News

October 20, 2021- MuscatDaily published an article titled “US-Oman Bilateral Trade Surpasses $2bn This Year.” Trade between Oman and the United States grew drastically over the last year. An increase in trade shows an increase in the relationship between the two nations. This is the best time to strengthen the relationship between Oman and the US by establishing an Omani commercial presence in the US for exporters to navigate the market.  Oman is one of only two GCC countries that has a free trade agreement with the United States.

Bilateral trade between Oman and the United States has seen significant growth since the end of 2020, according to the figures released by the US Census Bureau.

Total trade between the US and Oman reached over US$2bn as of the end of August 2021, surpassing the total trade recorded for the full year 2020.

This year Oman is running a trade surplus of US$151mn with the United States, according to the latest figures. In 2020, the top Omani exports to the US were aluminum, plastics, chemicals, other commodities, and goods in transit to Canada.

“In January 2021 alone, the US imported over US$200mn worth of Omani products,” Ali Daud, president and chairman emeritus of the Oman American Business Council (US Chamber of Commerce affiliate in Oman), said in a press statement.

“This is more than twice the average we’ve seen in the past ten years. The trade surplus is a very healthy indication that the world’s largest economy, with which Oman has a unique trade agreement, is buying Omani products,” Daud said.

He emphasized that the time is now to strengthen the relationship further by establishing a commercial presence for Oman in the United States. “This will make it easier for Omani exporters to navigate and penetrate the US market. Oman is one of only two GCC countries that have free trade agreements with the US. As a nation, Oman should build on this impressive growth in 2021, and take this success to even greater heights.”

The US Ambassador to Oman H E Leslie M Tsou said that the increased trade is a sign of the overall strength of the US-Oman relationship. “The partnership between our countries is rooted in strong historical ties of friendship, bolstered by a flourishing economic relationship.”

“We see this increase as a sign of Oman’s desirability as a destination for US investment,” she added.

The Oman American Business Center (OABC) was founded in 2003 with a mission to foster the development of commercial activity between Oman and the United States.

As the COVID-19 pandemic continues to impact Oman and the region, The National Detergent Company (NDC), the maker of the best detergent brand Bahar, supported the country and the community by introducing a range of innovative and convenient COVID fighting products.

NDC’s COVID fighting product portfolio includes Farah Hand Sanitizer Pocket Spray, Farah Hand Sanitizer Gel, Bahar Premium Antiseptic Liquid, Bahar Antimicrobial Disinfectant Spray, Bahar Gold Multipurpose Disinfectant and PInex.

Farah Hand Sanitizer Pocket Spray, a next-generation hand sanitizer that provides enhanced germ-killing power while being skin-friendly, can be carried in your pocket and offers protection and safety on the go. Farah Hand Sanitizer Gel range – 20ml, 80ml, 270ml, 500ml, 5Ltr, was approved by Oman’s Ministry of Health in the initial stages of COVID -19.

Today, a much sought-after product among consumers in the Sultanate, Farah hand sanitizer contains 70% ethyl alcohol and can kill 99.99% of harmful germs. The hand sanitizer is ideal for corporates, institutions, hospitals, individuals, families and frontline healthcare workers.

NDC’s Bahar Premium antiseptic disinfectant, which provides all-round family protection against germs, has also received the approval from Oman’s Ministry of Health. The disinfectant liquid which is ideal for personal and household cleaning purposes kills 99.99% of germs.

NDC’s other wellness and hygiene products in the laundry, personal and home care segments include Bahar Powder detergent, Bahar Liquid Detergent, Bahar Premium Dishwashing Liquid, Bahar Clean, D’zire antibacterial soap and Farah anti-bacterial hand wash liquid.

The US Department of State Investment Climate Report on the sultanate released last week applauds Oman for continuing to improve regulatory frameworks to establish an economic climate conducive to foreign investment.

The report highlights Oman’s smooth transition of power in January, which reassured investors of the country’s political stability, and the country’s focus on ports, free trade zones, and logistic hubs as promising developments.

The US Department of State released the 2020 Investment Climate Statements on 165 foreign markets on September 9.

