Guiding

Words

“The policies followed by our government to encourage

all non-oil sectors are now visible ... We can already see
the projects which have been completed and those on-
going. These will all lead to an increase in the national
income and will provide larger opportunities for work and
training.”

Qaboos bin Said

“May his soul rest in peace”
 Manufacturing
22
Tourism
48
Table of Logistics
72
Content
Fisheries
150
Energy
172
Mining
194
Information &
08 222
Note from
Communication
Minister of Diwan
Technology

Labour Independent
Note from
Chairman of ISFU 10 Market and
Employment
106 Advisory Review
(IAR)
240

Introduction
14 Business
Environment 124 Agreed-Upon
Procedures (AUP) 256
 These include projects of food security, power, logistics and many others
considered as success stories, while we look forward to seeing more
projects economically contributing to the Sultanate in the near future.

The report records the economic performance indicators of the targeted

sectors during 2019, however, the events, challenges and crises we have
witnessed during the first quarter of this year on all levels either locally,
regionally or internationally have impacted the global economies and all
aspects of life. Thus, we hope that ISFU and all other relevant government
entities reinforce their efforts in containing any potential impact on such
sectors.

8 Even though the Sultanate passed through tough circumstances losing 9

Sayyid Khalid bin Hilal bin Saud Al Busaidi one of its key statesmen, national symbols and historic leaders, the late
Sultan Qaboos bin Said bin Taimour - May He Rests in Peace- who laid the
Minister of Diwan of Royal Court foundation of a modern state and kept it steadfast on a civilized track,
Allah almighty facilitated all means to continue the Sultanate’s renaissance
under the leadership of His Majesty Sultan Haitham bin Tariq –May Allah
Safeguard Him-. His Majesty Sultan Hiatham bin Tariq has emphasized
During the past three years, I followed up the progress of the in his royal speeches the significance of economic diversification in the
Implementation Support and Follow-up Unit (ISFU) from a small team with Sultanate’s future vision “Oman 2040”, which will be a national reference
limited capacities into a well-established and institutional unit. Currently, for the economic and social development during the next two decades.
ISFU has its own system, methodology and business procedures. It has We are confident, under this wise leadership, that the Sultanate is capable
specialist teams consisting of national expertise whom are following up of overcoming all difficulties and challenges; including the steep drop in oil
with more than a hundred and thirty initiatives and projects in several key prices and other international crisis that overshadowed the whole world.
economic sectors and other sectors enabling the economic sectors.
While we commend the efforts exerted by the entities responsible for
Moreover, I closely followed up ISFU’s working method, which is based on various economic sectors to achieve the approved targets of the sectors,
effective partnership with all relevant public and private entities in a way in cooperation with ISFU we call upon those working in such sectors to
that ensures implementing initiatives and projects as per the approved exert more efforts and work harder to continuously improve the sectors’
work program. This has facilitated the accomplishment of many initiatives performance indicators.
and projects as a result of the continuous coordination between all
partners. Although there are challenges facing some initiatives and In conclusion, we would like to reiterate that the Sultanate opens its arms to
projects, requiring more cooperation between relevant entities and investors from all over the world to invest in a politically and economically
the private sector, in addition to the economic direct impact of the stable environment that supports investment. We would continue reinforcing
economic diversification projects requiring more time to be attained, the investment environment and raising its competitiveness, bearing in
we have already started to see the impact of many projects, making us mind the well-developed logistics system and its pioneering position within
more proud and honored. the regional and international marine network.
 Furthermore, after exerting tireless efforts of following up and solving issues, this
continuous hard word contributed to delivering many projects and initiatives.
For example, the Manufacturing sector witnessed the inauguration of “Mazoon
Dairy” Project that we all are proud of, as its products are already available in the
market. Without such efforts exerted by the Ministry of Commerce and Industry
in collaboration with ISFU to resolve the issues this project had faced; especially
those related to electricity services, we could not have achieved it. Also, a
number of other projects were achieved in 2019 and earlier; such as Koso Gulf
HE Dr. Khamis bin Saif Al Jabri Valves Manufacturing Plant, Sohar Cement Factory, Sebacic Acid Production Plant
in Duqum, Polymer Manufacturing Project in the field of oil wells injection, and
Chairman of ISFU MISCO Steel Rebar and Billet Production Plant. During 2020, it is planned to operate
other projects like Liwa Plastics Industries Complex, Salalah Methanol Company’s
10 Ammonia Plant, Salalah LPG Project, and food security projects (poultry and 11
At the beginning of every year, after signing the Key Performance meat).
Indicators (KPIs) between the Implementation Support and Follow-up
Unit (ISFU) and targeted sectors, and launching the KPI dashboard, The case is the same for other sectors. The Energy sector, which was included in
ISFU teams exert strenuous efforts in coordination with the relevant the Unit’s KPI dashboard in 2018, heads steadily toward achieving its targets. It
ministries and government entities, aiming to achieve these KPIs on achieved a lot as a result of joint efforts between ISFU, Ministry of Oil and Gas,
ground, as the annual performance of the teams is based on their Authority for Electricity Regulation and other entities. A number of initiatives have
achievement. Whenever there is a delay in achieving these indicators been fully delivered in 2019 such as Dhofar Wind. Also, the initiatives of the Logistics
which I closely follow up, things become more exciting in relation to sector witnessed good improvement; especially the ones related to customs
the interaction between me and these teams. I encourage them to clearance, as well as the inauguration of Suwaiq Port and others.
exert more efforts in order not to reach the year-end lagging behind
in attaining performance indicators. We look forward to achieve In addition, projects/initiatives of the Fisheries Sector witnessed good achievement;
more than what have been achieved in the previous year, as things including the Small Pelagic Fishing project implemented by Al Wusta Industrial
get more exciting and motivating the closer we approach the end Fisheries. Not only this, but the Tourism sector intensified its efforts during 2019 to
of the year. achieve good progress in its projects and initiatives. Moreover, through the joint
efforts between ISFU, the Public Authority for Mining, and other entities, the Mining
2019 was a distinguished year in this aspect, as we introduced sector was able to finalise all required procedures for (15) mining blocks, making
the SPRINT methodology that aimed to make us work harder and them ready to be floated for investment. Also, the joining of the Information and
faster toward achieving the goal of each sector and filling the gap Communication Technology (ICT) sector represented a new addition to the
between reality and targeted indicators. Thus, the achievement performance indicators system that is making good progress. ICT is a key sector
rate of the sectors of the National Program for Enhancing Economic that can contribute to enhancing the national economy, and it receives the direct
Diversification (Tanfeedh) reached 76.1%; which increased compared attention of Her Excellency the Minister of Technology and Communications.
to the achievement of 2018 by 7.5%. This is how ISFU works; adopting
transparency, having exceptional enthusiasm, readiness towards It is very important that these sectors are always aligned with the Employment
achievement and continuously looking for solutions and not giving sector and its initiatives; either those listed in the KPI dashboard of the Ministry
up. I am very proud of ISFU staff whom I personally like to be close of Manpower or those followed up directly by the Unit in cooperation with other
with and always encourage them to do their best. Their task is not entities. There were extensive efforts exerted to launch the National Centre for
easy as they encounter challenges, some of which may look elusive. Employment (NCE), while the Job Security Fund encountered many challenges
Our slogan is “whenever a certain initiative/project is accomplished, and was financially supported by His Majesty -May Allah Protect Him- with (10)
it stimulates economic activity.” million Omani Riyals. It is on its way toward official activation.
 We all need to consider the Employment sector as an enabling sector In addition to the KPI dashboards of the economic sectors under the National
for the economy as its policies, procedures and mechanisms need to Program for Enhancing Economic Diversification (Tanfeedh), there is a separate
be aligned with the other sectors’ economic targets. Thus, the Technical KPI dashboard for Business Environment program, Invest Easy initiative, and
Teams initiative was launched to seize employment opportunities for Lean project. Recently, another KPI dashboard was launched for “Ease of Doing
national cadres. These opportunities are produced by the projects of Business” initiative. Meanwhile, a KPI dashboard is being developed to follow
each sector listed in the Unit’s follow-up system. And in order to achieve up the performance of the initiatives of the National Program for Fiscal Balance
employment targets of such projects, joint efforts are exerted by the Unit (Tawazun). This is for the aim of creating a comprehensive follow-up system for
in coordination with the teams of the ministries supervising the sectors, all projects and initiatives followed up by ISFU. And through these dashboards,
the National Centre for Employment (NCE) and the National Training the Unit prepares different reports sent to His Majesty, who is closely following up
Fund (NTF). the progress of projects and initiatives, and the challenges they face.

Moreover, facilitating the business environment and working hard to One of the key pillars of the Unit is the continuous development of the
overcome difficulties that face the investment efforts is very important. mechanisms of work, and the initiatives and projects of every sector. It annually
After resolving the different challenges (legal, administrative, financial, holds an Independent Advisory Review (IAR) in order to provide a platform for
overlap of responsibilities) encountered by the initiatives, many of the sectors to review their achievements and the challenges they face; and
them were achieved; for instance, Real Estate Investment Trusts (REITs) listen to the experts’ independent opinions on areas of improvement. For the
initiative supervised by the Capital Market Authority, Oman Commercial year 2019, the IAR was improved by including local and international experts in
Arbitration Centre initiative supervised by Oman Chamber of Commerce each sector. The Unit will benefit from the experts’ notes and recommendations
and Industry, Oman Credit and Financial Information Centre (Mala’a) in improving the initiatives and projects, through direct coordination with the
initiative supervised by the Central Bank of Oman, in addition to “Invest in sectors.
Oman” Portal initiative supervised by the Public Authority for Investment
12 Promotion and Export Development (Ithraa), aiming to provide a platform More specifically, the Project Development Team in ISFU studies the current 13
for all projects the government is implementing or aims to implement in initiatives and projects, and suggests the addition of new initiatives and projects
the future. Furthermore, the Investment Services Centre supervised by to each sector, in order to ensure achieving the key targets of economic
the Ministry of Commerce and Industry was activated. It is mandated to diversification and facilitating the business environment. Furthermore, new
focus on clearing procedures and required licenses for investors. In line initiatives are being explored in relation to the projects’ local value added,
with these achievements, a number of laws and regulations related to innovation and linking it to the targeted projects, data availability, facilitating
investment environment and procedure facilitation have been issued private sector investment in the projects, and strategic partners. The goal is to
(Foreign Capital Investment Law, Bankruptcy Law, Executive Regulation list these initiatives in the sector’s KPI dashboard after being developed and
of Mergers and Acquisitions, and Escrow Account Executive Regulation). agreed upon.

Such efforts and achievements could not have been attained unless In coordination with relevant entities, the Unit makes sure to keep those interested
by the harmonious and continuous coordination between the Unit to know about the progress of initiatives and projects aware, either through
and relevant government entities, and by the shared determination to publishing press releases on media and the various communication platforms,
overcome challenges. As we continue with such efforts, we would be or through ISFU website, which was launched on 20th August 2019, or through
able to overcome other challenges facing every sector we are following its annual reports. This annual report provides comprehensive coverage of
up. For example, shortage of gas represents a key challenge in the efforts exerted in following up projects and initiatives during 2019, after verifying
manufacturing sector, and having many entities responsible for issuing samples of KPIs by “Deloitte”. It provides a detailed and transparent explanation
exploration and mining licenses is a key challenge in the mining sector. of all updates on each initiative and project, the achievement percentages,
While each sector has achievements we are proud of, it faces technical, and challenges those initiatives and projects face, making itself a reference for
legal, administrative and other challenges that push us all to work harder those interested to know about the Sultanate’s economic situation.
to resolve them in order to ensure the implementation of projects and
initiatives. In conclusion, and on behalf of myself and the Unit’s staff, we would like to
express our deep gratitude to His Excellency the Minister of Diwan of Royal
The Unit strives to develop itself and build its capacities by the efforts Court for his unlimited support, enabling the Unit to carry out its mandated tasks
of its national and loyal cadres. For instance, the KPI dashboard was and resolve many challenges. May Allah protect His Majesty and grant him with
transformed into an electronic program where data is automatically empowerment and success to lead our beloved country toward more progress
updated and can be accessed by the lead of each sector. Each sector and prosperity.
has its own KPI dashboard which is sent at the end of every week to the
sector lead. It shows the actual achievement percentage, and explains
the areas of improvement to focus on during the next phase.
14 Introduction 15
 Introduction Sectors & Projects
The Implementation Support and Follow-up Unit (ISFU) was established pursuant to Royal Decree
No. 50/2016 issued on October 17, 2016. Its main role is to support relevant entities in implementing Projects and initiatives supported and followed up by ISFU
their development plans, projects and initiatives according to a clear governance structure and key
performance indicators. This is accomplished through collecting and analyzing data, assessing KPIs in
coordination with stakeholders, and finding solutions for challenges that face implementation by using
a clear follow-up mechanism.
Lab Outcomes
The Unit is responsible for operationalizing the delivery system by monitoring, managing performance,
problem solving and ensuring consistent reporting. Due to its position under the supervision of the
Minister of the Diwan of Royal Court, ISFU is able to facilitate and coordinate inter-ministerial or inter- Manufacturing Logistics Tourism
agency challenges or requests and is able to provide an overall picture of the implementation progress First Phase
across relevant ministries. (2016) Business &
Labour Market Investment Finance
and Employment Environment
As part of ISFU methodology, the projects are subject to a continuous assessment and review either by
the Unit itself, specialized international institutions, or through the annual platform of the Independent
Advisory Review (IAR). At the end of each year, the Key Performance Indicators (KPIs) achieved in Second Phase
Fisheries Mining Energy
(2017-2018)
each project are assessed in comparison with the targeted percentages. Also, the legislative and legal
challenges as well as the overlaps in the mandates of the relevant entities are reviewed. Moreover,
the anticipated direct impact of the projects on the economy and its ability to achieve the targeted
Third Phase Information & Communication Education
roles are assessed. (2019) Technology

To reflect its transparency, and in coordination with different sectoral institutions, ISFU works on
disseminating the updates on the work progress as well as the challenges that face the initiatives and
projects, through different social media platforms. It also publishes the comprehensive annual report
16 that provides detailed information about all projects and initiatives and their level of achievement, as 17
well as the challenges they face. Projects and
initiatives
Moreover, on 29th November 2018, His Majesty Sultan Qaboos issued a Royal Decree No 33/2018 supported Strategic Projects
promulgating the Implementation Support and Follow-up Unit’s System. and followed
up by ISFU
Functional Operating Process of ISFU
These projects are proposed according to the
required improvements which support the progress
Doing the right project/ initiative of projects and initiatives of the targeted economic
sectors. The responsible team looks at the sectors
from a broader perspective to determine the
Hand - Over
SM to PD Bypass enhancements.

2 3
1 Identify Identify 5 6 7 8 9 10
strategic focus Prioritize
Identify projects/ Projects/
threats & sectors/ Conduct Initiatives
sector/ Prepare & Develop initiatives hand-over Achieve-
opportunities areas Schedule (based on impleme-
project opportunity between ment of top
opportunity the project ntation line KPIs
selection & selection & PD & IMP support
prioritization 4 prioritization
criteria)
criteria Identify/analyze potential Committees and other Tasks
quick opportunities

Agreed Due Approved

Sector/Project Latest Approved Hand-over Hand-over
Diligence Upfront IMP to
Selection & onboarding Execution PD to
Prioritization & Investor Plan & Risk of IMP Team Plan IMP MDU
Criteria Agreement Mitigation

Process Accountability
Strategic Projects(SM)
Notes:
1. Implementation team(s) will be involved as soon as possible subject to their availability, in
*theWith regards to the finance sector and due to its high significance, the organizational structure of
responsible team was developed into an independent programme, the initiatives of which will be
Project Development (PD) any case they must join latest at the beginning of ‘Prioritize Project/Initiatives’ stage.
2. For ready projects/initiatives, the ‘Upfront Plan’ becomes the ‘Execution Plan’.
developed centrally on the national level. Therefore, finance initiatives and projects will be followed
Implementation (IMP)
(Internal/External)
3. This above process shall be revisited and updated (if needed) every 6 months. up through a separate dashboard.
 Escalation Mechanism
Aiming to support the implementation of initiatives and projects, the Unit adopts a gradual escalation The approach of the lab consists of 4 major phases
mechanism to tackle the challenges that occur during the implementation process, starting from the
technical working groups, moving to the Ministerial Delivery Units, then to their excellences, ministers
of the relevant sectors, and the Ministerial committee formed as per Royal Directives to follow up the Identify
Identify
Sector Identify Implementation
social, economic, financial and monetary situations. The escalation mechanism is divided into several Focus
Strategic Projects starts
layers and effectively managed by ISFU: Areas
Objectives

Escalation Mechanism Phases 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1 Stakeholders buy-in & engagement

1 3
2 Confirmation of sector strategy & focus areas
Challenge If a challenge is
is raised by not solved within
project owner 30 day period, it is 3 Projects Identification & Assessment
and discussed escalated to the
by Working Steering Committee
Group 30 days via ISFU Chairman Quarterly 4 The Actual Lab:
validation of
project list and
On s problem solving
ISFU works closely a mo asi
together with the nthly b
Ministerial Delivery Final escalation Ultimate objective of the Lab:
Unit to provide the to the Ministerial Identification of high impact projects that are aligned to the Sector’s strategy for implementation.
Committee
18 support required
to address the
19
challenge

2 4
The framework for the Lab starts with setting the strategic objective(s)
and ends with identifying specific projects under each focus area
*This mechanism has been adopted during 2016-2019.

Lab Framework
Lab Methodology Setting Strategic
Direction
The methodology of the labs (workshops) is based on the involvement of different segments of the civil What is the ultimate
society and stakeholders from the public and private sectors in the decision-making process through objective of the sector?
the opening of systematic, shared and sustainable channels for communication for all parties. This 1st Focus Area
engagement is made through the print, audio and video or social media (YouTube, Twitter, Facebook, Projects
Instagram, etc), or through regular meetings with stakeholders to ensure that everyone is involved. This Identify Focus Areas
step reflects the belief in the importance of the role every party plays, and promotes accountability What are the focus
2nd Focus Area Strategic areas under each
and transparency. Projects objective(s) strategic objective?
In addition, the lab methodology is based on strengthening trust between the community and the
government institutions on the one hand, and between the government sector and the private sector
3rd Focus Area
on the other hand, in order to create a healthy working environment and establish a common platform
Projects
Identify Projects
that is based on credibility and open-door policy. This methodology also aims to develop practical Identify the projects
programs and detailed, implementable and measurable mechanisms. under each focus area

To be finalised 30 days before the lab

 Highlights from ISFU engagement events

Role of ISFU ISFU Reception

and sector
owner/s
Lab Phase Implementation Phase
ISFU ISFU

Main role: Main role:

Owner of the lab process and primary Provides implementation support and
decision-maker on direction and output problem-solving avenue to ensure
of the lab with sector owners. success of projects for sector owners.

Key activities: Key activities:

Central operation for all lab activities KPI Setting, performance management,
including stakeholder engagement, problem-solving, reporting.
setting and aligning strategic direction,
day-to-day operations of the lab,
updates to Ministerial Committee.

Lab Phase Implementation Phase

Sector Owner(s) Sector Owner(s)
Main role: Main role:
Assists ISFU to make key decisions on lab. Coordinates progress with project owners,
Collaborate and contribute projects info, chairs monthly Steering Committees
20 data and other information to the lab. and ensures timely completion project
21
milestones.
Key activities:
Identify main lab participants, contribute Key activities: Independent Advisory Review (IAR)
with ideas and initiatives that support Implement projects according to agreed
overall strategic objective of the lab, milestones, set yearly KPIs, provide
identify challenges and opportunities. governance to project owners.
22 23

Manufacturing
 Manufacturing KPI Dashboard

2019 Actual 2019 Actual

Initiative / KPI 2019 Target
Achievement Initiative / KPI 2019 Target
Achievement

Petrochemicals 17 Dhofar Seafood Canning Plant 48% 35%

1 Liwa Plastics Industries Complex 90% 90%

18 Al Bashayer Meat Project 87% 89%

2 Duqm Refinery 60% 58%

19 Oman Oilseeds Crushing 19% 11%

3 Salalah Methanol Company’s Ammonia Plant 88% 80.5%

Innovation

4 Salalah LPG Project 91% 87.7% Advanced Manufacturing Research Centre (AMRC)
20 78% 72.25%
in Oman

5 Sebacic Acid Production Plant 100% 100%

21 Activation of IIC Programmes in 2019 100% 100%

6 Polymer Manufacturing Project 100% 100%

Other

7 Calcined Petroleum Coke Plant 54% 44%

22 Philex Pharma Complex 54% 41%

24 8 Calcium Chloride Project 15.1% 4.75% 25

23 Karwa Motors 41% 28%

Metals
* A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.

9 Alloy Wheels Manufacturing Facility 50% 42% * A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
specific authorities. However, ISFU follows up on the execution on a regular basis.
* All forms of data are being continuously improved to be more representative of actual economic state. This is
10 Design and Manufacture of Metal Dies and Moulds 75% 72.5% done in collaboration with NCSI and relevant government entities and aligned with international standards.

11 Raysut Steel Project 71% 68%

12 MISCO Steel Rebar and Billet Production Plant 100% 78%

Food

13 Mazoon Dairy Project 100% 100%

14 A’Namaa Poultry Project 84% 81.8%

15 Osool Poultry Plant 70% 69%

16 Arabian Food Production 36% 30%

 Overview Petrochemicals
The manufacturing sector is one of the biggest contributors to the national GDP. In recent years, the
sector has seen sizeable investment in several manufacturing subsectors such as petrochemicals, 1. Liwa Plastics Industries Complex
metal manufacturing, food processing and healthcare products. Moreover, the subsectors of
petrochemicals, basic and fabricated metals, food products, non-metallic minerals, machinery, and Liwa Plastics Industries Complex (LPIC) is being developed by OQ
equipment are the top contributors to manufacturing activities (by gross output) in 2018. Group as a first-of-its-kind project in Oman that will enable the
country to support downstream plastics industry. The project’s
In detail, a number of major achievements took place throughout the year. One of them is streamlining physical hub centres on the existing OQ Group facility in Sohar
the process of gas application and allocation, which resulted in investors having to deal with one Industrial Port area.
government entity for any matters related to gas application and allocation. Also, electricity supply
and distribution in Duqm issues are being resolved, and electricity should be available for all existing It is a steam cracker project which will process light ends produced
and future projects. in OQ Group’s Sohar Refinery and Aromatics plants, as well as
optimise natural gas liquids extracted from the currently available
ISFU’s manufacturing team had put tremendous efforts to ensure smooth progress of 23 projects natural gas supplies. Upon completion, the plastics production
listed in manufacturing dashboard 2019. It extended its support to the project owners to facilitate the will have increased by over one million tonnes, giving OQ Group
delivery of their projects as per the planned timeline. a total of 1.4 million tonnes of polyethylene and polypropylene
production by 2020.

Graduated initiatives/projects in 2019:

The Journey
LPIC completed all major construction activities during 2019 and is in the process of transition from
construction to commissioning. A major achievement of 100 Million man-hours without any Lost Time
Sebacic Acid Production Plant
Incident (LTI) was achieved during the year.
26 27
Natural Gas Liquids (NGL) Extraction plant in Fahud achieved Mechanical Completion and successful
Polymer Manufacturing Project introduction of hydrocarbon. The pipeline from Fahud to Sohar is now complete and under preservation.

For the Steam Cracker Package, fuel gas was introduced and the ethylene loading in the tank
Mazoon Dairy Project commenced – a process which is required to start up all major units. Commissioning activities are in full
swing for the polymer plants and nearing completion.

The project is currently facing challenges in pre-commissioning, commissioning and safe start-up of the
plant. Despite these challenges, the project team is working to achieve production by 2020.
New initiatives/projects added in 2019:
Moving Forward
In 2020, commissioning and start-up activities are scheduled to be completed and the project will
Calcined Petroleum Coke Plant move from initial production to full production of the products. All 4 of the 4 Engineering, Procurement
and Construction packages will achieve initial acceptance and the overall LPIC will move toward the
Lender’s Reliability Test (LRT) towards the end of 2020.

Polymer Manufacturing Project

Stakeholders

OQ Group Ministry of Environment and Climate Affairs (MECA)

Oman Oilseeds Crushing Company
Ministry of Commerce and Industry (MoCI) Ministry of Oil and Gas (MOG)

Sohar Port and Free Zone

Karwa Motors
 2. Duqm Refinery 3. Salalah Methanol Company’s Ammonia Plant

Duqm Refinery and Petrochemical Industries Company L.L.C – Owned by OQ group, Salalah Free Zone-based Ammonia Plant
located at the Special Economic Zone at Duqm (SEZAD) – is a will diversify the product line at Salalah Methanol Company to
50/50 Joint Venture between OQ Group and Kuwait Petroleum include not only methanol, but also ammonia. The plant currently
International. This strategic partnership was established during produces 3,000 metric tonnes of methanol per day. However, this
the incorporation of Duqm Refinery and Petrochemical Industries will be boosted by an additional 1,000 metric tonnes per day of
Company. Once it comes on line, the refinery will have the ammonia.
capacity to process 230,000 barrels of crude oil per day – which
can further be processed on-site into diesel, jet fuel, naphtha, Once complete, the project will mark an important milestone for
LPG, sulphur and petcoke. the industrial sector in Dhofar, as it will open new downstream
industries, and create new employment opportunities in the
One of the refinery’s key competitive advantages is its provision region.
of ease of accessibility compared to other refineries in the Gulf
region. This is due to its location outside the Strait of Hormuz, and It will also add value in the form of increased export volumes for
its strategic maritime position in the path of international shipping the Port of Salalah to process; while acting as a growth engine
lanes in the Indian Ocean and Arabian Sea. for associated utilities, export facilities and off-site infrastructure in
the region.
Duqm Refinery is set to provide a significant boost to SEZAD as
it provides development opportunities for new projects that will
interface directly and indirectly with the refinery. These projects
The Journey
will be able to establish commercial links with the refinery, while
having products within easy reach for their own operational use.
Milestones Status
28 29
87% Achieved. The Syngas Refrigeration
The Journey Compressor, Pressure Swing Adsorper, Air
Complete all procurement activities.
Separation Unit, Convertor Cartridge, and
Milestones Status Waste Heat Boiler have been delivered.

The project financing was officially completed 35% of the project construction has been
Achieve Financial Close.
in January 2019. completed. More than 65% of the equipment
Complete construction.
has been acquired, and the foundation works
The 30%, 60% and 90% 3D model review (design
Complete all 3 stages of the Model Reviews. are ongoing.
drawings) were completed.

Complete Hazard and Operability Study Due to a shift in the schedule, a slight delay in
Completed.
(HAZOP) and Safety Integrity Level (SIL) reviews Complete the substation building. the process was experienced. However, the
structure is in the process of being completed.
Carry out 50% of the procurement activities. Completed.

Receive key Long Lead Item Vendor Drawings. Completed. Moving Forward
Once the mechanical construction is finalised, the plant will proceed with pre-commissioning and
Stakeholders commissioning. By Q4 in 2020, the project is expected to begin commercial production.

OQ Group Kuwait Petroleum International Stakeholders

Special Economic Zone Authority at Duqm (SEZAD) Port of Duqm OQ Group Salalah Methanol Company

Ministry of Oil and Gas (MOG) Ministry of Commerce and Industry (MoCI) Ministry of Oil and Gas (MOG)

Salalah Free Zone Port of Salalah

 4. Salalah LPG Project The Journey
Through 2019, continuous progress was made towards 100% completion of the engineering,
Located in the Salalah Free Zone, the Salalah Liquified Petroleum procurement, and critical construction stage activities. Specifically, the equipment and bulks for the
Gas (SLPG) is a major project intended to extract over 300,000 final Stage 3 were procured; and the civil work and building construction, as well as the Mechanical,
tonnes annually of propane, butane and condensate from the Electrical and Piping work was carried out for Stage 2.
Rabab Harweel field and central processing plant by Q3 of 2020.
While there was a delay in the completion of various non-critical items in 2019 (for example the jetty
Owned by Oman Government, Salalah LPG Extraction project was piping, road, fencing and insulation), this was reasonable considering the size of the project, and it did
initiated to optimise the gas value chain. Once completed, it will not affect the project’s targeted completion date.
consist of an extraction plant, fractionation facility, storage tanks,
shipping facilities and interconnection pipeline system. Ministry The initial pre-commissioning and commissioning activities started by the end of 2019.
of Oil and Gas (MOG) will supply rich gas to the project via the
Oman Gas Company (OGC) transmission pipeline and in return Moving Forward
will receive lean gas, while sharing the proceeds of profit. The plant The main focus of the project for 2020 will be the continuation of testing and commissioning, followed
will process approximately 8.8 million Standard Cubic Meters per by the issuing of the Initial Acceptance certificate. Once this has been carried out, the project will
Day (Sm3/d) of lean gas and will produce around 304 Kilo Tonnes commence its operations phase.
per Annum (KTA) of LPG products composed of 155 KTA of Propane
(C3), 111 KTA of Butane (C4), and 38 KTA of Condensate (C5+). Stakeholders
Petrofac, the UK-based oil services company, has been selected OQ group Ministry of Commerce and Industry (MoCI)
as Engineering, Procurement and Construction contractor.
Ministry of Oil and Gas (MOG) Ministry of Transport (MoT)
The primary objective of the project is to build a state-of-the-art
Ministry of Manpower (MoMP) Salalah Free Zone
facility using proven technology – and in an optimal time period
without compromising on safety, quality and technical Integrity. Port of Salalah
30 31

High Level Block Flow Diagram 5. Sebacic Acid Production Plant

Sebacic Oman is the world’s largest bio-refinery, and the only one
of its kind in the MENA region to manufacture specialty chemicals
from green vegetable (Castor) oil, as well as bio-nylons, polymers,
Products
nylone-6 and nylone-10.
Residual Gas Compression
Unit Commercial This OMR 26 Million bio-refinery continues to complement Oman’s
Propane
petrochemical plants by utilising many of their raw products to
make nylons. Castor oil plant is plentiful in Oman’s wadis, and
Pretreatment Fractionation Commercial
Extraction this has made it possible to leverage additional contract farming
Butane
projects and create additional jobs for what was an initial
Light requirement of 66,000 hectares of castor.
Condensate
Furthermore, as the world moves towards creating more
environmentally sustainable industries, it is appropriate to note
Storage that 1 hectare of Castor cultivation removes 17.8 MT of carbon
Feed Gas dioxide from the air. This played a key role in Sebacic Oman
becoming a carbon-negative company with green credits.

Production per year: The Journey

Propane:155,000 Ton/year ISFU and Ministry of Commerce and Industry (MoCI) played a key role in accelerating the process of
90% International 10% Local
Butane: 111,000 Ton/year Export consumption obtaining the seawater intake permit from SEZAD. After successfully completing the contractual work
Condensate: 38,000 Ton/year
for the seawater intake, the project began its trial production, followed by commercial production –
with the first product batch being delivered in May 2019 to a company in China.
 Due to the 2 cyclones that Oman experienced in 2019 – Cyclone Kyarr and Maha – the original 7. Calcined Petroleum Coke Plant
scheduled date for the inauguration ceremony of the project was pushed forward to Q1 of 2020.
Sanvira Carbon LLC was incorporated to establish a facility for
Moving Forward the production of Calcined Petroleum Coke (CPC) – which shall
The project has successfully graduated from the Manufacturing Dashboard. be distributed and sold throughout the GCC region as the plant
becomes operational.
Stakeholders
In addition to its expected annual production capacity of 440,000
Sebacic Oman SAOC Special Economic Zone Authority at Duqm (SEZAD) million tonnes, the plant will also produce ~130 tonnes per hour
of steam, which can be sold to adjacent industries, or used for
Ministry of Commerce and Industry (MoCI) Rural Areas Electricity Company (Tanweer) power generation.

6. Polymer Manufacturing Project The Journey

This project saw the Chinese group ZL EOR Chemicals partnering Milestones Status
with Petroleum Development Oman (PDO) to launch the first
polymer manufacturing plant in Oman – and the first-of-its-kind Execute Memorandum of Understanding (MOU)
Completed.
facility in the GCC region – at Salalah’s Raysut Industrial Zone. with OQ Group.

Execute shareholder’s agreement. Completed.

The polymers produced are now being used for various
applications, but predominantly for improving oil production. With
Complete Front End Engineering Design (FEED) study. Completed.
an investment of just over OMR 7.7 Million, the 33,000 square-metre
plant was built by ZL EOR Chemicals Oman, and has the potential Secure term loan sanctions. Completed.
32 to register a production capacity of 15,000 tonnes per year. 33
Initiate the tender process to select the civil/tructural Completed. Tender has been awarded
Plans are also being prepared to gradually boost this figure contractor. to leading Omani contractors.
to reach 70,000 tonnes per annum. The plant is equipped with
modern control, automation and polymerisation systems. Complete the Environmental Impact Assessment Completed. ISFU and MoCI played a
(EIA) and obtain the Environmental Permit. major role in accelerating the process.

Obtain permits for: Building, Fire Safety, Royal Oman

All permits have been obtained.
The Journey Police (ROP), Civil Aviation, Electricity and Water.
After all construction developments were completed in 2018, the project was subsequently included in
Complete the detailed engineering and the site
the manufacturing dashboard at the beginning of 2019. The reason for this was to support its inclusion in Completed.
preparation.
PDO’s approved vendor list, and accelerate the establishment of its water and electricity connections.

To date, the project has received all of its utility connections, and production has started – with the first Stakeholders
delivery of polymer to PDO having been carried out.
Ministry of Commerce and Industry (MoCI) Ministry of Environment and Climate Affairs (MECA)

Moving Forward Ministry of Oil and Gas (MOG) Sohar Port and Free Zone
The project has successfully graduated from the Manufacturing Dashboard.
OQ Group
Stakeholders

Ministry of Commerce and Industry (MoCI) Ministry of Oil and Gas (MOG)

Ministry of Environment and Climate Affairs (MECA)

Petroleum Development Oman (PDO) Salalah Free Zone

 8. Calcium Chloride Project Metals
9. Alloy Wheels Manufacturing Facility
Located in Salalah Free Zone in Dhofar Governorate, the
Deepak Oman Industries LLC (DOIL) Calcium Chloride Project is Aligned with Sohar Aluminium Plant’s increase in production
a Joint Venture between Indian Deepak Group, Oman National volumes, Oman is seeking to further develop its potential
Investments Development Company SAOC (Tanmia) group and as an exporter of downstream products from its aluminium
Muscat Overseas Company LLC. manufacturing sector.

Local electricity supplies, as well as locally-sourced raw materials In particular, this includes the manufacture of alloy wheels to be
such as limestone, quick lime, natural gas, and ammonia will be exported to international markets such as India and the United
utilised for production.
Ca States – which would facilitate an export value targeted at
upwards of OMR 20 Million.
The project was included in the Manufacturing Dashboard in July
2019 due to its key competitive advantages, one of which is its Sohar Aluminium Plant, which is adjacent to the Alloy Wheels
strategic maritime location at the Port of Salalah – a major port in Manufacturing Facility, is scheduled to supply 45% of the raw
the region that is in the path of international shipping lanes in the materials needed for the proposed output.
Indian Ocean and Arabian Sea.

The Journey The Journey

Milestones Status Milestones Status

Not achieved. ISFU/MDU have been playing a major Completed. The Steering Committee played a
role in facilitating meetings between the project Complete Financial Closure. key role in accelerating the process of securing
34 Finalise ammonia supply contract. team and OQ commercial team in order to reach the loan agreement with the bank. 35
an agreement between both parties to supply
ammonia. Completed. The study focuses on the project’s
Complete the Front End Engineering Detailed
technical requirements and investment cost
Approvals of water supply, electricity connection, (FEED) study.
estimates.
treatment of sewage water, and environmental
Obtain utilities approvals and contracts. permit had been obtained. However, the discussion Award contracts for machine suppliers. Completed.
regarding the cost of supplying these utilities is still
ongoing between DOIL and Salalah Free Zone. Award the main construction contractor. Completed.

Finalise the gas allocation with price The enabling works have been completed.
Completed.
contract. The civil and structure work has started and
Construction of 2019 components.
is in progress. There was a slight delay due to
The construction activities are behind schedule
delays in finalising the loan agreement.
Complete construction activities. due to a delay in signing of main feedstock supply
agreement, and utilities connection agreement.
Stakeholders
Stakeholders
Synergies Castings LLC Sohar Industrial City (Madayn)

Ministry of Commerce and Industry (MoCI) Ministry of Oil and Gas (MOG)
Ministry of Commerce and Industry (MoCI) Sohar Aluminium

Ministry of Environment & Climate Affairs (MECA) Petroleum Development Oman (PDO)
Ministry of Oil and Gas (MOG)

Salalah Free Zone

 10. Design and Manufacture of Metal Dies and Moulds The Journey

Milestones Status
As the manufacturing sector in Oman moves forward at a
rapid rate, the country’s demand for metal dies and moulds is
MOG and Madayn are finalising the
set to increase exponentially. These form a vital component of Sign gas agreement.
agreement.
the manufacturing and design sector as they are used in the
production of plastic mouldings, to cut and process metal plates, Completed. The equipment foundation,
and assist in various alloying, forging and fabrication processes. factory utilities, shed building footings and steel
structure were constructed.
While the market is currently making use of imported dies and Complete 60% of the construction.
moulds, these tend to be costly, as prices can rise to over OMR In Q1 of 2020, the equipment and machinery
100,000 (per die or mould) depending on a range of factors. installation works will be initiated.

Working with an engineering design centre, this project aims to

facilitate the production of new metal dies and moulds to boost Stakeholders
“Designed and Made in Oman” products – in order to support the
Ministry of Commerce and Industry (MoCI) Raysut Industrial City (Madayn)
competency of manufacturing sector.
Muscat Steel Group Ministry of Oil and Gas (MoG)
The Journey
The project successfully achieved most of its 2019 milestones. These include the commissioning and 12. MISCO Steel Rebar and Billet Production Plant
installation (pre-operation) activities, as well as the equipment installation and initial equipment
operation (experimental design).
Moon Iron & Steel Company SAOC (MISCO) is a 1.2 Million Tonnes
per annum capacity steel complex. Strategically located in Sohar
The project received the scheduled financial instalments from the government in 2019 in order to
36 Industrial City (Madayn), the construction of MISCO’s state of the 37
complete and operationalise the centre.
art billet and rebar manufacturing facility is well underway.

Moving Forward MISCO will be one of the leading steel plants in Oman to produce
The project’s official opening is scheduled for Q3 of 2020. Following this, the centre will be ready to billets and rebar utilising the technology from SMS Group – a
accept orders for the design and manufacture of various moulds and dies. reputed global leader in steel mill technology and processing
plants. It will also be one of the few regional steel producers
Stakeholders supplying a wide range of products in Oman and across export
markets in the GCC and Africa.
Sohar University Ministry of Commerce and Industry (MoCI)

Ministry of Finance (MoF) National Training Fund (NTF)

The Journey
With noticeable progress having been achieved in 2018, the main focus for the project team in 2019 was to
finalise construction, equipment installation, and utilities connections – and subsequently begin production.
11. Raysut Steel Project
One of the major challenges the facility faced was the absence of infrastructure for gas supply – a
Oman is increasingly relying on a steady supply of steel to major component required to run its operations – due to the delay in signing gas supply and connection
facilitate growth of its infrastructure. Located in Raysut Industrial agreement between MISCO and MOG.
City (Madayn), the Raysut Steel Industries LLC project is scheduled
to meet some of this demand as it begins utilising steel-billet raw Despite this, the project continued with an alternate mechanism for the short term; where converted
material to produce an annual capacity of 360,000 tonnes of high- LPG for its operations will be in use until this agreement takes place. ISFU and MoCI played a major role
yield strength reinforced steel bars in the 8mm to 32mm range. in the project by studying, assessing the matter, and proposing solutions for the provision of the main
utilities for the investor. In August 2019, the project owners signed the gas supply agreement with MOG.
 Moving Forward Moving Forward
The project is in its commissioning stage and is expected to commence production by Q1 of 2020. Production has begun, therefore, the project has successfully graduated from the Manufacturing
Dashboard.
Stakeholders
Stakeholders
Moon Iron and Steel Company (MISCO) Sohar Industrial City (Madayn)
Oman Food Investment Holding Company Ministry of Municipalities and Water Resources
Ministry of Oil and Gas (MOG) (OFIC) (MRMWR)

Ministry of Agriculture and Fisheries (MoAF) Ministry of Environment and Climate Affairs (MECA)

Food Ministry of Commerce and Industry (MoCI) Ministry of Transport (MoT)

13. Mazoon Dairy Project

14. A’Namaa Poultry Project
Food sector has consistently been growing and developing in
the Sultanate, resulting in a large amount of self-reliance across Oman’s poultry industry is another sector which has consistently
many areas. Dairy production has been at the vanguard of this shown growth and development, with the result being further
self-reliance and this initiative sees further development with the autonomy and self-reliance for the country. Aligning with this
establishment of Mazoon Dairy Company which will meet almost growth and development is the realisation of the A’Namaa Project
90% of Oman’s needs. in Ibri – a project that is set to boost meat production capacity by
60,000 metric tonnes per annum in its poultry warehouses, once it
Located in Al Sunayanah in Buraimi, the farm will be equipped
becomes fully operational.
to the highest standards and with the latest technology whilst still
being a large-scale employer, with 70% of employment consisting
Along with the warehouses, the project will leverage additional
38 of skilled jobs taken by Omanis.
facilities to ensure smooth and efficient operations – including 39
Long-term plans are a key element in the dairy’s planning and hatcheries, a 50 tonne per hour feed mill, a processing plant and
as such, the current head-count of 4,000 Holstein-Fresian cows water treatment plant, and a slaughterhouse with 200,000 bird
will rise to 25,000 by 2026 and the capacity of 202 million litres will per day capacity.
rise to 985 million litres by 2040. This will have a knock-on effect of
reducing the current import figure of 69% down to 13% by 2026
and further again by 2040. The Journey

The project is funded by a mixed portfolio of investment funds and Milestones Status
government pension funds, as well as Oman Food Investment
Holding Company (OFIC), which is heavily investing in several In February 2019, A’Namaa commenced
projects in Oman related to food security. project operations. The main administration
and hatchery administration buildings were
subsequently completed, and the construction
Construction activities of 2019 components. of the processing plant, accommodation
The Journey
building and feed mills was also initiated.
During 2019, the main focus of the project was to finalise civil work on the Mazoon headquarters
building, accommodation building, dairy farm and main plant. The construction of the hatcheries is at 80% and
is expected to be completed by Q1 of 2020.
Following this, the main operation equipment was installed and tested, and the marketing and
branding plans were completed as the factory started commercial production. As the project is not in close proximity to the
Award power connection contracts for the power grid, connection costs are reasonably
Despite a delay in the project’s progress, the team managed to distribute trial products into the hatchery. high. The project team is therefore exploring
marketplace during May 2019. This delay was mostly the result of a hold up in equipment arrival and cost-saving alternatives.
installation, which was reasonable for a project of this size.
 Stakeholders Stakeholders

Oman Food Investment Holding Company (OFIC) Ministry of Agriculture and Fisheries (MoAF) Osool Poultry Company Ministry of Agriculture and Fisheries (MoAF)

Ministry of Commerce and Industry (MoCI) Ministry of Commerce and Industry (MoCI) Rural Areas for Electricity Company (Tanweer)

Petroleum Development Oman (PDO)

15. Osool Poultry Plant

Breeder projects and the hatching eggs that they produce are 16. Arabian Food Production
the starting point and backbone of all broiler or layer poultry
projects. The broiler industry in Oman and other GCC countries still Modern Poultry Farms (MPF), which is the producer of Dana Eggs,
heavily relies on imported hatching eggs to run their operations. currently produces over 125 million eggs annually. Looking ahead,
Any disturbances due to natural disasters or other reasons can this project is set to add about 200 million eggs per year to the
severely impact the broiler industry in this region, which will not total production of the company as it expands its operations with
only spoil the performance of the broiler projects, but endanger new international partners in the newly proposed location in Al
the food security of the region. Sunaina, in Buraimi.

Moreover, the increase in the demand for broiler meat requires Found in 1989, the highly recognisable Dana Eggs brand is
the expansion of existing projects, as well as new poultry projects, synonymous with high quality eggs and widespread distribution –
which also increase the demand for hatching eggs. which has ensured steady growth in its popularity in recent years
in Oman and abroad.
To help overcome issues of supply disruption and inconsistencies
in demand, Osool Poultry project is aimed at facilitating a smooth
supply of hatching eggs to the poultry industry at sustainable The Journey
40 prices. Based in Haima, the breeder project will primarily supply 41
its products within Oman to drive self-sufficiency to between 80% Milestones Status
and 85%, while creating jobs for Omanis in the farming sector.
Completed. This includes the environmental
Obtain initial approvals. permit, MoAF’s approval, and electricity
In addition, it will supply a percentage of production to the
connection.
surrounding GCC countries from the forecast annual production
of 150 million hatching eggs. Completed, and a new company called
Sign shareholders agreement.
Arabian Food Production has been formed.

The Journey Due to a change in the land location, this has

Secure Municipality license from Buraimi.
not yet been achieved.
Milestones Status

The detailed design for plot 4 has been Stakeholders

Complete the detailed design.
completed.
Modern Poultry Farms (MPF) IFFCO Group
Completed. This included receiving and
Oman Flour Mills Mizuho Gulf Capital Partners
Tendering and awarding contracts. reviewing quotations as well as awarding
contracts for plots 1,2 and 3.
ISE Foods, Japan

Complete construction activities. 60% of the construction has been completed.

