Oman

Necessity of diversity of national income resources

Amman Stock Exchange closed in January with a decline for the fourth session in a row amid declining liquidity, and the main stock index dropped by 0.17% (3.73 points) to close at 2193 points. Besides, the trade value continued to decline to 9.8 million dinars compared to 12.3 million dinars with trades amounted to 12.2 million shares versus 14.2 million shares in the previous session. As expected, the general index will face selling pressure to close the bank overdraft. There is optimism that the market will witness further ups, since stock exchange has been witnessing the biggest reform process since last September after the index lost nearly 74 points during trading in late January.The volume of public spending approved by the general budget for the fiscal year 2014 is around 13.5 billion Omani riyals (35 billion USD), with an increase of 5 % compared to the spending authorized in the budget last year, which recorded 11.20 billion riyals. At that time, revenues amounted to 11.74 billion riyals, indicating a 544 million riyals budget surplus in 2013, which is far less than the surplus in the same period in 2012 that amounted to 2.81 billion riyals. The budget deficit is expected to reach about 1.8 billion riyals (on basis of $ 85 per oil barrel), knowing that the Sultanate produces about 950 thousand barrels per day.Latest studies and reports confirmed that the Sultanate of Oman succeeded in attracting investment projects from the Gulf and foreign countries worth $10 billion, in a bid to strengthen and encourage investments in the country through the enactment of laws that facilitate the work of local and foreign partnerships in all sectors. The Public Authority for Investment Promotion and Export Development also signed a memorandum of understanding with the Industrial Innovation Center for mutual cooperation, support of Oman industries, and development of management techniques so as to ensure improved competitive capacity, locally and globally. Lately, in light of boosting Oman’s economy, it has been announced that a «College of Generations » will be established in the state of «Bahla», specialized in rehabilitating young people in the fields of traditional crafts and handicrafts. In addition to «Al Rafd Fund» that supports young people and enables them to develop their small and medium businesses. The fund has started with 70 million, supported later by an amount of 7 million riyals that will be added to the capital every year. A Public Authority for the Development of Small and Medium Enterprises was also established.