Oman - Playing a major role in the Middle East

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Ed. Note: The following are the selected remarks of Davis Kallukaran, Managing Partner of AGN MAK GHAZALI llc , Chartered Certified Accountants, Oman during a presentation at an international conference held last year in Singapore on “Doing Business in the Middle East” ).
Part 1 of 2

The significant event that has been happening in the Middle East during the last 25 years is the economic integration of the Gulf Co-operation Council countries, which accounts for more than 50% of the world’s oil reserves and over one-third of the gas reserves of the world.

The Gulf Cooperation Council has estimated a combined GDP of US$627 billion for the year 2006. According to the Institute of International Finance (IIF) the aggregate GCC exports for 2006 are forecast at US$416 billion similar to the combined total for Brazil, India and Russia. The trade surplus is expected to exceed 40% of GDP. As an indicator for its integration in the world economy, GCC trade with the rest of the world alone is 80% of the GDP.

In the last 25 years GCC has gradually made giant strides towards making its presence felt as a regional economic bloc in the international market. Many steps are being taken towards achieving this significant position. As a prominent member country of the Gulf Co-operation Council, The Sultanate of Oman plays a major role in shaping out the policy decisions in this region.

Land of opportunities
Oman has lined up mammoth projects with cumulative investments of USD 20 billion across sectors in the next five years. Import substitution to diversification, to a non-oil based economy is a national priority.

The country wants to be competitive at the regional and global level by establishing hi-tech capital-intensive industries. Many economies are transforming to knowledge based ones and information communication technology (ICT) is becoming the growth engine growth; Oman is no exception.

An increase in international crude oil prices, accelerated investment by the Government on the domestic economy, improved corporate performance, a well regulated stock market with regress reporting standards imposed by the Capital Market Authority and an attractive valuation of the Muscat stock market at a PE ratio of 13 compared to 35 + PE Ratio in the rest of the GCC countries are all adding up to the stability of the economy.

Distinct advantages of Oman
Inherent location, excellent ports, position as a manufacturing base rather than a re- exporting base are the major advantages in doing business in Oman.

A number of planned development projects will change the structure of Oman’s economy once they come on stream. Most of these ventures are being housed at the Sohar port Industrial area, a sprawling 2000-hectare complex that is poised to attract investments of US $10 billion. This special economic zone is poised to become one of the world’s biggest green field petro-chemical and metal based industrial hubs.

Other upcoming projects:

	US $1 billion Sohar refinery
	US $2.4 billion Sohar Aluminium smelter plant
	US $450 million for the 1000mw power island for Sohar Aluminium project
	US $313 million Polypropylene Company with 340,000 tons capacity
	US $650 million ammonia urea project
	US $350 million integrated steel complex
	US $500 million methanol scheme
	US $ billion polythene Project
	US $230 million world’s largest pallet manufacturing unit
	US $20 billion blue city, a 34 square kilometer water front city which will be home to around 200,000 people with all leisure activities being built over a period of 15 years
	US $1 billion The Wave, a beachfront residential development
	US $822 million beach-to-mountain resort at Yeti, by Dubai international projects

The soon-to-be-inaugurated Salalah free zone is also an equally exciting initiative. This free zone is located next to Salalah trans-shipment hub, which handles 2 million TEU’s—to be increased to 4 million and currently is the 5th largest in the world.

Economic trends and performance

	Oman GDP for 2004 was US $24.8 billion
	Non-oil exports in 2004 were US $2.48 billion. (US $1.09 billion excluding re-exports)
	LNG export was 6.9 million tons in 2004 valued at US $274 million
	Crude oil along with natural gas is 78. 4% of governments gross revenue
	Current Budgeted oil Price US $34
	Oman’s trade with GCC countries is 50% of total non-oil exports i.e. US $1.25 billion and 35% of imports i.e., US $3 billion

Next issue:
a look at how to do business in Oman

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TURKEY
BILGILI BAGIMSIZ DENETIM LTD (BBD)
The firm was founded in 2005 and employs 46, comprising of 8 partners, 24 professionals and 14 admin. staff.  Located in Istanbul, the firm provides audit, accounting, taxation and consultancy work.
The Contact Partner is:  Rafet Kalkan

Bilgili Bagimsiz Denetim Ltd (BBD)
Fahrettin Kerim Gokay Caddesi Okul Sokak No. 1
Altunizade Sitesi A Blok Daire: 15 Kat 3
34662 Uskudar
Istanbul, Turkey
Tel: (+90 216) 545 3134
Fax: (+90 216) 545 3028
E-mail: rkalkan @bilgilidenetim.com
URL: www.bilgilidenetim.com

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INDIA
Kirtane & Pandit
The Kirtane & Pandit Group celebrated their Golden Jubilee with a grand celebration on June 9, 2007 at The Majestic, Hotel Le Meridien in Pune.