 17. Dhofar Seafood Canning Plant trusted sources; fattening them by providing the necessary feed for their natural and healthy
growth; and slaughtering them in the company’s state-of-the-art abattoir.
Dhofar Fisheries and Food Industries is one of the largest fish
processing entities in the Middle East, which distributes and sells As these operations are carried out on a continuous basis, the company will provide premium
a range of products in the GCC region and Middle East, Africa meat to local and international markets through an extensive distribution network. Aligning with
and Europe. Oman’s food security vision and sustainability commitments, additional revenue streams will
be generated from left-over edible/inedible parts. Furthermore, Al Bashayer Meat Company
The primary focus of the company is processing and canning has an extensive plan to establish a retail butchery network to provide end-consumers with
tuna fish and sardines, as well as processing fish oil, fish meal and premium quality meat.
other fish by-products, and carrying out the associated marketing
activities for these products.
The Journey
The Journey Milestones Status

Milestones Status
Completed. Tenders have been awarded for
enabling works, all Equipment, abattoir building,
Obtain utilities connection for water and Completed, with ISFU and MoCI assistance,
Award the tenders. machine installation, Mechanical Electrical and
electricity. the company obtained the approvals.
Plumbing (MEP) testing and commissioning, and
the animal holding and processing plant.
Sign contract for the engineering consultant, and
Completed.
obtain approvals for the engineering drawings.
Completed. The structural work and animal
Complete the construction for the 2019 holding, wells, trading area and equipment
Obtain environmental and industrial licenses. Completed.
components. supply for the animal holding building have been
Appoint the Engineering, Procurement, completed.
42 Completed. 43
Construction contractor.
Recruit and appoint the management team. Completed.
Place orders for the machinery and Long Lead
Completed.
items.
Stakeholders
The construction is expected to start in Al Bashayer Meat Company Ministry of Agriculture and Fisheries (MoAF)
Mobilise and commence the construction.
January 2020.
Ministry of Commerce and Industry (MoCI) Oman Food Investment Holding Company (OFIC)
Stakeholders

Dhofar Fisheries and Food Industries Ministry of Agriculture and Fisheries (MoAF)
19. Oman Oilseeds Crushing
Special Economic Zone Authority at Duqm (SEZAD) Ministry of Commerce and Industry (MoCI)
This project will see an integrated Soybean/Canola Crushing & Oil
Extraction Plant being established in the Port of Sohar. The plant
will produce soybean/canola oils for both human consumption
18. Al Bashayer Meat Project
and industrial use; while the meals will provide excellent sources
of protein for poultry and dairy diets.
Al Bashayer Meat Company, a joint stock company, was formed
in 2016 as one of the major projects under the umbrella of OFIC. The plant will be the first facility of its type in Oman, and with a
Since then, the company has continued to carry out its vision of proposed capacity of 3,000 tons/day for soybean and 2,400 tons/
becoming the preferred meat brand in Oman and the GCC. At day for canola, it will be the third largest in the GCC region.
the same time, it has been a key contributor to improving Oman’s
food security, and ensuring food safety for the country.

The company also plans to operate a fully integrated red meat

project. This will be achieved by importing live animals from
 The Journey
The Journey The project has successfully achieved most of its main milestones for 2019, and it has received the initial
instalments from the government in order to establish the workshop, design centre, and training centre.
Milestones Status

Select the CEO and Management Team. Completed. It has also started to deliver professional advanced training courses in engineering design and
manufacture for a batch of Omanis as part of an on-the-job training initiative. The trainees will be
Select the land location. Completed. recruited by the project once they complete their training, which is expected to be in Q2 of 2020.

Obtain initial approvals for environmental and

Moving Forward
industrial permits.
The project is scheduled to be completed in 2020 – when it will become fully functional, and able
Apply for the gas allocation. These milestones have been delayed due to
to support industrial innovations and address the operational needs of industry by designing and
changes in the market dynamics. The business
manufacturing high value components and systems. The Centre will also continue organising and
Finalise the technology and equipment suppliers. plan and market study updates are in progress.
delivering training programmes to upskill Omanis in the area of advanced manufacturing.

Initiate the project financing.

Stakeholders
Stakeholders Sohar University Ministry of Commerce and Industry (MoCI)

Ministry of Commerce and Industry (MoCI) Oman Food Investment Holding Company (OFIC) Ministry of Finance (MoF) National Training Fund (NTF)
Ministry of Agriculture and Fisheries (MoAF) Sohar Port and Freezone

21. Activation of IIC Programmes in 2019

Innovation
44 Industrial Innovation Centre (IIC) initiative was established in 45
20. Advanced Manufacturing Research Centre (AMRC) in Oman September 2017, in collaboration with MoCI and Madayn as an
innovation enabler for industry across the Sultanate, which seeks
Currently, Oman’s manufacturing sector is witnessing signs of to cultivate, facilitate, develop and support innovation in Oman.
increased product innovation and development. This kind of
activity is a big plus-point for the Sultanate, as it serves to further Currently, this is being carried out via 4 specialised programmes:
unlock its ability as a self-reliant country, while ensuring more 1. Development of Human Capital for Industrial Innovation
exportable viabilities for Oman. 2. Establishment of Innovative Start-ups
3. Supporting Companies to Innovate
However, as this innovation increases, so does the need for a 4. Supporting Industrial Sectors to Innovate
research centre focusing on developing new products, performing
tests, producing product prototypes and pioneering ideas. In IIC is uniquely tasked with creating an innovation ecosystem to
order to meet this need, the Advanced Manufacturing Research fuel Oman’s industrial growth, competitiveness, job creation and
Centre (AMRC) project aims to establish and operate a centre to accelerate the economic diversification.
leverage Oman’s current product innovation and development
for establishing new production lines. It has made significant success over the last 2 years in developing
an efficient Industrial Innovation Ecosystem, which in turn enabled
Through AMRC’s research, studies and partnerships with
the achievement of mandated KPIs, while making national
international centres such as the world-renowned Advanced
political, environmental, social and economic impacts.
Manufacturing and Research Centre in Sheffield in the UK, various
challenges currently faced by the manufacturing sector in Oman
can be overcome.

AMRC is expected to be a focal point for the growth of a high-tech

industrial hub in Oman that is focused on precision manufacturing.
The project will provide capital investment opportunities whilst
strengthening Oman’s strategic relationships with international
manufacturing and research centres.
 The Journey Moving Forward
The secondary packaging unit will open in Q1 of 2020. The project will focus on completing construction
Milestones Status
of the main factory as well as obtaining initial approval for electricity and water.
Completed. IIC qualified 110 Omanis as Industrial
Develop human capital for industrial
Innovation Specialists, which was higher than Stakeholders
innovation.
the targeted figure of 100.
Philex Pharma Complex Ministry of Commerce and Industry (MoCI)
Completed. 6 innovative start-ups have been
Establish innovative start-ups. Salalah Free Zone Mininstry of Health (MoH)
established.

Completed. 10 existing companies received

Support companies to innovate. 23. Karwa Motors
support to innovate.

Completed. IIC supported innovation across the Karwa Motors is a strategic investment project set up by Qatar
Support innovation in the industrial sector.
entire Food and Beverage sector. and the Sultanate of Oman to establish a bus manufacturing
and assembly plant in Duqm. The project will be constructed on
a total area of 338,909 square-metres, and will have a scheduled
Stakeholders
capacity to produce 600 units per annum in 1 shift and 1,000 units
Industrial Innovation Centre (IIC) Ministry of Finance (MoF) in 2 shifts – with production capability for both diesel and electric
The Public Establishment for Industrial Estates buses.
Ministry of Commerce and Industry (MoCI)
(Madayn)
Significantly, the Oman-based construction company Premier
Other International has been chosen as the construction contractor for
the project. The construction is set to be completed by the end
22. Philex Pharma Complex of 2020, with commercial production scheduled to begin by Q1
46 of 2021. 47
The state-of-the-art Philex Pharma Complex has a vision to be a
leading value-added pharmaceutical manufacturing hub for the
MENA and East-Africa region. The Journey

Milestones Status
Strategically located in Salalah Free Zone, the facility is set to be
a trade and income generator for Oman, while also diversifying Complete the site levelling. Completed.
Oman’s range of export products. Its focus will be the manufacture
and packaging of multiple types of pharmaceutical dosage Commence the construction after selecting/ The contractor was selected/awarded, and
forms covering a wide range of therapeutics. awarding the contractor. construction on the site has begun.

Stakeholders
The Journey
In order to shorten the project period and expedite medicine registration in the Ministry of Health Mowasalat Qatar Oman Investment Fund (OIF)
(MoH), a secondary packaging unit was established in 2019. This served to reduce the main project Special Economic Zone Authority at Duqm (SEZAD)
cycle time by around 2 years, which meant that the products would be available in the market earlier
than planned.

At the same time, the construction of the main factory is ongoing. After floating the tender, the
contractor was appointed, and the project mobilisation and construction has started.

The main challenge was to obtain MoH permission to begin construction of the packaging unit without
having the appropriate industrial license. The other challenge was to accelerate the process of
registering medicines of the secondary packaging unit. As a result of several meetings and negotiations
between ISFU/MoCI and MoH, MoH committed their full support to the project.
48 49

Tourism
 Tourism KPI Dashboard
2019 Actual 2019 Actual
Initiative / KPI 2019 Target Initiative / KPI 2019 Target
Achievement
Achievement

1 Eco-Tourism 11 Oman Tourism and Convention Bureau (OTCB)

Operationalization of Oman Tourism and Convention

1.1 Geo-heritage tourism development 100% 100% 11.1 100% 100%
Bureau (OTCB)

1.2 Operationalisation of Ras Al Shajar Natural Park 100% 70% 11.2 Launching the e-concierge application 100% 30%

2 Enable Niche Nature/Adventure Tourism 12 Activation of Tourism Development Fund

2.1 Risk management & safety in adventure tourism 100% 60%

12.1 Activation of Tourism Development Fund 55% 0%

2.2 Facilitation of adventure projects 100% 50%

13 Labour Solution Package

5 Creation of F&B cultural precincts

13.1 Formation of the Tourism Sector Association 100% 0%

5.1 Muscat Food Court 100% 50%

13.2 Provide Tour Guide job opportunities 100% 75%
5.2 Classification of Restaurants 100% 100%
13.3 Labour solution framework for tourism sector 100% 100%
Improvement of Regulatory Environment of Food Trucks
50 5.3 100% 50% 51
& Restaurants 14 Expedite Growth in Domestic Tourism

5.4 Food Directory 100% 60%

14.1 Create domestic services for tourism. 100% 55%

7 Facilitation of Tourism Mega Projects

14.2 Develop and Execute New Tourism Projects 100% 62%

Resolution of infrastructure & non-infrastructure issues Create a Framework for Domestic Tourism
7.1 100% 55% 14.3 100% 95%
and development of a list of incentives Development

Plan, Develop & Operate the Public Services at Key

7.2 Al Mouj Project 100% 55% 14.4 100% 55%
Tourism Destinations & Express Stops

7.3 Hayy Al Sharq Project – by ASAAS 100% 34%

* A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.
* A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
7.4 Naseem Al Sabah Project – by NAS Development 100% 60%
specific authorities. However, ISFU follows up on the execution on a regular basis.
* All forms of data are being continuously improved to be more representative of actual economic state. This is
7.5 Qurayyat Resort ITC – by Al Madina Real Estate 100% 45% done in collaboration with NCSI and relevant government entities and aligned with international standards.

7.6 Al Nakheel ITC – by Al Argan Towel 100% 30%

7.7 Ras Al Hadd Resort – by Qatari Diar 100% 100%

8 Enhance Applicant Services for All Tourism Related Projects

8.1 Operationalize the technical team 100% 100

 Overview The initiative includes three projects:
1. Geo-heritage tourism development
The Sultanate of Oman is endowed with rich natural, heritage and cultural resources that make tourism
one of the most important sectors to focus on for the aim of achieving economic diversification. With 2. Operationalisation of Ras Al Shajar Natural Reserve
this great potential, key steps have to be taken in order to further develop the Omani tourism sector. 3. Operationalisation of Qurm Nature Reserve

In addition to what was achieved in the past two years, the focus of 2019 was on major projects such 2019 KPIs
as Hay Al Sharq, Naseem Al Sabah, Qurayyat Resort ITC, Al Nakheel Resort and Ras Al Hadd, which
1.1 Geo-heritage tourism development
are all new projects that became under the supervision of the Implementation Support and Follow-
up Unit (ISFU). Also, domestic tourism has become a priority for the sector through the development Al Huqf Geo-park is one of the promising developments that aim to leverage eco-tourism and geo-
of a number of projects which enrich domestic tourist experiences. In addition, Enhancing Applicant tourism assets in the region. In doing so, the park will contribute to the region’s tourism value. The
Services for All Tourism Related Projects was considered a major project this year, as it streamlines the proposed Al Huqf Geo-park will cover an area on the south-eastern side of the Sultanate of Oman
process of obtaining tourism project approvals and strengthens the role of the technical team. between Wilayat Mahoot and Duqm, in Al Wusta governorate. It includes:
1- Al Wusta Wildlife Reserve (AWWR), which is governed by the Office for Conservation of the
Since tourism is a dynamic sector and despite the challenges faced in the implementation of projects, Environment (OCE) – Diwan of Royal Court.
ISFU has successfully managed to resolve the issues, play a significant role in reconciling different points 2- Duqm Rock Garden (DRG), which falls under the Special Economic Zone Authority at Duqm
of views, and provide support for both public and private sectors. (SEZAD).
3- The area surrounding the two Wilayats of Mahoot and Duqm.
New Initiatives/projects added in 2019:
1.2 Operationalisation of Ras Al Shajar Natural Park
Ras Al Shajr Natural Park was included in this initiative in 2019 in replacement of Al Saleel Natural park,
due to a number of reasons, including its rich biodiversity in terms of flora and fona and its closer
Ras Al Shajar Natural Park
proximity from the capital, which in effect makes it an attractive and more feasible project to develop.

52 53
1.3 Operationalisation of Qurm Nature Reserve
Hayy Al Sharq
This project aims to continue developing Oman’s eco-tourism offerings by operationalising the Qurm
Nature Reserve. Specifically, this will be achieved by inviting more responsible investment and more
Naseem Al Sabah responsible tourism activity into the reserve – without compromising its intrinsic ecological value.
Engagement with the surrounding local community is another key aim.

The Journey
Qurayyat Resort ITC
1.1 Geo-heritage tourism development
The Duqm Rock Garden (DRG) permit system was implemented in the website, while Al Wusta Wildlife
Al Nakheel Resort
Reserve (AWWR) system is in progress. Also, Oman Geo-park feasibility study was completed and has
identified potential geo-parks in Oman with their marketing programs, in addition to conceptualising
AWWR plan, which has contributed to identifying geo-park potential in Al Wusta Governorate.
Ras Al Hadd
Moreover, Al Huqf digital geo-tourism map was developed within the initiative working group, and
the agreement between the Ministry of Tourism (MoT), Omran and Office for Conservation of the
Environment (OCE) took place as Omran has established a broader role to contribute to the reserve.
1. Eco-Tourism
1.2 Operationalisation of Ras Al Shajar Natural Park
Through a clear and robust plan of action, this initiative aims to The working group along MoT is working closely with OCE to design and deliver an eco-tourism project
improve, preserve and capitalize on Oman’s eco-tourism offerings. that will allow visitors to have a rich experience in one of Oman’s most unique protected areas, while
At the same time, it aims to ensure long-term sustainable growth maintaining the integrity of the reserve.
of the tourism sector as it plays a vital role in boosting Oman’s
economy. Also, an agreement took place between Omran, MoT, and OCE to deliver a concept plan to mobilise
an eco-tourism project, and the teams are now engaging to secure the details of the master plan and
investment.
 1.3 Operationalisation of Qurm Nature Reserve 2.2 Facilitation of Adventure Projects
The project is underway in phases according to the plan presented in the proposal of Muscat National This KPI was created to identify and facilitate the development of adventure tourism projects in the
Development and Investment Company (ASAAS). A workshop has previously been conducted by Sultanate. Out of the wide variety of sites suitable for this type of tourism in Oman, it is important
ASAAS on the development of the park, wherein the project stakeholders discussed the progress to identify specific areas to develop and enhance by building appropriate infrastructure for users,
and outcomes of Phase 1 of the environmental study. A brainstorming session was also held during by creating zones to facilitate local SME engagement, and by establishing ways in which local
the workshop to discuss potential outcomes of the park’s development, potential threats, and what communities can benefit from increased visitor influx.
components are required for its successful development.
The Journey
Stakeholders As this niche tourism market in Oman develops, it also serves to promote the Sultanate’s tourism sector
in general by showcasing the vast array of natural attractions in the Sultanate that regional and
Ministry of Tourism (MoT) Ministry of Housing (MoH)
international visitors can experience. A key achievement in this initiative was the successful signing of an
Office for the Conservation of the Environment (OCE) agreement between MoT and Omran to develop Majlis al Jinn for adventure tourism. This agreement
will develop further once the initial environmental and administrative studies are completed, and
Ministry of Environment & Climate Affairs (MECA) National Survey Authority (NSA) once a usufruct agreement is established, which will attract potential investors to develop the area.

Special Economic Zone Authority of Duqm (SEZAD) ISFU’s role was to facilitate meeting of the common objective of both parties to create a safe environment
for adventure tourism. The challenges that this initiative faces are the following: Calculating actual
Petroleum Development of Oman (PDO) Geological Society of Oman (GSO) footfalls at adventure tourism sites; providing adequate safety regulations for adventure activities
without compromising on their inherent “fun factor”; and identifying appropriate areas for adventure
Muscat National Development and Investment Company (ASAAS)
tourism engagement in the Sultanate that at the same time serve to promote conventional tourism.
Muscat Municipality Oman Tourism Development Company (Omran) Furthermore, a delay in the process of signing contracts with consultants (to provide the necessary
studies and conduct assessments on the safety guidelines) hindered some major achievements. ISFU
has consistently worked towards finding solutions to the above challenges in order to accelerate the
process.
54 2. Enable Niche/Adventure Tourism 55
Moving Forward
To regulate and further enable the growth of adventure tourism
The focus for 2020 is to complete the studies that showcase how the communities that preside over
in the Sultanate, this initiative aims to conduct safety audits on
areas with high adventure tourism potential can benefit from visiting adventure enthusiasts. (For
current and future adventure activities, and develop adventure
example – geologists that are keen to visit and explore sites of geological richness in the Sultanate).
tourism within measurable guidelines. This specifically applies to
the sites across Oman that experience a large percentage of
Stakeholders
adventure tourism – such as the Eastern Hajar mountains including
Majlis Al Jinn cave, the Western Hajar mountains including Jabal Ministry of Tourism (MoT) Oman Tourism Development Company (Omran)
Shams and Jabal Al Akhdhar, and Musandam.
Ministry of Housing (MoH)

2019 KPIs
3. Privatizing the management of heritage sites
2.1 Risk management & Safety in Adventure Tourism
With adventure tourism tending to be a high-risk sector, it is vital that safety audit assessments and safety This initiative was introduced to privatize natural heritage sites
guidelines are implemented within all companies/tour operators involved in this industry in Oman, such as forts, castles and old villages located in Oman. Having
based on international best-practice standards and expertise. For this initiative, the implementation achieved success with the Harat al Sibani and Harat al Bilad
of adventure tourism risk management needs to be carried out with the assistance of local SMEs who projects in 2018, the initiative is currently reviewing additional sites
are in the position to provide reliable and safe working guidelines, due to their experience, expertise to develop – which are economically viable, and which offer
and knowledge. further diversification potential for Oman’s tourism sector. ISFU
continues to oversee and track the progress of Harat al Sibani and
Harat al Bilad, as well as the additional sites.
 The Journey Stakeholders
The working group continues to meet on a weekly basis to closely follow up and evaluate the
progress of the initiative through site visits and investor engagement. They are also following up on the Ministry of Tourism (MoT) Ministry of Sports Affairs (MoSA)
identification of potential sites. To date, both the Harat al Sibani and Harat al Bilad developments are
Ministry of Heritage and Culture (MoHC) Ministry of Information (MoI)
under way. The Harat al Sibani development is under the process of being tendered.
Oman Sail Others (as per the type of event)
Stakeholders

Ministry of Tourism (MoT) Ministry of Heritage and Culture (MoHC)

5. Creation of F&B cultural precincts
Public Authority for Craft Industries Oman Tourism Development Company (Omran)
By combining modern retail and entertainment concepts with
Oman’s traditional heritage and culture; new and exciting
4. Develop a year round calendar of events experiences can be delivered to tourists in Oman. This is the
vision that drives this initiative – which aims to create dedicated
cultural precincts that offer domestic and international tourists a
This initiative seeks to further unlock the potential for tourism in
wide range of Food and Beverage (F&B) and cultural attractions.
Oman with the launch of a calendar of events. Including both
However, as Oman’s fast-growing tourism sector develops, it is
new and existing festivals and events, the calendar will serve as
essential that feedback is obtained from tourists visiting Oman
a reference point to guide the activities needed to drive greater
from around the world. This feedback determines the optimum
tourism traffic to Oman throughout the year, and through specific
direction that the sector needs to head towards in the long-term,
seasons. It also serves as a guide to what existing sports, cultural,
and it also enables MoT to respond positively by calling for new
and other events are currently taking place in Oman (and which
and diversified tourism attractions.
of these events would require support and guidance from relevant
stakeholders). The calendar of events includes a proposed Omani
56 The working group is facilitating the completion of the new 57
Halwa festival. This, and similar events, would serve to place Oman
projects, as per the agreed-upon project milestones. They are also
more prominently in the international tourism spotlight.
facilitating the implementation of the new KPIs that were added
to the amended rules and regulations for restaurants and food
trucks. These were added to improve the restaurant/food truck
The Journey
business environment – especially for SMEs.
Economic
International Domestic
Event Name Date Impact
Participants Participants
(OMR) 2019 KPIs

Muscat ShowJumping 5.1 Muscat Food Court

7-9 November 2019 60 23 620,000
Series
Muscat Food Court’s objective is to create an entertainment hub that will serve the F&B industry
through a local investor, Al-Khonji Group.
Oman Desert Marathon 16-22 November 2019 93 72 550,000
5.2 Classification of Restaurants
Oman by UTMB (Ultra- The aim of this KPI is to establish a simple set of criteria – based on international standards – to classify
28-30 November 2019 820 903 3,600,000
Trail du Mont-Blanc) Oman’s F&B establishments.

5.3 Improvement of Regulatory Environment of Food Trucks & Restaurants

Haute Route 1-3 March 2019 232 12 960,000
Food trucks and restaurants together represent a thriving sector of the F&B industry. However, due to
their dynamic and sometimes less-sophisticated environment, they can be prone to health hazards. In
order to attract further investment into this sector, this KPI, therefore, seeks to identify and improve on
Moving Forward
a clear set of regulations for food trucks and restaurants operating in Oman.
In 2020, the working group aims to set a seasonal calendar that aligns cultural, leisure and sports
events across Oman throughout the year. 5.4 Food Directory
As food outlets increasingly look to digital and web-based technology to enhance customer
 engagement, this KPI aims to create a food directory App that would enable users to identify 6. Development of Iconic Projects
restaurants and cafés within a geographical zone. Each establishment featured on the App would
have clear cut ratings based on customer feedback. With Oman increasingly finding itself in the international tourism
spotlight, this initiative aims to create an iconic landmark that a
The Journey global audience could associate directly with the Sultanate of
Oman. Similar to landmarks such as the Eiffel Tower in Paris, France,
5.1 Muscat Food Court the proposed landmark would also function as a destination
The project is still in the preparation stage, and the final approval for the building permit to commence product to attract tourism into the country. The landmark will
with the construction work is pending. ISFU has been constantly following up with all of the stakeholders be incorporated as part of a larger mixed-use development to
involved to ensure the flexibility of development process. ensure commercial viability and sustainability.

One of the main challenges has been a delay in obtaining stakeholder approvals, which in turn has
affected the overall project’s construction timeline. ISFU assisted the stakeholders in dealing with The Journey
challenges they have encountered, by addressing them to the MDU.
The team faced a challenge with project land location, therefore, an alternative location is required
to be assigned for the iconic project.
5.2 Classification of restaurants
Data on local and international best practices for restaurant classification has been gathered. This Stakeholders
subsequently led to the creation of tourism restaurant classification for Oman. Moreover, a ministerial
decision was issued stating that restaurants and cafes subject to tourism classification shall pay 4% of Ministry of Tourism (MoT) Ministry of Housing (MoH)
the total fee paid by the customer to MoT on a quarterly basis.
Royal Oman Police (ROP)

5.3 Improvement of Regulatory Environment of Food Trucks & Restaurants

With the establishment of the Centre for Food Safety and Quality in the Ministry of Regional
7. Facilitation of Tourism Mega Projects
58 Municipalities and Water Resources (MRMWR), the stakeholders relevant to this KPI were brought 59
together through various meetings chaired by ISFU. A challenge faced was the alignment between
The purpose of this initiative is to facilitate a number of key Integrated
public stakeholders and private stakeholders to create a regulatory framework that contributes to the
Tourism Complex (ITC) and hospitality developments. A number of
growth of the industry. ISFU’s role – along with MDU – was to supervise and coordinate meetings with
these developments including The Mount Wellness, Oman Riviera,
these stakeholders in order to establish common grounds for the regulatory framework.
Port Sultan Qaboos, were selected to be supervised by ISFU in
order to monitor and support their delivery and mobilization. These
MRMWR issued a ministerial decision on hygiene requirements of the activities of food trucks and
projects have progressed on the level of finalizing and approving
restaurants. It focuses on the food trucks’ activities, location of the truck and the type of food served.
the master plans and developing agreements.

5.4 Food Directory

In 2019, a list of additional developments and investments was
The development of the Food Directory Application has been contracted to a local SME developer.
included in the dashboard in order to support and monitor the
The application is currently in its final stages to be launched.
progress of their economic impact on the sector. It includes Hay
Al Sharq, Qurayyat Integrated Complex, Al Nakheel ITC, Ras Al
Moving Forward
Hadd Resort, and Naseem Al Sabah. These developments vary
The focus in 2020 will be to continue establishing and overseeing impactful projects in Oman’s F&B in value, size and progress but their impact on creating jobs and
industry. This will involve creating opportunities for SMEs and potential investors. boosting the economy is significant.

Stakeholders
2019 KPIs
Ministry of Tourism (MoT)
7.1 Resolution of infrastructure & non-infrastructure issues and development of a list of incentives

Ministry of Regional Municipality and Water Resources (MRMWR) Apart from overseeing the progress of the previously-mentioned Integrated tourism complexes (ITCs),
the initiative team also identified a number of major infrastructure and non-infrastructure issues faced
Ministry of Housing (MoH) Ministry of Legal Affairs (MoLA) by these projects and other ITC projects. The aim of this KPI is therefore to provide recommendations on
how to resolve these issues (with incentives) following a thorough study. These can then be endorsed
Al Khonji Group Muscat Municipality by the relevant stakeholders.

Royal Oman Police (ROP)

 7.2 Al Mouj Project Also, the regulations for Purchasing Power Parity (PPP) and benchmarking other countries in the region
Al Mouj is the first Integrated Tourism Complex (ITC) project in the country, and saw a total investment have been reviewed and action plans have been proposed.
value of OMR 384 Million. It is located in Muscat and consists of five hotels with a total 1,600 rooms
capacity; 100 hotel apartments; 6,000 housing units; 18-hole golf course, golf club and recreational 7.2 Al Mouj Project
facilities; a commercial centre and walkway; and a marina with berths for 400 boats. Several meetings conducted with the support of ISFU brought representatives from Al Mouj, Muscat
Municipality, and MoT together to discuss the pending approval of the development control plan.
7.3 Hayy Al Sharq Project – by ASAAS
Hay Al Sharq Project is the first leisure and entertainment destination in the country. Located in In addition, ISFU escalated to the Ministerial Committee a full impact analysis of the traffic junction
Al Sawadi, Barka, the project saw a total investment value of OMR 300 Million. Hay Al Sharq Project at the Wave Roundabout. As a result, both Muscat Municipality and Al Mouj Muscat are currently
consists of 3 hotels with a total of 1682 key rooms; 625 residential units; a theme park and wildlife collaborating to resolve the issue related to the road infrastructure.
attraction; a water park; edutainment center; equestrian center, retail and F&B outlets.
7.3 Hayy Al Sharq Project – by ASAAS
7.4 Naseem Al Sabah Project – by NAS Development The designs for the 3-Star and 4-Star hotels have been approved by MoT. The developer has also
An upcoming ITC development, the 400,000 square-meter Naseem Al Sabah Project will be located procured the construction tender and received No Objection Certificates (NOCs) from the relevant
near Al Mouj Project. With an investment worth of OMR 300 Million, it will consist of two hotels with stakeholders. A challenge faced by this project was a delay in the waterpark and edutainment
a total capacity of 600 rooms; 696 housing units; and a marina with berths for 75 boats and a sales designs, due to internal negotiations with the developer.
gallery.
7.4 Naseem Al Sabah Project – by NAS Development
7.5 Qurayyat Resort ITC – by Al Madina Real Estate The building permits for the sales gallery and mock-up villas have been approved by Muscat
The Qurayyat Resort ITC will be located in Wilayat Qurayyat over an area of 1,282,300 square-metres. Municipality.
The project will be developed in 3 phases, and it sees a total investment value of OMR 360 Million.
Once complete, Qurayyat Resort ITC will consist of 3 hotels with a total capacity of 750 key rooms; 7.5 Qurayyat Resort ITC – by Al Madina Real Estate
4,000 residential units; a golf course, waterpark and boulevard walkway. MoT submitted the masterplan to both Ministry of Housing (MoH) and Muscat Municipality on behalf
60 of the developer. ISFU supported the process by facilitating several meetings between the project 61
7.6 Al Nakheel ITC – by Al Argan Towel developers and the Directorate General of Investor Services at MoT, to expedite obtaining the
This mixed-use ITC will be developed on the Abu Nakheel coastline in Al Rumais, Barka. With a total approval of phase one 4-star hotel designs.
area of 500,000 square-metres, the development is set to include 3 hotels with a total of 485 key rooms;
185 hotel apartments; 1,436 residential units; an artificial lagoon and water park; traditional souq; and 7.6 Al Nakheel ITC – by Al Argan Towel
an international school. The total investment value of the project is OMR 246 Million. The first phase of crystal lagoon and infrastructure designs have been completed, and works of leveling
and excavation have commenced.
7.7 Ras Al Hadd Resort – by Qatari Diar
This eco-themed resort will be located in Ras Al Hadd, near Sur, over an area of 1,971,823 square- 7.7 Ras Al Hadd Resort – by Qatari Diar
metres. Once complete, Ras Al Hadd Resort will consist of 3 hotels with a total of 700 key rooms; 488 The developer has tendered the hotel and staff accommodation packages for construction.
residential units; and a commercial centre, heritage village, and marina. It will also include a wildlife
park and marine park. The total investment value of the project is OMR 200 Million. Moving Forward
The focus in 2020 will be to continue facilitating the design and construction phases of the current
The Journey mega projects, and add 2 mega projects, Madinat Al Irfan and Yiti. In addition, following up with MoF,
The initiative’s team engaged with the project owners and consultants on a monthly basis, and Diam, CBO, MoH for approval of the recommended incentives list.
tracked the progress of projects on a weekly basis. While each of the developments is progressing
at its own pace, all of them have required follow-up and fast tracking of approvals. Also, while the Stakeholders
developers experienced no major challenges, there were however some delays due to changing and
reprioritizing some of the projects’ components. Ministry of Tourism (MoT) Ministry of Finance (MoF)

Muscat Municipality Public Authority of Water (Diam)

7.1 Resolution of infrastructure & non-infrastructure issues and development of a list of incentives
The initiative also studied a number of factors, challenges and conditions affecting the current progress State General Reserve Fund (SGRF) Representatives of the project developers/owners
of tourism projects that include fiscal and non-fiscal incentives. ISFU and MOT are working closely with
a number of stakeholders including MoF, Haya Water, MoH, Muscat Municipality and Central Bank
of Oman (CBO), alongside representatives from the private sector to align and launch a list of new
incentives that would help attract investments to the sector.
 8. Enhance Applicant Services for All Tourism Related Projects The Journey
In Q3 of 2019, the team successfully managed to propose new amendments to the signed SLAs. After
This initiative aims to form a technical team in MoT to provide reviewing the previous SLAs – signed in 2018 – the amendments included new activity approvals for
technical support and assistance to investors who are seeking sectors such as adventure tourism, F&B tourism, travel agencies, and other non-real estate tourism
approvals from MoH, MRMWR, MECA, Muscat Municipality and projects. Regarding the recruiting of the technical team, MoT signed a contract with MENA HR
Dhofar Municipality, for tourism related projects. This is because Solutions in October 2019 for the provision of 4 employees for the ministry, for 2019. MoT has appointed
investors are facing several challenges in getting some approvals a number of specialists in 2019 to become part of the technical team.
while establishing their projects. Therefore, appropriate solutions
in order to ease the process and attract more investors need to Moving Forward
be established.
The focus in 2020 is to activate the role of the technical team in streamlining approvals and licenses, in
addition to assessing compliance with the Service Level Agreement (SLA) signed with key government
The technical team will monitor the compliance of the Service
stakeholders, and include new tourism projects to the signed SLAs.
Level Agreements (SLAs) which were signed in 2018 between MoT
and relevant stakeholders to streamline the process of getting
Stakeholders
1 – 5 Star hotel establishment approvals. These stakeholders
include MRMWR, MoH, MECA, Muscat Municipality and Dhofar Ministry of Tourism (MoT) Muscat Municipality
Municipality. Furthermore, the initiative aims to propose further
amendments on the signed SLAs by including non-real estate Ministry of Regional Municipalities and Water resources (MRMWR)
tourism projects.
Ministry of Housing (MoH) Ministry of Environment and Climate Affairs (MECA)

Streamlining the Process of Obtaining Approvals Dhofar Municipality

62 9. Extending Usufruct & Lease Options

63

The main objective of this initiative was achieved in 2018. It saw

changes being made on the period of usufruct from 50 to 99
years on government lands, and from 30 to 50 years on private
lands. In 2019, the initiative continued to propose certain criteria
and standards to preserve the various components of tourist sites
1 2 3 4 5 in Oman. Amendments to some of the clauses in the contract
were also made, to include and prepare special annexes for
specialized tourism projects.
Investors MoT Relevant MoT Investors
Technical Stakeholders: Technical
Team Team

2019 KPIs
• MoT • MoH • MECA • ROP • PACDA • Municipalities
9.1 Amendment of some usufruct contract clauses and preparation of special annexes
This KPI aims to make amendments to some of the clauses of the usufruct contract. It also aims to
prepare special annexes focusing on ITC and non-ITC projects.
Reducing the number of days required to Reducing the number of days required
process 1, 2, 3, 4, 5-star hotel approvals, to process unmarked land applications The Journey
not to exceed 30 working days. to 92 working days. In 2019, the team focused on aligning the framework and criteria of the usufruct law based on the
extension from 50 to 99 years (government lands), and 30 to 50 years (private lands).

Moving Forward
2019 KPIs
In 2020, the initiative will prepare guidelines and regulation of extending period of usufruct contracts.
8.1 Operationalize the technical team Also, it will focus on finalizing templates of ITC and non-ITC related tourism projects.
This KPI aims to monitor the progress of recruiting and operationalizing the technical team, to help and
support MoT to become a one single window for obtaining all tourism related approvals.
 Stakeholders 11. Oman Tourism and Convention Bureau (OTCB)

Ministry of Tourism (MoT) Ministry of Finance (MoF) Oman Tourism and Convention Bureau (OTCB) serves to
promote Oman as an attractive business partner for investors
Ministry of Environment and Climate Affairs (MECA) and developers, and as a preferred destination for Meetings,
Incentives, Conferences and Exhibitions (MICE) tourism.
Ministry of Housing (MoH) Ministry of Legal Affairs (MoLA)

Ministry of Heritage and Culture (MoHC) The working group proceeded with the launching of the
e-concierge application aimed at tourists who have either arrived
in the Sultanate, or planning a visit to it. This application aims to
serve as an electronic platform that provides details about the
10. Targeting new tourism markets most important attractions, tourism sites, services, products and
activities in Oman.
This initiative continues its role of opening up Marketing Based
Representative (MBR) offices in China, Russia and Iran. Over
the last 2 years, considerable efforts were made to provide visa
2019 KPIs
facilitation to these 3 markets. In May 2018, the Royal Oman
Police (ROP) also announced the inclusion of Chinese, Russian 11.1 Operationalization of Oman Tourism and Convention Bureau (OTCB)
and Iranian nationals’ visas to Oman’s List A category that include This KPI aims to monitor the progress of launching OTCB, while selecting the proper legal and financial
visa on arrival. models to help in establishing the bureau.

11.2 Launching the e-concierge application

The Journey This KPI aims to monitor the progress of launching the application which serves as a comprehensive
In September 2019, a workshop was held in Russia to further facilitate the progress of this initiative. It information centre for potential and actual visitors to Oman.
64 was attended by MoT representatives, Marketing Based Representative (MBR), and stakeholders from 65
Russia’s tourism sector. The Journey

With regards to the MBR in China, MoT announced a second tender and the bids for this are now 11.1 Operationalization of Oman Tourism and Convention Bureau (OTCB)
being evaluated. Prior to this, MoT also conducted a workshop in Oman in 18th of September 2019 to MoT floated an international tender in July 2019 and subsequently awarded a 9-month contract to
facilitate further understanding of the needs of the Chinese travel market. It was attended by experts a consulting firm, Horwath HTL – who advised on the legal and financial models required to establish
in this field from China and Oman travel agencies. OTCB. In Q3 of 2019, the Inception Report and Strategy Analysis from the consultant were obtained,
and MoT is currently working on finalising the legal procedures to establish OTCB.
Moving Forward
In 2020, the focus will be on activating MBR in China, conducting marketing campaigns in Russia and In addition, a team of representatives from MoLA, Ministry of Finance (MoF), and Ministry of Civil
China, and adding new markets including USA. Services (MoCS) has been formed for the legal and financial process review. ISFU’s team have played
a significant role in facilitating meetings with the consultant and MoT, as well as relevant parties such as
Stakeholders Oman Tourism Development Company (Omran) and Oman Aviation Group (OAG). In addition, they
have facilitated conference calls between MoT and the consultant.
Ministry of Tourism (MoT) Ministry of Foreign Affairs (MoFA)
11.2 Launching the e-concierge application
Chinese Embassy MC Group The development of the application is currently undergoing and is set to be launched in 2020. MoT is
working with Omantel (project manager) in order to complete the remining phases and launch the
app.

Moving Forward
In 2020, the initiative aims to launch and operationalize Oman Tourism & Convention Bureau (OTCB),
in addition to launching the e-concierge application.
 Stakeholders 13. Labour Solution Package

Ministry of Tourism (MoT) Ministry of Legal Affairs (MoLA)

The main objective of this initiative is to attract about 10,000
Omani nationals to work across the tourism industry, by providing
Ministry of Civil Service (MoCS) Ministry of Finance (MoF)
an incentive package. Towards meeting this end, and during
Omantel Horwath HTL 2019, the focus will be on forming a tourism sector association,
training a number of employees to work as tour guides in 6 tour
operating companies, forming a technical team within the Ministry
of Tourism, and designing the In-Country Value (ICV) framework.
12. Activation of Tourism Development Fund

As part of Oman’s diversification plans in making the nation a go-

2019 KPIs
to destination for tourists from around the world, tourism tax is a
vital method of raising the funds needed to support the tourism
13.1 Formation of the Tourism Sector Association
industry. The tourism tax of 4% collected from tourist-related entities
is currently transferred to the Ministry of Finance (MoF). From here, An application will be placed before the Cabinet to set up a Tourism Association, which would serve
it is redistributed to MoT, MoHC, and ROP. By establishing an to improve private sector/government communication.
independent Tourism Development Fund under MoT, as per the
tourism law, this initiative will see an increase in the share of tax 13.2 Provide Tour Guide job opportunities
funds allocated to MoT. Following a successful on-the-job training organized by Oman Tourism College, this KPI will monitor the
recruitment of 16 Omani job seekers as full-time tour guides in 6 tour guide operating companies.

2019 KPIs 13.3 Labour solution framework for tourism sector

The technical team works closely with the key players in the tourism industry, to create job opportunities
66 12.1 Activation of Tourism Development Fund for 10,000 Omanis across the sector. It also proposes a number of incentives to make working in the 67
This KPI focuses on activating an account for tourism development where tourism revenues can be sector attractive. Therefore, This KPI keeps track of the progress of the labour solution framework.
channeled to directly on an annual basis. The goal is for MoT to be able to fund its marketing, training Another major milestone for the initiative team is to design an ICV framework, on similar lines worked
and other developments more efficiently. out for the oil and gas sector.

The Journey The Journey

13.1 Formation of the Tourism Sector Association
Milestones Status
In 2019, ISFU supported MoT by following up with the General Secretariat of the Cabinet on approving
Approve Tourism Development Fund MoF and MoT are currently in the process of approving the application. It presented the KPI status in April 2019 during the Ministerial Committee meeting
Mechanism by MoF. the mechanism in order to launch the fund in 2020. to expedite the approval. However, following the presentation to the Cabinet, it was decided to
withhold declaring the formation of the Tourism Association until the Ministry of Social Development
Moving Forward (MoSD) presents a study on all existing associations.

The focus in 2020 will be to activate the Tourism Development Fund.

13.2 Provide Tour Guide job opportunities
Stakeholders Data was gathered on available licensed tour guides, and a list of opportunities was created for tour
guide employment and training. Also, MoT obtained commitment from 6 tour operator companies to
Ministry of Tourism (MoT) Ministry of Finance (MoF) hire 16 Omanis on a full-time basis after being trained with the National Training Fund (NTF) and Oman
Tourism College.

Apart from training Omanis, the initiative team saw potential in an SME that is developing an App that
acts as a platform for all licensed tour operators. Therefore, meetings were conducted to give the
SME team direction and support in providing data to enhance tour operator registration on the App.
 13.3 Labour solution framework for tourism sector 2019 KPIs
The year started off on a positive note with the formation of a technical team headed by the 14.1 Create domestic services for tourism
Undersecretary of Tourism, which included members from MoT and MoMP. The focus was to analyze The objective of this KPI is to provide new services and develop the existing ones. Since 2018, the
available data on the number of Omanis employed in the sector and ways to attract nationals and focus has been on providing a number of services identified as “quick wins” to enhance facilities for
increase their number. tourists. These include public restrooms in petrol and non-petrol stations, beach developments, and
Recreational Vehicle (RV) parks.
As part of this initiative, the technical team meets on a weekly basis with Human Resources managers
of hotels, travel agencies and tour operators to identify attractive jobs for Omanis, while also 14.2 Develop and Execute New Tourism Projects
understanding the challenges faced by these entities. These interactions have been beneficial in This KPI aims to develop some of Oman’s main tourism sites, including Wadi Bani Khalid and
identifying 370 job opportunities for Omanis. Therefore, the team proposed to have a career fair which Al Ashkharah Beach in Al Sharqiya Governorate, and the Suhoor Cave in Dhofar.
was held on the 14th of October with the participation of 40 hospitality companies, offering 620 job
opportunities to employ as many Omanis as possible in the sector. 14.3 Create a Framework for Domestic Tourism Development
Based on the National Tourism Strategy 2040, this KPI aims to establish a sustainable and effective
In addition, the initiative team conducted several meetings with the Ministry of Oil & Gas (MOG), as regulatory framework to stimulate and develop local tourism. This is possible by encouraging each of
well as Petroleum Development Oman (PDO) to understand how they designed their ICV strategy, the 11 governorates to play a role in the development of the tourism sector.
and how they monitored the operators. The initiative team is in the process of collecting necessary
data in preparation for studying how to design an ICV strategy that works for the tourism sector. 14.4 Plan, Develop & Operate the Public Services at Key Tourism Destinations & Express Stops
The main objective of this KPI is to provide and develop a number of services and facilities at key
The technical team faced a number of challenges, especially in identifying job opportunities for tourism destinations, and along the expressways such as Al Batinah Expressway.
Omanis in the sector. Several sector representatives showed hesitation in recruiting Omanis due to
The Journey
high turnover. However, through discussions, the team managed to introduce a number of solutions
such as part-time jobs and proper training for Omanis to be job-ready. 14.1 Create domestic services for tourism
68 69
Milestones Status
Moving Forward
The focus in 2020 will be to form the technical team, which will be responsible for meeting with sector The Sur Al Hadid Carnival was held in March
players to create job opportunities for Omanis, review Omanisation percentages and introduce 2019 at Seeb Beach as a successful pilot project
incentives for employers & employees. for beach development in the Sultanate. The
event attracted over 50,000 visitors. The event
Launch Sur Al Hadid Beach site by organising a
was aligned with this initiative’s objective
Stakeholders food/retail/sports carnival.
of enhancing and providing services and
facilities for domestic tourists – and of taking
Ministry of Tourism (MoT) Ministry of Manpower (MoMP) advantage of the beach resources to attract
tourism activities and support local SMEs.
Ministry of Social Development (MoSD) Oman Tourism College
Identify campground for Sites have been identified and the team is
Tour Operators National Training Fund(NTF) Recreational Vehicle (RV) Parks currently working on developing the sites.

The Cabinet of Ministers MoT awarded Omran the 3 locations to

Commence Operation Stage at 3 locations:
develop and operate the RV parks to be
Ras Al Jinz, Al Ashkhara, and Salalah.
delivered by Q1 2020.
14. Expedite Growth of Domestic Tourism

With the vision to develop domestic tourism and increase its

contribution to the national economy’s GDP, this initiative was
added to the dashboard in 2018. It aims to provide the services,
activities and projects which fulfil the needs of tourists and
enhance their experience in Oman.
 14.2 Develop and Execute New Tourism Projects Moving Forward
In 2020, The initiative will continue to provide further development, execution and operation of public
Milestones Status
services at key tourism destinations, create Recreational Vehicle (RV) facilities development and
Handover MoT tender documents for The initiative working group engaged with finalize domestic tourism framework.
Al Ashkharah, Wadi Bani Khalid and Suhoor MoT’s Development Department to assist
Cave. them in finding appropriate investors for the Stakeholders
3 projects. In Q2 of 2019, MoT announced
Obtain access to land. investment tenders in these locations, then, it Ministry of Tourism (MoT) Royal Oman Police (ROP)
received and evaluated the submission of bids.
Secure investments. Regarding Al Ashkhara beach, an investor was Ministry of Regional Municipalities and Water
Muscat Municipality
selected and will be awarded, while for Wadi Resources (MRMWR)
Bani Khalid, MoT is currently in negotiation
with potential investors and also unlocking Ministry of Housing (MoH) Ministry of Transport
Receive and evaluate submission of bids.
infrastructure challenges on site, and looking
for an investor for Suhoor Cave. Major Oil Companies: Oman Oil, Al Maha, and Oman Tourism Development Company
Shell Oman (Omran)

14.3 Create a Framework for Domestic Tourism Development Oman National Transport Company (Mwasalat) Private Sector

Milestones Status

The team successfully engaged with the

stakeholders to gather data that will be used in
Engage with stakeholders to gather data/info drafting the domestic tourism framework. The
in order to benchmark domestic tourism based team also studied best practices from leading
on a minimum of 3 international case studies. regional and international tourism destinations,
70 71
including New Zealand, Singapore, South
Africa, and Ireland.

14.4 Plan, Develop & Operate the Public Services at Key Tourism Destinations & Express Stops

Milestones Status

Site visits were conducted in various

governorates such as Al Sharqiya, Al Batinah,
Al Dhahirah and Muscat, in order to evaluate
Conduct site visits to various governorates.
the state of existing tourism services, and see
how they can be enhanced for domestic
tourism.

