping phenomenon, which is claimed to be rampant in some sectors.
The industrial sector is the cornerstone of Oman's economic diversification and the government has provided various incentives for the private sector to set up units.
The sector is expected to contribute 15 per cent to the gross domestic product (GDP) by the year 2020. There are about 180 factories in the five industrial estates of Rusayl, Sohar, Raysut, Nizwa and Al Buraimi.
In a bid to boost foreign investment in the sector, the government has recently announced plans to allow foreign ownership of industrial businesses from the current level of 49 per cent to 100 per cent. Foreign participation of the development of the national economy can be lifted to 100 per cent if the capital is not less than RO500,000 ($1.3 million), said director-general of commerce Rashid bin Salim Al Masroori.
Foreign stakes can be raised to 65 per cent with approval from the commerce and industry minister if the capital is not less than RO150,000 ($394,000), he said.
Meanwhile, efforts to bring some long-planned huge industrial projects on track are yielding results.
Construction work is due to start early next year on the $969 million Oman-India fertiliser joint venture after India recently gave its approval to the project which has been dogged by delay due to a drop in urea prices.
An official said Oman has guaranteed to sell the urea to India at fixed, pre-determined long-term price to compensate for fluctuations in prices.
Plans for building a $2.5 billion aluminium smelter in Sohar with equity participation from the governments of Oman, Abu Dhabi and the UAE are expected to be finalised by the end of this year.
Each of the governments will provide 25 per cent of the equity with private Omani companies contributing the rest. A feasibility study for the plant was completed in January.
In the private sector, Oman's Bahwan Group is planning a $500 million urea and ammonia fertiliser plant in Sohar.
The group has invited Thai investors to take part in the project, a senior official at PTT Exploration & Production (PTTEP) said in Bangkok.
The Sohar Industrial Estate has seen considerable growth and the government has allocated 5 trillion cu ft of gas for major industrial projects planned in Sohar. The gas will benefit a host of proposed mega ventures. "It will meet the feedstock and energy needs of the planned projects over their 25-year operational life," an official said.
In a bid to revive its mining sector, the government is planning to sign two-year deals with the local National Mining Company (NMC) and Australia's Broken Hill Pty Company (BHP) for the exploration of gold, copper and silver in different areas of the Sultanate.
