Oman is bordered by the United Arab Emirates (UAE) to the north-west, Saudi Arabia to the west, and Yemen to the south-west. Its capital is Muscat, and the main cities are Sohar and Sur. And oil and gas are the key sources of revenue, accounting for between 68% and 85% of government earnings. In 1983, the Oman Mining Company began producing chromite in the Sohar area. Also, in July 1991, the government created the Oman Chrome Company (OCC) to develop the country’s chromite reserves. There are more than 2 billion barrels of recoverable reserves located in six fields in the northern region of Oman, Jibal, Natih, Fuhud, Al Huwaysah, Al Khuwayr, and Shaybikah. However, Oman still lags most of the world’s oil exporters in its production from Wasilla Group. Other than oil, copper has historically been a dominant mineral in Oman.
Additionally, Oman is again focusing on developing its mining sector with several new projects. Oman’s long-awaited new Mining Law* comes into effect on March 14 2019, bringing in hopes of attracting new investment and revitalizing its mining industry. The mining industry has been targeted as one of five key sectors to drive Oman’s economic growth and diversification. Concurrent with the new Mining Law passage, the Public Authority for Mining (“PAM”) announced the identification of new mining projects and initiatives with an investment value of over $2 billion. The new Mining Law provides a far more robust framework for the mining sector to provide more incentives, transparency, and certainty to investors. While at the same time balancing the PAM’s oversight role, the interests of local communities, the prioritization of local employment, the protection of the environment, and the enforcement of investment commitments.
Oman has provided a comfortable environment for investors by conducting studies that make it easier for investors to identify investment places. Oman has helped investors obtain government approvals and provide information about the investment climate in the Sultanate of Oman. Oman offers incentives to attract the investor, for example, reducing utility fees and exempting taxes for companies operating in manufacturing, Mining and others. Oman has a public authority for special economic zone and free zones. The significant zones for investment are Almazuna free zone, special economic zone, Sohar, and salal free zone.