With the support of ISFU, 3 key destinations

Select key tourism destinations and express were identified in coordination with MRMWR
stops to install public facilities such as: toilets, & MoT, and public facilities were installed in 3
F&B and Retail outlets. locations as a priority by MRMWR, after transfer
of budget from MoT.
72 73

Logistics
 Logistics KPI Dashboard
2019 Actual 2019 Actual
Initiative/ KPI 2019 Target
Achievement Initiative/ KPI 2019 Target
Achievement
1 Enhancing Dwell Time Efficiency at all borders (pre Arrival Clearance) 12 Enhance Rusail-Bidbid Road Network
Sea freight pre-clearance is to be 20% of the total incoming Rusail-Bidbid road network (awarding, mobilisation and
1.1 100% 100% 12.1 100% 60%
goods by end of Q4 road construction)
Air freight pre-clearance is to be 15% of the total incoming 13 Road Investment Solutions
1.2 100% 100%
goods by end of Q4
13.1 Float tender for Thumrait Salalah Truck Toll Road 100% 30%
2 Establish a One-Stop-Shop for Inspection
14 Develop Logistics Gate
2.1 Operationalise One-Stop-Shop (OSS) in Salalah Port 100% 45%
14.1 Engagement with Logistics Partners in Airport City 100% 100%
2.2 Reduce inspection rate to 10% by the end of the year 100% 100%
14.2 Issue Free Zone Royal Decree for Airports 100% 80%
4 Enhancing the Competitiveness of Oman Free Zones

4.1 Issue Free Zone Royal Decree 100% 60%

15 Globalise Omani Air Cargo

4.2 Oman Free Zone brand awareness 100% 60% 15.1 Conduct Freighter Business Case Study 100% 90%
Extension of the cold capacity of the cargo terminal in
4.3 Introduce value-added products 100% 100% 15.2 100% 60%
Muscat International Airport

5 Enhance Private Sector Logistics Efficiency 16 Strengthen Air Cargo Ecosystem

Launch a private sector development programme to assist 16.1 Optimise Cargo Operating Model 100% 60%
5.1 100% 83%
SMEs in enhancing the efficiency of their business logistics
16.2 Air Cargo Sector Promotion & Marketing 100% 75%
7 Continuous Employment and Enabling Nationals in the Logistics Sector
74 16.3 Analysing and Addressing Sea-Air Gaps 100% 100% 75
Establishment of Quality Framework for National
7.1 Occupations Standards (NOS) and Vocational Education 100% 100% 16.4 Activate and Increase Domestic Airports Volumes 100% 30%
and Training (VET) Standardisation
17 Salalah Port Expansion
7.2 Enabling Nationals Employment by Opportunities Awareness 100% 100% Central Services Corridor: Completion of new pipe rack,
17.1 100% 97%
7.3 Creating Job Opportunities by a Business Incubator 100% 80% service roads
17.2 Modification of existing pipe rack 100% 96%
7.4 Analyse Current and Future Workforce Status 100% 85%
18 Development of Suwaiq Port for Commercial Activities
8 Khazaen Economic City
18.1 Operationalisation of Phase 1B 100% 100%
8.1 Develop Khazaen Economic City Project 100% 75%
18.2 Port’s Land Extension 100% 80%
9 Build Mineral Railway in Al Wusta Region
Mining: Completion of mining exploration report (Resources 19 Improve Existing Auxiliary Services in Oman’s Ports
9.1 100% 100%
statement report) – 100%
19.1 Establishment of waste management facility in Sohar Port 100% 40%
9.2 Railway: Completion of Socio-economic study 100% 30%
20 Development of Khasab & Shinas Ports for Commercial Activities
10 Enhance Cold-Chain Infrastructure
20.1 Rehabilitation of the existing Quay wall in Khasab Port 100% 60%
10.1 Fisheries: Improvement of cold chain facilities 100% 45%
20.2 Commercial re-organisation of Shinas Port 100% 45%
Agriculture: Establishment of integrated fruit and vegetable
10.2 100% 100%
marketing company in Oman 21 Strengthen Connectivity to Oman’s Ports
Develop a coordinated Cold Chain optimisation plan for Introduction of new liner services (OEX & IEX) calling at
10.3 100% 75% 21.1 100% 90%
Oman Omani ports
11 Enhancing Wadi Sa’a-Hafeet and Ibri Bypass Roads * A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.

Completion of dualisation of lanes for Wadi Sa’a – Hafeet * A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
11.2 100% 17.5% specific authorities. However, ISFU follows up on the execution on a regular basis.
road/Kick off construction
11.3 Completion of new Ibri bypass road/Kick off construction 100% 17.5% * All forms of data are being continuously improved to be more representative of actual economic state. This is
done in collaboration with NCSI and relevant government entities and aligned with international standards.
 Overview Trade Facilitation

With its strategic geographical location, Oman is viewed as the gate of Arabian gulf to the world.
1. Enhancing Dwell Time Efficiency at all borders (pre Arrival Clearance)
This gives the logistics sector a unique opportunity to contribute to the economic diversification of
the country. Moreover, there is clear potential for the sector to achieve significant growth, as the
With a steady rise of goods arriving into the Sultanate by sea
Sultanate’s logistics performance has improved in the recent years, jumping five places in the World
and air, the country aims to streamline procedures by enhancing
Bank’s Logistics Performance Index (LPI) 2018 report. Therefore, ISFU has selected major logistics projects
dwell-time efficiency (a dynamic instant index for terminals) at
in order to contribute to the growth of the sector by supporting and following up these projects.
all borders, including the key cargo entry/exit points in Sohar Port
and Muscat International Airport. With this in mind, the goal of this
One of the major projects is the Pre-Arrival Clearance project that is considered as one of the crucial
initiative is to enhance the overall clearance process of both sea
projects in trade facilitation, where sea and air cargo are cleared from customs before its arrival. The
and air shipments. The Implementation Support and Follow-up
total of 22% of goods have been cleared and released before arrival in Sohar port, compared to 14%
Unit (ISFU) has been closely following up this initiative and giving
in 2018. As well, the dwell time in Sohar Port was decreased from 12 to 5 days, that gives 7 days of
suggestions and recommendations during the meetings held
reduction from the total dwell time in 2016-2019, resulting in savings of OMR 300 million per year. Other
between the stakeholders.
strategic projects are Khazaen Economic City, Road Investment Solutions, Mineral Railway in Al Wusta
Region, Logistics Gate, and E-commerce.

2019 KPIs
ISFU works closely with the MDU in coordinating between stakeholders and facilitating the
implementation of projects and initiatives. Most of the challenges faced by the logistics sector have
1.1 Sea freight pre-clearance is to be 20% of the total incoming goods by end of Q4
been resolved through collective efforts, site visits, and intensive meetings.

1.2 Air freight pre-clearance is to be 15% of the total incoming goods by end of Q4
New initiatives/projects added in 2019: These two KPIs aim to attract sea and air shipment handlers to use the pre-clearance process to
enhance logistics efficiency by reducing time and saving costs.

76 77
Preclearance Process
Strengthen Air Cargo Ecosystem

To be carried out at least 2 days before arrival

Globalise Omani Air Cargo

Development of Khasab & Shinas Port for Commercial Activities

Upload to Bayan: Check up:

Permits: Custom Broker/ The shipment will be
Enhance Private Sector Logistics Efficiency importer uploads checked up via the
Importers get their
a copy of shipping Risk Management
relevant permits
documents, bill of System. Notification
through Bayan
lading, invoice, will be sent once
System.
packing list, the check up is
Continuous Employment and Enabling Nationals in the Logistics Sector certificate of origin. completed.

Receiving:
Shipping details: Once shipment
Payment: arrives, custom
Shipping lines
Custom Broker/ broker/importer
share manifest
importer pays can receive the
and delivery order
the duties. shipment within 6
release.
Hrs in the port and
4 Hrs in the airport.
 The Journey 2019 KPIs
1.1 Sea freight pre-clearance is to be 20% of the total incoming goods by end of Q4
2.1 Operationalise One-Stop-Shop (OSS) in Salalah Port
Milestone Status With the vision to reduce costs and save time, this KPI measures the level of coordination of physical
goods inspections carried out by the Government Control Agencies (GCAs, several government entities
Completion of manifest timeline regulation who look into clearing cargo imports). The goal is to limit multiple inspections to a single inspection.
Completed.
draft, and internal review of draft.

2.2 Reduce inspection rate to 10% by the end of the year

Regulations draft have been submitted,
Submission of regulation draft to relevant This KPI aims to audit the performance of the implemented Risk Management Profiles (RMPs) of the
endorsed and instructions to logistics service
authorities, and subsequent endorsement. Ministries and Municipalities involved in the initiative – the Ministry of Agriculture and Fisheries (MOAF),
providers were issued by ROP.
the Ministry of Regional Municipal and Water Resources (MRMWR), Muscat Municipality and Dhofar
Conduct pre-clearance awareness sessions. Completed. Municipality. At the same time, it aims to reduce costs and save time.

The Journey
1.2 Air freight pre-clearance is to be 15% of the total incoming goods by end of Q4
Various visits were carried out in order to audit the performance of each of the One-Stop-Shop (OSS)
Milestone Status operations at the Port of Suwaiq, Port of Sohar, Muscat Airport, and government offices in the Port of
Salalah. While the auditing process made allowance for the Risk Management Profile (RMP) assessments
This has been completed. The pilot project for each of the entities involved in the initiative. The RMPs were in turn uploaded onto the Bayan system.
statistics analysis from Bayan system (January In addition to the above, the 1st phase of construction of OSS for the Port of Salalah was completed.
Completion of air import pre-arrival clearance
and February) has been received; and the
pilot project.
pilot report has been submitted to relevant Moving Forward
stakeholders.
In 2020, the initiative will operationalise OSS in Salalah port and two other locations.

78 Completed. The Directorate General of

Stakeholders
79
Implementation of pre-arrival clearance. Customs has announced the pre-clearance
process to the local logistics community.
Ministry of Transport (MoT) Royal Oman Police (ROP)
Conduct pre-clearance awareness campaigns. Completed.
Ministries and Authorities concerned with
Oman Global Logistics Group (ASYAD)
regulating trade and transport
Stakeholders
Ports and Airports Free Zones
Royal Oman Police (ROP) Oman Global Logistics Group (ASYAD)
Traders Logistics providers and freight forwarders
Ministry of Transport (MoT)

3. Enable E-commerce growth in Oman

2. Establish a One-Stop-Shop for Inspection
One of the keys to unlocking Oman’s logistics potential in the
Introduced by the Royal Oman Police (ROP), Bayan is an online years to come will undoubtedly be digital logistics, and specifically
One-Stop-Shop (OSS) that substantially reduces customs clearance electronic commerce (e-Commerce). E-Commerce provides
times, while enabling seamless, convenient and efficient clearance opportunities for consumers, businesses and governments to
of goods for the business community and other stakeholders. The buy and sell products online whilst fostering competition and
establishment of the OSS for joint inspection ensures optimum use innovation. Just like the rest of the world, e-Commerce in Oman,
of resources, improves revenue collection, provides cost reduction whether in the form of business to consumer (B2C), business to
benefits, increases adherence to legal obligations, enhances business (B2B), or consumer to consumer (C2C), is fast becoming
security, promotes inter-governmental relations and increases a vital component of economic growth and competitiveness.
transparency. Bayan also functions as a storage portal on which Nowadays, governments are increasingly adopting e-Commerce
Risk Management Profiles (RMPs) are uploaded. opportunities through paid services offered to consumers and
businesses (G2C and G2B) and products and services purchased
For this platform to be successful, all government entities should from businesses (B2G).
be integrated into the system and incentivised to use it.
 2019 KPIs 2) Information Technology (IT) and Academia: Relevant IT skills are needed to support e-Commerce
companies. In addition, specific skills are needed related to operating a digital business: Content
3.1 Set up Project Management Office (PMO) creation, graphic design, data analytics, digital marketing – and the understanding of how the
The primary goal for setting up the PMO for this initiative is to prepare what will be an action plan to internet can be effectively leveraged for business.
use during consultation with various groups. This will happen by aggregating projects and activities
at a programme level, while taking into account relevant strategies and plans. In turn, work groups 3) Entrepreneurs: This category needs the basic business skills and access to mentoring that aligns
will report to the PMO on the progress of the initiative, and also on any issues arising within their own with the e-Commerce environment.
organisations. In addition, the PMO reports its progress periodically to the Steering Committee.
4) Established Businesses: These need to be aware of how e-Commerce applies to the modern-day
3.2 Establish an e-commerce park in Oman business world; what they need to launch an e-Commerce retail outlet (or similar platform); and
where they can obtain pre-packaged IT solutions from the local market.
The ultimate goal of this KPI is to enable the appropriate infrastructure and services that will allow
e-Commerce firms to successfully distribute their products from Oman. In addition to serving Oman, a
proposed e-Commerce park would also serve the Gulf Region and East Africa. This ground-breaking 3.8 Provision of business facilitation measures
project would provide several services for national and international e-Commerce firms. This KPI is concerned with business facilitation and the creation of an environment in which businesses
can be successfully started and developed. Measures in this KPI are concerned in particular with the
3.3 Establish ICT infrastructure & services and regional logistics hub measures development of e-Commerce businesses. This includes new businesses, existing businesses adopting
An active and healthy e-Commerce culture depends on the availability of a reliable, efficient, and e-Commerce, new or existing businesses that are part of the e-Commerce ecosystem, and which
cost-effective Information and Communication Technology (ICT) infrastructure. With this in mind, it is provide payment services, Information and Communication Technology (ICT) services, logistics
important that Oman’s e-Commerce consumers and businesses have access to this, (For example: services and digital marketing services etc. There are three areas of business facilitation of importance
access to high-speed internet). in this KPI. These include firstly, ease of doing business; secondly, access to finance; and thirdly, access
to support services such as mentoring, training, working space, and incubation etc.
3.4 Establish e-procurement measures
In order to benefit from its efficient and effective purchasing power, a number of government entities 3.9 Provision of transport, logistics and trade facilitation
80 and large businesses in Oman are currently making use of e-Procurement. This technology streamlines For e-Commerce businesses to fulfil their potential, they need to have easy access to logistics and 81
the purchase and sale of supplies, work, and services through the Internet and other information and transportation infrastructures that are both reliable and cost-effective to use. Bulk goods need to be
networking systems. This KPI aims to extend the use of e-Procurement to more users in the Sultanate. stored in warehouses, where they can be broken down into individual packages, and delivered to
customers in Oman or ideally, anywhere in the world. Some goods also need to be cleared by customs.
3.5 Establish payment measures
When it comes to e-Commerce, both quantitative and qualitative evidence suggests that there is
The Journey
currently a relatively high degree of payment instruments penetration for residents of Oman. However,
research also shows that e-Commerce businesses have difficulty setting up online payments. This With the vision of enabling optimal e-Commerce growth in Oman, working groups have been formed
inhibits the development of online shopping in the country, and hinders innovation. with various stakeholders to implement this initiative. ISFU was instrumental in guiding and supporting
these working groups by providing the strategy, and facilitating access to the Project Management
3.6 Establish legal and regulatory framework measures Office (PMO). The challenges faced were finding the appropriate resources for the PMO and obtaining
This KPI looks at the legal and regulatory measures needed to optimise Oman’s e-Commerce sector – the approval for the strategy to go ahead. Nevertheless, the resources were found, and the strategy
including the laws that legalise electronic transactions and protect consumers. Many of the regulatory was endorsed by the Steering Committee and awaiting the approval of the Cabinet.
elements for e-Commerce are already present: Oman already has an electronic transactions law,
a consumer protection law, and a cyber-crime law. However, Oman lacks a data protection law Moving Forward
and other laws, which need to be established and brought into line with international best practice Looking ahead into 2020, the ultimate goal for the initiative is to enable e-commerce in the logistics
standards. Once this is achieved, trust will be enhanced for both online buyers and sellers. Furthermore, sector via various projects focused on building the proper ecosystem in the sector, enhancing delivery
the range and online availability of digital services and products is rapidly growing, therefore, certain services, and raising the skills and awareness related to e-commerce. However, it was decided that
Omani laws and regulations will need to be amended to facilitate this growth. the E-commerce strategy will be transferred to MoCI given that the ministry has recently established
a new department for E-Commerce, while Oman Global Logistics Group (ASYAD), supported by ISFU,
3.7 Provision of skills and awareness will continue with logistics related E-commerce activities.
This KPI takes into account four key categories that are affected by e-Commerce:

1) People: Trust and security is an important factor for those wanting to use e-Commerce for the first
time. Basic awareness of e-Commerce (what it is, how it works etc.) is another key factor.
 Stakeholders The Journey

Ministry of Technology and Communication (MTC) Ministry of Transport (MoT) Milestone Status

Ministry of Commerce and Industry (MoCI) Oman Global Logistics Group (ASYAD) The Royal Decree has been finalised and approved
by the Free Zone committee, and the memo with
Receive finalised Royal Decree and send
Oman Aviation Group (OAG) Telecommunications Regulatory Authority (TRA) finalised Royal Decree has been sent to the Cabinet
it to the Cabinet of Ministers for approval.
of Ministers for endorsement and issuing. ISFU was
Central Bank of Oman (CBO) involved in accelerating the approval for both tasks.

Ministries and Authorities concerned with regulating trade and transport A list of channels has been identified, with ISFU
Identify various channels for brand
having been instrumental in ensuring this task was
Logistics providers and freight forwarders promotion.
completed in time.

4. Enhancing the Competitiveness of Oman Free Zones Three events took place during 2019, which are
the “International Conference of the World Free
Attracting foreign investment is a key factor to growing a Carry out brand promotion events. Zones Organization” in Barcelona, “Gulfood
country’s economy and Oman has taken steps to encourage Manufacturing” in Dubai, and “Oman Economic
this by initiating Free Zones in Salalah, Sohar and Al Mazyunah. and Free Zone Summit”.
As part of the incentives, 100% foreign ownership of companies
Based on what was required, value-added products
within these Free Zones has been permitted. Investments will be
Identification of value-added products to have been identified for Salalah Free Zone and
stimulated once the standardisation of policies and regulations
be developed. Sohar Free Zone. ISFU was instrumental in ensuring
to boost the business landscape, reduce government costs and
this identification was completed in time.
improve promotional schemes is adopted.
82 Implementation of the Food Court in Sohar 83
A primary goal in 2019 is to obtain a new Royal Decree for Free Zone, completion of Salalah Free
Oman Free Zones and after obtaining it, they will carry out brand These milestones have all been completed.
Zone Gate, and issuance of the General
promotion initiatives and establish value-added products in both Trade License in Salalah Free Zone.
Sohar and Salalah Free Zones.

2019 KPIs Stakeholders

Free Zones operators (Sohar Free Zone &

4.1 Issue Free Zone Royal Decree Ministry of Manpower (MoMP)
Salalah Free Zone)
This KPI measures the process of issuing Royal Decree for Free Zones in Oman. The Free Zone Committee’s
objectives and strategic direction need to be clear through the Royal Decree. Ministry of Commerce and Industry (MoCI) Taxation Authority/ Ministry of Finance (MoF)

4.2 Oman Free Zone brand awareness Royal Oman Police (ROP) Oman Global Logistics Group (ASYAD)
Enhancing the brand awareness of Oman’s Free Zones at a regional and global level continues to be
a key component of success. Aligned with this is the raising awareness of Oman as a country, since
investors would first need to know about Oman, before knowing about its Free Zones. Furthermore, a
holistic and integrated approach is key to promote the country distinguishably from of regional and
international competitors.

4.3 Introduce value-added products

Provide value-added products (e.g. Staff accommodation, food courts, recreation center, mosque
and other facilities) in order to further increase the competitiveness of Oman Free Zones and attract
investors.
 5. Enhance Private Sector Logistics Efficiency Stakeholders

This initiative was established to launch a robust partnership with Royal Oman Police (ROP) Oman Global Logistics Group (ASYAD)
the private sector to identify enhancement opportunities through
Sohar Port & Free Zone
review of Trade Facilitation Agreement. The initiative also aims to
increase the efficiency of SMEs involved in the manufacturing and
trade sectors.
6. Establish a National Port / Logistics Community System
This initiative is the first step towards achieving the ultimate aim of
setting up a permanent centre of excellence to promote logistics With the establishing of the National Port Community System
efficiency in SMEs in 2020 and beyond. Its programme covers the (NPCS), Oman is continuing with its vision to become a
basic ways in which SMEs can enhance their business logistics – leading international logistics-enabled hub. The primary goal
such as pre-clearance procedures, transport conventions such as of this initiative in 2019 was to launch the commissioning and
CMR (Contract for the International Carriage of Goods by Road), implementation of the technological platform. The NPCS plans
TIR (Transports Internationaux Routiers, meaning “International to synchronise Oman’s shipping, port, and maritime and logistics
Road Transport”) and using other digital tools made available by communities onto one unified online portal, while at the same
Directorate General of Customs, Government Control Agencies time paving the way for Oman’s various government entities and
(GCAs), ports and terminals. ISFU has been closely following up other private sector companies to interact in unison. Furthermore,
this project. In various meetings, ISFU team has given suggestions it will integrate with Bayan system – the online One-Stop-Shop
and recommendations for the project to succeed. (OSS) introduced by the Royal Oman Police (ROP), which ensures
reduced customs clearance times, and seamless, convenient
and efficient clearance of goods at Oman’s land, air and sea
2019 KPIs ports. As an all-encompassing platform, the NPCS will further
promote customer service development and the utilisation of
84 5.1 Launch a private sector development programme to assist SMEs in enhancing the resources whilst increasing the efficiency of internal procedures 85
efficiency of their business logistics and processes. On the consumer-side, the system will benefit
operational security, risk management and a reduction in the
The Journey amount of physical paperwork needed.

Milestone Status A National Port Community System (NPCS) is a neutral and open
electronic platform enabling intelligent and secure exchange of
Trade Facilitation Agreement (TFA) information between public and private stakeholders in order to
Completed.
Implementation review.
improve the efficiency and competitive position of the sea and
OLC has introduced the TIR through an event held in airports’ communities. It optimises, manages and automates
Introduction of TIR to private sector. smooth port and logistics processes through a single submission
December 2019.
of data and by connecting transport and logistics chains. ASYAD
1st, 2nd and 3rd targeted Media Campaigns. Completed. initiates the project by commissioning a feasibility study and
technical assistance services to create a detailed blueprint of the
All of the targeted stakeholder engagements were future NPCS-system and the related options available for business
conducted.
models and maintaining the system. This system will integrate with
1. A workshop by the Directorate General of customs the sea and air port systems.
1st, 2nd and 3rd targeted Stakeholder
for the Shipping line and freight forwarder.
Engagements.
2. A workshop by OLC and OAG for the air freight
forwarders.
3. Trade First event. 2019 KPIs

Identification of the stakeholders and 6.1 Commence the core NPCS services development
process to be facilitated; and designing Completed.
This KPI aims to commence with the NPCS development, including all the services of ports and airports
the facilitating process.
– and implement these into one single window linked with both the customs system, which in turn is
part of the Bayan system.
 The Journey
The focus of the initiative in 2019 is to deliver the National Occupations Standards (NOS),
Milestone Status publish visual aids for employment awareness, launch the project of Ibhar Incubation, and run
employment clinics in the sector to study employment and workforce policy and regulation.
Several discussions with various investors
Endorsement of the investment plan by and stakeholders have taken place after
government; tender floating; appointment of feasibility and project-requirement studies 2019 KPIs
contractors; completion of analysis and design; were done and presented to the Steering
and the gathering of detailed functional/ Committee, which have approved the initial 7.1 Establishment of Quality Framework for National Occupations Standards (NOS) and
technical requirements. seed investment, in addition to approving the Vocational Education and Training (VET) Standardisation
appointment of an executive committee. This KPI refers to the NOS which are used to assess the required performance of a person in his/her
occupation. It is a statement of the effective performance criteria that have been agreed upon by
employers and key stakeholders, and have been approved by the Industry Reference Committee
Stakeholders
(IRC). They play a crucial role in creating a baseline of expectations and quality with regards to on-the-
job behavior and skills. This KPI is the cornerstone of establishing effective and relevant programmes to
Ministry of Technology and Communications Directorate General of Customs - Royal Oman
enable workforces to align their capabilities to occupational standards.
(MTC) Police (ROP)

Oman Global Logistics Group (ASYAD) Shipping Agents and Customs Brokers 7.2 Enabling Nationals Employment by Opportunities Awareness
This KPI aims to encourage more Omani nationals to pursue a career in the logistics sector. It also seeks
Oman Aviation Group (OAG) Freight Forwarders to increase Omanisation in the sector, and position logistics as a preferred and promising career path.

Oman’s Ports
7.3 Creating Job Opportunities by a Business Incubator
This KPI’s ultimate purpose is to create a platform where SMEs and start-ups can emerge and develop
7. Continuous Employment and Enabling Nationals in the Logistics Sector
– to meet the promising business opportunities in the logistics sector. These opportunities will lead to
86 87
the establishment of Omani SMEs, which in turn will provide value to local economies, and create jobs.
This initiative investigates the employment and skills sector to
establish what necessary vocational and educational skill sets
are needed. A key goal is to increase awareness of the logistics 7.4 Analyse Current and Future Workforce Status
sector in the community and create an awareness of the trends This KPI will help in establishing insights into what available skills there currently are in the market; what
that are expected to have a substantial impact on the logistics skills are currently in demand; and what job positions are a challenge to fill. It also provides a skills
sector. It is crucial to study the employment sector, workforce forecast for the future.
policy, and regulation landscape to be able to contribute to the
ongoing development of Omani nationals and provide further The Journey
opportunities for employment and professional development
through succession planning. The project aims to achieve a 7.1 Establishment of Quality Framework for National Occupations Standards (NOS) and
3 to 5-year strategic job creation road map that will include a
Vocational Education and Training (VET) Standardisation
research and development road map for the logistics sector using
the Trend Radar. This road map will consider all emerging and Milestone Status
established technologies that apply to Oman.

Formation of Industry Reference Committee After the IRC resolution has been endorsed,
In addition, the initiative seeks to attract and nurture local Omani
(IRC) and the IRC committee was established.
talent and ideas for this sector through business and entrepreneur
incubators – in order to boost the development of start-ups and
The milestone has been redirected under
the contribution of SMEs towards the country’s GDP. Incubated
Development of NOS, and prioritization of its another project managed by the Oman
companies go through a programme that is designed to assist
areas (with endorsement by IRC). Logistics Association (the development of a
them in launching and running a successful business in the logistics
Sector Skills Unit – SSU).
sector. Furthermore, the initiative ensures that new entrants obtain
the appropriate access and guidance on business opportunities Create VET quality framework; review and
– that will improve their operational efficiency, and that will report on existing VET programmes; and seek These milestones have all been completed.
contribute to business growth in the Sultanate in line with the IRC endorsement of the framework.
Sultanate of Oman Logistics Strategy (SOLS 2040) vision on GDP
contribution, investments and employment.
 7.2 Enabling Nationals Employment by Opportunities Awareness 2019 KPIs

Milestone Status 8.1 Develop Khazaen Economic City Project

This KPI aims to establish the foundation of the city, sign the Usufruct Agreement with the dry port
Create and publish visual aids for employment
developer, sign off and finalise the go-ahead for the Fruit and Vegetable Market and Auto Mall; and
awareness; and converting them to interactive Completed.
resolve other key challenges.
materials.

The Journey
7.3 Creating Job Opportunities by Business Incubator
Looking at the achievements of Khazaen Economic City project in 2019, various key developments
have been implemented. The master plan of the city has been finalised, and the initial construction
Milestone Status
contract for 10 kilometres of internal road, water lines, and flood protection has been successfully
Prioritize business areas to be targeted by start- awarded to Galfar and construction has started.
Completed.
ups.
KEC LLC has completed a full business case study for the Fruit and Vegetable Market, while initiating
Advertise the 2019 Incubation programme, talks with a number of potential investors and operators with the objective to sign with an investor.
and evaluate potential candidates through Completed. Furthermore, the company has managed to sign six agreements with tenants to develop an area of
the selection committee. 500,000 square metres of logistics and industrial land, including a dry port in the city. As the project
progresses, ISFU and relevant stakeholders are fully engaged in ensuring its overall success. Khazaen
Graduation of 2018 Ibhar Incubation projects. Completed. Economic City development faced a number of challenges, however, potential solutions have been
proposed in line with the expectations set out in the proposed Royal Decree. These are being closely
monitored by ISFU to mitigate any delays.
7.4 Analyse Current and Future Workforce Status
Moving Forward
Milestone Status Heading into 2020, Khazaen Economic City project will continue to be developed and supported as
88 one of Oman’s key logistics sector projects. Furthermore, the construction of the initial infrastructure
89
Prepare the scope of survey, design survey,
is planned to be completed. There will also be a push to establish more business partnering for the
and agree on the sampling for Labour Market Completed.
project, and to resolve any complications that were carried over from 2019.
Intelligence (LMI).

Run employment clinics for the targeted Stakeholders

Completed.
companies.
Ministry of Transport (MoT) Oman Global Logistics Group (ASYAD)

Stakeholders Ministry of Housing (MoH) Khazaen Dry Port Company LLC

Oman Global Logistics Group (ASYAD) National Training Fund (NTF) Barka Municipality Khazaen Economic City LLC

Logistics Companies Government Controlled Agencies and other ministries

Land
9. Build Mineral Railway in Al Wusta Region
8. Khazaen Economic City
The initiative ultimately aims to support the transportation of an
Khazaen Economic City (KEC) is an integrated economic city in estimated 60 million tonnes of mineral commodities annually, from
Barka that is strategically located between Sohar Port, Muscat sites in Al Wusta and Dhofar governorates to processing plants in
International Airport, and Muscat City – and linked to Al Batinah the Duqm Special Economic Zone (SEZ), or for export via the Port
Expressway. Developed over an area of 51.6 square kilometres of Duqm. It will also enable the transportation of a projected one
of land, this economic city aims to contribute to the ongoing million tonnes of oil field equipment from the Port of Duqm to the
diversification of Oman’s economy. Following on from a planned oil and gas fields in the surrounding areas.
OMR 271 Million in infrastructure investments by Khazaen Economic
City LLC, the project is set to become a key regional hub for
warehousing, logistics, light industry and commercial activities,
providing socioeconomic impact in the form of GDP contribution.
 Additionally, as a substitute to road-based transportation, the proposed line will transport 10. Enhance Cold-Chain Infrastructure
around three million tonnes of industrial goods, and around 15 million tonnes of general
products, including foodstuff and agricultural products, to destinations in Al Wusta and Dhofar As Oman continues to increase its fresh produce exports, it is
governorates. A Public-Private-Partnership (PPP) model has been proposed to fund the project. also increasing its need for a dependable cold-chain network.
The final structure of the model will be developed once the Expression of Interest has been Therefore, this initiative serves as a platform to develop a
floated and the tendering process begins. The project will add value to Oman by increasing its coordinated cold-chain optimisation plan for the Sultanate.
GDP, creating jobs, and creating cost-benefit results. Finally, the railway will assist in reducing To enhance their efficiency as they eye the export market, it is
traffic on Oman’s road networks; and serve to develop and unify transport routes between the imperative that the fresh produce logistics companies operating
Sultanate and its neighbours in the GCC. in Oman have access to refrigeration facilities and services for
seafood, agricultural, meat, dairy and poultry products. This is
critical in order to minimise wastage due to perishing. One of
2019 KPIs
the key cold-chain initiatives in 2019 is to rehabilitate fish markets
and install cold storage facilities on reefer trucks. Another is the
9.1 Mining: Completion of mining exploration report (Resources statement report) – 100%
establishment of a marketing company for fruit and vegetables.
This report will help accurately identify the mineral reserves in the region, which can be incorporated
into the railway network.

9.2 Railway: Completion of Socio-economic study 2019 KPIs

The ultimate goal of the project in 2019 is to develop the Expression of Interest and complete the
economic study of the railway to ensure its viability.
10.1 Fisheries: Improvement of cold chain facilities
This KPI focuses on completing the rehabilitation of the remaining three out of seven fish markets from
The Journey 2018, and delivering 20 reefer trucks (over 3 tons) that cross Oman’s borders.
In 2019, ISFU has continued its efforts to assist Minerals Development Oman (MDO) to begin the
development and exploration programme for the project, as well as to appoint a partner to conduct
10.2 Agriculture: Establishment of integrated fruit and vegetable marketing company in Oman
90 the detailed exploration study. In order to minimise the wastage of perishable products by providing cold storage facilities and 91
improving transportation modes for refrigerated goods; this KPI will establish an integrated marketing
Oman’s “mineral railway” project continued to show its potential as a key source of national economic company that handles the overall value chain of fruit and vegetables.
development. The social-economic study for the railway showed impressive results after being carried
out in April 2019 by Oman Rail, as it identified that the project has a very favourable Benefit Cost 10.3 Develop a coordinated Cold Chain optimisation plan for Oman
Ratio and will have a positive and sustainable contribution to the GDP of Oman. Furthermore, Oman This KPI aims to develop a full optimisation plan for Oman’s cold-chain network that serves to improve
Rail developed Expression of Interest documents to facilitate the floating of the project once it is and enable performance and productivity – particularly related to logistics activities.
approved. One of the challenges the initiative faced was selecting the appropriate mode of transport
that would maximise economic benefits, while still remaining competitive in the mining market. The Journey

Stakeholders 10.1 Fisheries: Improvement of cold chain facilities

Ministry of Transport (MoT) Ministry of Interior (MoI) Milestone Status

Ministry of Environment and Climate Affairs Fish Market – Sohar: Signing the contract ASYAD and MOAF have completed the tender documents
Ministry of Housing (MoH) with the developer. for Sohar market, and it will be floated by ASYAD.
(MECA)
Fish Market – Masirah: Kick off and
Ministry of Tourism (MoT) Ministry of Culture and Heritage (MoCH) Completed.
complete the rehabilitation works.
Ministry of Regional Municipalities and Water Fish Market – Dhank: Completion of the
Ministry of Agriculture and Fisheries (MoAF) Completed.
Resources (MRMWR) Dhank fish market rehabilitation works.

Minerals Development Oman (MDO) Public Authority for Mining (PAM) A Workshop was held between Ministry of Agriculture
Increase cold chain capacity through
and Fisheries (MOAF) and Oman Global Logistics
Special Economic Zone Authority at Duqm delivery of 22 cross border reefer trucks
Royal Oman Police (ROP) Group (ASYAD) to review the applications and identify
(SEZAD) (over 3 tons)
the potential trucks to start the implementation.

Royal Army of Oman Oman Global Logistics Group (ASYAD)

 10.2 Agriculture: Establishment of integrated fruit and vegetable marketing company in Oman 11.3 Completion of new Ibri bypass road/Kick off construction
The target for 2019 is to complete the detailed design and initiate the construction of the 45-kilometre-
Milestone Status
long bypass road around Ibri.
Completion of business model, with Oman The business model for the fruit and vegetable
Food Investment Holding Company (OFIC) marketing company in Oman has been The Journey
approval. completed and approved by the board of OFIC. Enhancing the Wadi Sa’a – Hafeet and Ibri bypass roads, and developing the Saudi Arabia-Oman
highway, ultimately represent Oman’s move towards establishing a world-class logistics infrastructure
Conduct a workshop to promote the marketing and create a connection to the GCC, as KSA road is critical for local trade, and connecting villages
The workshop has been conducted.
company project to investors. and ports. Oman is awaiting the completion of the remaining short distance of the road from KSA,
while preparing facilities on the road to KSA. For Wadi Sa’a – Hafeet and Ibri bypass roads, MoT have
approved the preliminary design (and initiated the detailed design) for both the Wadi Sa’a to Hafeet
10.3 Develop a coordinated Cold Chain optimisation plan for Oman
road, and Ibri bypass road. Multiple drafts were submitted to MoT for review and evaluation meetings
Milestone Status took place. The detailed design of Wadi Sa’a-Hafeet was submitted to MoT to obtain its approval,
while the design of Ibri bypass road is in its final stage of development. To expedite progress of the
The tender has been floated and awarded detailed design for the project, ISFU led several meetings and facilitated communication with both
Award tender and complete the first draft of
to a consultant company. The first draft of the the design consultants and MoT.
the cold chain study.
study has been completed.
Moving Forward
Submit the final report of the study. The final draft is being reviewed.
The focus of the initiative for 2020 is to approve the detailed designs by MoT, then, float the tender for
both Wadi Sa’a – Hafeet and Ibri bypass roads by the Tender Board. The construction is also scheduled
Stakeholders to be kicked off in 2021.

Ministry of Agriculture and Fisheries (MoAF) Muscat Municipality

Stakeholders
92 Oman Global Logistics Group (ASYAD) Private sector 93
Ministry of Finance (MoF) Supreme Council of Planning (SCP)
Oman Food Investment Holding Company Agricultural Association for Al Batinah Farmers
Ministry of Transport (MoT) Royal Oman Police (ROP)

Tender board Government controlled agencies and related entities

11. Enhancing Wadi Sa’a-Hafeet and Ibri Bypass Roads

This initiative targets the completion of the road leading to Saudi 12. Enhance Rusail-Bidbid Road Network
Arabia through the city of Ibri; constructing and improving the
quality of two more roads – the link between Wadi Sa’a and Hafeet, This initiative sees the improvement of a 35 kilometre section of
and the bypass road around Ibri. Apart from the vital connection the Rusail-BidBid highway that connects Muscat and A’Dakhiliyah
to the GCC that these upgraded roads can facilitate, they will governorates; and very importantly, a connection to the Rusail
also promote local trade by connecting several Omani villages and Sumail industrial estates. The project covers, firstly, the
and towns to nearby ports. During 2019, this initiative focused on intersection of Muscat Expressway to BidBid intersection, and
completing the design for the Saudi Arabia-Oman highway, and secondly, the intersection of Sahwa Tower to the intersection
on initiating the construction of the two link and bypass roads. of Muscat Expressway. A third and fourth lane will be added to
reduce traffic congestion and increase road-safety on this vital
road, especially during peak times. This will add further value as
2019 KPIs goods can be transported more efficiently. Throughout 2019,
the focus of this initiative is to award, mobilise and start the road
11.1 Completion and launching of new Saudi Arabia-Oman Highway construction.

11.2 Completion of dualisation of lanes for Wadi Sa’a – Hafeet Road/Kick off construction
The target for 2019 is to complete the detailed design for the dualisation of the 52 kilometre stretch of
Hafeet to Wadi Sa’a road, and to also kick off construction of the existing sections of the road.
 2019 KPIs consultant and MoT, as well as the design criteria being followed. This was one of the challenges the
project faced, and it meant that the submission of the feasibility study was pushed forward to a later
12.1 Rusail-Bidbid road network (awarding, mobilisation and road construction) date. Another challenge is endorsing the policy, as it needs to be reviewed by several stakeholders for
This KPI aims to complete 10% of the Rusail-Bidbid road construction. approval before it can be implemented. The toll policy is still under review by MoF.

The Journey Moving Forward

The Tender Board has completed the evaluation process of the Rusail-Bidbid road tendering and The plan for 2020 is to succeed in getting the policy endorsed. Following this, the Public Authority for
selected the best offer. ISFU played a role in forming the technical team which consisted of MoT, Privatisation and Partnership (PAPP) will appoint a transactional advisor to carry out the tendering
design consultant and Tender Board, in order to fast track the evaluation process. Afterwards, the process of the road.
Supreme Council for Planning (SCP) has approved the project to be included as an economic project
for the year 2020; and budget allocation was approved. Stakeholders

Ministry of Transport (MoT) Public Authority for Privatisation and Partnership (PAPP)
Moving Forward
During 2020, the construction of the road will commence. Oman Global Logistics Group (ASYAD) Relevant Government Authorities

Stakeholders
Air
Ministry of Finance (MoF) Supreme Council for Planning (SCP)

Ministry of Transport (MoT) Royal Oman Police (ROP)

14. Develop Logistics Gate

Oman Global Logistics Group (ASYAD) Tender board The initiative aims to serve the infrastructure that will enable
the air cargo sector, enhance the status of Oman and Muscat
Government Controlled Agencies International Airport as a comprehensive centre for business and
94 logistics, to provide the necessary environment for achieving the 95
perceptions of the air cargo strategy and the expectations of
Oman Logistics Strategy.
13. Road Investment Solutions
The portal development project includes infrastructure
The Road Investment Solutions facilitates a new model – with
development work, soil studies, portal engineering design and
safe and economically viable solutions – for financing roads in
related feasibility studies. A primary goal of this initiative is to issue
Oman. Aligned with this initiative is a pilot project which intends
the airport city royal decree and complete all studies of the cargo
to motivate and attract potential private investors who would
logistics gate.
see feasible returns on their investments. This project is targeted
to announce the tender and receive proposals by end of 2019.

2019 KPIs

2019 KPIs 14.1 Engagement with Logistics Partners in Airport City

A crucial part of realizing the opportunity to establish Oman as a leading regional logistics hub is taking
13.1 Float tender for Thumrait Salalah Truck Toll Road advantage of its geo-strategic location, initially by capturing “leakage” of air cargo via truck. Potential
This KPI tracks the development and finalisation of the Salalah Truck Toll Road feasibility study and is to bring more air cargo companies, air freight providers, shippers and other logistics ecosystem
tendering, and the securing of the toll road policy approval by the Cabinet of Ministers. In addition, it players to take advantage of competitive air cargo positioning. This will be driven by the new cargo
sees the initiation of the project as the first truck toll road in Oman. terminal facilities and infrastructure, enabling Oman to recapture air cargo leakage and build on
other phases of the air cargo strategy. Freight forwarders are key to the air cargo sector, so an enabler
The Journey and interdependency to other initiatives.
After engaging with consultant, a series of meetings were conducted with the Undersecretary of
Roads at the Ministry of Transport (MoT), in which the feasibility study of the project was finalised and
approved. In addition to this, a draft of the toll policy was sent to the Ministry of Finance (MoF) as part
of the procedure to endorse the toll policy by the Cabinet of Ministers. As a first-of-its-kind project
in Oman, there were several options for the road route which have been explored by the project
 14.2 Issue Free Zone Royal Decree for Airports 15.2 Extension of the cold capacity of the cargo terminal in Muscat International Airport
Given regional competition, this is a key enabler identified in the national air cargo strategy to support The cargo terminal of Muscat International Airport has a current approximate capacity of 345 kilotons.
the development of the airport city as a business hub. Initiated by the strategy and concept master However, this figure is set to increase as the terminal is extended with an additional 150 kilotons cold
plans, several potential clusters have been identified. These clusters require free zone status to match storage space to cater to the expanding sectors of fisheries, pharmaceuticals, vegetables and other
and ideally beat regional free zones on competitiveness. As such, comprehensive and attractive free perishables – which represent a significant and high-value contribution to Oman cargo volumes.
zone policies and procedures are needed in line with best practices to attract local and international
tenants to the airport free zone and wider airport city, so enabling air cargo growth. Therefore, existing The Journey
free zone policies and procedures through a royal decree need to be reviewed and amended, in
line with the best practices, to make the airport city sufficiently attractive so to enhance the air cargo 15.1 Conduct Freighter Business Case Study
ecosystem, broader logistics sector and accompanying socio-economic benefits.
Milestone Status
The Journey
Analyse existing data to gap analyse/build case, and
Detailed price and service proposition has been studied and identified along with freight forwarders.
review and build business unit capabilities to drive de- Completed.
Also, the Free Zone Royal Decree for Airports has been approved by Free Zone Committee and is now
mand.
under the Cabinet for the final approval. ISFU is following with the Cabinet for endorsement.

Moving Forward 15.2 Extension of the cold capacity of the cargo terminal in Muscat International Airport
The focus in 2020 will be on the finalisation of the detailed master plan for the airport city, and issuing
Milestone Status
the free zone royal decree for airports.
Build business case for cold capacity extension,
Stakeholders confirm the funding; and float and award tender for Completed.
engineering design firm.
Ministry of Technology and Communications (MTC) Port of Duqm
the design of cold capacity extension is
96 Oman Global Logistics Group (ASYAD) Oman Air SATS Cargo Initiate the design process/approval.
under progress.
97

Oman Aviation Group Shipping Agents and Customs Brokers

Stakeholders
The Special Economic Zone Authority at Duqm (SEZAD) Freight Forwarders
Oman Aviation Group Oman Air

Freight forwarders
15. Globalise Omani Air Cargo

In order to optimally globalise Omani air cargo, a system is required

that holistically integrates all of the key entities involved in the 16. Strengthen Air Cargo Ecosystem
sector. These include the information maintenance centre, safety
and security, customer management, online booking, supplier This initiative aims to optimise the Sultanate’s current cargo
management, e-shipping, product management, revenue operating model in order to boost air cargo volumes in Oman
management, flight management and revenue accounting. from the 250-thousand-ton mark achieved in 2019, to a
Primary goals of this initiative are also to build demand in order to 700-thousand-ton mark by 2030. With this in mind, the primary
support the air freighter sector; and design and construct the cold goals of the initiative are to promote and market the air cargo
capacity extension. logistics sector, analyse and address sea-air gaps in the sector,
and activate and increase regional airports volumes. The initiative
also seeks to develop the airport gateways and exploit important
2019 KPIs business opportunities, implement revenue management systems,
and enhance marketing and other potentials in “Oman Air”. A
15.1 Conduct Freighter Business Case Study comprehensive marketing and promotional plan to enhance the
This KPI aims to conduct freighter business case study in order to increase Oman cargo volumes, in international perception of Oman is also required.
particular for Oman Air, by enhancing freighter capabilities to achieve higher fishery, pharmaceutical
and e-commerce volumes.
 2019 KPIs 16.2 Air Cargo Sector Promotion & Marketing

16.1 Optimise Cargo Operating Model Milestone Status

The KPI aims to maximize the value of increasing air cargo volumes. At the same time, it seeks to Development of initial version of the air cargo
develop airport city gates by developing the operating models and organisational structures of the Completed.
marketing strategy.
relevant business units. Essentially, the right business units need the right capabilities to realise the
added value of the cargo. Adoption of the marketing strategy by all steering
Completed.
committee partners.
Furthermore, Air cargo planning and strategic capabilities are needed at the corporate level, and
within Oman’s airports. Exploitation of significant commercial opportunities, with appropriate sales, Establishment of working group/community of interest
Completed.
revenue management, and marketing capabilities, are also required for Oman Air and others carriers. to share information/events on the project.
This is important to mitigate delays in the delivery of perishable goods.
Developing, publishing and adopting the marketing
Completed.
strategy for various stakeholders.
16.2 Air Cargo Sector Promotion & Marketing
This KPI aims to establish Oman as a leading regional logistics hub by taking advantage of its geo-
strategic location. This will be achieved via the following: 16.3 Analysing and Addressing Sea-Air Gaps
1. Pro-active marketing to unlock the opportunity of current lack of awareness of Oman’s logistics
Milestone Status
offering and capabilities in air cargo. This includes the sea logistics sector, and intermodal logistics
on a broader level. Analyse and address Sea-Air Gaps. Completed.
2. Realisation of the full potential of cargo companies, airfreight providers, and shippers etc – through
competitive logistical solutions and uncongested airports.
16.4 Activate and Increase Domestic Airports Volumes
3. Realisation of the benefits of the airport city, wider logistics industry, growth potential, socio-
economic impacts, and job creation. Milestone Status
98 99
16.3 Analysing and Addressing Sea-Air Gaps Mandate a cargo handling company for Salalah The mandate has been given to run the
cargo terminal. Salalah airport cargo terminal.
Due to the geographic location of Oman, especially Salalah, this KPI aims to offer a strategic opportunity
for sea-air cargo to save on the increased time, costs and risks associated with Hormuz Straits logistics. Develop financial feasibility study for Sohar Airport. Completed.
One particular identified opportunity is the establishment of sea corridors, which would focus on the
textile cargoes and leverage existing sea-air proximity. Some of the textile cargoes currently using air
Stakeholders
transport could be routed by sea to Salalah, before being transported via air cargo. This can be seen
as an attractive value proposition/offering to the textile shipping sector. Textiles arriving in Salalah by
Oman Aviation Group Oman Aviation Services
sea could be transported to Muscat via domestic aircraft’s belly hold or trucks. They could then be
airlifted to Europe/final destination with Oman Air aircrafts’ belly hold/freighters – to use one example. Oman Air Ground handling

16.4 Activate and Increase Domestic Airports Volumes Royal Oman Police (ROP)

This KPI focuses on the activities and trade facilitation that will activate and increase the regional
volumes – resulting in the development of an industrial hub.

