Latest news with #economic growth
Zawya
21 hours ago
- Business
- Zawya
Oman's FDI: A gateway for the region's prosperity
Oman is moving forward with confidence in its economic journey—one that is full of promise, transformation, and global opportunity. At the heart of this transformation is foreign direct investment, better known as FDI. For many, FDI might sound like just financial inflows from abroad, but it's much more than that. It brings innovation, advanced technologies, international expertise, and, most importantly, jobs. Together, these elements enable nations like Oman to transition from traditional oil dependence toward a diversified, future-ready economy. The world economy, however, hasn't made this journey easy. According to the World Bank's Global Economic Prospects published in June 2025, global economic growth is projected to decelerate to 2.3% this year—the lowest pace since 2008 outside of full-blown recessions. At the same time, global FDI flows have been under strain due to rising trade barriers, geopolitical tensions, and a general sense of economic uncertainty. The World Bank notes that FDI inflows into emerging and developing economies have now dropped to less than half their 2008 peak and will likely remain subdued unless governments introduce smart reforms. Amid this difficult global environment, the Middle East has shown remarkable resilience, and Oman has become a standout success story. According to the FDI Trends Report—July 2025 by the Public Authority for Special Economic Zones and Free Zones, greenfield FDI capital expenditure in the Middle East rose by 30.7% from January to May 2025 compared to the same period in 2024. Project numbers also went up by 14.5%, thanks to long-term planning, strategic diversification, and investor-focused policies across the region. Oman has emerged as a regional leader in greenfield FDI growth. The same report highlights that Oman witnessed a staggering 4,402% increase in greenfield FDI capital spending during the first five months of 2025, alongside a 36% increase in the number of investment projects. This growth has been driven by strategic investments in renewable energy, ICT, real estate, and the expansion of special economic zones. Oman now ranks first in the region in terms of year-on-year growth in FDI, showing that the country is fast becoming a serious investment destination in the Gulf. These growth numbers are not just impressive—they're real proof of investor trust. According to the National Centre for Statistics and Information (NCSI), Oman's total FDI stock reached $79.6 billion (equivalent to RO 30.6 billion) by the end of the first quarter of 2025, marking a 20.6% increase from the same period last year. While the oil and gas sector continues to take the lion's share—roughly $64.2 billion—other sectors are quickly catching up. Manufacturing has attracted $7.1 billion in foreign investment, and financial services have brought in $3.4 billion, all pointing toward meaningful economic diversification. Oman is also drawing interest from global partners. South Korea leads the way, investing over $3.45 billion in Oman during early 2025. This includes a major project by LUPRO—a green ammonia facility in Duqm, built in partnership with Bait Muscat. This facility is expected to produce 5 million tonnes of green ammonia and is supported by a 200 MW power plant and a 2 GW renewable energy complex. China has also made its mark with a $564 million solar cell manufacturing plant in Sohar Freezone. Egypt, too, has committed to projects in ICT and manufacturing, making Oman a preferred destination across Asia and Africa. All this progress is no coincidence—it is driven by vision and leadership. Oman Vision 2040, the country's blueprint for economic and social transformation, is guiding this shift. This vision aims to reduce the contribution of oil and gas to just 8.4% of GDP by 2040 and boost the share of non-oil sectors to 91.6%. Other goals include producing 1 million tonnes of green hydrogen by 2030 and generating 35% to 39% of electricity from renewable sources by 2040. These are not just numbers; they reflect Oman's strong commitment to sustainable growth and future-ready industries. To attract more investors, Oman has introduced a host of reforms. The Foreign Capital Investment Law, introduced in 2019, allows 100% foreign ownership in most sectors and removes minimum capital requirements. There are also generous tax breaks in free zones, zero VAT, duty-free imports, and more relaxed Omanisation policies within special zones. Platforms like 'Invest in Oman' make it easy for investors to set up by offering a smooth and transparent approval process. Another crucial piece of the puzzle is talent. Attracting the right kind of FDI requires skilled professionals—especially in government agencies that promote investment. These professionals must understand not just local rules and sectors but also global market trends, international finance, taxation, logistics, and real estate. Soft skills are equally important. The ability to market Oman's opportunities, build relationships, and negotiate deals is essential for success. Recognising this, Oman is investing in its human capital. Investment promotion agencies like 'Invest Oman' are working to develop teams that combine technical expertise with strong interpersonal skills. According to experts cited in the FDI Trends Report, investment promotion today is not just about facts and figures—it's about communication, collaboration, and creativity. To support this, Oman is hosting a major training initiative: the FDI Executive Program in FDI, SEZs & Investment Promotion. Scheduled for September 16–18, 2025, in Salalah, this program is being organized by Smart Investment & Consultancy Gateway (SIG) and NextZone. The sessions will cover global investment trends, strategic promotion, and how to use digital tools and AI for targeting the right investors. In the end, FDI extends beyond capital—it encompasses knowledge transfer, partnerships, and innovation. For Oman, it means more than economic growth. It's about creating clean energy, new industries, and job opportunities for future generations. It's about placing Oman firmly on the global investment map—while holding true to its heritage, values, and vision. The world is changing fast, but Oman is not merely adapting to global trends—it is shaping them with clarity of vision and strategic intent. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Bloomberg
a day ago
- Business
- Bloomberg
London's Housebuilding Collapse Is a Huge Problem
Homebuilding in London has all but ground to a halt. The capital is on track to deliver less than 5% of its annual target of 88,000 homes with half the year gone, by far the worst performance in two decades. Such a collapse in the UK's largest and richest city would be a poor omen for economic growth and productivity at the best of times. For this to be occurring under a one-year-old Labour government that arrived in office promising a generational uplift in housing supply is extraordinary. The figures almost defy belief. Housing starts have fallen by more than 90% compared with the financial year ended in 2023, official data from the Greater London Authority show. Across two-thirds of the capital's boroughs, there were zero starts in the second quarter on developments with more than 20 private homes, according to researcher Molior London. Sales, meanwhile, are running at their weakest rate since 2009 with just 3,950 new homes purchased in the first half of 2025, the company said.
