03 Apr Interview with H.E. Qais Mohammed Al Yousef Minister of Commerce, Industry & Investment Promotion, Sultanate of Oman
JT: How is the Ministry aligning its strategies to drive Oman Vision 2040, and what key initiatives are currently underway to promote economic diversification?
Al Yousef: Guided by His Majesty Sultan Haitham bin Tarik and Oman Vision 2040, we are reimagining economic growth by streamlining and digitizing procedures to foster a more diversified, enterprise-driven environment. Key initiatives include Invest Oman, supporting investors across sectors, and the Oman Business Platform app, which allows companies to be managed remotely. Our Industrial Strategy 2040 and commitment to a 2050 Net Zero target are also critical. Oman is leveraging regional cooperation, innovation, and public-private partnerships—areas where we’ve seen over 25 years of success. Financial support comes from initiatives like the US$5.1 billion Future Fund Oman and the Development Bank’s financing solutions. These efforts are transforming our commercial ecosystem, a shift we call Renaissance 2.0. This transformation was recognized internationally with an upgrade in Oman’s credit rating to BBB- with a stable outlook from S&P Global Ratings in September 2024—our first investment-grade rating in nearly seven years.
JT: Could you elaborate on the recent reforms introduced by your Ministry and how they contribute to creating a more attractive business environment in Oman?
Al Yousef: Over the past five years, we’ve implemented key reforms laying the foundation for long-term stability. These include the introduction of a 5% Value Added Tax (VAT) and the Foreign Capital Investment Law 2020, allowing 100% foreign ownership. The Commercial Companies Law has also reduced bureaucratic hurdles. The impact of these reforms is reflected in our foreign direct investment figures. By the end of Q3 2024, FDI in Oman reached OMR26.677 billion (approximately USD 69.28 billion), marking a 16.2% increase from the same period in 2023.
JT: What are the Ministry’s priorities for expanding Oman’s export markets, and how do you envision the future of Omani trade in the global arena?
Al Yousef: By the end of 2024, Omani merchandise exports reached OMR24.2 billion (US$62.6 billion), a 6.8% increase from 2023. Our exports now cover oil, gas, fertilizers, metals, seafood, agro-products, textiles, and niche items like health foods. This growth is supported by incentives, infrastructure, tax benefits in Oman’s free zones, and Free Trade Agreements with markets like the USA and Singapore. We’ve implemented strict quality assurance protocols to meet international standards, such as those for Omani seafood. Our Export Department promotes “Made in Oman” goods at trade shows, exhibitions, and through campaigns, supported by our embassies and commercial attachés. Oman’s Export Credit Guarantee Agency helps navigate international markets and manage risks.
Sustainability is key, with manufacturers focusing on compliance with packaging, labeling, and product design regulations, which also contribute to our 2050 Net Zero target. Oman is set to become one of the world’s largest green hydrogen producers, with 1 million tonnes annually by 2030 and up to 8.5 million tonnes by 2050. To further growth, we’re negotiating Free Trade Agreements, including the GCC-Japan FTA, which will strengthen trade with Japan. Digital transformation, including automation, IoT, data analytics, and AI, will drive efficiency, sustainability, and transparency, opening new collaboration opportunities. With Japan’s demand for sustainably produced goods, Oman’s manufacturers are well-positioned to lead in quality, sustainability, and value. The future looks promising, and we are just getting started.
JT: How would you describe the current state of economic relations between Oman and Japan, and what are the main areas of collaboration?
Al Yousef: Oman and Japan have long enjoyed strong commercial ties. Japanese expertise played a key role in building Oman’s first refinery, desalination plants, power generation facilities, and gas processing plants. More recently, collaboration has expanded to projects like the Amin Solar IPP in Nimr, developed by a Marubeni-led consortium, and the US$1 billion SalalaH2 green ammonia facility. Marubeni and Sumitomo are also involved in various renewable energy projects. Additionally, the Okura Hotel & Resort in Muscat, set to open in 2027, will be the first Middle Eastern property of the prestigious Japanese brand. Japan’s collaboration with Oman in innovation and technology continues to support our economic diversification. We are committed to deepening this fruitful partnership as new opportunities arise in our dynamic economy.
JT: As the upcoming Expo 2025 Osaka offers a unique opportunity for Oman to showcase its heritage, achievements, and future aspirations to a global audience, could you share details about Oman’s participation in Expo 2025 Osaka and the message Oman aims to convey through its pavilion?
Al Yousef: Our pavilion at Expo 2025 Osaka will reflect the Expo’s themes of ‘Saving Lives,’ ‘Empowering Lives,’ and ‘Connecting Lives’ with the theme ‘Harmony and Diversity.’ It will highlight Oman’s blend of tradition and innovation, showcasing our entrepreneurial spirit, commitment to sustainability, and respect for our natural heritage. Oman aims to present itself as a dynamic, forward-looking nation that offers exceptional opportunities for investors and partners who share our vision for balanced progress.
JT: What opportunities do you see to further enhance bilateral economic cooperation between Oman and Japan, given the strong partnership built on mutual respect and shared goals?
Al Yousef: Currently, oil and gas dominate Oman’s exports to Japan, while vehicles, machinery, and electric appliances are the main imports from Japan. Looking ahead, Oman’s renewable energy resources will play a pivotal role in future collaborations, particularly in clean energy. The visit of Japan’s liquefied hydrogen carrier, ‘Suiso Frontier,’ to Muscat in August 2023 symbolizes this growing partnership. Additionally, there’s potential for increased collaboration in tourism, especially with new sports tourism experiences complementing Oman’s cultural, luxury, eco, and culinary offerings. Oman’s agriculture and fisheries sector also offers substantial opportunities, demonstrated by investments such as the Gulf Japan Food Fund’s US$10 million investment in Oman Fisheries and a joint venture in poultry farming. These examples illustrate the diverse and expanding opportunities for deeper economic cooperation.
JT: Do you have any closing remarks for our readers who are considering visiting or investing in Oman?
Al Yousef: Oman is an ideal place for Japanese businesses to grow and thrive, offering a pro-business environment, stability, excellent infrastructure, and strategic location. There’s never been a better time for Japanese companies to explore opportunities here, establish a Middle East base, and capitalize on our connectivity and talent. I also wish Japan great success with Expo 2025 Osaka, which will showcase global innovation and collaboration under the theme ‘Designing Future Society for Our Lives.’ It will highlight Japan’s leadership in technology and sustainability. Oman remains committed to further strengthening our deep and historic ties with Japan, and we wish the people of Japan continued peace and prosperity.