The Journey

16.1 Optimise Cargo Operating Model

Milestone Status

Optimise cargo operating model Completed.

Allocate business units, elaborate detailed airport city

Completed.
organisational structure and validate the operating model.
 Sea 18. Development of Suwaiq Port for Commercial Activities

17. Salalah Port Expansion Having initially been built as a fishing harbour, Suwaiq Port is
currently being redeveloped as a commercial port. This will
With a vision to increase the handling capacity of Salalah Port, enhance its ability to increase imports of general cargo that
this initiative brings about some key enhancements to the port’s arrives by dhows from countries such as Iran, Pakistan, Bahrain,
infrastructure. The first of these is the addition of 2.4 kilometres to and Qatar. The focus of commercialisation of Suwaiq Port in 2019
the existing 2.2-kilometre-long Central Service Corridor in order to is to design and build the quay wall and kick off the Phase 1B
provide an efficient route for liquid bulk via pipelines from Salalah operation.
Free Zone – which links to various discharge points at the port. This
corridor serves as the only efficient link these liquid bulk cargos
2019 KPIs
have to the port’s discharge points. Critically, the corridor also
avoids further delays to the development of the OMR 1.96 Billion
18.1 Operationalisation of Phase 1B
worth of projects scheduled for the area – which are set to create
employment opportunities and further investment in the region. This KPI focuses on the completion of the quay wall construction, which forms part of the Phase 1B.

Additional infrastructure projects adopted under this initiative 18.2 Port’s Land Extension
target an increase in the handling capacity of Port of Salalah’s This KPI focuses on getting the approval of the Ministry of Housing (MoH) for the port expansion, and to
tonnages and TEUs (Twenty-foot Equivalent Unit). They also complete the design planning of the area.
collectively increase the general efficiency of operations around
the port. The focus of Salalah Port Expansion in 2019 is to complete The Journey
the construction of the new pipe rack and service roads, and During 2019, MARAFI has appointed a contractor to design and build the port’s new quay wall, with
modification od the existing pipe rack. the design having been finalised on February 2019. After this, the construction of the quay wall started,
and it is 100% completed with backfilling and pavement. With regards to the port’s land extension,
100 101
MARAFI has appointed a consultant to do an environmental impact study, and transfer of the land
2019 KPIs ownership to the Ministry of Transport (MoT) was completed.

17.1 Central Services Corridor: Completion of new pipe rack, service roads ISFU initiated this project considering its importance in potentially increasing commercial activities in
the region. Several meetings were conducted by ISFU to convince stakeholders of the benefits of
17.2 Modification of existing pipe rack commercialisation of the port, and they consequently agreed on the Key Performance Indicators
(KPIs) and milestones for MARAFI to implement. The project was initiated and implemented within 10
The Journey months by collaborative efforts from all stakeholders.
Due to the significance of this initiative, ISFU has been following it up very closely with Oman Gas
Company, while being involved in several meetings to ensure its speedy completion. During 2019, Moving Forward
the construction of Zones 2, 3 and 4 was completed, a fire water and portable water systems were The focus of 2020 will be facilitating ROP requirements and the extended land development.
completed, street lights were commissioned and installed, and various other projects were completed.
The contractor under Oman Gas Company also continued construction of the service road, and the Stakeholders
completion of the carriageway inside the service corridor and the service roads.
Ministry of Transport (MoT) Ministry of Housing (MoH)
Moving Forward
Ministry of Agriculture and Fisheries (MoAF) Royal Oman Police (ROP)
Central Services Corridor will be completed by the first quarter of 2020.

Ministry of Environment and Climate Affairs (MECA) Oman Global Logistics Group (ASYAD)
Stakeholders
MARAFI
Ministry of Transport (MoT) Salalah Port

Oman Global Logistics Group (ASYAD) Oman Gas Company

 19. Improve Existing Auxiliary Services in Oman’s Ports 20. Development of Khasab & Shinas Ports for Commercial Activities

While the country is working on diversifying its economy, it is relying Khasab Port in Musandam Governorate is located strategically
on its ports to enable a more efficient and dependable flow of next to the Hormuz Strait in the vast northern corner of the
goods inside and outside of its borders. Specifically, this means Sultanate of Oman. Due to its strategic location, Khasab Port
removing barriers to competitiveness and attracting major cargo is in the position to attract a high volume of trade for the local
operations by providing multi-modal transportation, enhancing governorate’s economy. The current size of the port is 159
cargo operations, facilitating customs procedures, making re- hectares, and includes a 300-metre-long commercial berth,
export payment terms more flexible, and improving service 100-metre-long traditional fishing berth, and a total of 8 floating
competitiveness. berths. In terms of the development of Khasab Port, the design
brief made allowance for the establishment of zones to receive
commercial vessels, dhows, speed boats and cruise ships. The
Aligned with these requirements, one of the key objectives of this
requirements for the 5 years’ expansion of the port, which take
initiative in 2019 is the establishment of a waste management
into account its future role as a tourism and economic hub were
facility in Sohar Port. Later on, the initiative aims to establish several
also initiated. The benefits of focusing on the commercial aspect
services to attract international lines such as crew change, waste
of Khasab Port are as follows:
management, bunkering and others.
• Strengthen Musandam’s links to other parts of Oman and also
regionally.

2019 KPIs • Motivate general service sectors in Khasab – such as real

estate, transport, food, medical and entertainment.
19.1 Establishment of waste management facility in Sohar Port • Help cover the needs of Musandam’s citizens.
As part of the improvement of the existing auxiliary services in Sohar Port, new land and marine waste • Job creation.
management facilities are scheduled to be completed. • provide new opportunities for Omani traders in Musandam to
improve their businesses, as more customers will have access
102 The Journey to their products.
103

Milestone Status On the other hand, Shinas Port is one of the prominent ports in
the Sultanate. It was established in 1996 as a small-scale fishery
Marine side work: Casting of the vessel. Completed. port, and since then, it has been developing and is currently
considered a key entity to boost local trade. Later, in 2013, Shinas
The contract signing was done in January 2019,
Land side work: the contract signing between Port commenced with its commercial operations.
with the work order having been issued from
Sohar Port and the contractor, completion
Sohar Port in August 2019. The civil contractor is
of various civil works, and equipment During 2019, Shinas Port implemented its development operations
currently working on the foundation, and tanks
procurement. and further commercial plans after MARAFI received the
and equipment procurement is completed.
operating license from the Ministry of Transport (MoT). Also during
2019, Shinas Port went ahead with the re-organising of its existing
Stakeholders operations to meet the necessary standard maritime rules and
regulations. The segregation between the commercial zone of
Ministry of Environment and Climate Affairs (MECA) Al Ahlia Environmental Services the port and the fishing area was also carried out.

Ministry of Manpower (MoMP) Ramky Enviro Engineers Middle East

Ministry of Commerce and Industry (MoCI) Khimji Ramdas LLC 2019 KPIs

Oman Global Logistics Group (ASYAD) Nature group 20.1 Rehabilitation of the existing Quay wall in Khasab Port
This KPI focuses on the enhancements in Khasab Port’s infrastructure, and the floating of tenders for
Sohar Port developments such as the new cruise and commercial berths, in addition to onshore tenders.

20.2 Commercial re-organisation of Shinas Port

This KPI focuses on completing the port’s master plan, developing the port’s superstructure, and
floating tenders for the new quay wall and marine facilities.
 The Journey 2019 KPIs
The master plan for Khasab Port was completed. The tender for design and construction of the new
cruise berth at the port was floated on July 2019 and awarded on December 2019. Also, MARAFI has 21.1 Introduction of new liner services (OEX & IEX) calling at Omani ports
awarded contracts for the refurbishment of the port’s administration and passenger buildings. With a goal to attract an increase in volumes of shipping via main liner operators to its ports, Oman is
seeking to improve its business environment and market activities. This remains a key KPI for the initiative.
For Shinas Port, the master plan has been completed and the new location of the Royal Oman Police In order to enhance connectivity of Omani ports, attract volumes and main liner operators, Oman is
(ROP) building has been agreed upon. In addition, tenders for the design and development of the seeking to introduce new commercial liner services to GCC and India through Oman Container Lines.
marine facilities, and for the design and construction of the new quay wall were floated by the Ministry The new services are named Oman Express Service (OEX) and India Express Service (IEX).
of Transport (MoT) in September 2019. The Implementation Support and Follow-up Unit has made many
efforts to support the transformation of the two ports into commercial entities. The Journey

Moving Forward Milestone Status

During 2020, all remaining tenders for both ports will be awarded and the construction will start. Setting up OCL’s infrastructure for new
commercial liner services (Manpower and
Stakeholders The set up was completed, but the IT
structure, IT setup, agency network and
infrastructure is still in progress.
containers procurement, branding and
Ministry of Transport (MoT) Oman Global Logistics Group (ASYAD) marketing)

Royal Oman Police (ROP) MARAFI Light implementation of commercial liner

Completed.
operations on IEX/OEX services
21. Strengthen Connectivity to Oman’s Ports
Market India Express Service (IEX) to secure
volumes, and Kick off marketing and branding Completed.
Due to its position on the Arabian Peninsula’s eastern seaboard
campaign
and the nature of the undersea topography just off its coastline,
104 Oman is home to a number of deep-water ports. International
105
cargo operators and their vessels can easily and readily access
Stakeholders
these ports to carry out major shipping trade operations – this
means that the Sultanate remains in a strong position to unlock Ministry of Transport (MoT) Oman Shipping Company
the potential for international shipping connectivity.
Oman Global Logistics Group (ASYAD) Sea ports
Furthermore, as they welcome more and more international
shipping trade, these deep-water ports act as vital distribution Oman International Container Terminal
hubs for many of Oman’s smaller ports. In addition, Oman
Container Lines (OCL), a subsidiary of Oman Shipping Company
(OSC) is playing a major role in offering connectivity to Omani
ports by providing new services that connect Omani ports with
regional hubs. This will attract major liner operators and support
volume growth of Omani ports.

In 2019, the initiative progressed very well regarding the setup of

OCL’s new commercial liner services to GCC Countries and India.
In addition, the initiative has witnessed further growth through the
signing of service level agreements and joint ventures with feeder
ports in African countries, as well as Iran, India and Pakistan.
Therefore, the services provided by the Sultanate’s ports are being
increasingly promoted. Looking ahead, however, there continues
to be a need to attract key land-based operators to connect to
these major shipping hubs.
106 107

Labour
Market and
Employment
 Labour Market & Employment KPI Dashboard

2019 Actual 2019 Actual

Initiative / KPI 2019 Target Achievement Initiative / KPI 2019 Target Achievement

1 Enhancement of Labour Disputes System

9 Unlock Part-Time and Temporary Work and Enable Flexible Movement of Labour

Increasing the percentage of disputes resolved amicably

1.1 60% 60%
in the Ministry of Manpower to 60% 9.1 Number of registered contracts (part-time contracts) 3500 5000

1.2 Training employees in labour disputes 100% 100%

9.2 Application of policies and procedures 100% 85%

1.3 Reducing the duration of litigation 100% 100% Enhancing the Employability of Vocational and Technical Graduates by Increasing the Participation of the
10
Private Sector in Boards of Directors and Trustees

Development of a Sustainable System for Establishing, Monitoring, Updating and Implementing

2 Activating the new structure of the boards of trustees in
Occupational Standards 10.1 100% 100%
educational and training institutions

Applying the general framework of the National * A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.
2.1 100% 50%
Occupational Standards System
* A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
specific authorities. However, ISFU follows up on their execution on a regular basis.
108 3 Development of Labour Solution Package for Construction Sector * All forms of data are being continuously improved to be more representative of actual economic state. This is 109
done in collaboration with NCSI and relevant government entities and aligned with international standards.

Activating labour solution package for employees in the

3.1 100% 65%
construction sector

4 Development of Labour Solution Packages to assist Economic Sectors in Achieving Omanisation

4.1 Progressively strengthening Omanisation policies 100% 100%

Launch the National Leadership Development Programme to Empower Omanis to be Able to Take Middle
5
and Upper Management Positions in the Private Sector (Etimad)

Launch the training programme and complete the training

5.1 100% 70%
of 500 trainees in the pilot phase

8 Increase Attractiveness of Private Sector Employment for Omanis

8.1 Increasing the number of card holders and their benefits 400 400

8.2 Work environment measurement card 100% 90%

 Overview 1. Enhancement of Labour Disputes System
The Labour Market and Employment Team at the Implementation Support and Follow-up Unit is
As the Sultanate’s labour market continues to diversify, the
following up a range of initiatives that serve to enhance the national workforce’s compliance with
country strives to improve and enhance the attractiveness of the
the change in the labour market due to the current economic conditions, by adapting policies and
work environment, by strengthening the judicial system to ensure
procedures to be in line with these changes and reduce the negative impacts on the main production
justice for employees in various sectors. As labour disputes are
parties.
inevitable, the initiative’s performance indicators aim to ensure
that the standards related to resolving labour disputes in the
Among the most prominent initiatives that have achieved remarkable success during the year 2019,
Ministry of Manpower are achieved, as they are the best criteria
is the Enhancement of Labour Disputes System. Along with the continuing diversification of the labour
for reaching a just solution.
market in the Sultanate, the government is striving to improve and enhance the attractiveness of
work environment. This year, training Programmes on resolving labour disputes were prepared and
Through introducing new and amended measures, increasing
implemented, in coordination with three batches of legal researchers from the Ministry of Manpower,
the number of labour disputes that are amicably resolved in
in addition to agreeing on the work mechanism and signing a memorandum of cooperation between
the Ministry of Manpower in coordination with the Arbitration
the Ministry of Manpower and the Ministry of Justice in order to expand the scope of the Arbitration
and Reconciliation Committees of the Ministry of Justice,
and Reconciliation Committees to include labour disputes.
and strengthening the capabilities of legal researchers in the
committees by training them at the Higher Judicial Institute, labour
The team is also following up the Development of a Sustainable System for Establishing, Monitoring,
disputes will be resolved quickly and successfully, while taking into
Updating and Implementing Professional Standards project, where a ministerial decision was issued
account economic conditions.
to restructure the Occupational Standards and Testing Centre and its terms of reference and
strengthen it with new cadres. Moreover, skill units were formed to develop occupational standards
for manufacturing and logistics sectors.
2019 KPIs
Also, the National Leadership Development Programme was launched, with the visual identity of
1.1 Increasing the percentage of disputes resolved amicably in the Ministry of Manpower to 60%
“Etimad” chosen as a marketing identity for the programme. The pilot phase of training 500 trainees
commenced, whereby approximately 750 candidates were screened through a set of tests and 1.2 Training employees in labour disputes
110 assessments developed according to international standards for leadership training, then, the training 111
started for the first batch of the programme. 1.3 Reduce the duration of litigation

With the beginning of 2019, ISFU considered the need to launch a new initiative to form technical These KPIs aim to ensure the eligibility of judicial standards for the issuance of just decisions, which is
teams concerned with employment, under the supervision of the ministries overseeing the economic achieved through developing new and amended procedures, reducing the duration required for
sectors, with the support of ISFU, the Ministry of Manpower, and The National Centre for Employment adjudication and strengthening the capabilities of the judicial system. The appointment of judges who
(NCE). The aim of this initiative is to activate the role of the relevant government bodies, in following are specialized in labour cases in the courts will result in accelerating the adjudication process. Also,
up on employment as they are well aware of the functional requirements of the economic sectors. the presence of specialists in the Reconciliation Committee of the Ministry of Manpower contributes to
reducing the number of cases referred to the courts.
The Implementation Support and Follow-up Unit plays an active role in supporting the labour market
and employment sector, by following up the initiatives that do not have a supervising authority, and The Journey
cooperating with the Ministry of Manpower to work on providing solutions in line with the current From previous years, the efforts of the initiative team continued in developing work mechanisms related
economic situation. ISFU is also supporting the growth of SMEs and studying alternative financing to labour disputes in the Ministry of Manpower, where 2019 witnessed the completion of preparing and
solutions for initiatives facing financial challenges. implementing training programmes with 3 batches of legal researchers from the Ministry of Manpower.
The initiative team considered the possibility of upgrading the training qualifications to be a diploma,
Graduated initiatives/projects in 2019: within the continuous coordination between the Ministry of Manpower, Higher Judicial Institute, and
the Ministry of Higher Education.

Enhancing the Employability of Vocational and Technical Graduates by Increasing In addition to the training, a memorandum of cooperation was signed between the Ministry of
the Participation of the Private Sector in Boards of Directors and Trustees Manpower and the Ministry of Justice in order to expand the scope of the Arbitration and Reconciliation
Committees to include labour disputes and to give the reconciliation reports of labour disputes the
executive and mandatory implementation form after reconciliation, which contributed to raising the
percentage of disputes that were resolved amicably in the Ministry of Manpower from 48% in 2018 to
New initiatives/projects added in 2019: 60% in 2019, and reducing the number of labour cases referred to court. This is despite the increase in
the number of labour disputes due to the current economic conditions.
Activating the Role of Ministries Overseeing the Economic Sectors in Achieving
Recruitment Targets Moving Forward
In 2020, the initiative aims to offer advanced training programmes for legal researchers in labour
disputes, and increase the number of Arbitration and Reconciliation Committees for labour disputes.
 Stakeholders Stakeholders

Ministry of Manpower (MoMP) Higher Judicial Institute Ministry of Manpower (MoMP) The National Training Fund (NTF)

Ministry of Justice (MoJ)

3. Development of Labour Solution Package for Construction Sector

2. Development of a Sustainable System for Establishing, Monitoring, Updating and The initiative aims to raise the efficiency of the construction sector,
Implementing Occupational Standards which is one of the largest economic sectors, and to encourage
the national workforce to work in the sector by training them to
The initiative aims to restructure and empower the Occupational work in income generating jobs within the sector. The initiative
Standards and Testing Centre, to improve and manage the also aims to find solutions to the challenge facing the construction
National Occupational Standards System for economic sectors. sector, which is reaching the required Omanisation rate by the
By constantly updating these standards and applying them in the relevant organisations.
training programmes, the requirements of supply and demand in
the private sector will be linked more effectively for the graduates During 2019, the team intends to complete the issuance of
of educational and training institutions. all regulatory decisions for the construction sector, including
a memorandum to include the classification of construction
corporates in the expatriate work permit, as well as a
2019 KPIs memorandum to apply the construction package that includes
gradual Omanisation percentages and alternative solutions, and
2.1 Applying the general framework of the National Occupational Standards System the application of a system for standardising job titles.
During the year 2019, the initiative aims to develop a common work system with the economic sectors,
by supporting the supervising bodies to form work teams called “Sectoral Skills Units” in partnership with
the private sector. These units work as a link between the Occupational Standards and Testing Centre 2019 KPIs
and economic sectors, in order to determine the skills that each sector requires and set occupational
112 standards for all professions prevailing in the sector. 3.1 Activating labour solution package for employees in the construction sector 113
The initiative offers an integrated package containing basic elements that contribute to:
The Journey
- Flexibility of Omanisation policies for the construction sector: Achieving a 30% Omanisation in the
During 2019, the Ministry of Manpower restructured the Occupational Standards and Testing Centre long term, by increasing the employment of national cadres in the sector. It could be achieved
and its terms of reference, in accordance with the recommendations of the consultancy study that by gradually applying qualitative Omanisation percentages that contribute to raising the sector’s
was conducted in 2018, in partnership with a leading British consultancy firm in the field of occupational attractiveness to nationals, reducing hidden trade and illegal labour and encouraging investment.
standards. Such action aimed to enable the Centre to play a broader role in setting occupational
- Setting the standards for classifying corporates under the construction sector, to regulate the sector
standards in partnership with private sector organisations, as a ministerial decision was issued to
and raise its level of performance and its ability to create fair competition within the sector.
restructure the Centre and its terms of reference, strengthen it with new cadres and appoint experts
specialised in occupational standards. - Standardisation of professional titles to achieve the optimum use of skills.
- Introducing automation and technology to keep pace with the Fourth Industrial Revolution and
In cooperation with the ministries and bodies overseeing five economic sectors (tourism, logistics, reduce dependence on unskilled labour in the construction sector in the Sultanate.
manufacturing, fisheries and mining), several meetings were held to form skill units to set occupational
standards for each sector. The logistics skill unit has been licensed, and work is going on for the other The Journey
sectors.
Milestones Status
Among the difficulties encountered by the initiative is the appointment of cadres specialised in
A decision was issued by the Minister of Manpower
occupational standards, due to the scarcity of such expertise.
Forming a classification governance (195/2019) to form a committee to manage the
board classification project for corporates operating in the
Moving Forward
private sector.
In 2020, the initiative aims to train national staff of the Centre to specialise in preparing and designing
occupational standards, and enhancing the electronic systems and databases for the Centre. The Completing the classification system and The system has been completed and the trial period
team also aims to complete the preparation of occupational standards for other economic sectors. initiating the classification of corporates for the classification of corporates has commenced.

Gradual Omanisation percentages for the sector has

Issuance of a solutions package for the
been adopted, and the job titles for 30 professions
construction sector
has been standardised.
 Stakeholders Stakeholders

Ministry of Manpower (MoMP) Oman Society for Contractors (OSC) Ministry of Manpower (MoMP) Private Sector Representatives

Oman Chamber of Commerce and Industry (OCCI)

5. Launch the National Leadership Development Programme to Empower Omanis to be
Able to Take Middle and Upper Management Positions in the Private Sector (Etimad)
4. Development of Labour Solution Packages to Assist Economic Sectors in Achieving
Omanisation This Programme aims to develop national competencies working
in the private sector and qualify them to occupy supervisory and
After studying the challenges that limit corporates from reaching leadership positions, which contributes to enhancing the demand
the national Omanisation targets, the initiative came with several for national competencies.
solutions in the form of packages to facilitate the implementation
of Omanisation policies in the three economic sectors: tourism,
manufacturing, and logistics, looking into qualitative Omanisation 2019 KPIs
in supervisory positions, to accelerate the recruitment process in
proportion to the conditions of these sectors, and meeting the 5.1 Launch the training programme and complete the training of 500 trainees in the pilot phase
Omanisation percentages set for each sector.
In 2019, the initiative aims to prepare, design and launch the training programme, then initiate
registration process and screening of candidates to choose 500 trainees for the first phase.
In 2019, the initiative aims to focus on qualitative Omanisation
in coordination with the initiative of the National Leadership
The Journey
Development Programme “Etimad” to raise the Omanisation
percentages in supervisory positions. During 2019, “Takatuf”, the leading Omani company in the field of leadership training, was chosen,
in partnership with an international expertise house, to design and prepare a leadership-training
programme that suits the requirements of the private sector. The programme also takes into account
2019 KPIs the nature of the sectors targeted by the programme, taking advantage of the studies carried out by
the initiative team during the past years. The company that designed the programme also conducted
114 a survey of the targeted corporates to study the training needs of the private sector at the leadership
115
4.1 Progressively strengthening Omanisation policies
and supervisory levels. The programme was designed according to the latest findings of the leadership
This KPI aims to enhance the cooperation between the Ministry of Manpower and ministries overseeing training institutions, using international best practices. The Oman Institute for Oil & Gas (instOG) was
the three economic sectors, to achieve national Omanisation goals and cooperation with the private chosen as a location for the training programme.
sector.
Moreover, the launch of the programme was announced on 3rd of July 2019, and the visual identity
The Journey of “Etimad” was chosen as a marketing identity for the programme. In addition to the launch of the
official website www.etimad.om in cooperation with one of the SMEs specialized in media marketing
Milestones Status and identity design.

Develop a mechanism to activate the A coordination mechanism has been set The registration was opened for corporates to nominate their suitable employees, as a large number of
Omanisation percentages for supervisory with the team of the National Leadership candidates have applied to the programme and were screened through a set of tests and evaluations
positions in the targeted sectors, in coordination Development Programme, to empower developed according to international standards for leadership training, then, the training of the first
with the National Leadership Development Omanis to be able to take middle and upper batch of the programme began.
Programme initiative management positions in the private sector.
However, the initiative faced challenges that lie in slow bidding and contracting procedures with
A mechanism has been set for cooperation corporates implementing the programme. Nevertheless, the initiative team was able to accelerate
Establish a coordination mechanism with the
and follow-up with the technical teams, to the procedures through coordination with the stakeholders, under the supervision of the Ministry of
technical teams supervising the follow-up
align efforts and provide a platform to discuss Manpower and the support of the Implementation Support and Follow-up Unit.
of the Omanisation targets in the economic
the challenges facing the sectors, through
sectors
periodic meetings and workshops. Moving Forward
In2020 , the team intends to follow-up the implementation of the training programme for 500 trainees,
Following up the efforts of qualitative evaluate the pilot phase, and benefit from it in improving the programme, in addition to evaluating
Determine the percentage of Omanisation
Omanisation, and complementing the efforts the programme outputs and the contracted institutions. Then, the registration and training for the next
in supervisory positions in the second degree
of 2018, a proposal was made on Omanisation batches will begin.
facilities, and the mechanism of their
percentages in supervisory positions in second
implementation
degree facilities, to be implemented in 2020.
 Stakeholders Stakeholders

Ministry of Manpower (MoMP) Public Authority for Manpower Register (PAMR) Oman Academic Accreditation Authority (OAAA) Ministry of Education (MoE)

Oman Chamber of Commerce and Industry (OCCI) Private sector Education Council Oman Medical Specialty Board

Oman Society for Human Resource Management Qualification providers and education/
Ministry of Manpower (MoMP)
training entities in the Sultanate of Oman

6. Enhance the Capacity of Oman Academic Accreditation Authority (OAAA) Ministry of Higher Education (MoHE)

The initiative seeks to enhance the Capacity of Oman Academic 7. Activating the Role of Ministries Overseeing the Economic Sectors in Achieving
Accreditation Authority to complete and implement the Employment Targets
National Qualifications Framework, and enable it to apply the
accreditation system to all sectors of academic, technical and
The Implementation Support and Follow-up Unit has made tireless
vocational education, which will result in improving educational
efforts to identify the causes of the challenges facing the plans of
standards and aligning them with the requirements of the labour
achieving employment targets, and provide solutions to support
market and the private sector.
the sectors in the employment process that was established in
the labs of The National Programme for Enhancing Economic
Diversification. ISFU found that the limited role of the ministries
2019 KPIs
overseeing economic sectors in supervising employment plans in
their sectors is one of the main challenges to the employment
6.1 The completion of the implementation of the pilot phase for the inclusion of qualifications in the
process in the Sultanate, since the concentration of efforts
National Qualifications Framework (NQF) and the approval of the final version of the framework
and responsibilities of employment is limited to the Ministry of
document
Manpower will not achieve the desired goal.
In 2019, the initiative aims to implement a number of pilot operations to incorporate qualifications
116 into the National Qualifications Framework, to test the clarity of the descriptive determinants of the Therefore, ISFU made a proposal for an initiative that activates 117
ten levels mentioned in the National Qualifications Framework document, and their applicability, in the role of ministries overseeing economic sectors in achieving
addition to testing procedures for incorporating qualifications in the National Qualifications Framework. employment targets, through the formation of technical teams for
The initiative also targets the completion of preparing the final version of the National Qualifications the sectors of The National Programme for Enhancing Economic
Framework document, and sending it to the Education Council for approval. Diversification, through which the participation of the ministries will
be activated in employment plans and the employment process
The Journey in private corporates under its supervision, which will lead to:
A number of pilot operations have been completed to incorporate qualifications into the National 1) Promoting inter-ministerial cooperation to ensure the alignment
Qualifications Framework, with the participation of seven educational institutions, including a of policies and implementation.
vocational institution and a professional one. The phase included various educational qualifications 2) Establishing replacement strategies, and ensuring that the
including academic, technological, professional and vocational qualifications. The Authority has plans are implemented by the private sector.
received 14 requests from participating institutions to incorporate qualifications into the National
3) Efficient management of the private sector/employers and
Qualifications Framework. The final version of the National Qualifications Framework document has
employment institutions.
also been prepared based on the feedback from the pilot phase, and was sent to the Education
Council for approval. 4) Aligning education and training efforts to enhance the skills of
national cadres, as appropriate to the labour market.
On the other hand, the initiative has faced challenges represented in the protracted period of pilot
operations to incorporate qualifications into the National Qualifications Framework, in addition, the The technical teams include in their membership all those involved
participating educational institutions need significant support in order to be able to engage in these in the process of employment, training and have experience in the
processes. private sector, who work as experts to bridge the gap between
education outcomes and the labour market.
Moving Forward
In 2020, the initiative aims to obtain the approval of the Education Council on the National
Qualifications Framework Document, in addition to training the relevant institutions on the procedures The Journey
for incorporating qualifications in the National Qualifications Framework, and preparing for the phase The actual operation of the technical teams formed for the manufacturing, logistics and tourism sectors
of implementing the framework. began, followed by the formation of the fisheries, mining, energy and information and communication
technology teams. The technical team in each sector identifies the challenges facing employers in
employing national cadres, and the challenges facing the national cadres in terms of training and
qualification.
 The technical team also considers the professional standards through linking it directly to the labour 8.2 Work environment measurement card
market to bridge the skills gap, and provides a range of incentives, in cooperation with the stakeholders,
This KPI aims to activate the standards of the work environment measurement card, and the
to encourage the employment process, such as those provided by the Ministry of Manpower.
participation of the Ministry of Commerce and Industry, the Ministry of Tourism and Muscat Municipality
in providing facilitations to corporates, and motivating them to enhance the work environment. It also
Operational teams have emerged from technical teams in some sectors, working on a daily basis
aims to launch a special standards package for SMEs, in coordination with the Public Authority of Small
to coordinate the follow-up and visit of corporates, to identify the difficulties of Omanisation and
and Medium Enterprise Development (Riyada).
employment, as well as seeking to make the sectors more attractive. As a result, employment and
training opportunities were provided in each sector.
The Journey
Despite this, the initiative faces several challenges, including the multiplicity and difference of After launching the card with the new standards in 2018, a workshop was held, in the presence of a
challenges from one sector to another, which requires additional efforts to confront them. Another number of corporates, to introduce the card and its benefits in early 2019. The Ministry of Manpower
challenge is the multiplicity of professions and activities within one sector, which affects the follow- contacted the government entities to enhance the incentives granted to corporates that meet the
up of Omanisation percentages. In addition, the overlapping of roles and powers of employment, card standards. The Ministry of Commerce and Industry, the Ministry of Tourism and Muscat Municipality
training and education within the various sectors, and the existence of a coordination gap between welcomed the idea and made facilitation proposals from their part, which were approved and
the stakeholders sometimes are among the challenges. included in the benefits of the card.

Moving Forward ISFU coordinated between the Ministry of Manpower and other government entities, to provide solutions
for card holders. These efforts raised the number of corporates holding the card to 400 corporates.
In 2020, the initiative aims to develop precise work mechanisms, define terms of reference within the
technical team, involve more entities in the employment efforts of the team, such as Oman Chamber
Nevertheless, at the beginning of the year, the initiative faced several challenges represented in the
of Commerce and Industry, as well as making more efforts in coordinating between the ministries
lack of interest of corporates to register in order to obtain the card. Therefore, ISFU, in cooperation
overseeing the various sectors to align their efforts and unify their visions and goals. This is in addition to
with the initiative team, reviewed the package, as a feedback session was conducted with the
creating a dashboard for technical teams to follow-up the implementation of these efforts.
participation of the private sector. Accordingly, incentives were enhanced and the media role was
intensified to communicate the message to corporates.
Stakeholders

Ministry of Tourism Ministry of Agriculture and Fisheries (MAF) Moving Forward

118 In 2020, the initiative team intends to continue the efforts made this year, while focusing on increasing 119
Ministry of Transport Ministry of Oil and Gas (MOG) the number of corporates that provide a stimulating work environment for Omanis, in addition to
following-up SMEs, and honouring the corporates that hold the card to encourage other corporates
Oman Global Logistics Group (Asyad) Authority of Electricity Regulation (AER) to do likewise.

Ministry of Commerce and Industry (MoCI) Ministry of Manpower (MoMP) Stakeholders

Public Authority for Mining (PAM) Ministry of Technology and Communications (MTC) Ministry of Manpower (MoMP) Ministry of Tourism (MoT)

General Federation of Oman Trade Union (GFOTU) Muscat Municipality

8. Increase Attractiveness of Private Sector Employment for Omanis Public Authority for Small and Medium
Ministry of Commerce and Industry (MoCI)
Enterprise Development (Riyada)
The initiative aims to provide an ideal work environment for
the national workforce in the private sector, in order to attract
young national competencies, by launching a card that includes
9. Unlock Part-Time and Temporary Work and Enable Flexible Movement of Labour
standards stimulating the corporate work environment, through
which corporates that meet the standards receive incentives and
facilitations from the Ministry of Manpower and other relevant This initiative aims to provide part-time work opportunities in the
authorities. private sector for Omani employees and job seekers, to stimulate
an environment that creates part-time job opportunities, in
addition to enhancing the flexibility of non-Omani workforce
2019 KPIs movement among establishments registered under the same
entity. It also aims to allow the recruitment of non-Omani workforce
8.1 Increasing the number of card holders and their benefits with temporary licences in some specialised professions.

It is expected that for 2019, 400 corporates will receive the work environment measurement card. In 2019, the initiative aims to activate the electronic systems of the
initiative, and conduct a comprehensive study on the decisions
and policies that have been adopted and implemented, as well
as focusing on the media and awareness aspect of the initiative.
 2019 KPIs
Targeted Groups and the Benefits They Get
9.1 Number of registered contracts (part-time contracts)
This KPI aims to reach 3,500 contracts registered for part-time jobs.

9.2 Application of policies and procedures

This KPI aims to implement the policies and procedures mentioned in Resolution No. 40/2017 and its
amendment decision No. 153/2018.
Registering part-time contracts is beneficial for all parties involving:
The Journey

Milestones Status

Activating the electronic systems for The system for registering part-time work contracts
registering part-time work contracts and and temporary work has been completed, and
Job seekers requests for temporary contracts, and work is underway to complete the electronic
recording workforce mobility systems for recording workforce mobility.
Employers

Workers Conducting a comprehensive study on

Company Owners the decisions and policies that have been The study was completed.
adopted and applied
Retirees
Completion of the media plan on decisions,
SME Owners The plan was implemented.
policies and controls

120 Homemakers
Stakeholders
121
Seasonal Project
Owners
Oman Chamber of Commerce and Industry
Ministry of Manpower (MoMP)
Students
* (OCCI)

* Students of colleges, universities and

institutes, aged 15 or above)
Public Authority for Manpower Register (PAMR) Sultan Qaboos University (SQU)

Ministry of Education (MoE) Public Authority for Social Insurance (PASI)

Ministry of Higher Education (MoHE) Private sector

Benefits these parties get:

10. Enhancing the Employability of Vocational and Technical Graduates by Increasing the
Participation of the Private Sector in Boards of Directors and Trustees

The initiative aims to increase the number of representatives

of the private sector in the boards of directors and trustees in
• Gain practical experience
• Benefit from the experience of the government educational institutions and private training
• Gain income institutions, in order to contribute to the development of proposals
retirees
• Improve the skill that aim to improve curricula, programmes, policies and skills of
• Include the part-time workers graduates, in line with the requirements of the labour market. It
• Choose the suitable time to work
in Omanization percentages
will also increase the demand of the private sector for graduates.
• Better chances to get up to (20%)
a permeant job
• Reduce extra workforce Moreover, the initiative aims to achieve equal representation of
Note: this does not affect the status as a
job seeker in the manpower register.
the government and private sectors in the boards of directors
of vocational training colleges, Vocational College for Marine
Sciences, the technical colleges of the Ministry of Manpower and
the applied sciences colleges of the Ministry of Higher Education.
 2019 KPIs Several committees were formed, including the employment strategy planning committee, which
held meetings with the stakeholders in partnership with the private sector to prepare the plan, in
10.1 Activating the new structure of the boards of trustees in educational and training institutions addition to selecting the headquarters of the National Centre for Employment and starting to prepare
the systems and launch in December 2019.
This KPI aims to activate the new structure, which includes representation of the private sector by 50%
in boards of trustees in educational and training institutions.
Moving Forward
The Journey A preparatory committee has been formed to work on preparing the centre to start its duties on 1st of
January, 2020.
Milestones Status
Stakeholders
Forming the boards of directors that were reviewed
(by increasing the representation of the private The National Centre for Employment (NCE) The National Training Fund (NTF)
sector) for each of:
All steps were achieved, as all boards of Ministry of Manpower (MoMP) Ministry of Civil Service (MoCS)
- Technical colleges
directors and boards of trustees were
- Vocational colleges and the Vocational College
formed and activated for each of the Oman Chamber of Commerce and Industry (OCCI)
for Marine Sciences
vocational colleges (7) and technical
colleges (7) and the Vocational College
Holding meetings of the boards of trustees and
for Marine Sciences, representing the
college boards of directors for each of the following:
private sector by 50%.
- Technical colleges
- Vocational colleges and the Vocational College
for Marine Sciences

Stakeholders

122 Ministry of Manpower (MoMP) Private sector 123

Ministry of Higher Education (MoHE)

11. The National Centre for Employment (NCE)

This initiative aims to establish a single entity that will coordinate

all efforts and action plans aimed at bridging the gap between
supply and demand for job opportunities in the Sultanate, and
this is represented in the National Centre for Employment.

The Journey
After the intensive efforts of all parties concerned with this initiative, and with the support of the
Implementation Support and Follow-up Unit, Royal Decree No. 22/2019 was issued to establish the
National Centre for Employment and issue its system.

The working group has established the mechanisms and electronic systems to follow-up the availability
and development of job opportunities, and to address all institutions responsible for the various sectors,
to be linked with the centre with regard to job opportunities provided by each sector.
124 125

Business
Environment
 Business Environment KPI Dashboard
2019 Actual 2019 Actual
Initiative / KPI 2019 Target Initiative / KPI 2019 Target
achievement achievement
1 Lean Project 11 Judicial System E-Transformation

Achieve all stages of Lean methodology (definition, Developing legislations and the budget required to
11.1 100% 45%
1.1 selection, removal, and sustainability) in the projects of 100% 97% automate the judicial system
several government agencies 11.2 Establishing the necessary networks for the automation process 100% 80%

2 Competition Protection and Monopoly Prevention Centre 11.3 Establishing an electronic program for case management 100% 80%

Establishing Competition Protection and Monopoly Establishing an electronic program for the enforcement of
2.1 100% 85% 11.4 100% 60%
Prevention Centre judgements

11.5 Activating online services for litigants and their agents 100% 100%
3 Real Estate Investment Trusts (REITs)
12 Oman Commercial Arbitration Centre
Developing awareness methods on real estate investment
3.1 100% 60%
trusts at the local and international levels 12.1 Establishing a commercial arbitration centre 100% 80%

Approval of establishing Real Estate Investment Trusts in the 13 Foreign Capital Investment Law
3.2 100% 50%
Sultanate
13.1 Issuing the Foreign Capital Investment Law 100% 100%
4 Executive Regulation of Mergers and Acquisitions 14 Executive Regulations for Investing Foreign Capital

4.1 Issuance of Executive Regulation of Mergers and Acquisitions 100% 100% Issuing the executive regulations of the Foreign Capital
14.1 100% 50%
Investment Law
5 Real Estate Development Law
126 15 Bankruptcy Law
127
5.1 Follow up the steps taken to issue the law 100% 33%
15.1 Issuance of the Bankruptcy Law 100% 100%
6 Escrow Account Executive Regulation
16 Invest Easy
6.1 Issuance of the Escrow Account Executive Regulation 100% 100%
Linking up with government bodies in terms of issuing
16.1 100% 70%
7 Real Estate Development Centre licences and exchanging data

16.2 Making the necessary improvements to the portal 100% 35%

7.1 Preparing the Centre’s staff 100% 30%
16.3 Improving the operational services of the portal 100% 33%
7.2 Preparing the Centre’s electronic system 100% 65%
17 Assessment and Evaluation of Projects for Potential Public Private Partnerships (PPP)
8 Real Estate Foregin Ownership
Establishing a work methodology to qualify government
Allowing foreigners to benefit from real estates in 17.1 project files and study their readiness for partnership with 100% 50%
8.1 100% 50%
accordance with the terms and conditions the private sector

9 Oman Credit and Financial Information Centre (Mala’a) Sorting and categorizing a specific number of projects with
17.2 100% 100%
initial readiness for partnership annually
9.1 Make new amendments to the Banking Law 100% 100%
18 Enhancing Construction Permits in Muscat
9.2 100% operationalisation of the centre 100% 100%
Number of days to issue a construction permission licence:
18.1 100% 100%
10 “Invest in Oman” Portal 21 days
Number of days to issue a construction initiation permit: 5
Identify the investment opportunities that will be included 18.2 100% 100%
10.1 100% 100% days
in the portal
Number of days to issue a construction completion
18.3 100% 100%
Define procedures and register other companies and certificate: 5 days
10.2 100% 100%
services
* A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.
10.3 Complete the final procedures of the portal and launch it 100% 100% * A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
specific authorities. However, ISFU follows up on their execution on a regular basis.
* All forms of data are being continuously improved to be more representative of actual economic state. This is
done in collaboration with NCSI and relevant government entities and aligned with international standards.
 Overview
Business Environment Sector is one of the most enabling sectors for the national economic. As many
of the initiatives, which will contribute to facilitating doing business during the coming phase, have
been accomplished, however, the sector still needs more efforts from all relevant parties with respect
to dealing with challenges which are facing the sector, in order to make the Sultanate an attractive
and motivating environment for local and foreign investments. “Invest in Oman” Portal

As part of the continuous endeavours of the business environment team under the Implementation
Support and Follow-up Unit (ISFU) to improve the business and investment environment in the Sultanate Bankruptcy Law
and facilitate the services provided to this sector, many projects related to laws and legislations were
implemented during 2019, as well as projects related to facilitating the business environment in the
Sultanate and projects related to the ease of doing business indicators. Enhancing Construction Permits in Muscat

In addition to the main dashboard of the business environment sector, separate dashboards have
been developed for both “Invest Easy” and “Lean” projects, due to the importance of these two Real Estate Investment Trusts (REITs) (The main objective of the initiative has
been achieved by establishing the first Real Estate Investment Trust in the Sultanate,
projects, the nature of the initiatives and indicators related to them, and the government agencies therefore, the team decided that it is unnecessary to continue working on the initiative)
associated with them. “Invest Easy” project includes three main initiatives and 20 KPIs, which include
the integration of government agencies with the system, the improvements that will be introduced to
the system, and the indicators of the system’s efficiency. As for “Lean” project, it aims to streamline
the procedures for starting a business “commercial activity” in the Sultanate, and improve the KPIs
New Initiatives/Projects added in 2019:
for the selected operations, which are related to the ease of doing business indicators, as the project
includes 11 main initiatives with 29 KPIs for projects that simplify procedures in the relevant government
authorities.

128 Among the most important projects and laws that have been implemented during this year are: 129
Judicial System E-Transformation
“Foreign Capital Investment Law” and “Bankruptcy Law”, by issuing Royal Decrees 50/2019 and
53/2019, respectively.

