In a significant economic development, Oman has witnessed a substantial increase in foreign direct investment (FDI) from the United Arab Emirates (UAE) during the third quarter of 2023. According to official data released by the National Centre for Statistics and Information (NCSI), FDI inflows from the UAE to Oman reached an impressive OMR1.275 billion ($3.3 billion). This surge highlights the growing economic ties between the two nations and reinforces Oman’s attractiveness as a destination for foreign investments.
UK Dominates FDI Landscape:
The United Kingdom emerged as the leading source of FDI for Oman during the same period, contributing over OMR11.521 billion, constituting a significant 50.1% of the total inward investment. This underscores the robust economic partnership between Oman and the UK and showcases the confidence of British investors in Oman’s economic potential.
Breakdown of FDI Sources:
After the UK, the UAE stands as the third-largest source of FDI for Oman, underscoring the diverse origins of foreign investments in the country. In addition to the UAE, other notable contributors include Kuwait, with inflows totaling OMR922.3 million, securing the fourth position on the list. Bahrain follows closely, with FDI inflows amounting to OMR732.6 million. This diversity in FDI sources signifies Oman’s attractiveness to a range of international investors, contributing to its economic resilience.
Sectoral Distribution of FDI:
The data reveals that the oil and gas sector continues to be the primary beneficiary of FDI, receiving an impressive OMR17.672 billion, representing 76.9% of the total FDI. This underscores the sustained interest of investors in Oman’s energy sector, driven by its strategic importance and potential for growth.
Other sectors that attracted significant FDI include electricity and water, with inflows reaching OMR466.3 million, and transport, storage, and communication, which received OMR361.9 million. Additionally, foreign investment in trade, hotel and restaurants, and construction amounted to OMR216 million, OMR111.4 million, and OMR82.1 million, respectively, showcasing the diversified portfolio of investment opportunities in Oman.
The surge in FDI from the UAE to Oman in Q3 2023 reflects the strengthening economic ties between the two nations. With the UK dominating the FDI landscape, Oman’s ability to attract investments from diverse sources underscores its resilience and attractiveness as an investment destination. As Oman continues to diversify its economy and explore new avenues for growth, the latest FDI figures signify a positive trajectory for the nation’s economic development.
Joseph Gutierrez holds Master’s degree in Business Administration. As an avid day trader, he is a master of technical analysis and writes tirelessly on how stocks are trading. Joseph has extensive knowledge in technical analysis & news writing. He delivers news reports regarding Market category.
