Formally known as the Sultanate of Oman, Oman has stood out to be one of the most secure and well established countries in the area. Known for its visionary governance, the country has maintained a realistic and commendable growth for more than 40 years. Last five decades of Oman has witnessed Oil & Gas as being the main driving force behind its growing economy and it continues to do so in the future. It has been listed by the United Nations Development Programme (UNDP) as the most developed and advanced nation in the last 40 years as compared to the 135 countries world wide
Opportunities in Oman:
As opposed to the world-wide economic state of affairs, Government of Oman is completely dedicated towards public spending and all its premeditated projects are going ahead as planned. Several large scale developmental and infrastructure projects are already headed midway for construction. These projects comprise of building modern and brand new roads, special economic and industrial areas, airports and ports. Plenty of thriving business opportunities are anticipated in the coming five year cycle, starting from the year of 2011.
Tendering Guidelines for Foreign Companies in Oman:
The tendering & procurement opportunities in Oman are pretty good. International companies seeking to tender in Oman need to study and understand a number of important guidelines and legal procedures. Approvals which are mandatory such as government policies, insinuations of law & policy changes and guidelines for procurement.
The following below are few of the topics influencing tendering in Oman.
1. The Tender Board: As stipulated in Article 3 of the Tender Law, which states that agreements or contracts for technical works, consultancy studies, procurement & lease of real estate and supply or implementation of offers of services, transport or works will be through public tenders.
2. Specific kinds of contracts like defence and security do not go through the Tender Board, but are carried out via other ministries
3. Registration: A foreign company before submitting a bid to the Tender Board, has to get itself registered with the Tender Board. Standards for registration will depend mainly on whether the project is for training, consultancy, supply or construction.
4. Laws which are relevant: Companies also need to be mindful of other important laws along with the Tender Law; such as Foreign Capital Investment Law and Law of Engineering Consultancy Offices.
5. Standard Government Contract: Companies need to know that the agreement submitted with the government is Omani Standard Forms and Conditions; that has been founded on the FIDIC standard form.
6. International Agreements: Both the GCC-Singapore FTA and the U.S.-Oman FTA consists of a devoted section on government procurement.
7. Oil and Gas Projects: Companies who want to bid for oil and gas projects need supplementary provisions.
8. Local Representation: It is not mandatory for international companies to have a local presence in the country during the time of bid submission. While Article 23 of Tender Law states that foreign companies need to create a local entity within 30 days of winning the tender. Few pseudo governmental units need these global companies to submit their tenders via a native Omani agent; but there is no such condition with the Tender Board.
Oman as a Holiday Destination:
With the tourism industry at its peak, Oman has plenty of reasons for celebration. The histrionic natural scenery, state-of-the-art conference facilities, highly competent road and air networks, its rapidly increasing portfolio of hotels and hotel apartments all point towards Oman as the new holiday destination. With a hot climate, Oman has very less rainfall; which is characteristic of countries in the Middle East. The country is known for its many well-liked tourist spots such as beaches, mountains, wadis and deserts.
Economy of Oman as a whole provides ample business opportunities and the support offered by the Ministry of Tourism has brought about internationally well-known companies to embrace the Sultanate as a prime location for banqueting and conference events.