Executive Regulation for Investing Foreign Capital

The relevant government authorities have made effective efforts in the progress and achievement of
several initiatives and projects in the business environment sector during the year 2019. The Ministry of
Legal Affairs (MoLA) has played a pivotal role in the execution of all laws, legislations and executive
regulations related to the projects followed up by ISFU. Executive Regulation of Mergers and Acquisitions

Graduated Initiatives/Projects in 2019: “Lean” Project

“Invest Easy” Project

Foreign Capital Investment Law

“Invest in Oman” Portal

Escrow Account Executive Regulation

Assessment and Evaluation of Projects for Potential Public Private

Executive Regulation of Mergers and Acquisitions Partnerships (PPP)

Oman Credit and Financial Information Centre (Mala’a)

 1. Lean Project
Improvement made after applying Lean Methodology
This project aims at improving the Sultanate’s ranking in the Ease MoCI MM
of Doing Business Index, for the Sultanate to be an attractive Commercial Registration &
Construction Permit (days)
Industrial License Process (days)
environment for starting and executing commercial projects.
Moreover, the project aims to improve the KPIs of the processes
12 12
selected in the indicators. It relies on “Lean” methodology for
10 10
continuous improvement, which seeks to streamline procedures
8 8
and reduce waste of resources, ensuring the greatest value to the
6 6
beneficiary. Lean methodology works on improving 3 main areas:
4 4 Target
quality, cost and production. Target
2 2
0 0
Six projects were selected to be implemented with 5 different Pre - Lean Post - Lean Pre - Lean Post - Lean
entities, which frequently deal with commercial transactions. The
team aims to finalise the project in December 2019. MoMP MM
Labor Clearance (days) Construction Completion Certificate (days)

2019 KPIs 100 100

90 9
1.1 Achieve all stages of Lean methodology (definition, selection, removal, and sustainability) in the 80 8
projects of several government agencies 70 7
60 6
50 5
40 4
The Journey 30 3
Target
20 2
Project Execution Stages 10 Target 1
0 0
130 No. Agency Lean Project Title Sustaina- Pre - Lean Post - Lean Pre - Lean Post - Lean 131
Definition Selection Removal
bility

Ministry of
Reducing the time required to complete MoF MoF
1 Commerce Budget Requests Process (days) Obtaining Required Documents (days)
the procedures for starting a business
and Industry
70 70
Muscat Reducing the time required to obtain
2 60 60
Municipality construction permits and licenses
50 50
40 40
Ministry of Reducing the time required to obtain Target
3 30 30
Manpower work permits for investors 20 20
Target
10 10
Reducing the time required for the
Ministry of 0 0
4
Housing
procedures of utilizing industrial lands by 60% 60% Pre - Lean Post - Lean Pre - Lean Post - Lean
investors

Improving the mechanism of the Ministry Moving Forward

of Finance for obtaining the required
In 2020, the project team aims to execute several other projects using the “Lean” methodology for
documents related to “withdrawal
5 continuous improvement, and building capacity in “Lean” methodology in all targeted entities.
requests” from government agencies
Ministry of supervising the implementation of
government projects Stakeholders
Finance
Ministry of Commerce and Industry (MoCI) Ministry of Finance (MoF)
Reducing the time required for studying
Ministry of Manpower (MoMP) Muscat Municipality (MM)
6 government agencies’ requests related
to budget, and responding to them
Ministry of Housing (MoH)
 2. Competition Protection and Monopoly Prevention Centre 2019 KPIs
3.1 Developing awareness methods on real estate investment trusts at the local and international levels
The initiative aims to establish a centre that creates a strong and
honest competitive environment to build an economy based on This KPI aims to educate the parties, who are interested in investing and legislating, in the real estate
competitive markets and innovative business, which enhances investment trusts and their mechanism of work from the legal and technical aspects. It also aims to
the ability of local companies to compete in the international organise a local workshop for those interested in investing in these trusts.
market, in addition to its role in attracting foreign investments to
compete in the Sultanate at an equal level.
3.2 Approval of establishing Real Estate Investment Trusts in the Sultanate
In addition, the Centre aims to achieve three main objectives: This KPI aims to support obtaining approval to establish real estate investment trusts in the Sultanate.
1. Awareness and ensuring the application of free competition rules.
2. Establishing the competition protection and monopoly The Journey
prevention rules. 3.1 Developing awareness methods on real estate investment trusts at the local and international levels
3. Protecting competition and preventing monopoly for the
benefit of the national economy and the consumer. Milestones Status

Organizing an international conference/forum

This step was accomplished by organising the
2019 KPIs in the Sultanate to educate the local market
conference in March 2019.
about the idea of REITs
2.1 Establishing Competition Protection and Monopoly Prevention Centre

3.2 Approval of establishing Real Estate Investment Trusts in the Sultanate

The Journey
In virtue of Royal Decree No. 22/2018 amending the Law of Competition Protection and Monopoly Milestones Status
Prevention, the Competition Protection and Monopoly Prevention Centre was established. The Public
132 Authority for Privatisation and Partnership, concerned with following up the operation of the centre, 133
Approve the first real estate investment trust in
focused on forming a board of directors for the centre in February 2019, and a financial advance This step was completed on December 24,
the Sultanate and approve the prospectus of
was approved in July 2019 to operate the centre. Moreover, the CEO of the centre was appointed, 2019.
Aman Real Estate Investment Trust units
the Ministry of Civil Service approved the centre’s organisational structure, and the centre has started
activating its powers and receiving complaints and issues related to its scope of work.
Stakeholders
Moving Forward The Capital Market Authority
The team will follow up the issuance of the centre’s report about its activities during 2019.

Stakeholders
4. Executive Regulation of Mergers and Acquisitions
Public Authority for Privatisation and Partnership Ministry of Commerce and Industry (MoCI)
Executive Regulation of Mergers and Acquisitions aims to regulate
the acquisition and control of public joint stock companies listed
Capital Market Authority
in Muscat Securities Market, directly or indirectly, as it includes
principles and rules that govern the work of all those involved in
3. Real Estate Investment Trusts (REITs)
the process. The regulation also aims to provide a fair treatment to
all shareholders. It will also contribute to improving the Sultanate’s
The initiative aims to provide multiple options for investors,
rank in the ease of doing business index, especially the clause of
including allowing companies and individuals to invest in real
small investors’ protection, and will increase investor confidence
estate and own investment units without having direct control
over real estate assets. in the local capital market.

The initiative is expected to be completed by the end of 2019

after issuing the approval of the real estate investment trusts
that have applied to the Capital Market Authority. Also, a local
conference will be held to present the experience of these
companies regarding the mechanism of registration.
 2019 KPIs The Journey
4.1 Issuance of Executive Regulation of Mergers and Acquisitions
Milestones Status

The Journey The letter was prepared and directed to the

Preparing a committee formation letter authorities concerned with drafting the law, to
Milestones Status nominate whom it deems appropriate.

Forming a task force to work on the regulation The task force was formed at the end of The committee was formed and began its work
draft and submit it to the Ministry of Legal Affairs 2018 and the draft was submitted to MoLA in Formation of the committee and meetings to prepare the initial draft of the
(MoLA) for review January 2019. law.

The Ministry of Legal Affairs (MoLA) approval of Preparing the law draft The draft has been completed.
The regulation was approved in May 2019.
the executive regulation
The committee has finished its meetings, and
The regulation was published in the Official the draft will be submitted to some relevant
Approval of the law by the Ministry of Legal
Publishing the executive regulation in the Gazette No. 1292 on 12/5/2019 under the entities to express its views on the law, and then
Affairs (MoLA)
Official Gazette name of “Executive Regulation of Mergers to MoLA for review before submitting it to the
and Acquisitions” Cabinet for approval.

Stakeholders Stakeholders

The Capital Market Authority Ministry of Legal Affairs (MoLA) Ministry of Housing (MoH) Ministry of Legal Affairs (MoLA)

Muscat Securities Market

134 6. Escrow Account Executive Regulation 135

The Ministry of Housing The Escrow Account Executive Regulation contains details of
the procedures and legislations required for the execution of the
5. Real Estate Development Law Escrow Account System issued by Royal Decree No. 30/2018. The
initiative aims to protect the interests of investors in real estate
The Real Estate Development Law aims to regulate the real estate development projects by authorizing developers to use the
sector in the Sultanate, as it will include the development of a real escrow account. the account organises the payments that are
estate indicator to evaluate property, focus on the role of real paid to them and ensures that the developer may not obtain
estate brokers and evaluators and set clear standards for their funds until a certain stage of the real estate development project
work, while promoting various aspects of the real estate market is completed.
at the same time.

During2019 , it is expected that the final steps of the initiative will be 2019 KPIs
completed, including the approval of MoLA, and then submission
6.1 Issuance of the Escrow Account Executive Regulation
of the draft to the Cabinet of Ministers for approval.

The Journey
2019 KPIs The Ministry of Housing (MoH) prepared the Escrow Account Executive Regulation, agreed about it with
MoLA and then approved it. The initiative was completed after the regulation was promulgated in the
5.1 Follow up the steps taken to issue the law
Official Gazette on 21/07/2019. The Ministry of Finance (MoF) also approved services and fees related
This KPI aims to follow up the steps that must be followed to issue any law in the Sultanate, starting with to registering real estate developers and real estate development projects. In addition, coordination
the formulation of an initial draft and passing through the Ministry of Legal Affairs (MoLA), the Cabinet has been made with the Central Bank of Oman (CBO) to conduct awareness-raising workshops for all
of Ministers and the Council of Oman in its two sides (Shura Council and State Council), and up to banks, with a circular to be sent to banks on the importance of starting to open escrow accounts for
issuing it as a Royal Decree. real estate development projects.
 ISFU played a pivotal role in following up the work of the committee concerned with preparing the The Journey
executive regulations, and the meetings it held to discuss this regulation and accelerate its issuance.
7.1 Preparing the Centre’s staff

Moving Forward
Milestones Status
Escrow Account Executive Regulation was issued for real estate development projects; thus, the
initiative has successfully graduated in 2019. The management of the centre nominated the team and the
Team Nomination job titles, and a letter was sent to MoF regarding obtaining the
Stakeholders financial grades of the employees.

The centre has obtained initial approval and this step will be
Ministry of Housing (MoH) Ministry of Finance (MoF) Team Approval
completed in Q1 of 2020.
Ministry of Legal Affairs (MoLA) The Central Bank of Oman (CBO)

7.2 Preparing the Centre’s electronic system

7. Real Estate Development Centre
Milestones Status

The initiative aims to create a single platform that brings together This step was completed by finalising the review and development
11 entities to complete the investors’ transactions in the real estate Preparing the Agreement
of the agreement.
development sector, in order to finalise initial construction permits
procedures within 27 working days. The registration of real estate
Stakeholders
developers commenced in the beginning of 2019 and began
receiving projects manually from March 2019. Ministry of Housing (MoH) Ministry of Finance (MoF)

The initiative is expected to be completed by the end of 2019, Real Estate Development Centre
136 after signing the agreement with the executing company, 137
starting work by receiving requests from real estate developers
electronically, and completing signing service level agreements
8. Real Estate Foreign Ownership
with other service agencies. The team will continue working with
the Real Estate Development Centre next year to ensure that the
The initiative aims to find a tool for foreign individuals to own/
goal of completing initial construction permits within 27 working
benefit from specific housing ranges, in order to keep capitals
days is achieved.
in the Sultanate and promote foreign investment. This initiative is
expected to be finalised at the end of December 2019.

2019 KPIs
7.1 Preparing the Centre’s staff 2019 KPIs
This KPI aims to provide the Real Estate Development Centre with new employees and secondees 8.1 Allowing foreigners to benefit from real estates in accordance with the terms and conditions
from MoH and the relevant authorities to operate the centre.
This KPI aims to follow up the issuance of a decision that allows foreigners to own/benefit from real
estate in the Sultanate, according to specific conditions and controls.
7.2 Preparing the Centre’s electronic system

This KPI is concerned with the steps that must be taken to prepare, receive and install the entire The Journey
electronic system.
Milestones Status

This step was accomplished and the committee formed to

review the conditions and controls began its tasks to draft the
Approval of the Ministry of Legal
decision and set the necessary conditions and controls. ISFU
Affairs of the draft resolution
communicated with all stakeholders to set these conditions
and controls, and followed up the work of the committee.

The final approval of the Cabinet This step is expected to be accomplished in Q1 of 2020.
 Stakeholders The initiative faced a challenge in completing the electronic connectivity with some institutions,
therefore, ISFU facilitated this by meeting with the relevant institutions to finalise the electronic
Ministry of Housing (MoH) The Supreme Council for Planning (SCP) connectivity. It also faced a challenge in attracting technical cadres in the field of credit information
centres and offices to work in the centre, and work is under way to overcome this challenge.
Ministry of Legal Affairs (MoLA) Muscat Municipality
Moving Forward
The initiative has successfully graduated, however, the team will continue following up with the centre
Central Bank of Oman and support its work in the second phase of the project in 2020, and the third phase of the project in
2021.
9. Oman Credit and Financial Information Centre (Mala’a)
Stakeholders
This initiative aims to create a central database of credit and
financial information at the national level. The centre will Central Bank of Oman (CBO)
include all banks, finance companies, insurance companies,
telecommunications companies, public services companies
and SMEs funds. It aims to assess the sound financial solvency of The Public Authority for Investment Promotion & Export Development (Ithraa)
clients, both individuals and companies, in a manner that leads
to achieving loan quality and reducing credit and financial risks 10. “Invest in Oman” Portal
and default rates, in addition to developing credit and financial
reporting systems in accordance with internationally approved The portal is an electronic platform that represents a destination
standards, measuring creditworthiness and assessing the potential for investors looking to invest in the Sultanate, in which the
for default. In addition, the centre will contribute to enhancing available investment opportunities and projects in various sectors
the Sultanate’s ranking in the Ease of Doing Business Index (sub- are presented. Different parties can also present their investment
index for obtaining credit). opportunities in the portal. In addition, the portal offers an
138 139
integrated package of facilities and electronic services that help
During 2019, the centre will start operating after being linked the investor communicate with the owners of the projects, and
electronically to all entities involved in the project, and the allow service providers from SMEs to offer their services, in order to
electronic system will be tested and activated. facilitate the investor’s access to them.

The portal was established to be specialised in presenting

2019 KPIs investment opportunities in the Sultanate. Several goals were
9.1 Make new amendments to the Banking Law achieved, including:
· Consolidating efforts of promoting investment opportunities
This KPI aims to add new amendments to the banking law, which will lead to the establishment of the
between governmental and private sector institutions.
centre and give it administrative and financial independence.
· Providing information related to investment opportunities and
projects in the Sultanate to all investors around the world and
9.2 100% operationalisation of the centre
display them in one platform periodically.
Follow up and support the implementation of all stages necessary to start operating the centre, and · Creating a profile for investors interested in investing in the
finalise the first stage of the project, according to the strategy in 2019. Sultanate.
· Providing facilities for investors’ communication with project
The Journey
owners, including submitting inquiries, coordinating meetings,
The Royal Decree No. 38/2019 was issued on May 8, 2019, which stipulated the establishment of the and defining procedures.
Oman Credit and Financial Information Centre and the issuance of its system, thus, the legal aspect of
· Offering support services to investors by SMEs in one platform.
the project was completed, and ISFU followed up all stages of the legislation with all relevant entities.
As for the technical aspect of the project, the centre has been provided with the necessary software · Linking the portal with the relevant e-government projects,
and equipment to be able to run its work, along office equipment. Also, electronic connectivity with including “Invest Easy” platform.
many of the centre’s main partners from government and private institutions in various sectors has Moreover, ISFU plans to meet with the new management of
been completed. “Ithraa” to agree on the upcoming phase and any possible
goals for 2020.
 2019 KPIs
changes and amendments to local laws and legislations has become of great importance to
10.1 Identify the investment opportunities that will be included in the portal keep pace with the current developments.
The KPI aims to identify the investment opportunities that will be included in the portal, represented in
the following sectors: tourism, manufacturing, logistics, mining, and fisheries. Moreover, the necessary infrastructure that allows keeping pace with these changes must be
created, in addition to streamlining procedures for litigants to follow up on their cases and
submit notes electronically. Therefore, this initiative will contribute to improving the ranking of
10.2 Define procedures and register other companies and services
the Sultanate in some international indicators, such as the ease of doing business indicator
The KPI aims to identify and list the services and procedures provided to the investor, create a database concerning the protection of small investors and enforcement of contracts.
of additional services (such as real estate companies, banks, car rental companies, law firms, and
recruitment companies), and give the staff of “Ithraa” the authority to register companies.
2019 KPIs
10.3 Complete the final procedures of the portal and launch it
11.1 Developing legislations and the budget required to automate the judicial system
The KPI aims to finalise the website by the company, receive it, review it, then submit it to the Ministry
The KPI aims at changing the legislation related to the process of electronically transferring documents,
of Technology and Communications (MoTC) to conduct a security audit. After that, the website will
and obtaining the budget required to re-train the employees and purchase the necessary equipment.
be uploaded and officially launched.

The Journey 11.2 Establishing the necessary networks for the automation process
The platform was launched in November 2019, after facing several challenges related to obtaining The KPI aims at creating the necessary infrastructure to complete the electronic transformation of
all the information on investment opportunities that is required to be uploaded to the electronic the courts, starting with providing the Internet service for all courts and obtaining licenses for judicial
platform, in preparation for offering it to investors. The initiative also encountered difficulty with respect systems. In addition, the KPI aims at providing the courts with servers, storage and protection in the
to obtaining information about some investment procedures from the relevant authorities. central data rooms.

However, ISFU addressed these challenges by contributing to providing investment opportunities from
11.3 Establishing an electronic program for case management
140 the government and private sectors, activating the role of “Ithraa” in promoting the Sultanate, and 141
granting the Investment Services Centre at the Ministry of Commerce and Industry (MoCI) the authority The KPI aims at linking all courts and their departments through an electronic program, in order to
to register companies. facilitate the process of transferring documents by employees and reducing expenses of the country.

Moving Forward 11.4 Establishing an electronic program for the enforcement of judgements
In 2020, the initiative aims to provide an integrated package of facilities and electronic services, in
The KPI aims at improving the work environment with regard to the restoration of rights as quickly as
addition to providing coverage of the most important available investment opportunities and direct
possible, by linking the authorities relevant to implementing judicial rulings and creating a program
communication with the relevant institutions.
that aims at transferring documents between departments of the courts.

Stakeholders
11.5 Activating online services for litigants and their agents
Public Authority for Investment Promotion & Export Development (Ithraa)
The KPI aims at improving the business environment for litigants and law firms, which comes through
simplifying the process of following up on developments and exchanging documents between
different parties.
Council of Administrative Affairs for the Judiciary
The Journey
11. Judicial System E-Transformation The team succeeded in achieving many of its targeted goals in this project as it obtained preliminary
approval of the proposed law draft, and the Council of Administrative Affairs for the Judiciary worked
The Sultanate seeks to establish justice among its citizens since with ISFU to obtain the required budget for 2019 and 2020.
the inception of the blessed renaissance, as the Royal Decree
No. 10/2012 emphasises the principle of justice and promotes ISFU played a central role in addressing some challenges related to linking between agencies and
separation of powers. The judicial system is an integral part of the pushing the law draft forward. It also had a role in the council obtaining the required budget to create
enablers of the national economy, which is based on free market the necessary networks. The council also initiated a training for its employees on establishing electronic
and protection of the rights of everyone, in order to encourage programs, through an Omani team rather than contracting with operating companies, due to the
and protect competition. In view of the rapid growth in the era sensitivity of the judicial work.
of technology and the fourth industrial revolution, making some
 Furthermore, the “Judiciary Platform” was launched, which is a mobile application that allows litigants Then, the centre’s work system was issued and published in the Official Gazette, and a temporary
to follow up on the latest updates regarding their cases. Efforts have also been made to launch the project manager for the centre was appointed to manage its work.
first phase of the Lawyers Portal, which allows all offices to submit the statements of claim and defence
statements from their locations, thereby saving them time that would otherwise have been used on Moreover, the Board of Directors of OCCI formed the centre’s Board of Directors, which met for the first
going to court to present the statement. time within 15 days of approving its formation. The Chairman of the board was chosen by voting, and
the deputy was elected by acclamation. In addition, the CEO of the centre was also appointed, and
Moving Forward employees were seconded to work in the centre during the foundation period. A work team will also
The law is expected to be issued in 2020. The team will continue improving the system and providing be formed to formulate the arbitration rules at the centre.
more services, such as the possibility of submitting implementation requests through the lawyers portal.
Also, the specialists in the Council of Administrative Affairs for the Judiciary aim at completing work on Moving Forward
this initiative with ISFU in 2020. The budget allocated to this initiative will also be released in 2020. The Commercial Arbitration Centre is expected to be ready to receive disputes referred to it locally
and globally in the last quarter of 2020.
Stakeholders
Stakeholders
Council of Administrative Affairs for the Judiciary Ministry of Legal Affairs (MoLA)
Oman Commercial Arbitration Centre Oman Chamber of Commerce and Industry (OCCI)
Cabinet of Ministers Law Firms

Ministry of Finance (MoF)

Ministry of Commerce and Industry

13. Foreign Capital Investment Law

Oman Chamber of Commerce and Industry
The Foreign Capital Investment Law aims at regulating and
12. Oman Commercial Arbitration Centre
encouraging investments in the Sultanate and protecting the
142 143
rights of investors. It will benefit the national economy in several
This initiative aims at establishing a centre that looks into commercial ways, as it will improve the infrastructure and provide the
disputes that arise between the parties before going to court. The necessary capital to finance internal investments, in addition to
centre shall be administratively and financially independent, as it increasing employment opportunities for Omanis.
will be operated in the future through fees received in arbitration
cases of local and international commercial disputes, training The initiative aims at drafting a law that opens the door to foreign
courses it holds, and publications it issues. investors and allows them to own 100% of the companies, in
addition to reducing the minimum required capital.

2019 KPIs
12.1 Establishing a commercial arbitration centre 2019 KPIs
13.1 Issuing the Foreign Capital Investment Law
The Journey Since the initiative’s working group have finalized the law draft in 2018, this year’s KPI is concerned with
Pursuant to Royal Decree No. 26/2018 on establishing Oman Commercial Arbitration Centre, ISFU has the passage of that law through the legislative cycle until its publication in the Official Gazette.
played a key role in pushing this initiative forward by following up the steps taken by Oman Chamber
of Commerce and Industry (OCCI) in relation to establishing and operating the centre. The Journey
The initiative faced several challenges related to the powers of stakeholders with regard to
The work undertaken by OCCI was forming a constitutional committee for the centre, concerned implementing this initiative. However, ISFU was instrumental in moving the initiative forward, and
with preparing the centre’s work system, as well as working on the action steps listed under the KPI, coordinating the efforts of the relevant government bodies to agree on the desired goals. ISFU also
through holding an expanded workshop with specialists to discuss the centre’s work system, with the had a role in pushing the initiative to be presented to the Cabinet of Ministers and passing it in an
attendance of international arbitrators and experts to provide their views on the system. After that, urgent manner through the Council of Oman.
the observations and recommendations of the workshop were collected and discussed by the team
during the system preparation phase. The initiative was raised to His Majesty and issued under Royal Decree No. 50/2019. It was published in
the Official Gazette on July 1, 2019 under the name “Foreign Capital Investment Law”.
 Moving Forward 15. Bankruptcy Law
The initiative has been completed and work has begun on a new initiative concerned with the
issuance of the executive regulations of the Foreign Capital Investment Law within 6 months from the The Bankruptcy Law will improve the business environment in the
effective date of the law. Sultanate, as it will allow companies to restructure and adapt their
businesses when they face any financial challenges. “Bankruptcy”
Stakeholders is defined as the situation in which an individual or entity submits
a request for a specific legal status (declaration of bankruptcy)
Ministry of Commerce and Industry (MoCI) Cabinet of Ministers when they are unable to pay debts to creditors. The initiative
aims at regulating the bankruptcy and insolvency processes in
Ministry of Legal Affairs (MoLA) Council of Oman the Sultanate, by issuing a law whereby the entities can declare
bankruptcy, with guidelines for organizing the company’s debt
The Public Authority for Investment Promotion and Export Development (Ithraa)
repayment and liquidation of its assets.

Work on this draft law started in 2017, and the team continued
14. Executive Regulation for Investing Foreign Capital working on it in 2018, but the KPI (the issuance of legislation and
its publication in the Official Gazette) was not fully achieved, so it
This initiative aims at issuing the executive regulations of the was moved to 2019.
Foreign Capital Investment Law, as it will determine the features
that will be available to investors and the controls that will limit
investments in some sectors. It is expected that the regulation will 2019 KPIs
be completed and issued in the Official Gazette by the end of
2019. 15.1 Issuance of the Bankruptcy Law

The Journey
144 2019 KPIs
145
Milestones Status
14.1 Issuing the executive regulations of the Foreign Capital Investment Law

The Journey Approval of the draft law by the

The law was approved and urgently referred to the Council
Cabinet of Ministers and submission
Following the issuance of the Foreign Capital Investment Law pursuant to Royal Decree No. 50/2019, of Oman in May 2019.
to the Council of Oman
it was agreed to establish a committee headed by MoCI, with the membership of the relevant
authorities, to discuss the details of the regulation and the best experiences of other countries in terms Approval of the draft law by the
The law was discussed and approved in June 2019.
of controls and features. The committee commenced its work and finished preparing the draft and Council of Oman
referring it to the relevant authorities to get their views, including MoLA.
Issuing the law according to a The draft law was raised to His Majesty and issued according
The team faced several challenges related to soliciting the views of those concerned, because the royal decree and publishing it in to Royal Decree No. 53/2019 and published in the Official
law is related to all sectors that attract foreign investment. Therefore, it was decided to conduct a the Official Gazette Gazette on 07/07/2019.
workshop to obtain the views of the relevant stakeholders. The team also faced another challenge,
which lies in the overlapping powers of the stakeholders regarding investors. Stakeholders

Moving Forward Ministry of Commerce and Industry (MoCI) Oman Chamber of Commerce and Industry (OCCI)
The views of the stakeholders will be included in the regulations and issued in January 2020.
Ministry of Legal Affairs (MoLA) The Capital Market Authority (CMA)

Stakeholders Cabinet of Ministers The Central Bank of Oman (CBO)

Ministry of Commerce and Industry (MoCI) Oman Global Logistics Group (ASYAD)
Council of Oman

The Public Authority for Investment Promotion and Export Development (Ithraa)

The Special Economic Zone Authority at Duqm (SEZAD) Ministry of Legal Affairs (MoLA)
 16. Invest Easy improve the services provided, train the centre’s employees, and transfer knowledge to them during
the contract period, which leads to enhancing the skills of Omani workforce.
The “Invest Easy” Project is a comprehensive set of electronic
services designed to provide the business community with one As for connecting the entities to the portal, the project has made good progress, as 4 government
window for their interaction with the government, starting with the bodies have been linked to the portal, and other parties have reached the final stages of the linking
creation of a new company, to licensing activities, and ending process. This came as a result of forming a new working group, focusing on developing the system,
with the submission of annual financial reports. and providing the appropriate resilient environment to encourage and facilitate the linking process.

In the past years, the “Invest Easy” initiative aimed at creating an However, the project faced many challenges, most notably the overlapping of the powers of
electronic window as one stop for the investors, through which they government bodies with regard to company registration. Secondly, the human resources are limited.
can register their companies and obtain the necessary licences Thirdly, each of the bodies that issue licences has a special legal framework and different procedures
to practise their activities. However, in 2019, the relevant parties regarding the payment process and licensing periods.
proposed that the “Invest Easy” platform becomes an integrated
project supervised by the Investment Service Centre in MoCI, Moving Forward
and several initiatives are included under it, aiming at facilitating With the availability of the convenient environment, required infrastructure, and a dedicated team,
and accelerating the establishment of investment projects and the focus in the coming period will be to link up more than 70 government and private bodies to
developing the business environment in the Sultanate. “Invest Easy” Portal.

The project will encourage companies to start their commercial Stakeholders

activities in the Sultanate, in addition to stimulating internal and
external investments. Ministry of Commerce and Industry (MoCI) Muscat Municipality

Ministry of Transport (MoT) Sohar Free Zone

Initiatives under “Invest Easy” project in 2019:
The Ministry of Manpower (MoMP) Salalah Free Zone
146 147
16.1 Linking up with government bodies in terms of issuing licences and exchanging data Ministry of Tourism (MoT) Al Mazyona Free Zone
This initiative consists of 14 KPIs and several milestones to achieve each KPI, with the aim of linking 23
Oman Credit and Financial Information
government institutions in 2019. Ministry of Environment and Climate Affairs (MECA)
Centre

16.2 Making the necessary improvements to the portal The Council of Administrative Affairs for
Ministry of Agriculture and Fisheries (MAF)
the Judiciary
This initiative consists of 3 KPIs aimed at conducting 120 improvements in various fields (such as
commercial registration and licences).
Telecommunications Regulatory Authority (TRA) Ministry of Education (MoE)

16.3 Improving the operational services of the portal The Special Economic Zone Authority at Duqm (SEZAD) Ministry of Information (MoI)
This initiative consists of 3 operational KPIs:
Directorate General of Customs at the
1. The average time required for issuing a commercial register is 30 minutes. Tax Authority
Royal Oman Police
2. The average time required to approve and issue 50% of the total permits is 10 days.
The Public Establishment for Industrial Estates (Madayn) Public Authority for Craft Industries
3. Provide the service of submitting applications for expatriate labour through the portal.

The Public Authority for Civil Defence and Ambulance

The Journey Ministry of Social Development (MoSD)
at the Royal Oman Police
2019 witnessed great progress concerning project governance. An integrated and full-time working
group was formed at the Investment Service Centre of MoCI. The CEO of the Centre was appointed Ministry of Regional Municipalities and Water Resources (MRMWR)
in April 2019, who is also the project manager. This is the first step of its kind in the governance of
the “Invest Easy” Project, as no dedicated team has been formed or a project manager has been
appointed since the portal was launched.

2019 also witnessed another development related to signing the operating contract with the Estonian
“Nortel” Company, where the company will technically manage the portal for 3 years, continuously
 The Supreme Council for Planning Muscat Municipality

17. Assessment and Evaluation of Projects for Potential Public Private Partnerships (PPP) 18. Enhancing Construction Permits in Muscat

Public-private partnership (PPP) projects are long-term contracts The initiative aims at improving the construction permits services
between the private sector and government bodies, and these in Muscat Governorate and reducing the time required for issuing
partnerships can be used to develop many projects with shared permits for authorising, commencement and completion of
responsibilities. construction as indicated in the procedures manual of Muscat
This initiative aims at setting rules and criteria for evaluating Municipality, which will contribute to improving the Sultanate’s
and screening projects that can be implemented through the ranking in international indicators. The initiative is expected to be
partnership model between the public and private sectors, in completed by the end of 2019 through reducing the average
order to reduce the burden on the government budget and number of days in all KPIs.
improve the quality of implementation and performance. The
ninth five-year development plan (2016-2020) was used as a
reference to identify projects that can be implemented through
partnership between the two sectors. 2019 KPIs

In 2019, the team aims at developing a methodology for qualifying 18.1 Number of days to issue a construction permission licence: 21 days
partnership project files, and how to evaluate and sort them This KPI aims at reducing the average number of days to issue a construction permission licence from
through the establishment of an electronic system.
27 to 21 days.

18.2 Number of days to issue a construction initiation permit: 5 days

2019 KPIs
Complementing the efforts made in the past year (2018), where the number of days has been reduced
17.1 Establishing a work methodology to qualify government project files and study their readiness for
to 7 days, this KPI aims at reducing the average number of days to issue a construction start licence
partnership with the private sector
148 to 5 days. 149
17.2 Sorting and categorizing a specific number of projects with initial readiness for partnership annually
18.3 Number of days to issue a construction completion certificate: 5 days
The Journey
As a complement to the efforts made in the past year (2018), where the number of days has been
The initiative team studied the data of several government projects of a number of sectors that need
reduced to 7 days, this KPI aims at reducing the average number of days to issue a construction
the provision of their infrastructure, which were represented, as a first stage, in the sectors of health,
completion certificate to 5 days.
education, transport, municipalities, agriculture and fisheries.

During 2019, the team started cooperating with an international house of expertise to provide The Journey
technical advice on developing a scientific methodology as part of the internal system of the This initiative comes as a complement to the initiative of last year (2018), where a working group
General Secretariat of the Supreme Council for Planning, to sort and select projects that are feasible was formed to look into the Municipality’s procedures for issuing licences and certificates. After that,
for partnership with the private sector, among the list of development projects included in the ninth the Petroleum Development Oman Company (PDO) held a three-week workshop to simplify the
five-year development plan (2016-2020), in addition to applying the methodology to a specific list of procedures for issuing building permits, using the “Lean” methodology for continuous improvement. A
projects with high viability and making preliminary feasibility reports for it as a guiding model that can new KPI was added for the year 2019, which is the issuance of a construction permission licence, which
be applied internally in the coming period. aims at reducing the duration of procedures from 27 days to 21 days. This KPI exceeded the target,
as Muscat Municipality managed to reduce the average number of days to issue a construction
Moving Forward permission licence to 19 days.
The initiative team in the General Secretariat of the Supreme Council for Planning aims to announce
the projects that are qualified for implementation in partnership with the private sector, in coordination Moving Forward
with the Public Authority for Privatisation and Partnership.
During 2020, the team seeks to continue improving all construction procedures and reduce the time
required to obtain various permits.
Stakeholders
General Secretariat of the Supreme Council for Planning Ministry of Finance (MoF) Stakeholders
Government agencies responsible for government projects in the ninth five-year development
Muscat Municipality
plan, each according to its competence

Public Authority for Privatisation and Partnership

150 151

Fisheries
 Fisheries KPI Dashboard
2019 Actual 2019 Actual
Initiative/ KPI 2019 Target
Achievement Initiative/ KPI 2019 Target
Achievement

1 Commercial Fishing 4 Shrimp Farming

1.1 Al Wusta Industrial Fisheries - Small Pelagic Fishing 4.1 Al Jazer Shrimp Farm

1.1.1 Start Phase 1 operations for small pelagic fishing 100% 100% 4.1.1 Starting of conceptual designs 100% 70%

1.2 Al Wusta Industrial Fisheries - Large pelagic fishing 4.2 Quron Shrimp Farm

1.2.1 Start construction of large pelagic commercial fishing vessels 100% 80% Start construction of the Quarantine, and complete
4.2.1 100% 63.25%
construction of over 50% of Quron Shrimp Farm

2 Artisanal Fishing 4.3 Khuweima Shrimp Farm

2.1 Coastal Fishing vessels Mobilisation and start of construction for Khuweima Shrimp
4.3.1 100% 52%
Farming Project

152 2.1.1 Obtain licenses for 50 New Coastal Vessels 100% 100% 4.4 Bar Al Hakman Shrimp Farm 153

2.2 Modern Boats Complete Project Feasibility study and Submit EIA Scoping
4.4.1 100% 0%
Report

2.2.1 Obtain licenses for 48 New Modern Boats 100% 140% 5 Algae Cultivation

2.3 Fishermen Villages in Sarab and Hitam 5.1 Al Sharqiya Algae Farm by Feed Algae

Completion of Phase 1 of the consultancy study for

2.3.1 100% 40% 5.1.1 Starting of EIA scoping report 100% 50%
fishermen village construction project in Hitam

Completion of Phase 1 of the consultancy study for 7 Collection points

2.3.2 100% 95%
fishermen village construction project in Sarab

7.1 Appoint investors for 5 collection points 100% 85%

3 Infrastructure Projects

7.2 Secure 5 lands for collection points for the next phases 100% 100%
3.1 Development of 3 new fishing ports

Tendering of construction works of Ash Shuwaimiyah * A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.
3.1.1 100% 65%
Fishing Port * A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
specific authorities. However, ISFU follows up on their execution on a regular basis.
3.1.2 Tendering of construction works of Mahout Fishing Port 100% 25% * All forms of data are being continuously improved to be more representative of actual economic state. This is
done in collaboration with NCSI and relevant government entities and aligned with international standards.

3.1.3 Tendering of design works of Dithab Fishing Port 100% 83%

 Overview 2019 KPIs
Despite inherent advantages such as its 3000 km long coastline and its position as the leading fisheries
producer in the GCC region, Oman’s fisheries sector contributes less than 1% to the GDP, in addition 1.1.1 Start Phase 1 operations for small pelagic fishing
to the sector being heavily reliant on artisanal fishing, contributing 99% to the total fish production. the aim of this KPI is to charter a suitable vessel for 2 years of trial fishing. The success of this trial will
Globally, aquaculture production is nearly on par with catch, but in Oman the aquaculture industry determine the next phase’s economic viability.
is minuscule. Similarly, fisheries processing and exports are largely limited to raw fish and primary
processing. However, with its long coastline, access to GCC markets, and potentially significant The Journey
increases in production of higher-value species, there is significant potential for the industry to grow, as The biggest challenge the project had faced was in November 2018, and entailed finding a fishing
the sector achieved 59% growth in fish landing and the number of Omani fishermen reached 49,000 vessel with the appropriate specifications. Once the correct vessel was selected, it sailed all the way
in 2018. from Spain, crossed the Mediterranean and Suez Canal, and arrived at Salalah Port on February 2019.
Thereafter, the company finalised customs clearance and obtained permits and approvals. Once
Based on the set plans for 2019, Fisheries sector has scored many achievements as the Ministry of everything was in place, the fishing vessel commenced its operation in February 2019. It completed
Agriculture and Fisheries (MoAF) and Al Rafd have successfully signed a memo for Al Rafd to fund 12 fishing trips in 2019.
20 modern boats per year. Moreover, Tenders were floated for the construction of Mahout and
A’Shuwemiya fishing ports, and for the engineering designs of Dithab fishing port, where a consultant During the fishing trips, the company faced some challenges in terms of catch methods, but discussions
was assigned for Dithab port’s designs, and the tendering process for Mahout and A’Shuwemiya is at between ISFU and MoAF resulted in positive response.
the final stages. Also, Alwusta Fisheries Industries Company played a vital role in contributing towards
increasing the amount of commercial fishing landing. Moving Forward
As per the plan, the company will continue its fishing trips for the trial-fishing period that will end by
As ISFU works closely with MoAF and other initiative owners, many obstacles were resolved by this 2020. By the end of the trial phase, the company will analyse the collected data through its fishing trips
teaming strategy. In addition, ISFU has facilitated the process of obtaining approvals for the fishing and the results will determine whether to proceed to the next phases. Due to the seasonal variability
ports to be taken into tendering process. The same process of following up the projects resulted in in characteristics of the Arabian Sea, the fishing locations might change during the year, which will
establishing shrimp aquaculture projects, collection points and fishermen villages by the Sea of Oman. require approval from MoAF and facilitation from ISFU.

New initiatives/projects added in 2019: 1.2 Al Wusta Industrial Fisheries - Large pelagic fishing
154 The plan is to develop an oceanic tuna purse seine fleet to assert Oman’s rights as an Indian Ocean 155
coastal state to avail of its tuna resources, as the migratory tuna species are being fished all over the
Indian Ocean by the countries along its coast.
Alwusta Fisheries Industries Company – Large Pelagic Commercial Fishing
2019 KPIs

1.2.1 Start construction of large pelagic commercial fishing vessels

Fishermen Villages in Sarab and Hitam
The target is to reach the stage of assigning shipyards to start constructing the requested fishing vessels.

The Journey

Milestones Status
1. Commercial Fishing
Prepare Terms of Reference for the tuna vessels. The company prepared them in January 2019.
With its vast coastline, Oman has a substantial resource of The classification society was selected in March 2019,
fisheries that provide excellent opportunities for monetisation and serves to certify that the vessel’s construction
by commercial and artisanal fleets. By developing modern Select the classification society. complies with relevant standards. It carries out
commercial fleets to serve the downstream industry, Oman can regular surveys to ensure continuous compliance
substantially increase its fisheries sector contribution to the GDP. with survey standards.

In May 2019, MoAF approved the provisional

Obtain MoAF approval for provisional
drawings, which are required to ensure they meet
1.1 Al Wusta Industrial Fisheries - Small Pelagic Fishing drawing designs.
the Ministry’s specifications.
Owned by Oman Investment Funds, Al Wusta Industrial Fisheries intends to operate in the small pelagic
commercial fleet-line that targets unfished species, and started trial-fishing for a period of two years Issue the work order for Part 1/Central Naval
The work order was issued.
in Phase 1. The fleet is targeting Horse Mackerel, an as-yet unfished small pelagic species located in (engineering office)
Oman’s Exclusive Economic Zone (EEZ). The chosen vessel is capable of netting 20,000 tonnes per year Submit general arrangement drawings, and
from the available 1.3 million tonnes, making a minimal impact on the stock. Meanwhile, the company They were submitted in June 2019.
tender document.
will assess the true biomass and potential of this species in Omani waters.
 Moving Forward
The shipyards were notified in July 2019, and 6
Tender notification to the targeted shipyards. In 2020, ISFU will be supporting and following up on MoAF’s target of providing licenses to a total of 70
shipyards submitted the proposals.
coastal vessels and 40 modern boats.
Test the hull tank and propeller design tank. The milestone was completed.
2.2 Modern Boats
Develop detailed design superstructure. The milestone was completed. Fiberglass skiffs are the boats used by fishermen to access near-shore territorial waters. While these
boats do have some advantages, they are expensive to operate, offer limited use for overnight trips,
Stakeholders and tend to be unsafe in rough sea conditions. The aim of this project is to replace the fiberglass
skiffs with modern boats. The designs of these new boats offer opportunities for longer overnight trips,
Ministry of Agriculture and Fisheries (MoAF) Al Wusta Industrial Fisheries Company enhanced catch quality and quantity, and reduced operating costs.

Ministry of Transport (MoT) Oman Investment Fund Moreover, this project plays a role as a potential pull factor to retain Omani youth that have marine or
fisheries background in order for them to contribute back to the industry and receive the required training
State General Reserve Fund (SGRF)
from MoAF to qualify them to use this kind of boats. However, as there are some difficulties and limitations
to obtain the required funding for various fisheries related initiatives, the project aims to obtain financing
2. Artisanal Fishing through funding agencies. MoAF with ISFU’s support is cooperating with Al Raffd Fund to finance the
project – where applications are evaluated and qualified by MoAF, and subsequently financed.
The initiative supports and encourages artisanal fishermen to
make use of modern boats and coastal fishing vessels to improve 2019 KPIs
the efficiency of their fish harvesting activities. The boats allow
the fishermen to explore and exploit new fishing areas outside 2.2.1 Obtain licenses for 48 New Modern Boats
territorial waters, and therefore serve to improve and increase
their catch numbers, as well as their fish production efficiency. For The Journey
2019, the initiative targets the approval and licensing of a total of
50 new vessels for Oman’s artisanal fishermen. Milestones Status
156 157
Approve 48 applications for modern boats,
Completed.
2.1 Coastal Fishing vessels and issue the licenses.
Compared to modern coastal fishing vessels designed specifically for artisanal fishing, many of the
Dhows currently used by Omani fishermen are not viable for use because of their lack of catch quality, 2.3 Fishermen Villages in Sarab and Hitam
reduced stability and unsafe standards for overnight fishing. Therefore, this project aims to replace While Oman’s southern coastline is a relatively active zone in terms of fishing, the development of
the Dhows and traditional boats with modern vessels that fulfill the fishermen’s operational needs and permanent fishing communities and accompanying infrastructure in the region has been limited. With
safety requirements. this in mind, the aim of this project is to develop more infrastructure along this coastline, in order to
attract additional fishing fleets and fishing communities. Furthermore, the project aims to support the
2019 KPIs management of fishing activity in the area by aggregating all current activities scattered around the
area into more central locations – and by eradicating non-registered boats through administrative
2.1.1 Obtain licenses for 50 New Coastal Vessels procedures and public awareness. The fishermen village developments at Hitam and Sarab will unlock
the potential for more catch quantities and increased quantity and quality of fish processing activities.
The Journey
To continue the application review/approval process that started in 2018, the responsible committee 2019 KPIs
in MoAF carried out a series of monthly meetings during 2019. As a result of a new upgrade in this
process, the number of applicants increased exponentially and the target set for the end of 2019 2.3.1 Completion of Phase 1 of the consultancy study for fishermen village construction project in
was met by Q3 of 2019. To abide by regulations, MoAF subsequently discontinued accepting further Hitam.
applications.
2.3.2 Completion of Phase 1 of the consultancy study for fishermen village construction project in
Sarab.
 The Journey 3. Infrastructure Projects
2.3.1 Completion of Phase 1 of the consultancy study for fishermen village construction project in
Through the development of Oman’s ports, harbours and fishing
Hitam.
infrastructure, this initiative ensures that a vital part of the Sultanate’s
fishing industry is established. Firstly, it enables traditional fishermen
Milestones Status
to continue and expand their commercial activities. Secondly,
The project faced difficulty regarding the land, it enables them to make use of small to medium-scale modern
Obtain land approval from MoH for the fishing vessels to exploit resources that have been inaccessible
however, with ISFU’s efforts, the approval was
development of fishermen village in Hitam. with older boats. And thirdly, it serves to further encourage
obtained in April 2019.
employment in Oman’s modern fishing industry.
Obtain initial approval from Minister and
Undersecretary of MoAF for the tender Tender documents were approved in April 2019. This infrastructure also brings the fish processing industry in Oman
documents. – involving everything from harvesting and landing the catch, to
preserving and selling it with/without value additions – in line with
The budget was approved in April 2019. ISFU international best-practice standards. In doing so, the Sultanate
Obtain Ministry of Finance (MoF) approval contributed to obtaining the project budget can successfully meet the demands of local and international
for the project’s budget. approval after conducting several meetings with markets. Looking ahead, the development of proper fisheries
MoF and the Supreme Council for Planning (SCP). infrastructure in Oman is set to continue to form a key support and
growth accelerator for this very important industry.
Float the tender. Completed.

3.1 Development of 3 new fishing ports

2.3.2 Completion of Phase 1 of the consultancy study for fishermen village construction project in A stock biomass survey carried out by MoAF revealed that an estimated 7.5 Million tonnes of fish are
Sarab. found in the Arabian Sea. In terms of annual fishing activity on this stock, 64% of the total catch is a
result of artisanal fishing taking place in the Arabian Sea. In Oman, research indicates that the Al
Milestones Status Wusta, Dhofar and South Sharqiyah governorates collectively see the highest harvests of fish annually,
158 at 190 thousand tonnes. However, 60% of Oman’s existing harbours are currently located on its 159
Due to this land being surrounded by residential northern coastline, far away from these regions of prolific fishing activity. As a result, 3 main areas on
land, various challenges were faced in securing it. the central and southern coastline between Massirah Island and the Al Hallaniyat Islands have been
Obtain land approval from MoH for the
ISFU played a role in finding alternatives, and they identified to establish fishing ports and accompanying facilities – such as wholesale fish markets, boat
development of fishermen village in Sarab.
successfully coordinated between MoAF and MoH
and equipment repair facilities, cold storage, fuel stations and administration buildings etc.
to obtain the land.

Obtain initial approval from Minister and

2019 KPIs
Undersecretary of MoAF for the tender Tender documents were approved in April 2019.
documents. 3.1.1 Tendering of construction works of Ash Shuwaimiyah Fishing Port
Finalising the process of tendering and awarding the contractor for the construction of the port.
The project budget was approved in May 2019.
Obtain MoF approval for the project’s ISFU contributed directly to obtaining this approval 3.1.2 Tendering of construction works of Mahout Fishing Port
budget. through conducting several meetings with MoF
and SCP. Finalising the process of tendering and awarding the contractor for the construction of the port.

Float the tender. Completed. 3.1.3 Tendering of design works of Dithab Fishing Port
Finalising the process of tendering and awarding the contractor for the design of the port.

