Concluding remarks by the Chairperson

Oman's third Trade Policy Review has provided us a good opportunity to examine its economic, trade, and investment developments since the previous Review. We have also learnt about the unique challenges caused by the COVID-19 pandemic that has impacted trade and the global economy.

I would like to thank the delegation from Muscat, headed by H.E. Mr. Qais bin Mohammed al Yousef, Minister of Commerce, Industry & Investment Promotion, for his remarks and participation from capital.

My appreciation also goes to our discussant, H.E. Ambassador Mujtaba Piracha of Pakistan for his thoughtful comments and remarks. I thank the 26 delegations that took the floor during these two days and those that participated through the advance question and answer process.

Members commended Oman on its generally overall open trade and investment regime. They observed that Oman had generally low tariffs and few non-tariff barriers to trade. As member of the GCC Customs Union, Oman applies a common external tariff, and common legislation on customs procedures, valuation, and contingency measures.

Members recognized the double challenge arising from low oil prices and the COVID-19 pandemic that Oman faced during the review period. Members were generally pleased with the policy measures taken by Oman to mitigate the impact of the pandemic, particularly on the most vulnerable in the society. Members were also pleased to know that the economy had begun to recover in 2021. In the context of the COVID-19 pandemic, many Members were interested in learning more about Oman's recently adopted practice of approving so-called “direct” imports from certain countries, versus imports that arrive in Oman with an intermediate stop, to speed up the clearance process and reduce costs.

Members recalled that diversification away from hydrocarbons had remained a top priority for Oman and encouraged it to continue this policy in the future. Members wished to know more about Oman's efforts of diversification and digital transformation. In this context, many Members welcomed the launch of “Vision 2040” and the long-term goals included in the 10th Five-Year Plan. They strongly believe that the twelve national priorities and their performance indicators would help Oman achieve a more diversified and sustainable economy in the long run, and could help Oman achieve developed country status by 2040. With regard to Oman's diversification plans, many Members underlined the need for a further reduction of state ownership though privatization.

Members commended Oman for its strong commitment to the multilateral trading system and its active WTO participation, including for its engagement in the negotiations on fisheries subsidies and its track record in submitting notifications. They congratulated Oman for ratifying the Trade Facilitation Agreement, and for having officially implemented 100% of its commitments under the Agreement since 2020. At the same time, several Members encouraged Oman to join Joint Statement Initiatives, notably on e-commerce and domestic services regulation, and to become party to the Government Procurement Agreement (GPA). Many Members also recognized Oman's participation in regional integration, such as the Gulf Co‑operation Council and the Pan-Arab-Free Trade Area.

Foreign investment had featured prominently in many interventions and in the advance written questions. Members congratulated Oman for its improvements towards a stable investment environment. In particular, they applauded Oman for the adoption of the Commercial Companies Law and the new Foreign Capital Investment Law adopted in 2020, and specifically for the abolition of foreign ownership limits.

They noted that reforms related to foreign capital investment, privatization, public-private partnerships, and bankruptcy, had improved the business environment and led to higher inflows of foreign investment. However, remaining investment regulations on inspection and monitoring procedures, as well as the prohibition of land ownership by foreigners were seen as potential obstacles to a higher inflow of FDI.

On sectoral policies, some Members wished to learn more about incentives for the agricultural sector, and how challenges such as declining soil quality as well as scarcity and salinization of irrigation water could be overcome. With regard to the tourism sector, some Members mentioned that this sector could be key to the diversification program and a source of significant employment. However, heavy state involvement and foreign investment restrictions remained in place which inhibit the inflow of foreign investment to this sector. Given Oman's geographic location, the potential of transport and logistics for economic diversification was also highlighted.

Other issues of interest for some Members included: IPR protection, the participation of women in the economy; the design of the excise tax on carbonated beverages; free zones and special economic zones; public procurement procedures; import licensing procedures; standards for imported halal products; applied rates exceeding bound rates on 26 tariff lines; and measures to create jobs for the younger generation.

These were the main areas of discussion at this Review that has allowed us to gain a better understanding of Oman's trade, investment, and related policies. Oman received over 240 advance written questions and it was commended for having replied to most of them prior to this meeting.

In a month's time, Oman is expected to reply to any late submissions and follow-up questions at which time the third Trade Policy Review of Oman will successfully conclude.

May I therefore add my word of congratulations to Oman on the successful conclusion of its third Trade Policy Review and thank all the delegations for their cooperation and assistance.