PKF International

Economy and Business

Oman is an oil and gas based economy with oil and gas sector accounting for about 75% of government revenues and contributing about 50% to the Gross Domestic Product (GDP). Although the non-oil sectors contribution to GDP has been steadily increasing over the years, Oman's dependence on oil is likely to continue in the years to come. The government strategy for economic development is based on a series of five year development plans, and has the primary goal of a balanced government budget, encouragement of the private sector, Omanisation and diversifying the economic base of the country.

 

The monetary unit of Oman is Omani Rial (R.O.). The Rial is divided into 1000 equal units called Baizas. The Rial is tied to US Dollar, at the rate of Baizas 385.5 to US $ 1. There are no exchange controls in any form on inward / outward investment or on repatriation of capital and profits, either by nationals or expatriates.

 

The Capital Market Authority (CMA) regulates the securities market in Oman. The Capital Market Authority Law governs all the listed companies in Oman. Muscat Securities Market is the stock exchange of Oman. Membership in the exchange is compulsory for Omani licensed banks, public joint stock companies, and specialised loans institutions whose shares are listed in the securities market.