Stakeholders

Ministry of Agriculture and Fisheries (MoAF) Tender Board

Ministry of Housing (MoH) Al Raffd Fund

Ministry of Environment and Climate affairs (MECA) Boat building companies

 The Journey 4. Shrimp Farming

3.1.1 Tendering of construction works of Ash Shuwaimiyah Fishing Port This initiative aims to take advantage of the ideal conditions
present in Oman for shrimp farming, and to develop the Sultanate
Milestones Status into an important shrimp producer in the region. Shrimp farming is
one of the most profitable forms of aquaculture, and Oman’s large
Float the tender by Tender Board. Completed. swaths of usable land and easy access to clean seawater via its
extensive coastline all allow for prime developments. Furthermore,
Complete and approve the technical evaluation. Completed. studies indicate that there is an abundance of sites with the right
soil, seawater and other naturally occurring conditions favorable
3.1.2 Tendering of construction works of Mahout Fishing Port for shrimp farming. To exploit these and other aquaculture
conditions in the Sultanate, Fisheries Development Oman (FDO) is
Milestones Status now taking the lead in shrimp farming in Oman. Four projects are
being developed: Al Jazer, Quron, Khuweima and Bar Al Hakman
Float the tender by Tender Board. Completed. Shrimp Farms. By the end of 2019, Quron and Khuweima projects
will be in their construction phases, and the Quron project is set to
begin operations in Q1 of 2020.
3.1.3 Tendering of design works of Dithab Fishing Port

Milestones Status
4.1 Al Jazer Shrimp Farm
Float the Consultancy Tender. Successfully floated. Set up by FDO, Al Jazer Shrimp Farm is located in Al Wusta Governorate. The investment value of this
project is around OMR 59.5 Million, and the farm will have the capacity to produce 17,600 tonnes of
Complete the assessment/evaluation of tender Port Department in MoAF analysed and Indian White shrimp every year, as it becomes operational. The first harvest is expected to be in 2021.
documents for bidding of consultancy. evaluated the offers.
2019 KPIs
160 Bidders’offers were revised, and consultant 161
Review/award the consultant by MoAF.
has been assigned. 4.1.1 Start the conceptual designs
The target for 2019 is to finalise the conceptual designs for the project, and carry out a site investigation.
After several meetings coordinated by ISFU Once these have been achieved, the investor will be able to issue a work order to the Environmental
Review the contract agreement for the contractor
between MoAF and MoLA, the contract Impact Assessment (EIA) consultant.
by Ministry of Legal Affairs (MoLA).
agreement was approved.
The Journey
Stakeholders
Milestones Status

Ministry of Agriculture and Fisheries (MoAF) Royal Oman Police (ROP) Complete topography and contour
Completed.
survey.
Ministry of Regional Municipalities and Water
Haya water Send Request For Proposal (RFP) to
Resources (MRMWR) The RFPs for the bathymetric survey and geotechnical
consultants for the bathymetric survey
investigations have been sent to bidders.
Ministry of Legal Affairs (MoLA) Rural Areas Electricity Company (Tanweer) and geotechnical investigations.

Complete geotechnical investigations. Completed.

Public Authority of Water (Diam) Omantel
The board is currently studying the options whether
Obtain board approval to proceed with
to continue with the project or to reallocate the site
conceptual designs.
since 40% of the site is not suitable for shrimp farming.

The bathymetric survey has successfully been

Complete bathymetric survey. carried out, and the report has been submitted to
the company.
 4.2 Quron Shrimp Farm
Set up by FDO, Quron Shrimp Farm is located in Al’Sharqiyah South Governorate. The investment value

Discharge Point
of this project is around OMR 14.2 Million, and the farm will have the capacity to produce 3,600 tonnes
of Whiteleg Shrimp every year, once operational. The first harvest is expected to be in 2021.

2019 KPIs

Settlement
4.2.1 Start construction of the Quarantine, and complete construction of over 50% of Quron Shrimp
Farm
For this phase, construction of 6 main components will take place: The Quarantine Facility, Hatchery,

Recycle
Grow-out Ponds, Maturation Unit, Nursery, and Infrastructure Buildings.

Pump
Project details

Aqueduct
Shrimp Ponds Aquaculture Layout

Bioremediation
162 163

Drain
Location:
Al’Sharqiyah South

Alternative discharge point

Species
Whiteleg Shrimp

( estuary or Coast )
Full production capacity

Intake Pump
3,600 Tonnes

Recycle
Total Investment

Pump
OMR 14.2 million

Reservoir
Estimated first harvest
2021
 The Journey 2019 KPIs

Milestones Status 4.4.1 Complete Project Feasibility study and Submit EIA Scoping Report
According to the 2019 plan, the investor is to assign a consultant to commence the works of site
Select and approve quarantine site. Completed.
investigations as a preparation for the Environmental Impact Assessment (EIA) study. Once the site
investigations are completed, an EIA consultant specialising in environmentally sensitive areas will be
Complete geotechnical investigations for quarantine site. Completed.
assigned.

Complete maturation unit construction (90%). 75.5% completed.

The Journey
Complete hatchery construction (65%). Completed.
Milestones Status

Construct grow-out ponds in Block A (60%). 93% completed.

Bathymetric survey did not take place due to
difficulty in finding a consultant and, hence,
Construct nursery ponds (80%). Completed. Complete bathymetric survey.
hydrodynamic modelling was given priority
after discussion with MECA.
Construct infrastructure buildings (40%). 93% completed.
A consultant was assigned to prepare the
Complete hydrodynamic modelling.
4.3 Khuweima Shrimp Farm hydrodynamic modelling.
Set up by FDO, Khuwaima Shrimp Farm is located in Al’Sharqiyah South Governorate. The investment
value of this project is around OMR 11.3 Million, and the farm will have the capacity to produce 3,000 Stakeholders
tonnes of Indian White shrimp every year, once operational. The first harvest is expected to be in 2020.
Ministry of Agriculture and Fisheries (MoAF) Ministry of Housing (MoH)
2019 KPIs
Fisheries Development Oman (FDO) Ministry of Environment and Climate Affairs (MECA)
164 4.3.1 Mobilisation and start of construction for Khuweima Shrimp Farm Project 165
After the detailed engineering designs are completed, the project will launch its construction phase. Ministry of Regional Municipalities and Water Resources (MRMWR)

The Journey 5. Algae Cultivation

Milestones Status Oman’s unique natural environment and climate ensures that
the Sultanate is ideal for farming algae stocks and tapping into
Fence project site. Completed. a growing market that is expected to be worth USD 44.7 Billion
by 2023, as more products are developed using algae as a base
Finalise engineering designs and Bill of Engineering Designs were finalised and material. With this in mind, this initiative aims to construct Oman’s
Quantities. approved. first large scale capital intensive algae farm.

Tender documents were prepared and Algae is a fast-growing plant organism with many beneficial
Prepare tender documents.
approved. properties. It converts sunlight, CO2, and nutrients into organic
matter that can replace many commonly used oils and animal
The bid was announced and the company and plant proteins. It is also an effective carbon sink, water
Announce bid and issue bid documents. is received the offers. Negotiations with nutrient filter, and an efficient land/water source of food and
contractors are going on. fuel energy. In addition, Algae has various applications in the
biofuel, bioplastics, fertiliser, pharmaceutical, cosmetic, and
4.4 Bar Al Hakman Shrimp Farm nutritional supplement industries, as well as in animal and fish
Set up by FDO, Bar Al Hakman Shrimp Farm is located in Al Wusta Governorate. This project is planned feed production. Moreover, as it contains a high percentage of
to be one of the largest shrimp farming projects in the world. For Phase 1, the investment value is protein and omega-3 fatty acids, Algae oil, for example, is an
expected to be around OMR 150 Million, and the farm will have the capacity to produce 43,000 ideal alternative to the increasingly scarce and expensive fish oil,
tonnes of Indian White shrimp per year, once operational, and at full development, it is expected to and in high demand in the aquaculture industry. Currently, this is
produce more than 200,000 tonnes of shrimp. The first harvest is expected to take place in 2023. the only Algae project in Oman, which is expected to be ready
for EIA review at the end of 2019.
 5.1 Al Sharqiya Algae Farm by Feed Algae 2019 KPIs
Feed Algae is a British algae farming company that has several algae farming projects in various  
countries. It has taken the decision to invest in Oman, and specifically at the South Al Sharqiya 6.1.1 completion of 80% construction of Al Bustan Hatchery
Governorate’s Al Sharqiya Algae Farm – which will be considered one of the largest of its kind in the
world once it becomes operational. The investment value of this project is around OMR 167.5 Million, The Journey
and it has the capacity to produce 100,000 tonnes of Algae per year. Due to the unexpected high bids to construct the hatchery, and being in the process of merging Oman
Investment Fund (OIF) with State General Reserve Fund (SGRF), the project was kept on hold by FDO
2019 KPIs until a clearer picture emerged. However, in order to meet the needs for juveniles, the company used
a wet lab that belongs to MoAF to produce sufficient amount of seeds for the company. Presently,
5.1.1 Starting of EIA scoping report FDO is planning to construct the hatchery in the Sur Industrial Area, as this would be a more cost-
This KPI aims to assign an EIA consultant and finalise site investigations, which will allow the EIA scoping effective location.
report to commence by the end of 2019.  
Stakeholders
The Journey Ministry of Agriculture and Fisheries (MoAF) Fisheries Development Oman (FDO)
Milestones Status
7. Collection Points
Land sketch has been issued by MoH. However, the investor
has concerns regarding the allocated land for the project, In order to unlock Oman’s full fishing industry potential, this initiative
Issue the land sketch
and a meeting is being arranged with Municipal council to aims to improve general catch quality and processing standards.
discuss relocation possibilities. This will be achieved at a number of fish collection points, by
establishing facilities to sort, wash, pack and auction fresh fish;
Obtain a Preliminary Aquaculture supplying fishermen and trucks with flake ice; and providing
MoAF issued the project’s PAL.
License (PAL) from MoAF. data for various monitoring and tracking purposes. The target is
to establish 15 collection points in the areas that experience fish
166 Stakeholders landings and highest number of fishermen – but which currently 167
lack adequate facilities.
Ministry of Agriculture and Fisheries (MoAF) Ministry of Interior (MoI)
2019 KPIs
Ministry of Housing (MoH) Feed Algae Company
7.1 Appoint investors for 5 collection points
Ministry of Environment and Climate Affairs (MECA)
The target in 2019 is to appoint investors to 5 locations that were put up for public bidding.

7.2 Secure 5 lands for collection points for the next phases
6. Hatchery
The target in 2019 is to obtain approval from MoH for 5 new lands.

The Sultanate of Oman has identified aquaculture as one of The Journey

the key pillars to diversify its national economy. To achieve this
As this project is essentially a new concept for Oman, a number of challenges have been faced with
objective, the formation of a commercial marine finfish hatchery
regards to securing investment. With MoF approval, 2 locations were initially opened up for public
is necessary, and towards this end, a marine finfish farming
bidding. However, these locations only received a limited number of offers from investors. Following
project has commenced in Quriyat. This will be the precursor of
this, 3 additional locations were opened up for bidding, bringing the total to 5. Approvals for all of the
many more to come. Presently, marine fish seeds (juveniles) are
locations were obtained from MoH and MECA, and a series of workshops and meetings were held –
imported, leading to higher cost of production, hence, there is
with input from the Municipal Council – to clarify the importance of the initiative and the benefits that
a need for local produce. Once completed, Al Bustan Finfish
it will bring to the community.
Hatchery will be the first marine finfish hatchery in Oman.

Stakeholders
6.1 Al Bustan Hatchery Ministry of Agriculture and Fisheries (MoAF) Ministry of Finance (MoF)
Established by FDO, Al Bustan Finfish Hatchery is slated to be located in the Al Bustan area of Muscat.
To be built at an investment value of around OMR 11 million, this project has the capacity of producing Ministry of Environment and Climate Affairs (MECA) Public Authority for Water (Diam)
40 million pieces of marine fish seeds (juveniles) per year. The first harvest is expected to be in 2020.
Ministry of Housing (MoH) Private Investors
 8. Abalone Farming Stakeholders

The Golden Abalone (Haliotis Mariae) is considered one of the Ministry of Agriculture and Fisheries (MoAF) Oman Aquaculture Company (OAC)
highest quality and most valuable species of Abalone in the
world. Therefore, this initiative aims to produce high-value locally Al Jazeera Investments Dhofar Municipality
occurring species on a commercial scale. In 2019, the construction
Rural Areas Electricity Company (Tanweer) Bank Dhofar
of two main abalone-farming projects will be initiated with the aim
of sustaining the farming of Omani Abalone for local consumption,
and for export to foreign markets.
9. Recirculating Aquaculture System (RAS)
8.1 Establish Mirbat Abalone Farm
OAC has a project that is currently in the construction phase in Mirbat, Dhofar Governorate, with an RAS is a land-based aquaculture system that is usually used for
investment value of around OMR 5.7 Million. The project aims to have the capacity to produce 200 farming high-value species. Due to its closed system model and
tonnes of Abalone on an annual basis, with the first harvest expected to be in 2020. controlled marine environment, it is particularly advantageous
in terms of low water consumption, protection against disease
2019 KPI outbreak, and fish quality control. With its aim to enhance its
aquaculture offerings for the local and international market,
8.1.1 Completion of farm construction Oman has a number of RAS system projects in the pipeline that
aim to catalyse a sustainable and high-yield fish farming industry.
In 2019, this project is expected to reach the stage where all the
The Journey
permits and licenses are obtained, so construction of the various
sites could be initiated in 2020.
Milestones Status

Construction has started at the beginning of the year, but

Complete 100% of foundation, piping several obstacles were faced by the contactor, which 9.1 Fins Salmon project by AquaSite
168 system, wall structure, and roofing. caused a delay in the progress. Therefore, construction One of the key projects of this initiative – scheduled for development in Qurayat/Muscat – sees the 169
is planned to be completed by mid-2020. Norwegian aquaculture company AquaSite investing around OMR 46 Million. The project has the
capacity of producing 20,000 tonnes of Salmon (considered a high-value species) per year, with the
8.2 Establish Sharbathat Abalone Farm first harvest expected to be in 2021.

With Abalone farming in Oman being limited exclusively to the Dhofar Governorate, this second
2019 KPIs
project – owned by Al Jazeera Investments – is located in Sharbathat. Investments in the project stand
at OMR 5.6 Million, and the farm is projected to hit production figures of 450 tonnes per year, as it
9.1.1 Fins Salmon RAS: Finalise the Feasibility study
becomes fully operational.
After the EIA has been approved by MECA, and once the land usufruct is signed, the investor’s
2019 KPIs finalisation of the technical and financial feasibility study will be the only remaining step.

8.2.1 Lakbi Hatchery & 50 tonne grow-out Farm Setup The Journey
This KPI involves the finalisation of the project’s hatchery construction, and the installation of the grow- Milestones Status
out ponds.
Obtain approval to construct the
The Journey The approval has been obtained.
site’s electrical power supply.

Milestones Status
As a foreign direct investment project, an approval to
sign the usufruct was requested and obtained from
MoAF has obtained permit to collect 500 broodstock, with 400 of Sign the land usufruct.
Collect broodstock. the Cabinet of Ministers, while the industrial license was
these already collected.
received from Ministry of Commerce and industry (MoCI).

Construct Lakbi Hatchery. Construction contractor has been assigned.

Commission hatchery. Deep Blue Aqua has been appointed to commission the hatchery.
 Stakeholders Stakeholders

Ministry of Agriculture and Fisheries (MoAF) Ministry of Commerce and Industry (MoCI) Ministry of Agriculture and Fisheries (MoAF) Ministry of Legal Affairs (MoLA)

Ministry of Housing (MoH) AquaSite Company British Centre for Environment, Fisheries and Aquaculture Sciences (CEFAS)

10. National Aquaculture Health Management 11. Developing skilled Fisheries labour via Private sector led training

With several large-scale aquaculture projects either under The aim of this initiative is to ultimately provide the manpower that
construction or in the development stages in Oman, the country Oman’s fast-growing fisheries and aquaculture industries will no
is getting set to establish itself as an important player in the doubt require in the future. This is being achieved by improving
rapidly-evolving global aquaculture market. At the same time, the existing training programmes in Oman’s fisheries sector
the Sultanate realises that aquafarming operations need to be through providing a link between the public and private sectors:
carefully managed and under a rigorous set of regulations to avoid Firstly, for the development of training programmes through the
potential drawbacks, such as loss in stock due to disease outbreaks. formation of an Industry Advisory Panel (IAP), and secondly, for
Therefore, to ensure the long-term sustainable development of the ensuring students get on-the-job practical training. Additionally,
sector, MoAF collaborated with the British Centre for Environment, the initiative will contribute to establishing best-practices and
Fisheries and Aquaculture Sciences (CEFAS) in 2019 to build up occupational standards for Oman’s fisheries industry. These will
a new regulation plan for the aquaculture industry in Oman. This subsequently act as clear guidelines to companies and training
new plan is specifically applied to the quarantine and specialised institutes seeking to align themselves with the industry.
laboratories.

11.1 Implement revised training programmes in Vocational College of Marine Science in Al Khaboura
10.1 National Aquaculture Health Management Through a public/private sector collaboration, this initiative aims to improve the current training
Before processing these new regulations, the decision was taken to first enhance the capacity of programmes available at the Vocational College of Marine Science in Al Khaboura. Specifically, this
170 MoAF to regulate the development of the aquaculture industry. This is set out in 2 phases: Phase is being achieved by placing a critical focus on practical, on-the-job training. In the long term, it is 171
1 involves revising the current regulations and guidelines as well as providing plans for training and important that the fisheries industry’s needs are aligned with the national guidelines. The initiative,
facilities development. Phase 2 involves the implementation of these new regulations. therefore, also plans to develop occupational standards for the industry.

2019 KPIs 2019 KPIs

10.1.1 Finalising the agreement with British Centre for Environment, Fisheries and Aquaculture Sciences 11.1.1 Finalising the process of revising the training programmes and modifying the curriculum
(CEFAS)
The main target for 2019 is finalising the signing of the agreement/contract between MoAF and CEFAS. The Journey
This will subsequently facilitate the National Aquaculture Health Management regulations processing.
Milestones Status
The Journey
Identify learning outcomes for each The advisory panel has carefully matched the
Milestones Status specialisation. learning outcomes for each specialisation.

Carry out contract signing between MoAF MoAF, MoF and CEFAS are working on the details Identify suitable courses and timelines The courses and timelines were identified and closely
and CEFAS. of the agreement. for each curriculum, and provide a aligned with the targeted outcomes; and the course
comprehensive description of each course. descriptions have been provided and implemented.
Upgrade the existing laboratories based on The plan has been delivered to MoAF, and the
the new plan of regulations. upgrading is in progress. Stakeholders

A number of MoAF’s staff in Aquaculture Centre Vocational College of Marine Science in

Train staff on the new regulations. Ministry of Manpower (MoMP)
have been nominated for training. Al Khaboura

Ministry of Agriculture and Fisheries (MoAF) Private sector (Industry Advisory Panel)
172 173

Energy
 Energy KPI Dashboard

2019 Actual 2019 Actual

Initiative/ KPI 2019 Target Achievement Initiative/ KPI 2019 Target Achievement

2 Sahim II 10 Energy Auditing and Retrofitting Project

2.1 Pre-rollout preparatory work (Sahim II) 100% 78% Establishment of Working Model for Energy Services
10.1 100% 85%
Companies (ESCOs)

3 Ibri II Solar IPP 11 Appliance Standards Project

3.1 Execution of Power Purchase Agreement (PPA) 50% 50%

11.1 Implement energy efficiency labels for air conditioners 50% 50%

3.2 Appointment of Supervisory consultants 10% 10% Issue technical standards and specifications for electrical
11.2 appliances. (For example: Heaters, lightings, washing 50% 35%
machines, refrigerators and freezers)
3.3 60% completion of Engineering work 40% 14%
13 National Environmental Policy for the Energy Sector (NEPES)
4 Solar 2022
Complete the Realisation of Oman’s National
13.1 100% 74%
Environmental Policy for the Energy Sector
4.1 Submission of Statement of Qualification (SOQ) 100% 110%

5 Tanweer 11 Site Hybrid System * A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.
174 * A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
175
Release Request for Proposal (RFP) to the prequalified specific authorities. However, ISFU follows up on the execution on a regular basis.
5.1 100% 100%
bidders * All forms of data are being continuously improved to be more representative of actual economic state. This is
done in collaboration with NCSI and relevant government entities and aligned with international standards.
6 Dhofar Wind

6.3 Commissioning & Commercial operating of Dhofar Wind 100% 100%

7 Wind 2023

7.1 Contract award for Wind Resource Assessment 85% 85%

Commencement of installation for Wind Resource

7.2 15% 10%
Assessment

8 Waste-to-Energy Project

8.2 Submission of Statement of Qualification 100% 20%

9 North-South Interconnector

Duqm: Approve the route, and prepare the Engineering,

9.1 70% 74%
Procurement and Construction (EPC) tender documents

Nahadah: Float and receive the Engineering,

9.2 30% 36%
Procurement and Construction bids
 Overview Renewable and Alternative Energy
As the Sultanate continues its efforts towards reducing dependability on fossil fuels, and exploiting
renewable energy technologies, the country finds itself in a position to leverage its abundance of solar
1. Amin Solar
and wind potential as alternative resources for energy. This, along with several other factors, make
the Sultanate an attractive environment for renewable energy investment. In line with this trend, the Amin Solar project, owned by Petroleum Development Oman
country is seeking diversification of energy sources by considering alternative energy and improving (PDO), is the first large-scale solar project in the Sultanate of
Oman. It is located in the PDO concession area in Amin, which
the energy efficiency to cater for the load growth. A national target of 30% non-gas sources was set
is in the southern region of Oman approximately 210 kilometres
to be achieved by 2030.
north-west of Salalah.

To achieve this, the energy sector has been consistently developing, resulting in the achievement of With a power generation capacity of 100 megawatts (MW), it will
several accomplishments during the year of 2019. This includes several major energy projects such be playing a key role in alleviating the dependency on gas to
as Dhofar Wind project, which has been commercially operated. This operation is considered the generate electricity in Oman, and also reduce CO2 emissions by
first step towards exploiting renewable energy in the Sultanate to achieve the energy diversification around 137,121 tonnes annually.
target. Additionally, appliance standards for air conditioners have been completed and issued, and This is the first Independent Power Producer model that PDO is
this will enhance energy efficiency. implementing in its operations, in which PDO will purchase the
generated energy directly from the developer. It follows on from
Moreover, the National Environmental Policy for Energy Sector (NEPES) project was completed, which a competitive tendering process and contractual framework
will facilitate the environmental aspects related to the sector. development in-line with other Independent Power Producer
models carried out in Oman.
ISFU played a significant role in supporting renewable energy and efficiency related projects. The
provided support varies from connecting the stakeholders and expediting coordination, to obtaining
the required approvals and permits, and unlocking challenges that face the projects. 2019 KPIs

1.1 Signing Power Purchase Agreement

176 Graduated initiatives/projects in 2019: 177
PDO is to sign the contract agreement with the developer to purchase the generated power under
Power Purchase Agreement.

1.2 Complete Engineering & procurement

Dhofar wind
Deliver the design packages for the project.

Appliance standards phase 1: Air Conditioners 1.3 Site Mobilisation & Construction
Start the civil, electrical and mechanical construction activities, with a target for the completion of the
final phase being the beginning of 2020.
National Environmental Policy for Energy Sector
The Journey
The project was awarded in 2018 to the Marubeni Consortium – comprising Japan’s Marubeni
Corporation as the lead founder, as well as Oman Gas Company (OGC), Bahwan Renewable Energy
New initiatives/projects added in 2019: Company, and Nibras Power. PDO signed the contract agreement with the developer to purchase the
generated power under Power Purchase Agreement (PPA), which is a new model that PDO is following.

Following this and other agreements between the stakeholders, the project progressed as planned
into 2019 – with the scope including engineering, procurement and construction, all the permits and
Appliance Standards phase 2: Heaters, washing machines, lightings, refregirators & Freezers
approvals were obtained before the project commenced construction.

One of the key milestones successfully achieved for 2019 was the delivery of the design packages for
the project and procurement of equipment.

Moving Forward
The construction activities will continue into 2020 before testing and commissioning will be undertaken to
ensure the readiness of the plant. It is scheduled to be ready for commercial operations by Q2 of 2020.
 Stakeholders Stakeholders

Petroleum Development Oman (PDO) Ministry of Housing (MoH) Authority for Electricity Regulation (AER)

Ministry of Environment and Climate Affairs (MECA)

3. Ibri II Solar IPP
2. Sahim II
As the Ibri II Solar IPP project, owned by Oman Power and Water
Procurement company (OPWP), is scheduled to be operational
In-line with similar solar projects in Oman, Sahim II project, aims
by the second half of 2021, it will be set to deliver a peak
to add an additional green energy supply for the Sultanate and
generation capacity of 500 MW – which will be enough to supply
provide further opportunties for SMEs and the supply chain as a
an estimated 33,000 houses with electricity, and enough to offset
whole, as it gets ready to be completed in 2020.
340,000 tonnes of CO2 emission per year.

Launched in 2017, the project enabled the installation of solar

This is the first large-scale solar project with this capacity
PV systems for customers’ personal energy supply. Phase 2 of
for generating electricity being synchronised with the Main
the project introduced a new mechanism that enables private
Interconnection System. Not only will it encourage renewable
developers to procure, install and operate the solar PV systems on
energy facilitation (the feasibility of which has been proven
residential premises – instead of the customers themselves.
through various studies) – it will also open the door to more large-
scale solar energy projects that can embrace the abundance of
solar energy available in Oman. The target capacity of 500 MW
2019 KPIs will be generated using PV technology.

2.1 Pre-rollout preparatory work (Sahim II)

178 179
This KPI consists of a set of preparatory milestones such as creating a monitoring system, regulatory and Highlights of the Project
contractual framework, and carrying out various technical tasks – in order to facilitate the roll-out of
small-scale solar PV systems on the rooftops of potentially up to 3,000 residential buildings in Muscat
Governorate during the pilot stage.
Generation Capacity:
The Journey
500 MW
This project was introduced by AER in order to reduce Oman’s reliance on conventional energy
resources. Due to its critical importance, it was endorsed during the Energy Lab in 2018.
Location:

A regulatory framework has been developed, and a contract has been signed with a technical
Ibri
advisor who recommended the appropriate technology for the project, and assisted in preparing the
Land Area:
relevant procurement documents.
12,100M2
AER also contracted 2 more entities to assist in pushing the project ahead. The first contract was to
carry out the development of a monitoring platform to register all PV systems and provide real time Offsetting CO2 Emissions:
performance updates. The second was with a local web and mobile application developer, who 340,000 Tonnes/year
helped build and launch the Sahim Android and iPhone mobile application for the general public.
Electricity Supply:
The project faced some technical challenges that slightly impacted the progress of the project and 33,000 Houses
shifted the finalisation of Sahim II to 2020.
Operation:
Moving Forward 2021
By 2020, AER with the support of ISFU will continue finalising the overall model of Sahim II.
 2019 KPIs
Each project will have a capacity of between 500 MW and 600 MW, and both projects will be
located in Al-Dakhiliyah Governorate. Overall, the project is still in its development stage as
3.1 Execution of Power Purchase Agreement (PPA)
OPWP completed the pre-qualification process in December 2019.

3.2 Appointment of Supervisory consultants

2019 KPIs
3.3 60% completion of Engineering work

4.1 Submission of Statement of Qualification (SOQ)

The Journey
The main target for the Ibri II Solar IPP in 2019 was to award the project and start the engineering
The Journey
activities. A competitive bidding process was conducted, and proposals from 3 bidders were received:
A consortium led by Abu Dhabi Future Energy Company (Masdar), a consortium led by Marubeni Milestone Status
Corporation, and a consortium led by ACWA Power.
At the beginning of 2019, the project’s advisors were
Appoint the Project Advisors.
Following a detailed financial, technical and legal evaluation of the bid proposals, the project was appointed to support the procurement process.
awarded to the consortium comprising Saudi-based ACWA Power, Kuwait-based Gulf Investment
Corporation and Kuwait-based Alternative Energy Projects Co. The PPA was signed with the awarded Submit the Request for
Completed.
Qualification (RFQ) to AER.
consortium in Q2 of 2019.

Release the RFQ. Completed.

The Energy Steering Committee played a key role in accelerating various tasks to facilitate awarding
the project. ISFU also played a key role in securing the project site with other stakeholders. Overall, the The SOQ submissions have been received. OPWP completed
collaboration between OPWP, AER, Authority Delivery Unit and ISFU achieved an acceleration of some Receive the Statement of
the evaluation of the SOQs and announced the pre-qualified
Qualification (SOQ) submissions.
of the project’s major milestones. Applicants.

180 Moving Forward 181

Stakeholders
With the engineering phase having begun in 2019, the developer will continue into 2020 with the
development of the design package. Following this, the construction activities will continue through Oman Power and Water Procurement Company (OPWP) Nama Holding
until 2021 in which commercial operations are scheduled to begin.
Authority for Electricity Regulation (AER) Ministry of Housing (MoH)
Stakeholders
Ministry of Environment and Climate
Oman Electricity Transmission Company (OETC)
Oman Power and Water Procurement Company Affairs (MECA)
Authority for Electricity Regulation (AER)
(OPWP)

Oman Electricity Transmission Company (OETC) Ministry of Housing (MoH) 5. Tanweer 11 Site Hybrid System
Ministry of Environment and Climate Affairs (MECA)
Tanweer currently operates 34 diesel power plants in rural and
isolated parts of the country. With individual capacities ranging
4. Solar 2022 from less than 1 MW up to 80 MW, these collectively serve around
38,000 customers. However, as a planned hybrid energy system,
it works with a capacity of 48 MW solar power plants in order to
Solar 2022 IPP, owned by Oman Power and Water Procurement
alleviate fuel demand for the diesel plants, while aligning with the
company (OPWP), is another significant step forward for the
government’s move towards energy diversification. In addition,
Oman energy sector’s target.
the solar power plants will provide a cost-reduction benefit for the
Rural Areas Electricity Company SAOC (Tanweer).
The development process of Solar 2022 was initiated in Q1 of 2019
and a detailed analysis on the technical aspects as well as the
procurement methodology of the project was carried out. OPWP A total of 11 solar power sites are scheduled for development at
decided to merge the procurement of the two solar projects i.e. Musandam, Duqm, Al Jazir, Dhofar, Masirah, Ibri and Jalan Bani
Solar 2022 and Solar 2023. Bu Ali.
 Once operational, the solar power sites will reduce the need for diesel fuel used in the power 6. Dhofar Wind
stations, reduce overall operational and maintenance costs, and ultimately contribute to
Oman’s energy generating strategy.
As the first large-scale wind farm in the GCC region to become
operational, the Dhofar Wind project represents a significant shift
2019 KPIs
towards clean and renewable energy generation not only in the
Sultanate of Oman, but also in the region. This project is a result of
5.1 Release Request for Proposal (RFP) to the prequalified bidders
the mutual cooperation between Tanweer and Abu Dhabi Future
Energy Company “Masdar” and it is located in Fatkhait, Dhofar
The Journey
Governorate.
In 2019, Stage 2 of the project was initiated by preparing the tender documents, prequalification of
bidders, and the process of securing land for the plants. The total production capability of the plant will reach up to 50 MW
of clean energy, capable of producing 160 gigawatts per hour
Rural Areas Electricity Company SAOC (Tanweer) worked with the assigned advisor to prepare the annually. This can cover the energy consumption of approximately
Power Purchase Agreement (PPA) and Request for Proposal (RFP), which includes the entire scope of 16,000 houses in Dhofar. The plant also helps to reduce CO2
requirements that would need to be carried out by the selected developer. emissions by 110,000 tonnes annually, through installing 13 wind
turbines (3.8 MW each) to generate clean energy.
The RFP, received in July 2019 for floating, was submitted to AER for approval. Then, Tanweer released
the RFP to the pre-qualified bidders in December 2019.
2019 KPIs
As the project utilises hybrid solar/diesel technology, there were some technical challenges which
caused a delay in the timeline of the project. This was expected with a project of this nature, however, 6.1 Complete Engineering of the project
with collaboration between Tanweer and AER, the challenges were resolved and the overall project
timeline for 2019 was not interrupted. The engineering phase is to deliver the design packages for the whole project that are required for the
construction stage. Procurement of the equipment is also considered part of this phase.
182 As with similar renewable energy developments, various challenges were also faced with regards to
183
acquiring the appropriate land for the project. This was due to the large areas required, and due to 6.2 Complete Construction of the project
some areas overlapping with other business operations. ISFU, together with the Steering Committee, This post-engineering construction phase for the project is based on the delivered design schedule;
played a significant role in resolving the matter with Tanweer and other stakeholders such as Ministry and includes 13 turbines along with the electrical substation, civil work, and overhead lines.
of Housing (MoH), Ministry of Defence (MoD), Ministry of Environment and Climate Affairs (MECA)
and Ministry of Oil and Gas (MOG). This was achieved through meetings and daily follow-ups with 6.3 Commissioning & commercial operating of Dhofar Wind
stakeholders, site visits, and addressing the matter to MoH to accelerate the process. The result was
After construction, system testing for the plant is required to ensure it functions properly, and ensure that
that 11 of the sites were secured.
any apparent issues are rectified. The commissioning is the last stage before the plant’s commercial
operations are set to start in November 2019.
Moving Forward
In 2020, contract will be awarded to the selected developer, and the engineering and construction
The Journey
activities will be initiated.
In 2019, the project progressed successfully with the engineering, procurement, construction, testing,
and commissioning phases.
Stakeholders

Rural Areas Electricity Company SAOC (Tanweer) Ministry of Housing (MoH) Regarding the design packages that were delivered for the wind turbines, electrical substation,
civil work and overhead lines; Tanweer coordinated with Oman Electricity Transmission Company
Authority for Electricity Regulation (AER) Ministry of Defence (MoD) (OETC) and PDO to interface with the existing power grids. As part of the engineering stage, all the
equipment had been procured, and construction activities were carried out throughout the year.
Ministry of Environment and Climate Affairs (MECA) Ministry of Oil and Gas (MOG) Post-construction, the testing and commissioning phases subsequently went ahead to ensure the
plant was viable for commercial operations, which currently fall under Tanweer.

Some technical challenges were faced with the interfaces during the engineering phase, but they
were resolved between the stakeholders with the support of ISFU.
 Moving Forward The Journey
The project became commercially operational by the end of 2019, and has successfully graduated Following on from 2018, the granting of the Duqm-1 (within SEZAD) and Duqm-2 sites have been
from the Energy Dashboard. secured. ISFU and OPWP also successfully obtained the required environmental clearances for the
project from MECA.
Stakeholders
One of the main achievements for 2019 was awarding the wind resources assessment contract and
Rural Areas Electricity Company SAOC Oman Power and Water Procurement it was initiated during Q4 of 2019. This means that the project can continue with the measurement
(Tanweer) Company (OPWP) of the wind parameters, which in turn will be analysed to determine each site’s optimum location to
leverage the full potential of the available wind resources. These parameters will also indicate the
Ministry of Environment and Climate Affairs
Abu Dhabi Future Energy Company (Masdar) power capacity potential for each site.
(MECA)

As expected with a renewable energy project of this nature, some challenges were confronted relating
Oman Electricity Transmission Company (OETC) Royal Oman Police (ROP)
to the securing of the large sites overlapping with business operations of entities such as SEZAD, and
Authority for Electricity Regulation (AER) Petroluem development Oman (PDO) the oil and gas activities associated with MOG. However, ISFU played a significant role in coordinating
and facilitating discussions with stakeholders – including MoH, MOG and SEZAD – to secure the 7 sites,
and obtain the environmental permits from MECA.

7. Wind 2023
The only site which has not yet been secured is Al Jazir. Nevertheless, this site does not form part of
the first phase of the Wind Resource Assessment, therefore, it is not a priority. Further to securing this
As part of its commitment to secure the national target, OPWP plans site, The National Center for Statistics & Information (NCSI) was approached for access to the national
to carry out a number of wind energy projects over the next 7 years. geographical map, which would support OPWP’s decision to adjust Al Jazir site’s orientation.

While solar energy is an obvious source of renewable energy for Moving Forward
Oman, wind energy also has huge potential as an energy provider In 2020, the focus will be to gather site information and carry out wind resource assessments, which
184 for the country. With Oman’s coastline consistently receiving strong
185
will be analysed for further engineering of the project. The qualification process for the project is set
winds through the year, the decision was taken to establish 100 to take place in Q4 of 2020 and the project’s commercial operations are scheduled to begin in Q4 of
MW to 200 MW capacity wind farm projects in 7 key locations: Sur, 2023.
Jaalan Bani Bu Ali, Duqm-1, Duqm-2, Al Jazir, Shaleem and Sadah.
Stakeholders
Besides their energy provision benefits, these wind farms will
also further boost the government’s commitment to reduce Oman Power and Water Procurement Company (OPWP)
greenhouse gases.
Authority for Electricity Regulation (AER) Ministry of Housing (MoH)

Oman Electricity Transmission Company (OETC) Ministry of Environment and Climate Affairs (MECA)
2019 KPIs
The Special Economic Zone in Duqm (SEZAD) Ministry of Oil and Gas (MOG)
7.1 Contract award for Wind Resource Assessment
The Wind Resource Assessment process involves gathering site parameters such as wind speed,
turbulence and temperature for at least one year using Met Mast. This process is necessary in order
to select the optimum location with the highest wind resources, in order to develop the most efficient
design that would enable maximum power capacity. The site measurement will be carried out by a
specialised contractor who was selected by OPWP through an open competitive tender.

7.2 Commencement of installation for Wind Resource Assessment

Following the awarding of the contract for Wind Resource Assessment, the selected bidder is to
commence the work. This will entail on-site mobilisation, followed by the installing of the Met Mast at the
prioritised sites: Sur, Jaalan Bani Bu Ali, Duqm-1 within Special Economic Zone in Duqm (SEZAD), Duqm-2,
Shaleem & Sadah. The relevent site parameters would then be measured for at least 12 months.
 8. Waste-to-Energy Project Moving Forward
By 2020, the RFQ will be issued to the market, and the RFP will be released to the qualified bidder.
Currently, Oman manages its municipal waste through the use
of engineered landfill sites. However, with the expected increase
Stakeholders
in municipal waste generation in Oman reaching 4.1 Million
Oman Power and Water Procurement Company (OPWP) Authority for Electricity Regulation (AER)
tonnes by 2040 due to the increase in population and projected
economic growth, the viability of an opportunity to maximise Oman Environmental Services Holding Company (Be’ah) Haya Water
value creation from waste/bio-waste has been researched.
Ministry of Environment and Climate Affairs (MECA) Ministry of Oil and Gas (MOG)
Oman Environmental Service Holding Company (Be’ah)
conducted an economic feasibility study for the project in 2017. Oman Electricity Transmission Company (OETC) Ministry of Finance (MoF)
OPWP subsequently updated the technical and economic
aspects of the feasibility study in 2018 with a focus on Waste to
Energy Independent Power Plants, considering its strategic input Grid Enhancement and Efficiency
to the fuel diversification sought by the electricity sector and
building upon the studies and data existing with Be’ah. 9. North-South Interconnector

The proposed result of Waste to Energy project would foresee

a minimum of 100 MW capacity of electricity generated from As the North-South Interconnector is set to integrate 4 key energy-
waste, as the project becomes operational by 2025. infrastructure systems in Oman, this project is of vital strategic
importance for the Sultanate. These 4 systems include the Main
Interconnected System (MIS), PDO, Tanweer, and Dhofar Power
Company (DPC).
2019 KPIs
186 The project will be an approximately 1,000 kilometre-long 187
8.1 Appointment of Project Advisors connection of key energy infrastructure points that will provide
In 2019, OPWP is to assign the advisors to support the project’s legal, financial and technical aspects. Oman with significant economic and environmental benefits. As
it interconnects the north of Oman to its south, it will also serve as
8.2 Submission of Statement of Qualification a base for attracting FDI (Foreign Direct Investment) into areas
such as Duqm.
Like any other project process of OPWP, the Request for Qualification (RFQ) is needed to evaluate the
qualifications of parties interested in obtaining the contract for the project. This stage will form an initial
pre-qualification prior to the Request for Proposal (RFP). 2019 KPIs

The Journey 9.1 Duqm: Approve the route, and prepare the Engineering, Procurement and Construction
The procurement of the first Waste to Energy project in Oman requires careful investigations and analysis (EPC) tender documents.
to ensure proper set-up of the project, especially when taking into account the high investment cost
required for the project. Therefore, and following AER’s approval of the feasibility study conducted 9.2 Nahadah: Float and receive the Engineering, Procurement and Construction bids.
by OPWP, the definition stage of the procurement process for a Waste to Energy project in 2019 was
initiated. The Journey
The North-South Interconnector is considered one of the most important projects for Oman’s energy
However, due to the unique nature of the project and the involvement of various stakeholders, the infrastructure. Following on from 2018, the route plan was revisited and shifted from its original coastal
project encountered delays and the milestones targeted for completion in 2019 were temporarily line to a new inland route through the PDO concession area. This revision was carried out without
placed on hold. The ultimate concern is that the project should be economically viable for Oman and causing any delay in the project’s progress, and it ensured that the line would leverage maximum
bankable for the investors. ISFU has been collaborating with all of the stakeholders – OPWP, AER, MOG, benefits for the Sultanate once complete.
MoF and Be’ah – on the most suitable way forward for the project.
OETC together with PDO have proceeded with the re-routing and continued with the rest of the
The project contractual framework outlining the procurement approach has also been escalated, project development. PDO also applied for a further two connections for Barik and Swihat, in order
for advice on how to successfully move ahead. Nevertheless, OPWP & Be’ah are continuing the to link the finished route all the way through to Duqm. Moreover, aligned with the technical/financial
development of the project including securing site, environmental permits and other technical evaluation for both Duqm and Nahadah, the consultancy services contracts were awarded to the
aspects. selected bidders. The Nahadah tender was also floated and OETC received the EPC bids.
 Most of the challenges faced by the project were associated with the substation land within The Journey
SEZAD – where some of this substation’s development requirements caused inconveniences to
various stakeholders, due to the nature of their business. However, ISFU along with the Authority Milestone Status
Delivery Unit intervened to find appropriate solutions for each of these inconveniences.
The Consultancy Service for a National Energy Efficiency
Award the Consultancy Service. Programme was awarded to the Danish Energy
Moving Forward Management A/S in February 2019.
By 2020, the engineering, procurement and construction work for both Duqm and Nahadah will begin.
Finalise Report 1 (Working Model) The consultant finalised a draft of the working model (Report
Stakeholders for AER’s approval. 1) for AER’s approval in March 2019.

Oman Electricity Transmission Company (OETC) Authority for Electricity Regulation (AER) Finalise Report 2 (Programme Roll- The consultant finalised and submitted a draft of the
out Design) for AER’s approval. programme roll-out design (Report 2) to the AER for review.
Oman Power and Water Procurement Company
Petroleum Development Oman (PDO) Issue the RFPs for ESCO. Completed.
(OPWP)
Work is still in progress, due to facing challenges in gathering
The Special Economic Zone Authority of Appoint the ESCO. information from some government entities. However, it will
Rural Areas Electricity Company SAOC (Tanweer)
Duqm (SEZAD) be achieved early 2020.

Stakeholders
10. Energy Auditing and Retrofitting Project
Authority for Electricity Regulation (AER) Ministry of Finance (MoF)

Currently in Oman, the opportunity exists for many governmental

The selected 14 CRT Government Entities
buildings with high energy demands to be retrofitted with energy
efficient technology.
188 189
AER initiated an Energy Auditing project for governmental 11. Appliance Standards Project
buildings, and the results showed significant potential for energy
savings, and this subsequently led AER to pursue the Auditing and This project aims to develop prescribed efficiency standards
Retrofitting programme. for electrical appliances such as air conditioners, lights and
refrigerators in the Sultanate.
This programme aims to audit and retrofit Government Cost
Reflective Tarrif (CRT) buildings, reduce energy demand by These efficiency standards will serve to rationalise the power
utilising the Energy Services Companies (ESCO) model to increase consumption of these appliances, while also improving their
the level of energy efficiency in the government sector. environmental performance. In essence, the project seeks to
improve energy consumption, which would in turn decrease the
Implementing the ESCOs model can lead to a potential savings demand on Oman’s energy resources.
in total energy consumption in the range of 25% to 40%, taking
into consideration the applicable Energy Conservation Measures
(ECMs) for each building. Therefore, the first phase of ESCOs model 2019 KPIs
has been rolled-out for 14 buildings and this was conducted
simultaneously with the development of new renewable energy 11.1 Implement energy efficiency labels for air conditioners
projects in Oman.
11.2 Issue technical standards and specifications for electrical appliances. (For example:
Heaters, lightings, washing machines, refrigerators and freezers)
2019 KPIs
The Journey
10.1 Establishment of Working Model for Energy Services Companies (ESCOs) This project was commenced by the Ministry of Commerce and Industry (MoCI) in order to improve the
efficiency standards and energy consumption of electrical appliances. The appliance standards for
air conditioners was implemented by MoCI with the support of ISFU, Steering Committee and Authority
Delivery Unit in July 2019, following on from a ministerial decision issued in 2018 – which imposes a
commitment on the part of suppliers to maintain the required standards. ISFU along with stakeholders
held multiple meetings to facilitate the provision of this decision by the required date.
 The overall outcome was that efficiency and energy consumption standards of air conditioners 2019 KPIs
imported into the country are higher than before. Due to regional standardisation, the project also
marks an opportunity to increase electrical product trade exchange with other countries in the 12.1 Follow up with the operation of the Gas Allocation Committee
GCC region. Moreover, efforts are currently underway to prepare standards for the other appliances
simultaneously. The Journey
After the Gas Allocation Committee was formed in 2018, it has continued to meet every month to
One of the key challenges for the project was to deploy the appliance standards through the ROP’s discuss all gas requests put forward by the relevant industries, and allocate gas to projects based on
Bayan system – the online customs procedures system provided at all of Oman’s entry/exit points to the criteria established in the Energy Lab.
enhance trade facilitation. Specifically, the challenge came in the required uploading and integration
of MECA environmental permits for gases in air conditioners into the Bayan system, as well as the ISFU together with stakeholders are facilitating the new process required for requesting the gas,
technical standard permits from MoCI. ISFU, with support from stakeholders, managed to resolve the according to pre-established criteria that has been communicated to the industrial estates, who have
matter by adopting a new mechanism to standardise the process of granting permits to suppliers in turn communicated this to investors.
before the system became operational in July 2019.
One of the project’s ongoing challenges is to improve the gas allocation process – where the solution
Due to a delay in receiving key inputs from regional entities, the project experienced a delay in is to streamline the gas infrastructure ownership to optimise the allocation process from upstream to
issuing Omani technical standards and specifications for household electrical appliances. However, downstream.
the Steering Committee, with support from ISFU and AER, managed to collaborate with MoCI to
accelerate the process by agreeing to appoint a consultant to assist in developing standards for The project successfully graduated in 2018. However, ISFU continues to follow the operation of the gas
heaters, lightings, washing machines, refrigerators and freezers. allocation and the process of requesting gas from local industries under the energy sector.