Arabian Business
2 days ago
- Business
- Arabian Business
GCC GDP hits $587.8bn in Q4 2024 with 1.5% growth rate
The Gulf Cooperation Council (GCC) countries recorded a nominal Gross Domestic Product (GDP) of $587.8 billion by the end of the fourth quarter of 2024, according to data released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf. The figure represents an increase from $579 billion recorded at the end of the fourth quarter of 2023, reflecting a growth rate of 1.5 per cent, the Emirates News Agency (WAM) said in a statement. The data showed that non-oil activities contributed 77.9 per cent to the GCC's nominal GDP by the end of the fourth quarter of 2024, whilst oil activities accounted for 22.1 per cent. Within the non-oil sector, manufacturing contributed 12.5 per cent to the GDP. Wholesale and retail trade accounted for 9.9 per cent of the total GDP. The construction sector reached 8.3 per cent of GDP, whilst public administration and defence logged 7.5 per cent. Finance and insurance contributed 7 per cent, and real estate activities accounted for 5.7 per cent. Other non-oil activities contributed 27 per cent to the total GDP figure.
Zawya
2 days ago
- Business
- Zawya
GCC-Stat: GCC countries record $587.8bln in nominal GDP by end of Q4 2024
MUSCAT: The latest data released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf ('GCC-Stat') revealed that the nominal Gross Domestic Product (GDP) of the Gulf Cooperation Council (GCC) countries reached US$587.8 billion by the end of the fourth quarter of 2024, up from US$579 billion at the end of the fourth quarter of 2023, reflecting a growth rate of 1.5%. The data indicated that the contribution of non-oil activities to the GCC's nominal GDP reached 77.9% by the end of the fourth quarter of 2024, compared to 22.1% from oil activities. The manufacturing sector contributed 12.5% to the GDP, while wholesale and retail trade accounted for 9.9%. The contribution of the construction sector reached 8.3%, while public administration and defence logged 7.5%, finance and insurance 7%, and real estate activities 5.7%. Meanwhile, other non-oil activities contributed 27%.
Telegraph
4 days ago
- Business
- Telegraph
Rachel Reeves challenges Cabinet to buy British
Rachel Reeves has challenged Cabinet ministers to do more to buy British as she seeks to boost flagging economic growth. The Chancellor and Pat McFadden, the Chancellor of the Duchy of Lancaster, sent out the message in a letter to the Cabinet. It urged ministers to use procurement contracts, which are in the Government's gift, to help generate jobs in the UK by supporting British companies. The intervention comes amid a consultation about whether rules can be changed to give the Government more freedom to give contracts to UK firms. Each year £400bn is spent in public sector procurement, meaning small changes in approach could have a significant impact. Ms Reeves is facing difficult economic circumstances in her Budget this autumn, with official growth forecasts halved for 2025. New tax rises appear increasingly inevitable given that pressure on the public finances has intensified and the Chancellor will not break her borrowing rules. Excerpts of the letter from Ms Reeves and Mr McFadden were shared with The Telegraph. The pair wrote: 'We want people around the UK to feel the full impact of government spending through investment in skills and high quality jobs. That's why we're going further to ensure public procurement expenditure boosts British industry, jobs, skills, productivity, and expands the supply side. 'Every department needs to be pulling this procurement lever to support economic growth and strengthen our economic security. It is possible to do this within our trade agreements, as other countries do.' They added: 'We are asking all Secretaries of State to satisfy themselves that your department, and arms length bodies, have the commercial capacity and capability to ensure the creation of British jobs, productivity enhancing opportunities, and skills are prioritised in every major contract.' They also told colleagues to 'set ambitious and stretching targets for increasing your procurement spend with SMEs (Small and Medium-sized Enterprises) and social enterprises while stripping away requirements and processes that are barriers to these firms competing with established players'. At one point they wrote: 'Your commercial team is not a back office function – it is a strategic policy lever and must be a priority.' Ms McFadden was once Sir Tony Blair's political secretary and has emerged as a key confidant of Keir Starmer in recent years. As the most senior minister in the Cabinet Office he is overseeing cross-government attempts to tackle Whitehall bureaucracy and make savings in the civil service. Whether the rhetoric of Ms Reeves and Mr McFadden will lead to a step change in procurement approach remains to be seen. During the Conservatives' 14 years in office government ministers often talked publicly about the importance of using the Government machine to support British businesses. A consultation issued by the Cabinet Office is looking at changes to procurement rules that make it easier for the government to boost British industry. It will report back in September.