Moving Forward Moving Forward

By 2020, it is intended to issue and implement Omani technical standards and specifications for The committee will continue meeting on a monthly basis to allocate the requested gas to the
household electrical appliances such as heaters, lightings, washing machines, refrigerators and Sultanate’s relevant industry sectors. At the same time, ISFU will support the committee with regards
freezers etc. to the allocation process, when appropriate. The Committee will also continue to collaborate with
190 191
stakeholders to explore ways to further improve, enhance and expedite the process of allocating gas
Stakeholders to local industry, to ensure the maximum benefit for the Sultanate.

Ministry of Commerce and Industry (MoCI) Royal Oman Police (ROP)

Stakeholders
Ministry of Environment and Climate Affairs (MECA) Authority for Electricity Regulation (AER) Ministry of Oil and Gas (MOG) Supreme Council for Planning (SCP)

Ministry of Manpower (MoMP) Ministry of Commerce and Industry (MoCI)

Natural Gas Ministry of Finance (MoF) Oman Gas Company (OGC)

12. Gas Allocation

While Oman’s gas resources are being exploited efficiently to

generate power, this project seeks to find ways to further enhance
the use of this multi-purpose utility – firstly by ensuring local industries
get maximum benefit in its use, and secondly by exporting it as a
Liquefied Natural Gas (LNG).

However, there is a need to standardise gas allocation quotas for

the industry, by enhancing gas allocation criteria and establishing
transparent allocation processes. This will mean that Oman is
in a stronger position to operate more projects, achieve higher
revenues, and ultimately leverage more beneficial economic
returns for the country.
 Enablers Stakeholders

Ministry of Environment and Climate Affairs (MECA) Ministry of Oil and Gas (MOG)
13. National Environmental Policy for the Energy Sector (NEPES)
Oman Power and Water Procurement Company
Authority for Electricity Regulation (AER)
The Ministry of Environment and Climate Affairs (MECA) is currently (OPWP)
developing a set of environmental standards for the use of natural
gas and combined-gas cycle technology, however, these Ministry of Regional Municipalities and Water Resources
Ministry of Health (MoH)
standards do not focus on the adoption and use of alternative (MRMWR)
fuels or technologies.
Ministry of Commerce and Industry (MoCI) Ministry of Finance (MoF)
Therefore, NEPES was established to provide an integrated
and comprehensive environmental policy that provides clear Petroleum Development Oman (PDO) The Research Council (TRC)
regulations, guidelines and standardisation of requirements based
on international norms. This is for the use of all alternative fuels and Oman Environmental Services Holding Company (Be’ah)
technology.

In doing so, it will lay the foundation for future economic

development and energy supply security for Oman, and it will raise
stakeholders and civil society awareness on matters pertaining to
Oman’s energy security.

2019 KPIs

192 13.2 Complete the Realisation of Oman’s National Environmental Policy for the Energy Sector 193
This KPI aims to launch the final enviromental policy and to develop the Geographic Information
System (GIS) based web toolbox, incorporating the site’s environmental data feed.

The Journey

Milestone Status

The Field survey related to the project was awarded in order to

collect fresh data on air quality, marine water and sediment from
Complete the
6 locations. MECA successfully developed the GIS toolbox. With
Development Phase.
support from ISFU and the Authority Delivery Unit, MECA has worked
to reduce any project delays in order to continue as per schedule.

The first draft of the policy has been completed and reviewed by
Complete the
stakeholders with the support of the Steering Committee, Authority
Establishment Phase.
Delivery Unit and ISFU – who all contributed to expediting the process.

Deployment & The final environmental policy has been completed, and will be
Implementation. launched in early 2020.
194 195

Mining
 Mining KPI Dashboard

2019 Actual 2019 Actual

Initiative/ KPI 2019 Target
Achievement
Initiative/ KPI 2019 Target
Achievement

1 Integrated Downstream 12 Improving the Mechanisms of Financial Resources Appropriation and Management of PAM

Improving the Mechanisms of Financial Resources

1.1 Al Hae’l Ceramic Project 12.1 100% 40%
Appropriation and Management for PAM

1.1.1 Obtain Exploration and Mining Licenses for 4 Sites 100% 59% 13 Establishment of Pre-Approved Mining Blocks System

1.2 Kunooz Dolomite Project 13.1 Obtaining Approvals and Classifying Mining Blocks 100% 45%

Realisation that Dolomite Exploration Programme Can

1.2.1 100% 65% 13.2 Competition and Awarding Process 100% 74%
Deliver Magnesium Metal, Dolomite and Aggregates

3 Copper Mines and Upstream Concentrator Plants 15 Accelerate Review of Inactive Chromite Mining Licenses

3.1 Mawarid’s Ghuzayn Underground Mine 15.1 Classification of inactive licences to: Cancel and Renew 100% 100%

3.1.1 Ghuzayn Project Preparations and Development 100% 23% 16 Simplification of Exploration and Mining Licensing Process

196 3.2 Yanqul Copper and Gold Exploration and Concentrator Plant 16.1 Simplification of licensing process 100% 60% 197
Development of OMCO’s Block 10 Yanqul mines and
3.2.1 100% 85% 16.2 Linking Geographical Maps System 100% 100%
concentrator plant

3.3 Wash-hi Magazah Mine and Concentrator Plant * A sample of 30% of the KPIs were reviewed by Deloitte, and findings will be built upon in the future.
* A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
Development of Al Hadeetha Resources Wash-hi’s Mine
3.3.1 100% 18% specific authorities. However, ISFU follows up on the execution on a regular basis.
and Concentrator Plant
* All forms of data are being continuously improved to be more representative of actual economic state. This is
5 Implementing a Dynamic Royalty Rate for the Mining Sector done in collaboration with NCSI and relevant government entities and aligned with international standards.

5.1 Establishment of a Dynamic Mining Royalty Framework 100% 100%

6 Outsourcing of PAM’s Monitoring and Inspection

6.1 Outsourcing of PAM Monitoring 100% 86%

7 Outsourcing PAM’s Laboratory Services

7.1 Outsourcing PAM’s Laboratory Services 100% 60%

8 Establishment of E-Mining Platform

8.1 Consultancy Study for Mapping Process 100% 100%

8.2 Development of the system 100% 100%

 Overview 2019 KPIs

The Mining Sector is considered one of the most promising sectors for economic diversification in
1.1.1 Obtain Exploration and Mining Licenses for 4 Sites
Oman. Due to its geographical diversity, many types of minerals are found all across the country.
Initial estimates indicate that most of the Sultanate’s reserves of minerals are still unexploited, reaching This KPI aims to obtain the exploration licenses then mining licenses for 4 sites, from the Public Authority
almost 97% of the total estimated sources in the Sultanate until 2018. for Mining (PAM). The sites are located in the following areas:
_ Wadi bani Khalid
In 2019, Establishment of Mining Blocks initiative obtained approvals from eight entities for 15 Blocks, _ Al Kamel Wa Al Wafi
and are now being prepared for auctioning. Also, Ghuzayn copper project received the no-objection _ Dima Wa Al Tayeen
letter from PAM to start the Mining activities. The GIS integration with some government entities is _ Quriyat
finalized, and the system is currently ready to be used by PAM to choose coordinates for new Mining
Blocks.
The Journey
ISFU conducted several meetings with the related entities to discuss their responses for the Mining Milestones Status
Blocks and urge them to send the responses to PAM. In regards to the Ghuzayn project, ISFU helped
the project to obtain the Mining approval from the Ministry of Housing, which was the only pending Obtain exploration licenses Four exploration licenses were obtained.
approval. It also pushed PAM to send a no-objection letter to the company to start the Mining Activities,
since the Mining Licenses were stopped until the executive regulations is issued. Also ISFU conducted Complete the required studies for mining The company completed 2 out of the 4 required
a meeting with the Ministry of Regional Municipalities and Water Resources and convinced them to licenses for 4 sites studies.
give the approval for blasting.
2 mining applications were sent to the concerned
Obtain Mining Licenses for 4 sites
entities for approval, others are pending.
Graduated initiatives/projects in 2019:
Stakeholders
198 199
Public Authority for Mining (PAM) Ministry of Housing (MoH)
Accelerate review of inactive Chromite Mining Licenses
Ministry of Interior (MoI) Ministry of Tourism (MoT)

Implementing a Dynamic Royalty Rate for the Mining Sector Ministry of Heritage and Culture (MoHC) Ministry of Defence (MoD)

Royal Oman Police (ROP) Ministry of Environment and Climate Affairs (MECA)

Structuring a Centralised Corporate Social Responsibility

Ministry of Regional Municipalities and Water Resources (MRMWR)
Mechanism for the Mining Sector

1.2 Kunooz Dolomite Project

With the aim of producing up to three million tons per annum of raw dolomite, this exploration
1. Integrated Downstream programme will delineate different dolomite material types based on Magnesium Oxide content. High
grade dolomite will be used for Magnesium, whereas low grade aggregate and dolomite with less
than 1% Silica will be targeted for the steel industry. The project will be located in Quriyat, where a
1.1 Al Hae’l Ceramic Project
scoping study suggests resource potential to be more than 250 million tons.
Al Hae’l Ceramic Project aims to manufacture porcelain and ceramic products in the Sultanate using
the most modern and technologically advanced methods, in order to become among the best 2019 KPIs
internationally. For ceramic products, 80% of the raw material is to be Omani, as five different sites
are going to supply the raw material which will be manufactured according to the highest Italian 1.2.1 Realisation that Dolomite Exploration Programme Can Deliver Magnesium Metal, Dolomite and
standards and quality, with a full capacity of 45 thousand square meters per day. Aggregates
By the end of 2019, the target for the Exploration programme is to complete the following:
By the end of 2019, the plan is to obtain the exploration licenses, complete the exploration studies, and
obtain the mining licenses for the 4 sites. Also, the project team aims to start the production from the · Topographical surveys as well as sampling, chemical analysis, physical and metallurgical tests.
mines in addition to the plant, which already started the production from two lines with a capacity of · Open Pit and Mine Plan. · Comprehensive technical report.
5000 square meters per day. · Infrastructure Preparation. · Applying for Mining license.
 The Journey The Journey
Regarding the achievements, the road to the site has been developed and it is already accessible,
Milestones Status
and the topographic survey is completed 100%. Moreover, the chemical analysis was completed and
the resource/reserve results are positive. Phase 1 Exploration & Drilling - Mobilisation
Not achieved, because the company needed to
However, the project faced some challenges that caused delays. In the beginning of 2019, the Surface Geophysical Studies (Brine Extent commission special drilling and in addition to other
exploration work got stopped and a payment for clearance was requested, which the company was Studies) technical issues. Moreover, companies in Oman do
not aware of. The process took three weeks until the company could resume its exploration activities. not have the suitable equipment for this project.
Then, in February 2019, it was stopped again due to a misunderstanding, as the company was thought Completion of Geotechnical Assessment
to be carrying out mining activities instead of exploration activities. Therefore, the Implementation
Support and Follow-up Unit (ISFU), with the help of the Ministerial Delivery Unit (MDU), discussed the Completion of final reserve feasibility Not achieved, because it depends on the previous
above issues in several meetings and helped the company solve the problems and continue its work. study milestones.

Moving Forward Stakeholders

In 2020, the team aims to obtain the mining license. Also, the results of the resource studies are to be
Public Authority for Mining (PAM) Ministry of Heritage and Culture (MoHC)
ready and clear, in order to decide whether they are promising for downstream work and building a
plant to produce magnesium metal, dolomite and aggregates, or not, which means the raw material Ministry of Housing (MoH) Ministry of Environment and Climate Affairs (MECA)
will be exported.
Ministry of Interior (MoI) Ministry of Environment and Climate Affairs (MECA)
Stakeholders
Ministry of Tourism(MoT) Ministry of Defence (MoD)
Public Authority for Mining (PAM) Ministry of Housing (MoH)
Royal Oman Police (ROP) Petroleum Development Oman (PDO)
Ministry of Interior (MoI) Ministry of Tourism(MoT)
200 Ministry of Regional Municipalities and Water Resources (MRMWR) 201
Ministry of Heritage and Culture (MoHC) Ministry of Defence (MoD)

Royal Oman Police (ROP) Ministry of Environment and Climate Affairs (MECA) 1.4 Kunooz Basalt Project
This project aims to produce Continuous Basalt Fiber (CBF) from basalt, a product that is used in
Ministry of Regional Municipalities and Water Resources (MRMWR) construction and building materials, power engineering, road construction and oil refining industry. The
project will be based in the basalt-rich area around Sohar and will be offering significant downstream
1.3 Gulf Potassium Potash Project opportunities.
This project aims to extract potassium from Umm Al Samim in the Rub’ Al Khali desert, in order to
By the end of 2019, it is expected that the exploration licenses for 2 sites will be issued, then the
produce potassium chloride. The area is also a large brine resource, with the potential for the factory
exploration process will start.
to sustain production volumes of over 1,000 tons per day of dry salt products over an expected project
life of 20 years. It can produce potassium chloride of 99% purity for the fertilizer and oil and gas industry,
which can be used in drilling fluids.
The Journey

Milestones Status
2019 KPIs
The license is approved by MoI, MECA, MoT,
1.3.1 Development of Potash Exploration Programme Obtaining Exploration License for site 1 MoD, ROP, and MRMWR, but still pending from
MoH.
The aim for 2019 is to work on the exploration programme, starting from drilling and mobilisation, then
developing the Environmental Impact Assessment and the market study, finishing with a final reserve The license is approved by MoD and ROP,
feasibility study. Obtaining Exploration License for site 2 however, approvals from MoI, MECA, MoT,
MRMWR and MoH are still pending.

Phase I Study will start 30 days after obtaining

Phase I Study, with conclusion and
the exploration license from PAM. The study will
recommendation for detailed work in Phase II.
take 60 days to be completed.

Phase II study depends on Phase I results. It will

Phase II Study
take 4 months to be completed.
 Stakeholders
The initiative aims to develop a Mining Innovation strategy that will provide knowledge base
Public Authority for Mining (PAM) Royal Oman Police (ROP) of information and human capital for continuous sector development. By the end of 2019, the
Mining Innovation Strategy is expected to be completed.
Ministry of Regional Municipalities and Water
Ministry of Housing (MoH)
Resources (MRMWR)
2019 KPIs
Ministry of Interior (Mol) Ministry of Tourism (MoT)
2.1 Development of Mining Innovation Strategy
Ministry of Heritage and Culture (MoHC) Ministry of Environment and Climate Affairs (MECA)
The innovation strategy is a road map for innovation in the mining sector. The target is to develop
Ministry of Defense (MoD) Kunooz Oman Holding an innovation strategy, starting with meeting the stakeholders to gather information that helps in
preparing the strategy. The outcome of the innovation strategy is to prioritise the minerals based
on their availability in Oman and their value. After preparing the strategy, it will define the possible
1.5 MDO Attapulgite Project (2 sites)
innovated opportunities for each chosen mineral and develop them into business opportunities. It
Attapulgite mineral is primarily used for pet litter, oil well drilling applications, liquid fertilizers, absorbents will also boost the performance of the sector and make it globally competitive by improving existing
and desiccants. Therefore, this project aims to utilise attapulgite in the downstream production process. industries and creating new SMEs.
Another objective is to see if there is a market for attapulgite, which will add value to the current
available minerals in the Shaleem area. Also, the Sultanate should take advantage of its attapulgite The Journey
resource as it is not produced by many countries.
Milestones Status
In 2018, the team worked on the Attapulgite project (2 sites) as an individual application, however,
the Ministerial Committee made a decision in 2019 to give Minerals Development Oman (MDO) Meetings were conducted with relative stakeholders
company the Shaleem Area (Manji and Shuwaimia) to develop it, and since Attapulgite Project (2 (PAM, exploration companies, mining companies, etc.)
Gather information and meet
to discuss the current status, challenges and opportunities
sites) coordinates are within this area, it is now considered one whole project. stakeholders
of mining in Oman. Also, global overview of innovation in
202 mining was conducted. 203
By the end of 2019, the project team aims to study the market of attapulgite and determine the
required quality, and if the market study is positive, the detailed geological study will be conducted. The 1st part of the Mining Sector Innovation Strategy was
50% completion of Mining
developed and discussed by the technical committee
The Journey Innovation Strategy
(IIC and PAM).

Milestones Status 100% completion of Mining The final draft of the strategy was completed, and has
Innovation Strategy been approved by PAM.
Study the market of attapulgite Not achieved. Attapulgite blocks currently fall within
Shaleem mining area, therefore, PAM is now working
on obtaining all the required approvals in order to Stakeholders
Detailed geological study
make the area ready to be mined by MDO.
Industrial Innovation Center (IIC) Public Authority for Mining (PAM)

Stakeholders

Minerals Development Oman (MDO) Public Authority for Mining (PAM) 3. Copper Mines and Upstream Concentrator Plants

Majan is the ancient name of the current Sultanate of Oman.

2. Downstream Innovation It was called Majan because it means the Land of Copper,
indicating that copper is one of the country’s biggest resources.

Currently, the downstream industry in Oman is very nascent to

Although there are no currently active copper mines in Oman,
complement and enhance rich and large mineral resource
there are many applications for mining and exploration licenses
potential available in the country. The concept of this initiative
awaiting approval.
is mapping of raw materials based on availability of local
mineral resources, and market consumption of imported goods
versus what is already produced in local downstream. Industrial
Innovation Center (IIC) collaborates with Public Authority for
Mining (PAM) to sequentially select a focus area/mineral yearly.
 3.1 Mawarid’s Ghuzayn Underground Mine Moving Forward
Located in the north of Oman, Wilayat of Khabourah, with an estimated JORC (Joint Ore Reserves In 2020, the project will continue with the mine portal development. Then, it will start the ramp portal
Committee) reserve of 6.5 million tons of mineable ore, Ghuzayn underground mine is the largest development and support, followed by procurement and placing the order for manufacturing/buying
copper discovery in Oman and the first unique advanced underground copper project in the country. underground mining equipment.
The project aims to utilise an advanced underground mining method to extract the ore, applying
standardised HSE levels. It is anticipated to take two years or less to become accessible and seven Stakeholders
years to be mined and productive, giving it an expected lifespan of nine years or more.
Mawarid Mining LLC Ministry of Interior (MoI)
2019 KPIs
Ministry of Housing (MoH) Public Authority for Mining (PAM)

3.1.1 Ghuzayn Project Preparations and Development

Ministry of Regional Municipalities and Water Resources (MRMWR)
The main aim of the project is to develop the Ghuzayn copper deposit, then process the ore at the
Lasail concentrator and sell the copper-rich concentrate to be exported.
3.2 Yanqul Copper and Gold Exploration and Concentrator Plant
By the end of 2019, the project will finalise the following:
This project aims to utilise the significant upside potential within and outside existing resource area
· Project preparation, recruitment and financing.
for copper-gold mineralisation, which was evident after conducting a detailed analysis of all the
· Project construction and commissioning at mining site.
exploration campaigns carried out till date in Block 10.
· Project portal development.
2019 KPIs
The Journey
With the support and follow up of ISFU and the MDU, the mining approval was obtained from the 3.2.1 Development of OMCO’s Block 10 Yanqul mines and concentrator plant
Ministry of Housing (MoH). Also, the approval for blasting was obtained from the Ministry of Regional The KPI will be achieved after developing Yanqul mines and the concentrator plant for operation,
Municipalities and Water Resources (MRMWR). then, the ore will be transferred from the mines to the concentrator plant.

204 205
Moreover, obtaining a license for mining at this stage is not possible, because PAM decided to By the end of 2019, the project is expected to obtain the environmental permit for mining, and then
postpone the issuance of the license until the executive regulations of the new mineral wealth law the licenses will be obtained by end of 2019 and start of 2020.
come into force, therefore, a no objection letter was issued instead of the mining license.
The Journey
The company has updated the feasibility study and achieved the detailed metallurgical and plant The company achieved the following:
start-up review. However, the project faced some challenges regarding the issuance of the mining
1. Exploration and modelling - Measured Mineral resources
license due to several reasons:
a. In-fill drilling
1. After reviewing approvals of the eight entities and realising that MoH’s approval was for exploration
b. Logging and sampling
only, PAM re-sent a formal letter to MoH asking for an approval for Mining. ISFU followed up with
MoH to accelerate their response. c. Compilation of geological data
d. Estimate geological resources and sign off
2. MRMWR’s approval was a conditional one, stating that it is only approved if the project will not use
blasting in the mining activities, which was an impossible thing for a copper project. PAM and ISFU e. Pit optimisation and mine design
conducted a meeting with MRMWR and Mawarid to solve this issue. The company presented the f. Processing plant, tailings design and other engineering work
technology of blasting to the ministry and it got the approval afterwards.
2. Applying for mining license
3. Since the mining license could not be issued, ISFU escalated the matter in the Steering Committee,
after the company explained that the project feasibility study cannot be finalised by the consultant Currently, the applications for 5 mining licenses have been reviewed and approved by PAM, and
unless a mining license was granted. PAM agreed to send a go ahead letter to the company to letters were sent to the eight entities for approval. All entities approved the mining applications, except
start the mining development activities. MoH and MECA, as some sites are close to local community houses and farms.

4. Local objections to the project due to perceived environmental concerns. PAM, ISFU, MECA, Moving Forward
MRMWR, and MoI are working together with the company to resolve the local community’s
In the upcoming year, the project should obtain the mining license for 5 sites.
concerns.
 Stakeholders 2. The company has also been struggling to get the approval from Mazoon Company for the power
application. ISFU contacted Mazoon, then explained to the company (Al Hadeetha Resources)
Oman Mining Company L.L.C (OMCO) Ministry of Tourism (MoT) that they have not made any changes in the power application as required and has not replied to
any offer.
Minerals Development Oman (MDO) Ministry of Heritage and Culture (MoHC)
3. Another challenge is in the employment. Some activities were blocked by the Ministry of Manpower
Public Authority for Mining (PAM) Ministry of Defence (MoD) from employing expats. ISFU conducted a meeting including Ministry of Manpower, PAM and the
company to understand the issue and how to solve it. The company was advised to present a full
Ministry of Housing (MoH) Royal Oman Police (ROP) employment plan with the Omanisation rates.

Ministry of Interior (MoI) Ministry of Environment and Climate Affairs (MECA)

Moving Forward
Ministry of Regional Municipalities and Water Resources (MRMWR) By the end of 2020, the project aspires to have commenced mine production and finalised the
construction of the concentrator plant.

3.3 Wash-hi Magazah Mine and Concentrator Plant

Stakeholders
Wash-hi Magazah Copper–Gold ore deposit lays within mountains at approximately 160 km south
west of Muscat, which can be reached via Muscat–Nizwa or Muscat-Ibra highways, through Magazah Al Hadeetha Resources LLC (‘AHRL’) is a Joint Venture between (Alara Oman Operations Pty Ltd,
town (5 km) north of Al Wash-hi village. Al Hadeetha Investment Services LLC, Al Tasnim Infrastructure LLC)

Wash-hi deposit was discovered in 1976-1977, and the exploration work on it was extended by Public Authority for Mining (PAM) Ministry of Environment and Climate Affairs (MECA)
the government and the private sector until 2011, where Al Hadeetha started its comprehensive
Ministry of Housing (MoH) Al Mudhaibi Municipality
exploration programme from 2011 to 2018, delivering the project to a detailed feasibility study stage
through a JORC certified ore reserve.
4. Downstream Ferrochrome Plants
The ore deposit area was licensed for exploration in 2011 by PAM, and after 7 years of extensive
206 207
exploration work done by Alara Resources, PAM has awarded the company a 5-year renewable 4.1 Expansion of Ferrochrome Smelting Plant
mining license, to perform the copper and gold ore extraction activities.
This project aims to expand the current ferrochrome plant that
The main aim of the project is to supply produced copper concentrates to the regional and covers 60,000m² area, with a potential of 40,000 m² for the
international smelters. production of high and low grade ferrochrome pellets. The
expansion will include addition of 2 furnaces to existing facility,
2019 KPIs with a production capacity of additional 100 ktpa, making the
total 150 ktpa.
3.3.1 Development of Al Hadeetha Resources Wash-hi’s Mine and Concentrator Plant
In 2019, the company will start working on obtaining the approval
The KPI will be achieved after the Engineering, Procurement and Construction (EPC) and project
from the Board of Directors (BOD) for the expansion project, then
management contracts have been finalised for the mine and the processing plant.
finalising the cost and equipment. The next step will be transferring
the slag (ferrochrome waste) from the plant to Be’ah’s landfill to
The Journey create the space required for expansion. The company will then
The company finalised the project finance agreement in the first quarter of 2019. It also awarded obtain the approval from Sohar Freezone and Majan Electricity,
the mining contract and EPC, awarded limited notice to proceed with project engineering, and and it will award the EPC and PMC to contractors, which will then
commenced the fencing (30%) and the Front End Engineering Design (FEED)(30%). work on the design of the expansion.

However, the company faced many challenges this year as follows: The company will also order the required materials and
equipment. By the end of the year, the project will be at the stage
1. Regarding the mining license, infrastructure facilities appeared to be planned outside the mining of commencing the civil work, mainly the foundation.
coordinates for safety reasons, and to build them, the company needs to obtain several permits
and approvals. Therefore, all milestones were paused since they are mainly connected to the
construction and preparations of the processing plant and tailing dam. The company presented 2019 KPIs
the challenges to Steering Committee and the issues are being followed up by ISFU and PAM with
MoH. 4.1.1 GMFA’s Ferrochrome Plant Expansion
The aim of the KPI is to commence and finish the expansion of the Gulf Mining Ferro Alloys LLC’s
ferrochrome plant to start producing ferrochrome.
 The Journey The board of directors approved the first recommendation. Then, the working group drafted the legal
articles and included them in the executive regulations.
Milestones Status
Moving Forward
Approval from chairman and BOD Achieved.
The initiative has graduated.
Finalise project cost, profitability
Achieved. Stakeholders
projections, equipment, and payments.

A meeting including MECA, Be’ah, PAM, ISFU and the Public Authority for Mining (PAM)
Transfer of ferrochrome slag company was held in September. They reached to an
agreement, and the company started the transfer. 6. Outsourcing of PAM’s Monitoring and Inspection

Approval from Sohar slag and Majan The company sent the applications and it is awaiting
This initiative aims to study the possibility of outsourcing a number
Electricity the approval.
of inspection/monitoring services that are currently provided by
PAM. It also aims to introduce modern techniques and methods in
Stakeholders the field of inspection, strengthen the role of inspection in mining
activities, reduce the administrative and technical burdens on the
Gulf Mining Ferro Alloys LLC (GMFA) Ministry of Environment and Climate Affairs (MECA)
Monitoring and Inspection Department, encourage the private
Oman Environmental Service Holding Company sector to participate in the development of the mining sector,
Sohar FreeZone
S.A.O.C (be’ah) and enhance the confidence of the community surrounding the
mining organizations in the role of PAM.
5. Implementing a Dynamic Royalty Rate for the Mining Sector By the end of 2019, the tender for outsourcing the monitoring
services of meeting the Environmental, Occupational, Health
The current royalty rate in the mining sector is fixed for all and Safety criteria would be floated and awarded for the chosen
208 company, after evaluating the proposals.
209
commodities and activities, therefore, there is a need for a
dynamic royalty rate that will attract and increase investment in
the sector.
2019 KPIs
The aim of this initiative is to study and evaluate the outcomes of
the Mining Lab and the Mining National Strategy, focusing on how 6.1 Outsourcing of PAM Monitoring
the royalty rate is calculated, then suggesting other alternatives. This KPI will be achieved after outsourcing some of the monitoring services currently provided by PAM
to a private company adhering to PAM’s criteria.
By the end of 2019, the initiative is expected to graduate.
The Journey

2019 KPIs Milestones Status

Completion of the second draft Achieved.

5.1 Establishment of a Dynamic Mining Royalty Framework
To achieve this KPI, the working group of the initiative will structure a framework of the suggested Achieved. The second draft of the evaluation report was
royalty rate, to include it in the executive regulations under the Mining Law. presented to the board of Directors, and they approved
Board of Directors’ approval
outsourcing the monitoring services of meeting the
The Journey Environmental, Occupational, Health and Safety criteria.
During this year, the working group have finalised the second draft of the evaluation report and
Completion of the final evaluation
presented it to the Board of Directors. There were three alternatives: Achieved.
report
1. The first was based on the outcomes of the Mining National Strategy: to have 6% as a royalty rate
for the metals and 10% for the industrial minerals.
2. The second was not to change the current situation, fixed 10% for all minerals.
3. The third was based on the recommendation from the Mining Lab, which states that the royalty rate
should be dynamic and have a number of criteria for discounting the rate at a maximum of 5%.
 8. Establishment of E-Mining Platform
Achieved. The working group discussed the technical
Preparation of RFP (request for
criteria and scope of work of the tender with MECA. The
proposal) document The aim of this initiative is to assess the e-readiness of PAM to deliver
RFP was approved by the CEO.
government online services and develop a detailed scope of work
The tender was floated, but a technical issue happened in for transforming the services by a consultant, then implementing it.
Floating the tender and receiving the website. The team then re-floated the tender, however, The primary objective of implementing this initiative is to improve
the proposals only one company bought the RFP. Therefore, the team the delivery of government services and e-Services in PAM by
decided to change the selection process. simplifying and streamlining government processes required
to deliver the online services, and enabling customer-centric
Stakeholders government e-Services for individuals and businesses.

Public Authority for Mining (PAM) Ministry of Environment and Climate Affairs (MECA) By the end of 2019, the working group would have finished
preparing the RFP Document for the Development of the system.
7. Outsourcing PAM’s Laboratory Services
2019 KPIs
Currently, the laboratory services are increasing the overall
8.1 Consultancy Study for Mapping Process
expenditure of PAM and diverting resources away from other
areas, leading to decreased efficiency. Therefore, outsourcing This KPI will be achieved after choosing the right company (contractor) to perform the consultancy
laboratory services is a profitable alternative for PAM. study through tendering. Then, this company will implement the outcomes of the study.

8.2 Development of the system

2019 KPIs This KPI will be achieved after developing the system that will be recommended by the consultant to
start the implementation phase in 2020.
210 7.1 Outsourcing PAM’s Laboratory Services 211
The KPI is about outsourcing the PAM’s laboratory services according to PAM’s criteria through floating The Journey
a tender. The tender is based on an evaluation report approved by the Board of Directors. 8.1 Consultancy Study for Mapping Process
After receiving the proposals, the working group chose a company based on an evaluation sheet.
By the end of 2019, the tender is to be awarded for the company that will run the laboratory.
Then, the tender was awarded to the consultant company that was chosen (Ernst and Young LLC),
and the contract was prepared and signed by PAM and the company.
The Journey
Millstones Status Within the implementation of the consultancy study, the company finished the following:
Completion of the second draft of the • Phase 0: service catalogue development
Achieved.
evaluation report • Phase 1: Assess PAM Business Processes (AS-IS)
Achieved. The board approved the recommendation • Phase 2: Recommend the To-Be Business Process and Enhancements
Board of Directors’ approval
of the working group. • Phase 3: Review The AS-IS IT Landscape
Completion of the final evaluation report Achieved. • Phase 4: Align to e.Oman Strategy, Core Infrastructure and Mining Lab initiatives
Approval from MoCI was obtained. In addition, letters • Phase 5: Define The “TO-BE” IT Architecture
Approval from the related entities
were sent to MoF and MoH in regards to this matter. • Phase 6: Develop SLAs and KPIs
The team finished the document, but the rental fee is
Preparation of the RFP document
still pending from MoF. 8.2 Development of the system
The team is currently developing the Scope of work of the final RFP for the System.
Stakeholders
Moving Forward
Public Authority for Mining (PAM) Ministry of Finance (MoF)
In 2020, the tender will be floated and a tendering process will be followed to select a contractor
Ministry of Commerce and Industry (MoCI) based on certain criteria to implement the outcomes of the consultancy study, which will be finalised
through certain phases. Also, the initiative will enter the implementation phase of the system, and PAM
will run trials of the system and will focus on solving any issues until the system is ready to be run for all
users.
 Stakeholders Stakeholders

Public Authority for Mining (PAM) Ernst and Young LLC Public Authority for Mining. (PAM) The Geological Society, London, UK.

Ministry of Technology and Communications (MoTC) The Center of Community Service and Continuing
Wardell Armstrong, London, UK.
Education, Sultan Qaboos University.

The Institute of Materials, Minerals and Mining

9. Targeted Technical Training for PAM Staff Institute of Topographical Science.
(IOM3), London, UK.

The main objective of this initiative is to develop certain criteria German University of Technology, Oman.
for education and training, data management, and authority
empowerment to ensure sector sustainability. In addition, it aims
10. Structuring a Centralised Corporate Social Responsibility Mechanism for the Mining Sector
to improve PAM employees’ capability through technical training
and international exposure, enriching their knowledge in the fields
The main objective of this initiative is to create a regulatory
related to mining and administration, equipping them with the
framework to collect, calculate, and spend the social responsibility
skills needed to develop their productivity, and enhancing their contribution of corporates in the mining sector. This is through a
professional conduct. practical mechanism that will be included later in the executive
regulation of the mining law. It aims to ensure that the community
By the end of 2019, the team is expected to start executing the effectively benefits from the CSR (Corporate Social Responsibility)
training programme for PAM employees, and the programme will contributions through a centralised body, in addition to achieving
continue till the end of 2020. optimal expenditure of CSR contribution. It also aims to achieve
sustainability of the projects through a centralised implementation
and monitoring, as well as the effective community engagement
2019 KPIs between investors and locals.

212 9.1 Establishment of Training Framework The primary orientation of the initiative was to establish a 213
centralised CSR office to regulate the corporates’ contribution in
To design a technical training programme specifically for PAM staff, in order to enhance their
the mining sector, but the study, which is a proposal for collection,
knowledge and skills.
expenditure, and object of expenditure, recommended that PAM
shall regulate the contribution through local committees in the
9.2 Identify the number of Staff Trained Wilayats.

The Journey By end of 2019, the team is expected to finish the draft of the legal
text of the CSR regulating and monitoring study, to include it in the
Milestones Status executive regulations.

Identification of knowledge/skill gaps based

Achieved.
on the projected needs of the organization.
2019 KPIs
Develop training map with details on internal/ Achieved. The team worked on a plan
external technical training along with the for conducting the training locally and 10.1Regulating and activating the social contribution in the Mining Sector
international exposure. internationally.
The Journey
Allocate training Service Providers. Achieved.
Milestones Status
Define training participation details (Names &
Achieved. Form the working group. Achieved.
Dates).
Prepare a detailed study about regulating and activating the social
Seven different programmes were executed, Achieved.
Execute training programmes. contribution in the mining sector.
including a total number of 73 staff.
Board of Directors’ approval of the study recommendation. Achieved.
Establish evaluation mechanism and standards
Work in progress. Inclusion of the required legal texts in the executive regulations of mining law. Achieved.
to assess the effectiveness of the training.
 Stakeholders 2019 KPIs

Public Authority for Mining (PAM). Municipal Affairs Committees in the Wilayats. 12.1 Improving the Mechanisms of Financial Resources Appropriation and Management for PAM
This KPI will be achieved when the proposed mechanism is approved and implemented for 2020
11. Establish Quality Management System to Improve PAM’s Operational Performance budgetary.

The main objective of this initiative is to enhance the internal The Journey
processes within PAM, through establishing a quality management
system that complies with international quality management Milestones Status
standards, and ensures a consistent high-level quality control. It
Achieved. The working group made the required
also aims to improve performance quality and efficiency in order
amendments on the proposal after the approach
to ultimately achieve customer satisfaction of services. Amendment of initiative proposal by PAM.
of the initiative was changed after agreement
between PAM and ISFU.
By the end of 2019, the working group is expected to finalise the
manual of the quality management system. Submission of the proposal to ISFU. Achieved.

ISFU to review the proposal and suggest the

Achieved.
2019 KPIs appropriate amendments.

11.1 Establishment of PAM’s Quality Management System Approval of the proposal by the concerned
Not achieved.
authorities through ministerial committee.

The Journey
Stakeholders
Milestones Status
214 Public Authority for Mining (PAM) Ministry of Finance (MoF) 215
Form work team, including an expert. Achieved.
13. Establishment of Pre-Approved Mining Blocks System
Create a list of major functions and procedures. Achieved.

Re-engineer procedures. Achieved. Mining Blocks are vast areas with indications denoting minerals
and resources that can be exploited. Thus, several approvals are
required from relevant authorities in order to enable companies
Stakeholders
operating in the mining sector to make use of these minerals as
Public Authority for Mining (PAM). Consultant Company. well as carrying out mining activities in various locations. Later,
these areas are to be provided to the appropriate investors on a
competitive basis through bidding at local and international levels.

12. Improving the Mechanisms of Financial Resources Appropriation and Management of PAM
2019 KPIs
This initiative’s main objective is to enhance the mechanism of
allocating the annual budget for PAM. It also aims to create a 13.1 Obtaining Approvals and Classifying Mining Blocks
more flexible approach in managing the financial resources
This KPI aims at obtaining approvals from 8 government entities for each proposed mining block (110
within a governance system, in compliance with the current laws.
blocks). Then, the Public Authority for Mining (PAM) studies and evaluates the responses submitted by
all entities and classifies mining blocks to:
By the end of 2019, the working group should finish amending the
proposal then send it to ISFU for revision. Then, the proposal is to 1. Approved blocks.
be presented through ISFU in the Ministerial Committee meeting 2. Blocks that should be downsized or displaced as per the requirement of one of the relevant entities.
to get the approval from the related entities. After obtaining the 3. Rejected blocks due to technical reasons or interference with the boundaries of the rejecting
approvals, the team will work on implementing the outcomes of entity or one of the relevant entities.
the meeting in the new budgetary for the year 2020.
 Thereafter, PAM decides on each mining block, for example, obtaining all approvals for the block, Moving Forward
then classifying it as an approved block. In the event that some entities reject to approve the block, In 2020, PAM aims to offer several mining blocks for bidding, as well as preparing marketing brochures
the entity will be negotiated, but if it persists, the block should be classified as a rejected block, which including details of the blocks for the investors.
will not be included for bidding. After that, PAM works on preparing pre-approved mining blocks to be
presented to investors through bidding. Stakeholders

13.2 Competition and Awarding Process Public Authority for Mining (PAM) Ministry of Tourism (MoT)
This KPI aims at preparing a proposal for standards of competition and bidding that are in line with
Royal Oman Police (ROP) Ministry of Heritage and Culture (MoHC)
the best international practices. Then, such standards are to be included in Mining Law Regulations.
A marketing programme for mining blocks will also be prepared through various media channels;
Ministry of Defence (MoD) Ministry of Environment and Climate Affairs (MECA)
in addition to preparing a guide that includes standards for evaluation and competition, studying
the possibility of offering the first group of mining blocks for bidding, then evaluating the offers and Ministry of Housing (MoH) Ministry of Legal Affairs (MoLA)
awarding the block.
Ministry of Interior (MoI) Ministry of Finance (MoF)
The Journey
Following the receipt of responses from some entities regarding (110) mining blocks, which came either Ministry of Regional Municipalities and Water Resources (MRMWR)
with mining approval, exploration approval, downsizing/displacement, or rejection, PAM studied all
responses and obtained 15 pre-approved mining blocks, and 7 rejected mining blocks. Furthermore,
PAM has studied downsizing and rejection cases submitted by all entities, and came up with a new 14. Regulation of Gypsum Prices
proposal for the remaining 88 mining blocks.
The negative competition of companies, which hold mining
The proposal considers all reservations presented by all entities regarding each mining block and licences for gypsum ore, has led to a decline in prices of Omani
brings out the coordinates in a new form. The proposal was sent in May 2019 to the same entities gypsum in comparison with the international prices, despite
as directed by the Ministerial Committee, to study the proposal and respond to PAM. A response the current Administrative Resolution No. 264/2016 regarding
216 217
was received from the Ministry of Regional Municipalities and Water Resources (MRMWR), Ministry of regulating prices of gypsum. This initiative aims to create the
Environment and Climate Affairs (MECA), Ministry of Heritage and Culture (MoHC), Ministry of Housing appropriate mechanism to raise the prices of Omani gypsum ore
(MoH) and Ministry of Tourism (MoT). Therefore, PAM has studied and evaluated the responses of some to keep up with the international prices through identifying the
entities and responded to them, and work is in progress for the other responses. shortcomings of the current mechanism, and to learn about the
experiences of other countries such as Thailand, and come up
After the Mining Lab, a committee was formed to accelerate mining projects, consisting of members with a proposal for the appropriate mechanism.
from all relevant authorities to follow up mining blocks and mining requests, provided that its meetings
are held on a bi-monthly basis. However, membership of the committee has ended at the end of
2018, but ISFU, in collaboration with PAM, sent a renewal request for membership of the committee 2019 KPIs
for six months. Due to the large number of tasks assigned to this committee and its follow-up on issues
related to mining blocks, it was not able to finish its work by the end of its membership period. Thus, its 14.1 Regulation of Gypsum Prices
membership was renewed for the second time, so that meetings continue until the end of 2019. The
During 2019, the initiative aims at preparing a draft that includes proposals to regulate gypsum pricing
committee completed 85% of mining and exploration projects and licence requests referred to it after
mechanism as well as identifying the best proposal, in addition to submitting the final report of the
the Mining Lab, reaching 81 projects.
initiative’s outcomes and its recommendations to PAM’s Board of Directors to take the right decision.

In addition to the current work assigned to the committee, ISFU’s mining team, in cooperation with
PAM, held meetings with most of the relevant authorities separately, to discuss their responses regarding
mining blocks and address the challenges that exist in some blocks before the entity officially responds.
After preparing a proposal for the standards of competition and bidding, it was approved by the
Board of Directors of PAM. Moreover, investment and competition regulations for mining blocks were
prepared, in addition to developing a marketing programme for the blocks and promoting them at
the mining conference held on April 14, 2019. The initiative team prepared a guide for mining blocks
that includes competition and evaluation standards, from which the investors will benefit by learning
the standards applied in the evaluation process. Work is underway to prepare pre-approved mining
blocks for the first batch to be offered for bidding.
 The Journey
Review of Inactive Chromite Mining Licenses
Milestones Status

A summary of shortcomings of the current mechanism and ways

to address them has been made. The following proposals have Procedures of Review
been developed:
Identifying the current
mechanism of gypsum 1. Establishing a government company to export gypsum ore.
pricing and preparing 2. Establishing a private company to export gypsum ore.
a draft of proposals for 3. Fixing the current price through improving and codifying the
regulating the mechanism current mechanism.
4. Creating an electronic platform for purchase and sell of
gypsum ore under supervision of PAM.
Collect & Receive their Study the
classify license Site visits Contact responses responses from
Benefitting from Thailand data (30 days)
(30 days) companies (60 days after the technical
A proposal to benefit from Thailand experience regarding contacting them) aspect
experience in gypsum
gypsum pricing has been made.
pricing

After investigating the 4 proposals and perusing the information

Identifying the main provided regarding Thailand experience, the team recommends
proposal for the mechanism expediting implementation of the third proposal and starting the Refer the responses
to the legal
formation of the relevant supervisory team. department
Present them
to the Licensing
It was submitted to the Board of Directors, which recommended Committee
Approving gypsum prices after review
the establishment of a private company in which Minerals
regulation mechanism
Development Oman Company (MDO) is a main investor.
218 Renew the Issuing the 219
licenses decision of Inform the
cancelling companies
Stakeholders license
(30 days)
Public Authority for Mining (PAM) Private companies that run gypsum-related businesses

Inform the
15. Accelerate Review of Inactive Chromite Mining Licences companies

Many Omani lands contain valuable chromite ores that have not Receive For companies
been exploited yet, although many factories need it to cover their complaints that did not
(60 days as a legal complain, the
expansion plans, and thus increase revenues of the Sultanate. deadline) status of their
Therefore, in order to make the best use of such raw materials, licenses will be
Proceed updated in the
the initiative aims to review previous and inactive licences to with renewal mining register
be classified, as well as exploiting the sites that still have mineral procedures
resources.

Refer the
complaint
2019 KPIs to the legal
department
15.1 Classification of inactive licences to: Cancel and Renew
This KPI aims to determine the category of 50 licences, whether it is a cancellation category or a
renewal one, after being presented to the licensing committee in PAM, as this committee is responsible Respond to Present the
the complaint complaint to the
of renewing or issuing licences. At the end of 2019, the categories will be identified, then the companies according Licensing Committee Inform the
to the legal according to the company on
will be informed on the decision of the committee, then their responses will be transferred to the legal opinion legal opinion the decision
department in case any company files a grievance along with justification. Consequently, the team
will complete the necessary procedures for renewal or cancellation.
 The Journey 2019 KPIs

Milestones Status 16.1 Simplification of licensing process

This KPI focuses on facilitating the procedures applied by the relevant authorities through creating a
Presenting the licences to All licences were presented to the committee and it decided
simplified system for the investor to execute transactions with PAM as well as the relevant authorities.
the Licensing Committee to cancel the 40 licences that expired before 2015, as well as
This can be done by developing SLAs with each entity, in which several elements are identified such
and taking a decision on completing renewal procedures for 10 licences that expired in
as boundaries of the authority, its requirements or precautions for exploration, excavation and mining
them 2015 onwards.
processes.
The team informed 38 companies out of 40 that their licences
16.2 Linking Geographical Maps System
were cancelled, after reviewing the letters by legal department
Informing the companies and giving them (60) days to respond. This KPI focuses on completing the process of linking the geographical system; to collect data from
about results of the licensing the entities that have agreed to be linked in a single window, including sites of their premises and their
committee The remaining two companies were not informed about the boundaries. The linking process, data sharing and system launch will be tested in 2019.
decision of cancellation due to having judicial files that should
be independently reviewed first. The Journey
With regard to simplifying licensing and approval procedures, a number of meetings were held with
Receiving companies’ the relevant authorities that reviewed stages of exploration and mining licences issuance, discussed
responses to the About 7 grievances have been received. the conditions and precautions of the authorities and contacted them before issuance of the licence,
committee’s decision in addition to the electronic linking with government authorities.

The responses were presented to the legal department, and 5 As for alignment between SLAs and measures of simplifying licences procedures with the Mining Law,
Presenting responses to the companies were apologised to, according to the legal opinion, the agreement drafts have been reviewed and aligned with the mining law draft and its executive
legal department and grievances presented by two companies were considered
regulations, as well as developing the agreements legally.
and referred to the Licensing Committee.
The second KPI “ Linking Geographical Maps System” has been accomplished in full, despite the
220 Preparing the final report
The report has been completed and delivered to the relevant
reservation of 4 entities regarding linking its geographical systems to PAM. 221
parties.
However, the initiative faced several challenges with the relevant authorities, such as not providing PAM
Stakeholders with conditions set by the authorities regarding the prescribed distance from residential, agricultural and
archaeological sites, streets, graves, aflaj (narrow, mud-walled water channels), springs, and valleys. In
Public Authority for Mining (PAM) Companies that own inactive chromite-related sites. addition, majority of the authorities’ request to be notified twice, once to approve exploration and the
other to approve mining, which caused delay in procedures-simplification process.

Due to presence of major and diversified challenges along with the different boundaries and
16. Simplification of Exploration and Mining Licensing Process
conditions of the 8 authorities, ISFU and PAM, in cooperation with a consultant, prepared a proposal
for alignment and standardisation of boundaries based on the experiences of leading countries in
This initiative aims to streamline the procedures that every investor mining, which will be presented to the authorities to obtain their approval.
goes through in order to obtain exploration and mining licences.
These procedures include eight government entities: Royal Oman Moving Forward
Police (ROP), Ministry of Defence (MoD), Ministry of Housing In 2020, amendments to the agreements will be made and sent to the relevant government authorities,
(MoH), Ministry of Interior (MoI), Ministry of Tourism (MoT), Ministry of and the legal department will conduct a final review, then PAM will approve the final draft of the SLA,
Heritage and Culture (MoTC), Ministry of Environment and Climate to be finally signed by relevant authorities.
Affairs (MECA), and Ministry of Regional Municipalities and Water
Resources (MRMWR). Stakeholders

In 2019, efforts are to be made to simplify licensing procedures Public Authority for Mining (PAM) Ministry of Interior (MoI)
and obtaining approvals from the relevant authorities, as well
Royal Oman Police (ROP) Ministry of Tourism (MoT)
as getting the approval of PAM. This is in addition to reviewing
service level agreements (SLAs) to be approved by PAM and the Ministry of Defence (MoD) Ministry of Heritage and Culture (MoHC)
relevant authorities, and aligning between SLAs and measures of
Ministry of Housing (MoH) Ministry of Environment and Climate Affairs (MECA)
procedures simplification, with the Mining Law.
Ministry of Regional Municipalities and Water Resources (MRMWR)
222 223

Information &
Communication
Technology
 ICT KPI Dashboard

2019 Actual 2019 Actual

Initiative/ KPI 2019 Target
Achievement Initiative/ KPI 2019 Target
Achievement

1 Digitisation of Key Public Services 9 Promote Oman as the Region’s Hub for Disaster Recovery Services

Completion of planning and preparing the promotion

1.1 Approve and Roll out digital transformation roadmap 100% 100%
9.1 campaign, and preparing a list of service providing 100% 100%
companies in Oman

2 Establish a Vibrant Cybersecurity Industry

10 On-the-Job Training and Placement Programme for Locals

Company set-up and preparation for commercial

2.1 100% 85%
operations Launching the programme and signing with the partners
10.1 100% 100%
to train 100 job seekers in 2019

3 Stimulate the local cybersecurity market

11 Use and Manufacture of Internet of Things (IoT) Devices
Launch the government IT compliance programme
and the private sector IT accreditation programme, Completing the First Phase: establishing a factory for
3.1 100% 87% 11.1 100% 69%
and circulate and mandate the new IT companies’ Internet of Things devices
accreditation programme

11.2 Approving the technical standards for metering systems 100% 65%
224 4 Establish ICT Shared Solutions Company 225

Company set-up and preparation for commercial

4.1 100% 90% * Deloitte did not review ICT KPIs because they were added in the middle of 2019.
operations
* A number of projects might not be reflected in the dashboard above as they are under direct monitoring of
specific authorities. However, ISFU follows up on their execution on a regular basis.
5 Last Mile Services to Support SMEs (LMX)
* All forms of data are being continuously improved to be more representative of actual economic state. This is
done in collaboration with NCSI and relevant government entities and aligned with international standards.

5.1 Achieve 100% Completion of the project targets 100% 100%

6 Introduce a Special Incentive Programme to Attract High Value ICT Activities into Oman

6.1 Design and approval of incentive programme 100% 30%

7 SAS 4th Industrial Revolution Hub/Sandbox

Establish SAS 4IR Technology Hub and Sandbox

7.1 100% 100%
programme as a national technology business hub

8 Accelerating the Transformation of the Sultanate into a Cashless Society

8.1 Formation of National Payment Company (NPC) 100% 60%

 Overview
Information and Communication Technology (ICT) sector is a driver of growth, innovation and By digitising 4 governmental services:
transformation for other sectors. It primarily depends on knowledge and skills, which leads to achieving
Invest Easy, Education Portal, Environmental Permits, and Muscat Municipality
Services (Baladiyeti), the government have made the following savings:
high income and providing job opportunities for job seekers. Moreover, the development of the ICT
sector will cause an increase in the productivity and effectiveness of other sectors like manufacturing,
agriculture, health and finance.
Financial
ICT sector is growing incredibly fast and this opens the door for utilizing modern technology for a better Financial Number savings in
savings in of trees employees
lifestyle. The Sultanate has great potential that allows it to keep up with these developments, as this client visits preserved performance
sector directly contributes to the welfare of the citizens. Also, the projects of ICT will contribute to the OMR
direct and indirect investment which will help enhance the diversification of the national economy. OMR
6.1mil Number of 227k Number 4 mil
personal visits trees of paper
160k hours
One of the major achievements of the sector is the design and approval of the roadmap for the saved for saved
clients
transformation of a number of government services to e-services. Another accomplishment is the
completion of the planning and preparation of a promotion campaign, to promote Oman as a 2.3mil 16mil
disaster recovery hub in the region. This is in addition to completing the training and placement of 152 visits papers
job seekers in the ICT field.

Moreover, one of the major projects of the sector is the creation of 17 SMEs in the Last Mile Connectivity
Service project, and the completion of the technical training of 60 technicians in the same project.

ISFU has worked hard during the second half of the year to achieve the milestones of the ICT sector
In four years OMR 136.1 mil OMR 18.5 mil
Total revenue Total savings
projects, which were added to the dashboard in June 2019. ISFU, in collaboration with the Ministry
of Technology and Communications (MTC), coordinated a lot of meetings with the relevant entities
226 227
such as MoCI, MoH, MoF, MoFA, SCP, AER and TRA for the purpose of clarifying any misunderstandings,
reaching a common understanding of the strategic purpose of the projects, and making sure the The project will target 64 government entities over the period of 5 years – carried out through
financial requirements are well understood. the implementation of a public-private partnership financing model. It is expected to create
opportunities to improve the overall efficiency and performance of the government, while also
1. Digitisation of Key Public Services raising levels of transparency.

The existing digital government services in the Sultanate of

Oman serve to facilitate many transactions for citizens, as well
as government and private entities. Compared to previous non- Project Timeline
digital services, these provide substantial savings in terms of time,
money and human resources. This project therefore intends to
further accelerate the digital transformation of the most important
government services in order to improve their quality and increase
demand.
2019 2020 2021 2022 2023
• Roll out Digital • Launch end • Launch end • Launch end • Launch end
Transformation to end digital to end digital to end digital to end digital
Roadmap. services. Services. Services. Services.

• Float • Award first

integrated batch of
RFPs. combined
RFP projects.
 2019 KPIs
Despite this progress, there are currently no entities specialising in the provision of comprehensive
and integrated cybersecurity services in Oman, except for MTC – which renders such services to
1.1 Approve and roll out digital transformation roadmap
public organisations but does not commercialise them. With this in mind, the ICT Lab identified
The purpose of this KPI is to come up with an approved digital transformation roadmap.
the need to create an active and vibrant cybersecurity industry.

The Journey
The project focuses on 3 key areas of cybersecurity: Managed security services; cybercrime
Milestone Status analysis; and cybersecurity services such as security incident management and security
consultancy. The Lab also came out with a cybersecurity business model that included the
Achieved. The transformation roadmap has been establishment of a new cybersecurity company with global standards; and proposed to
developed by MTC, which has also prepared options to separate the operational tasks of some government institutions and establish a partnership with
Submit the digital transformation
finance the project. ISFU has facilitated the discussion local and international companies, to introduce new technologies and skills to be used in the
roadmap.
with related entities to explore more creative solutions to local market.
sustain the project fund after its initial year.
In addition, the project will contribute to increasing the Sultanate’s competitiveness in the near
Obtain approval for, and roll out future, while also attracting investment, and increasing the contribution of the private sector to
Completed.
the digital transformation roadmap.
the establishment of cybersecurity business.

Completed. The 5 integrated RFPs are the Public Authority

Draft the scope of work for the 5 2019 KPIs
for Consumer Protection (PACP), Sohar Municipality, Dofar
Integrated Request for Proposals
Municipallity, Oman Medical Specialty Board (OMSB),
(RFPs). 2.1 Company set-up and preparation for commercial operations
and Public Authority for Civil Aviation (PACA).
The purpose of this KPI is to establish a company to provide cybersecurity services. The KPI will also
Complete the scope of work drafts track the development of the list of services that will be provided by the company.
Completed.
for 3 combined RFPs.
228 The Journey 229
Submit the list of services. Completed.
Milestone Status
Stakeholders
Finalise the business plan and formation strategy. Completed.
Ministry of Technology and Communications (MTC) Government entities
Stakeholders
Private Sector
Oman ICT Group Private sector

2. Establish a Vibrant Cybersecurity Industry

3. Stimulate the Local Cybersecurity Market
In recent years, the Sultanate of Oman has made significant
progress and achieved numerous milestones in the field of Currently in Oman, there are no specialised entities that provide
cybersecurity. comprehensive cybersecurity services except for MTC, which
provides these only to government institutions but not in a
It has also achieved top positions in the Global Cybersecurity commercial context. Therefore, ICT Lab discussed a range
Index: In 2017 cybersecurity readiness index, Oman was ranked of measures to address this situation, which would ultimately
first in the Arab world and fourth in the world, while also receiving stimulate demand for local cybersecurity services.
the World Summit on the Information Society (WSIS) Award in the
category “Building confidence and security in the use of ICTs”. One of the key measures was the development of a set of proposed
Oman also established the first cybersecurity centre in the region policies that would enable existing and future companies to
– which is affiliated with the International Telecommunication successfully do business in this sector. It also proposed establishing
Union, and hosted by MTC (represented by Oman National a cybersecurity accreditation programme, which would enable
Computer Emergency Response Team). the private sector to provide relevant services at the appropriate
time.
 Cybersecurity services include security incident management, web and network security 1. Shared ICT solutions and services.
assessment, security consultancy, web portal protection, security architecture review, physical 2. Providing professional services by qualified Omani employees through temporary or part-
security assessment, and mobile security assessment. time contracts for placement in ICT roles.
3. Development of intellectual property for product commercialisation.

2019 KPIs
2019 KPIs
3.1 Launch the government IT compliance programme and the cybersecurity accreditation
programme, and circulate and mandate the cybersecurity accreditation programme. 4.1 Company set-up and preparation for commercial operations
The purpose of this KPI is to form the company; track the progress of the development of service
The Journey offerings in the market; and initiate commercial operations.

Milestone Status
The Journey
Finalise the business plan and formation
Completed.
strategy. Milestone Status

Recruit employees for the Compliance Employees have been recruited and trained Finalise the business plan and formation strategy. Completed.
Department. in IT audits and compliance.
Identify initial partnerships, start negotiations, and finalise the
Completed.
The Compliance Programme has been 2 initial partnership agreements.
Initiate the Government IT Compliance
piloted and the IT compliance checklist has
Programme. Recruit the first batch of employees. Completed.
been developed.

230 Initiate the Cybersecurity Accreditation

The marketing campaign has been rolled out
Stakeholders 231
and training for the Accreditation Programme
Programme.
has been conducted. Ministry of Technology and Communications (MTC)

Stakeholders Telecommunications Regulatory Authority (TRA)

Ministry of Technology and Communications (MTC) Private sector Oman Information Technology and Communications Group (OITCG)

4. Establish ICT Shared Solutions Company 5. Last Mile Services to Support SMEs (LMX)

As the world heads into a high-tech future, it is predicted that This project aims to analyse the workflow with regards to
there will be an increasing demand for ICT experts on temporary connecting Oman’s Last Mile of broadband – the portion of the
contracts in all sectors. In fact, the number of global cybersecurity broadband network that physically reaches houses, residential
jobs is expected to reach 3.5 million by 2021. complexes, companies, etc. This project initially focuses on
internet connections and it may include Internet of Things (IoT)
Therefore, this project aims to align itself with this trend and devices and CCTV services etc. It seeks to propose a viable
establish a company that provides various services in the ICT framework that integrates Omani SMEs and technicians in the
field. At the same time, it seeks to enhance ICT skills and build ecosystem so they can provide LMX services, while considering
ICT capacity in Oman through partnerships with specialised the operational needs of the service providers. It also aims to build
international companies such as Microsoft, Oracle, and others. In national capacity, provide more jobs for Omanis, and support
doing so, it can meet the ICT needs of local and international start-ups and SMEs specialising in this field.
markets. The scope of this company will cover 3 areas:
 2019 KPIs 6. Introduce a Special Incentive Programme to Attract High Value ICT Activities into Oman

5.1 Achieve 100% Completion of the project targets Many countries that are considered world leaders in the ICT
sector have designed and implemented incentive programmes
This KPI will track the progress of the project to ensure its successful implementation. It aims at training
to attract further ICT company development and activity in their
60 Omani technicians and establishing 17 SMEs with the target of 50% omanisation.
economies. In order for Oman to align itself with this trend, the
Lab has foreseen the need for the country to adopt a similar
The Journey programme in order to attract high value ICT activity to the
Sultanate.
Milestone Status
In line with a number of initiatives in the National ICT Strategy, a
Batch 1: Conduct Technical Training for Last 32 technicians have been trained in LMC
proposal was developed for a programme that would provide the
Mile Connectivity (LMC) services. services.
incentive for more ICT business development in Oman. 3 central
Batch 1: Establish SMEs to provide LMC components for this programme were identified:
8 companies were established and the target
services to operators, while targeting 50% 1. Providing an attractive package of incentives: This includes a
of 50% Omanisation was achieved.
Omanisation. complete package of material incentives such as discounts,
tax exemptions and other incentives such as e-residence, and
Batch 1: SMEs to sign contracts with the Contracts were signed with operators
ease of restrictions on recruitment controls.
operators for the LMC service. (Omantel and Oman broadband).
2. Determining the programme management and market
AMAN reported the progress of the project to access strategy.
Batch 1: Report SMEs progress. the Telecommunications Regulatory Authority
(TRA). 3. Developing a world-class infrastructure: This would first entail
identifying a specific location with ample office space – where
Batch 2: Conduct the Technical Training for 28 technicians have been trained in LMC new technologies could be tested, and which would function
232 233
the LMC services. services. as a platform from which to create a high-quality network with
competitive tariffs. It is expected that the adoption of such a
Batch 2: Establish SMEs to provide LMC programme will increase the Sultanate’s competitiveness and
9 companies were established and the target
services to operators, while targeting 50% make it a hub for major investors. This will result in the creation of
of 50% Omanisation was achieved.
Omanisation. many jobs and the improvement of the business environment
in general.
Batch 2: SMEs to sign contracts with the Contracts were signed with operators
operators for the LMC service. (Omantel and Oman broadband).

AMAN monitored the agreed-upon KPIs for 2019 KPIs

Monitor the KPI targets.
the project and reported performance to TRA.
6.1 Design and approval of incentive programme
Negotiate the funding model for the next AMAN and TRA reached an agreement for
phase of the project. the funding model of the project for 2020. The Journey

Stakeholders Milestone Status

Telecommunications Regulatory Authority (TRA) Oman Broadband Form the Incentive Technical Team. Completed.

The Public Authority for Small and Medium Enterprises Finalise and submit the first draft for the
Oman Development Bank (ODB) Completed.
Development (Riyada) scope of work and incentive framework.

AMAN Technology and Engineering Consultancy (AMAN) Omantel The team reviewed the submitted
Release the RFP. proposals and discussed the initial plan of
technical evaluation.

Technical proposals have been

Evaluate the received proposals. evaluated and commercial evaluation is
in process.
 Stakeholders
The scope of work has been finalised and the key
Ministry of Transport and Communications (MTC) Ministry of Manpower (MoMP) initial logistics and health care functions have
been identified. Moreover, a Memorandum of
Telecommunications Regulatory Authority (TRA) Royal Oman Police(ROP) Finalise the scope of work including the Understanding (MoU) was signed with ASYAD
identification of key functions. as the logistic partner on SAS 4IR, while official
The Public Authority for Investment Promotion and Knowledge Oasis Muscat confirmation was received from Ministry of
Export Development (Ithraa). Health (MoH) to be the project’s health care
partner.

7. SAS 4th Industrial Revolution Hub/Sandbox Develop a specific framework (for each sector)
to drive, implement and adopt emerging Completed.
MTC has established SAS as a national centre for technological technologies.
entrepreneurship in the Sultanate, which will accommodate
the 4th Industrial Revolution (4IR) Technology Hub and Sandbox. Stakeholders
The project aims at bringing together local and international
stakeholders, including inventors, start-ups, SMEs, regulators, and Ministry of Technology and Communications (MTC)
technical and industrial experts.

In doing so, it will create a flexible and unrestricted environment

8. Accelerating the Transformation of the Sultanate into a Cashless Society
to develop new products and solutions that utilise and test the 4IR
technologies before allowing them to enter the local market. This
In line with global trends, and in response to the recommendation
will ensure that the needs of the Sultanate in this area are met,
of the World Bank to separate the operator from payment systems,
and that it can expand into regional and global markets.
the Central Bank of Oman (CBO) is currently privatising services
related to national payment systems through the establishment
234 of a private payment company owned by a group of banks in
235
2019 KPIs Oman.

7.1 Establish SAS 4IR Technology Hub and Sandbox programme as a national technology Currently, CBO has a number of national payment systems such
business hub as Oman Net and Automated Clearing House (ACH) – which are
both operated and developed by CBO. It also issues, supervises
The Journey and monitors the laws and regulations concerning these systems
to ensure the security of financial transactions.
Milestone Status
Looking ahead, the new company, called the “National Payment
Form an internal committee within MTC. Completed. Company (NPC)” will be involved in the management of payment
systems, and will also provide public services such as printing
Design the general framework for the Sandbox
Completed. cheque books and cards, and providing a customer call centre.
operations.
At the same time, CBO will be responsible for issuing legislation,
Form the SAS 4IR Technology Hub and Sandbox supervising and monitoring these systems.
technical committee from various sectors
Completed. CBO also seeks to raise community awareness on the importance
(sector owners, regulators, SMEs, start-ups etc)
– led by MTC. of using electronic payment systems instead of banknotes.
They will achieve this by carrying out awareness and marketing
A number of key entities were contacted to campaigns, and by conducting surveys through various media
Form the Enablers and Working Groups.
get their support for the project. channels such as radio, television, social networking sites etc.

This is considered as a significant project as it will reduce tax evasion

and alleviate the risk associated with the use of banknotes. It will
also enhance the level of transparency and reduce the potential
for corruption.
 2019 KPIs The Journey
As part of the development of this initiative, ISFU and MTC organised several meetings and workshops
8.1 Formation of National Payment Company (NPC) between MTC, TRA, Oman Broadband, Omantel and data centres.

The Journey During these meetings, various suggestions to ensure the successful development of the project were
presented; and the need to create a list of services that could be provided in other countries was
Milestone Status
realised. In coordination with Ministry of Foreign Affairs (MoFA), a visit to Qatar’s Information Technology
Float the RFP in order to appoint a consultant. and Communications exhibition (QITCOM) 2019 was organised to promote the available services.

Provide clarifications to the vendors if they The RFP was floated and the vendors were Moving Forward
request any. subsequently evaluated and shortlisted. Some In 2020, the project will work on promoting Oman regionally and internationally as a regional hub for
clarifications on the project were provided to disaster recovery services. At the same time, issuing Oman’s data protection law, which is expected in
Receive and review proposals. the vendors on request. 2020, will accelerate the implementation of this initiative.

Short-list the vendors.

Stakeholders

Stakeholders Ministry of Technology and Communications (MTC) Omantel

Central Bank of Oman (CBO) Banks in Oman Ministry of Foreign Affairs (MoFA) Ooredoo

Telecommunication Regulatory Authority (TRA) Oman Broadband Company

9. Promote Oman as the Region’s Hub for Disaster Recovery Services Data centres Ithraa

Due to its political stability, and its unique geographical location;

236 237
the Sultanate of Oman is in an ideal position to provide Disaster
10. On-the-Job Training and Placement Programme for Locals
Recovery Services in the region. These are defined as a facility
used by institutions to host basic applications and data – which
This project was established to increase the number of
can be recovered and operated after they become unavailable
appropriately skilled ICT graduates in Oman in order to meet the
in their original sources, due to various reasons.
increasing demand for certain ICT skills. Essentially, the project
will serve to meet these needs with on-the-job training – which
In addition to these advantages, the Sultanate can also provide
remains one of the most effective ways to provide a solution to a
competitive Disaster Recovery Services due to it being connected
problem of this nature.
to most of the major submarine cable systems in the region. It is
also connected to the Asia-Africa-Europe line, which is a major
The project will be carried out in 2 phases:
new link connecting more than 6 billion people to the Internet.
Phase 1: This will entail a two-year on-the-job training programme
To leverage the Sultanate as a leading hub for Disaster Recovery
that will be rendered by local and international companies. Job
Services, a promotional programme has been proposed for
seekers will acquire basic expertise and skills in ICT under the
action.
supervision of experts and specialists in the field. It will consist of
both theoretical and practical aspects.

2019 KPIs
Phase 2: This will entail a one-year programme for recruiting
national competencies. It is derived from Ministry of Oil and Gas
9.1 Completion of planning and preparing the promotion campaign, and preparing a list of
(MOG) experience in increasing the Omanisation rate, and after
service providing companies in Oman
the trainees acquire the necessary skills and expertise during the
This KPIs aims to unify efforts and coordinate with several stakeholders to prepare the appropriate training period, a plan will be carried out to replace expatriates
platform for Oman to become a leader in Disaster Recovery Services in the region. (This would with these graduates.
especially apply to establishing appropriate technical platforms – besides the designing and provision
of a catalogue). In cooperation with related parties, it also aims to launch a campaign to promote
Oman as the Region’s Hub for Disaster Recovery Services.
 2019 KPIs 2019 KPIs

10.1 Launching the programme and signing with the partners to train 100 job seekers in 2019 11.1 Completing the First Phase: establishing a factory for Internet of Things devices
This KPI targets obtaining the approval of the on-the-job training programme in line with the ICT sector’s This KPI aims to follow up the progress achieved in establishing the factory, as locally manufacturing
national competencies. This will be achieved through the National Training Fund (NTF), and via joint such devices may lead to achieve other goals, such as localising technical knowledge, building local
financing with some of the specialised companies in this sector. In addition, the project aims to form a skills, increasing imports, and contributing to Oman’s GDP.
technical committee to establish a flexible framework specifically for this programme.
11.2 Approving the technical standards for metering systems
The Journey
This KPI aims to issue the approved technical standards for metering systems.
In 2019, a workshop with various information technology companies was conducted, then it was
agreed to train and recruit 100 job seekers in these companies – with this process being supervised by The Journey
a technical committee overseen by NTF.
The approvals of the technical standards for metering systems is an important step towards the
adoption of technology in Oman, as well as an important step towards the localisation of technology
Moreover, a flexible framework was developed to ensure the training systems would incorporate the
throughout the country. Therefore, ISFU organised a meeting between MTC, Authority for Electricity
rapid changes and dynamic nature of this sector. By the end of 2019, 152 job seekers were trained and
Regulation (AER) and Ministry of Commerce and Industry (MoCI) to accelerate the issuance of
recruited in ICT companies.
technical standards for metering systems.

Moving Forward
Subsequently, it was agreed that AER would write and prepare the technical standards in cooperation
The programme aims to achieve all of its remaining targets, and train and recruit more job seekers in with MoCI, while MoCI will continue the process of issuing the standards. Moreover, with regards to
2020. the establishment of the factory, the contract was signed with the consultant for the first stage of
construction, and the factory is currently being constructed.
Stakeholders
Moving Forward
238 Ministry of Technology and Communications (MTC) Recruiting companies 239
In 2020, the focus will be on obtaining the approval for the technical standards for metering systems,
The National Training Fund (NTF) and completing the first stage of the factory’s construction.

Stakeholders

11. Use and Manufacture of Internet of Things (IOT) Devices Ministry of Commerce and Industry (MoCI) National Energy Center (NEC)

Currently, there is a worldwide trend to install and adopt the use Authority of Electricity Regulation (AER)
of smart meters in residential and other properties. However, the
use of smart water and electricity meters in Oman is limited, and
in some cases non-existent. This project therefore aims to expand
the use of these smart meters for water, electricity and gas.

Its importance lies in the opportunity to reduce the cost of using

conventional meters, and also to monitor/reduce leakages.
Smart meters also provide timely and accurate data on water,
electricity and gas consumption – enabling users to adjust their
consumption and thus reduce monthly cost.

The National Energy Center (NEC) has successfully implemented

a pilot project for the installation of smart meters in Musandam
Governorate, and it also plans to establish a factory for the
manufacturing of a range of smart meters.
240 241

Independent
Advisory
Review (IAR)
 Independent Advisory Review (IAR) Panelists

Dr. Amer Awadh Al Rawas Eng. Nashiah Saud Al Kharoosi

Group CEO of Tasneea Oil & Gas Technology. Expert in Telecommunications.
ICT, Labour Market & Employment, and Mining Sectors. ICT Sector.

Dr. Hafedh Ibrahim Al Shihi H.E Dr. Ahmed bin Mohsen Al Ghassani
Associate Professor at Sultan Qaboos University. Chairman of Dhofar Municipality.
ICT Sector. Business Environment and Labour Market & Employment Sectors.

242 243

Asma Humaid Al Ghabshi Ibrahim Said Al Amri

HR Manager at Shell Oman. Chief Operation Officer of Flour Mills.
Labour Market & Employment Sector. Mining Sector.

Abdullah Zahran Al Hinai Alinah Aman

Chief Wholesale Banking and Strategic Growth Officer at Bank Muscat. Director of Technologies at ASM Technologies.
Business Environment Sector. Business Environment and ICT Sectors.

Dr. Faheem Abdullah Al Marhoobi

Associate Professor in the department of Economics and Finance at David Paterson
Sultan Qaboos University. Management Consultant at Emergent Advisory.
Logistics Sector. Mining Sector.
 Independent Advisory Review (IAR) Panelists

Hussain Jawad Al Lawati Walid Hadi

Executive Chairman of W.J Towell Group. Chairman of Shell Oman Marketing Company.
Tourism Sector. Energy Sector.

Issa Mohammed Al Hajri Dr. Talal Al Aulaqi

Tourism Expert. Committee Member in Geological Society of Oman.
Tourism Sector. Mining Sector.

244 245

Dr. Saud Musallam Al Jufaily

Associate Professor in the college of Agriculture & Marine Sciences Ali Mohammed Tabouk
at Sultan Qaboos University. CEO of Salalah Free Zone.
Fisheries Sector. Manufacturing Sector.

Bernard Durin Abdullah Said Al Badri

Managing Director of Al Marsa Fisheries. CEO of Voltamp Group.
Fisheries Sector. Energy Sector.

Nashwa Ali AL Mazrooi Eng. Hamed Salim Al-Maghdri

Quality Control & Acting Marketing Manager at Oman Fisheries Company. CEO of Al Maha Petroleum Products Marketing Company SAOG.
Fisheries Sector. Energy Sector.
 Independent Advisory Review (IAR) Panelists

Dr. Steffen Hertog

Associate Professor at David Leeder
The London School of Economics & Political Science. Director & Managing Partner at Transport Investment Limited.
Labour Market & Employment Sector. Logistics Sector.

Rene Honig Randall Tinkerman

Consultant. Consultant.
ICT and Manufacturing Sectors. Energy Sector.

246 247

Martin Hackl Andreas Hilz

General Manager at Kuehne + Nagel. Founder & Managing Director of HI and Consulting.
Logistics Sector. Tourism Sector.

Kaiser Naseem Mohammed Ali Al Barwani

Consultant. Founder and Chairman of MB Holding.
Business Environment Sector. Manufacturing Sector.

Joseph Payet Mohammed Zaman

Consultant. Chairman & CEO of Al Zaman Group.
Fisheries Sector. Tourism Sector.
 Independent
Advisory
Review (IAR)
Manufacturing

The Manufacturing sector has demonstrated a robust contribution to Oman’s

The Independent Advisory Review (IAR) is an important platform in which
economy in terms of GDP, job creation and attracting foreign investments. It
the results of the initiatives and projects are reviewed, aiming to provide
has also shown a strong performance over 2019, with a number of ongoing
an independent assessment on the progress achieved. This event touches
projects realizing first production and new projects taking Final Investment
upon the achievements and challenges of the previous year.
Decision (FID). The sector is characterized by a wide variety of projects,
ranging from petrochemicals to metals and food.

Key achievements over the review period included commercial production

of Mazoon Dairy project, Sebacic Acid Plant and Polymer Manufacturing
IAR Objectives: IAR Members: project.
To learn from the experiences and
Economic experts from the public
perspectives of the experts hosted in To further strengthen the contribution of the sector, several measures are
and private sector.
the event to provide their feedback suggested. Firstly, it is recommended to lower the sector’s financing threshold
regarding the progress of the initiatives by consolidating the existing development funds and taking into account
and projects. the potential new projects’ contribution to the sector’s strategic direction
248 249
when they apply for loans. Secondly, it is imperative that competitive and
high quality local products and services are sourced with priority, to expand
the local supply chain. Lastly, the strengthening of the manufacturing
innovation ecosystem, including stronger links with research and academic
institutions could be considered.

The sector has initially leveraged the existing natural resources in Oman,
resulting, for example, in a significant percentage of the sector’s GDP
Introduction: contribution stemming from petrochemical projects. Research on
The annual Independent Advisory Review (IAR) conducted this year reviewed and new technologies, like innovative advanced material (e.g. based on
challenged nine different sectors on their progress, achievements and obstacles. nanotechnology), and productizing them could help achieving continuous
The sessions saw government representatives from the sectors brainstorm diversification. Also, increased collaboration with international institutions
with a panel of local and foreign distinguished experts. Their key objective could be beneficial to realize this.
was to find the best practices and recommendations to accelerate efforts in
economic diversification. Enhancements were made to the IAR methodology Overall, the Manufacturing sector is well positioned to grow its material
this year which brought about improvements in the outcomes of the sessions. The impact on Oman’s long term strategic objectives, in terms of GDP
sessions were highly effective with plenty of ideas exchanged regarding areas contribution, foreign direct investment and local employment.
of improvements and potential new initiatives to bring the Sultanate into the
new decade. Through open healthy discussions and innovative problem solving
techniques, participants were able to bring back with them long and short term
action plans which will contribute to the nation’s future.
 Tourism
Another key factor to look into would be the privatisation of the existing sea
Tourism sector has improved throughout 2019 by strengthening its regulation ports and airports. This strategy has been tried and tested across the world
framework to drive professionalization, and selecting positive investment in and has brought about success, by reducing the burden on government
projects such as the Alila project. However, the sector needs to improve its expenditure and at the same time enabling the ports to function as a full
data, research and insights management and create digital capabilities commercial entity. This ensures that there are stakeholders to the port to
including all stakeholders. ensure its commercial independence and its own sustainability.

The sector should have a driven approach to develop tourism products

and assist SMEs which are a huge potential and have an impact on the
economy. Also, the current initiatives are important but there is no clear
distinction between major and minor initiatives based on their impact on
the economy.
Labour Market & Employment
Moreover, Oman’s tourism sector should have the ability to further develop
authentic, experiential and sustainable tourism products as the country
enjoys rich nature and culture. The sector is currently focusing on these The Labour Market & Employment initiatives sound impressive but their
areas, however, it will take time to increasingly capitalize on them which is impact is hard to evaluate. Therefore, more efforts need to be carried out on
expected and reasonable. a) labour cost and mobility gaps between nationals and foreigners, which
currently make foreigners more attractive as employees, and b) a clearer
Looking into global trends and the regional geopolitical status, the sector is signal needs to be provided that there are no more implicit government
250 251
heading to the correct direction, but better data driven insights can clarify employment guarantees, while government employment conditions need
the direction and make policies and regulations more effective. to converge on those in the private sector.

Omani workforce has competitive edges with their deep cultural and local
knowledge and excellent social skills – useful especially in the hospitality
sector, in addition to a huge number of labour that are experienced
with infrastructure and engineering. The sector’s capitalization on these

Logistics competitive edges is good compared to other GCC countries. However,

these can improve further if incentives for national job-seekers and firms are
aligned with private sector needs.
In today’s rapid and ever changing landscape, Oman needs to constantly
stay ahead of the game by embracing technology, which is a very powerful All around the world, governments are characterized by “silo” structures in
enabler. Technology today is known to drive any logistical operation which individual government agencies pursue their own strategies without
towards higher productivity and efficiency, which could be the main key coordinating with other agencies and without facing critical trade-offs
selling point for attracting more businesses into the country. There are and synergies between policies. The inter-departmental process in general
many success stories around the globe that embraced technology, which is essential for overcoming these challenges – especially for an essentially
could be beneficial case studies for the Sultanate. This should be taken cross-cutting policy area like labour regulation and job creation.
into consideration where the country would then be able to learn from the
experience of other nations to the most minute and finest detail. Technology During the session, the discussion was open and collaborative with the
offerings may come at a price, but based on the panel of experts, price participation of private sector stakeholders who contributed their practical
war may not be the ultimate factor to the viability of a port. Other factors insights on the feasibility of various policy related ideas. Despite very
like port turn-around time, efficiency of port clearance and type of service different starting points, participants came to a general agreement on new
offerings play a huge deciding factor for any logistics hub. These factors directions of labour policy that should be further investigated in the near
would be able to help the Sultanate to propel forward from a small regional future.
hub to a mega regional player in the future.
 Fisheries

It was noted that bureaucracy has been a major impeding factor for most
local and foreign investors participating in this lucrative industry. Such lack
of participation from investors in fisheries projects limits the growth that this
industry deserves. Oman still heavily depends on artisanal fishing which limits
Business Environment the catch, though a good measurement of catch should not be based
on its tonnage but on the type and quality of the catch. Obtaining quality
catch would then increase its value, enabling better economic contribution.
The Business Environment (BE) team has done very well in facilitating and Therefore, more efforts would be needed in identifying catch and pre &
integrating a huge number of services from various government entities, post fishing activities.
which is a painstaking task. The key to effective and efficient integrated
online services is business process re-engineering, to eliminate bottlenecks Moreover, most leading countries in aquaculture production have an initial
and streamline the internal process. While more services are being integrated policy of subsidising the private sector with up to 50% of investment cost.
to facilitate and empower the business environment in the country, efforts Hence, it is highly recommended that Oman’s government adopts this best
should also be taken to encourage government stakeholders to adopt a practice which has been proven to spur and promote the industry.
pro-business strategy in order to attract more Foreign Direct Investment (FDI)
and encourage more locals to become successful entrepreneurs through
knowledge acquisition and innovation.

Another key factor which can enhance the business environment is

252 customer-centric services online and at the frontline. Frontline staff at
253
the various government entities need to acquire certain skills in order to Energy
professionally deal with customers. A positive customer experience goes a
long way in promoting Oman as an attractive destination to invest and start
business. The advisors at the Energy sector session acknowledged the synergy of
efforts between ISFU and the sector players, private and public alike. This
The sector should not only focus on BE ranking, but the essential growth was seen a crucial part towards improving the sector and achieving the
of the economy through various indicators such as the GDP, FDIs and potential market liberation, which should take place in any developed
employment trends. There is also a need to review the banking regulations energy market globally. As they recommended, the issue of subsidy has
to provide support for SMEs as they form about 80% of the economy. In to be closely examined and monitored from all angles, i.e. the power
order to effectively diversify the economy, SMEs are the “infantry” which generation, electricity tariff, fuel subsidy, etc., as this would have a great
could play a significant role in boosting the economy. However, SMEs need impact on the bottom line of the country. Another aspect is the importance
sound financial support from the local banks, pro-business approach by of social and public education on the need for power and electricity,
the government, skilled workforce, and local, regional and international where various mediums of communication need to be utilised to ensure the
market connectivity. A vibrant and active SMEs community will bring about maximum outreach for the message.
economic diversification, boost the BE and bring economic prosperity to
the country. Upon liberalisation of the Energy Market, it was recommended that the
government looks into forming a center for energy efficiency which would
then serve as an entity that looks into the standards of service delivery and
standards of equipment that are allowed into the Sultanate, which would
not pose a spike or threats to the power generation capacity. These efforts
will then result in an impact on the demand of energy in the country, which
should potentially lead to a more efficient demand of power and cause a
more sustainable and manageable power demand growth, rather than an
exponential demand as society grows.
 Overall, Oman is well positioned to play a leading role in ICT in the region,
leveraging its geopolitical position. In particular, the Cybersecurity and Industry
Mining 4.0 domains could serve as steppingstones towards building a truly competitive
ICT sector, providing challenging and highly skilled job opportunities for the
The Mining sector was identified by the panel of experts as a sector that current and next generation of the workforce.
requires a lot of efforts to attain sectorial maturity both tangibly and non-
tangibly. Currently, major companies in Oman are highly dependent on The accelerated building of a strong and globally recognized ICT eco-system,
upstream activities with negligible downstream activities, which can encompassing industry, local ICT companies, academia and R&D institutions,
potentially vastly contribute to In Country Value. This needs to be deeply investors and startups should be considered as a priority, as it will function as
explored, since new advancements of technology in mining and refining a catalyst for achieving the sector’s strategic vision. Targeted international
raw produce has enabled far lower impacts to the natural environment. This collaboration could also be considered as a means of acceleration of the
can be championed by the formation of a center for innovation which can program.
study the downstream activities and bring them to fruition in the country.
However, the role of this center should not be limited to this activity. Considering the breath and pace of technology change, it is imperative
that educational curricula are regularly reviewed and updated to ensure a
The center can be empowered with the topography and geological study seamless supply and demand for the sector’s crucial technology skills and
of the available land resources. Though a huge funding is required for this, that top talent is directed towards the sector. In addition, softer skills like
it will then become an asset to the country in further attracting FDI, which entrepreneurship, design thinking and agile methods should be addressed.
currently lacks proper business proposals and case study. This, along with
the absence of clear process and regulations, has created a high barrier Given the above, the ICT sector is poised to make a significant and sustainable
and risk of entry for potential investors, local and foreign alike. contribution to Oman’s long term strategic objectives, in terms of both GDP
contribution and local employment.
Besides the economic and financial implications, another consideration to
254 look into would be the local community engagement and its social impact, 255
which needs to be mitigated across all levels. This is key as the locals would
then be enabling this industry by being land asset investors, skilled workforce Conclusion
and partners. This will help achieving social acceptance and minimize the
potential disputes and disruption in investments and operations in the future. During the IAR sessions, the advisors presented a set of recommendations that
aimed at providing independent validation of the sectors› achievements,
offer outside-in perspectives, learn from others’ (local and international)
experiences, and find creative and practical solutions for the issues and
challenges faced by the sectors. Additionally, the advisors discussed ways to
improve the sectors’ performance and effectiveness in delivering the main
mission of ISFU, which is economic diversification. Another recommendation is
Information & Communication Technology that all sectors need to work on aligning their projects together and enhancing
the regulations and policies, which will lead to attracting foreign and local
investments, hence, fulfil the mission.
The Information and Communication Technology (ICT) sector has made
significant progress towards its stated multi-year targets over the review This year’s sessions were interactive and attempted to solve the problems
period. It is underpinned by a balanced collection of domains, addressing these sectors are facing and building up a set of solutions and initiatives that
disruptive digital technologies, key deployment verticals, development and can help on resolving the problems. The overall outcome of this IAR was a set
commercialization practices, capability development and a set of enabling of initiatives per sector that were categorized into three parts: 1. Solutions that
initiatives ranging from demand stimulation to a supporting legislative are known to the stakeholders and considered to be ongoing, 2. Solutions
environment. that are considered as quick wins, and 3. Solutions that require more work and
further analysis to land on a concrete way forward. Many of these solutions
Key achievements exceeding expectations include the digital transformation are being treated as initiatives on their own because of their impact on the
of public services, with an increasing number of services provided online, sector and the need to have them followed up rigorously. Subsequently, a
the SAS Entrepreneurship program, the progress of Open Source Initiative plan will be in place to implement each solution/initiative according to each
and the modernization of the country’s communications infrastructure. sector’s requirements.
 Agreed-Upon
Procedures
Party
In dependent Third
Verification by it “IS FU ” endeavours to
report the
llow Up Un ation
Support and Fo onomic Diversific
Implementation l Prog ra m m e for Enhancing Ec al re port
the Nationa ts. The annu
performance of es s en vir onment projec
ects alongside
bu sin Indicators PIs)
(K
(Tanfeedh) proj in cl ud es Ke y Performance
part of ISFU as
it by the public
is an important hi gh lig ht s th e efforts taken
s, whi ch d business
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and private or ef fo rts ta ke n by ISFU to follo an d
also includes ith publ ic
environment. It la bs (e xt en siv e discussions w
w
ojects and ne
programmes’ pr
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tra ns pa rency and acco
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ISFU reinforces re po rt. Th e an nual report lists
rough this annu
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are revealed th re d to th e ac tual achievemen
compa putting
ide the targets nsparently by
initiatives alongs th es e ac hievements tra tion
ived to re po rt ction, com ta pu
256 KPI. ISFU has str an d en su rin g that the colle 257
and diligence
extensive time curate.
of data were ac ction
and tabulation ds of data colle
an d ac cu ra cy in the metho lo itt e&
re consistency ISFU has appoin
ted De
In order to ensu nu al re po rt,
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and calculatio as an in de pe ndent third pa
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ocedures (A 0” (“ISRS 44 00
Agreed Upon Pr s on Re la te d Services “440 ts,
ional Standa rd ines, documen
with the Internat lid at ed ba se d on the guidel ne rs.
ements were va respective initia
tive ow
reported achiev id ed by ISFU and the
format io n pr ov
records, and in

rt highlighted a
Overview by ISFU of th is ex erci se , Deloitte’s repo
are detailed
ducted Over the course samples, which
n Procedures (AUP) being con ptions on th e se le ct ed
2019 saw the third Agreed Upo pursuit of number of exce entified opportu
nities to
and milestones as part of the lo itte has also id ISFU,
for a sampled size of the KPIs in the “App en di x” . De
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uracy of ISFU’s reporting to the
public.
s an d the quality of th
credibility, transparency and acc improve the pr
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va nt sta ke holders will be
This exercise is part of ISFU’s ann Del oitte together with
the re le
ovements.
compared to the previou s yea rs.
re alise these impr
difference of improvements as lier tha n prescriptiv e ac tio ns to
l verification three months ear
was engaged to do the externa and
outcome clarity in any findings
previous years, allowing better
shortcomings.
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various teams were internally
To facilitate the changes, the t about
mless transition. This has brough
to ensure a smooth and sea mo re precise
of per formance and a
a substantial improvement tors in the
ment of the economic sec
representation of the achieve
diversification process.
 Appendix: A comparison between the achievement percentages
measured by ISFU and achievement percentages after Deloitte validation

Manufacturing Labour Market & Employment

100% 100%

100%
100%

100%
100%
100%
100%
100%
90% 90%
95%

90%
90%

85%
85%
80% 80%

Achievement %
80%

78.8%
Achievement %

70% 70%

69%
68%
60% 60%

62%
62%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
15 7 5 16 23 8.2 1.1 1.3 9.2

KPI number as per the annual report KPI number as per the annual report

258 % Achievement measured by ISFU % Achievement validated by Deloitte % Achievement measured by ISFU % Achievement validated by Deloitte 259

Tourism Logistics

100%
100%
100%
100%

100%
100%

100%
100%

100%
100%

100%

100%
100%
90%
90%

90%

90%
90%
80%
80%
Achievement %

83%

83%
83%
Achievement %

80%
80%

80%
80%
70%
70%

70%

75%
60%
60%
60%

60%

60%

60%

60%
60%
50%
50%
50%

50%
50%

55%
40%
45%

40%
30%

40%
30%

30%

30%

30%
20%
20%
10%

18%
10%

10%
0%

0%

0%
0%
2.2 7.7 11.1 5.4 13.3 8.1 1.1 5.3
16.2 14.2 18.1 21.1 15.1 16.1 5.1 19.1 11.3 7.3 16.4 4.2 12.1
KPI number as per the annual report KPI number as per the annual report

% Achievement measured by ISFU % Achievement validated by Deloitte % Achievement measured by ISFU % Achievement validated by Deloitte

Note: The number of KPI is stated as per this annual report. Note: The number of KPI is stated as per this annual report.
Refer to the section of each sector to learn the names of KPIs. Refer to the section of each sector to learn the names of KPIs.
 Business Environment Energy

100% 120%

100%
100%

100%
100%

100%

120%
120%
90%
80% 100%

81%
Achievement %

100%
100%

100%
100%

100%
100%

100%
100%
80%
80%

80%

Achievement %
70%
80%

85%
60%

60%
60%
55%
50% 60%

70%
70%
40%

45%
45%

55%
30% 40%

33%
20%

22%
20%
10%

20%
20%
0%
0%
12.1 18.2 11.3 10.1 11.1 9.2 5.1 11.4 11.1 3.1 6.3 5.1 9.2 10.1 8.2 11.2
KPI number as per the annual report
KPI number as per the annual report

% Achievement measured by ISFU % Achievement validated by Deloitte % Achievement measured by ISFU % Achievement validated by Deloitte
260 261

Fisheries Mining

100% 100%

100%
100%

100%
100%

100%
100%
100%
100%

90% 90%
95%
95%

80% 80%
Achievement %

80%
80%

Achievement %
70%

74%
74%
70%
70%
70%

60% 60%

60%
60%
50% 50%

40% 40%

30% 30%

20% 20%
25%
25%

10% 10%

0% 0%
1.2.1 1.1.1 3.1.2 4.1.1 2.3.2 8.1 13.2 16.1 5.1 16.2

KPI number as per the annual report KPI number as per the annual report

% Achievement measured by ISFU % Achievement validated by Deloitte % Achievement measured by ISFU % Achievement validated by Deloitte

Note: The number of KPI is stated as per this annual report. Note: The number of KPI is stated as per this annual report.
Refer to the section of each sector to learn the names of KPIs. Refer to the section of each sector to learn the names of KPIs.
 @isfuoman ISFU Oman

Designed by: Nabila Mohammed Al-Habsi