‘Oman is taking steps towards making the country a more attractive destination for foreign investment. However, to improve the country’s overall investment climate substantially, the government will need to lessen its dependency on oil, and open up key sectors to private sector competition and foreign investment. These measures have a renewed sense of urgency in the wake of the dual crises of the oil price collapse and the COVID-19 pandemic,’ stated the report.

Oman touts its geographic advantages and interest in attracting foreign direct investment (FDI) in key sectors. It is located just outside the Arabian Gulf and Strait of Hormuz, with proximity to shipping lanes carrying a significant share of the world’s maritime commercial traffic and access to larger regional markets. ‘Oman’s most promising development projects and investment opportunities involve its ports and free zones, most notably in Duqm, where the government envisions a 2,000sq km free trade zone and logistics hub at the crossroads of East Africa and South Asia.’

The report added that Oman promulgated five new laws in 2019 to promote investment – the Public-Private Partnership Law; the Foreign Capital Investment Law (FCIL); the Privatisation Law; the Bankruptcy Law; and the Commercial Companies Law.

‘Oman’s long awaited FCIL holds particular promise for removing minimum share capital requirements and limits on the amount of foreign ownership of an Omani company.’

‘His Majesty Sultan Haitham bin Tarik’s smooth accession following the passing of the late H M Sultan Qaboos bin Said in January 2020 showed Oman’s political stability, reassuring many investors,’ the report said.

Retrieved from: https://muscatdaily.com/Oman/388006/US-applauds-investment-climate,-stability-in-Oman-

Retrieved from: https://muscatdaily.com/Oman/387868/His-Majesty%E2%80%99s-promotion-of-economic-freedom-praised-

The Heritage Foundation, a US-based research organisation formulating public policies, has praised the efforts of His Majesty Sultan Haitham bin Tarik in promoting economic freedom for the sultanate, modernising the economy and strengthening relations with the United States.

In a report published in The Daily Signal, an American political media news website, Anthony B Kim, research manager and editor of the Index of Economic Freedom, at The Heritage Foundation, said that Washington currently has a unique opportunity to build on the existing good relations with the sultanate and reaffirm it as a reliable partner in dealing with the many challenges facing the Middle East.

About the economy, the report stated that it is notable that Oman is the sixth-freest economy in the Middle East and North Africa region, according to the Heritage Foundation’s latest edition of the annual Index of Economic Freedom.

The country’s overall economic freedom score has increased by 2.6 points from last year, with significant improvements in all areas related to the rule of law.

‘As a moderately free economy, Oman’s economy has been undergoing modernisation and liberalisation, albeit gradually,’ it added.

‘Recognising the importance of developing a dynamic entrepreneurial environment, the government has acted to diversify economic activity and stimulate broader-based development. An effort is underway to develop a new bankruptcy and insolvency law, which would help to improve the country’s business environment and increase foreign direct investment inflows.’

Kim further said that such improvements in economic freedom would aid the government’s efforts to develop the economy beyond the oil sector more rapidly, positioning Oman as an even more valuable trading partner for the United States and others, and increasing the country’s standing and influence in the region.

‘Washington’s renewed good relations with Muscat will benefit not only the US, but other partners in the region as well, as the two longtime partners move forward together,’ he wrote.

The US is one of Oman’s largest trading partners, exporting about US$2bn in goods to Oman and importing around US$1bn in goods from the sultanate.

The first contact between the US and Oman was in 1790, and the relationship became formalised in 1833 with a Treaty of Amity and Commerce, the first bilateral trade deal between the US and an Arab Gulf state. In 1840, Oman sent the first accredited diplomat from the Arab world to the US.

‘Continuing that unique, long-established relationship with America, Oman has been a more strategic partner of the United States since 1980, when it became the first Gulf state to sign a formal accord permitting the US military to use its facilities.’

The US-Oman free trade agreement – the sultanate’s only bilateral trade agreement – was signed in 2006, and since then, it has led to increased partnerships between Omani and US companies in a broad range of industries, not limited to energy.

An interview with Peter Price, Vice President of Oman Operations at Hill International

1. Can you please tell us more about Hill International?

Hill International (Hill) is an international construction consulting firm that provides program and project management, construction management, and risk management to clients involved in major construction projects worldwide. Hill is also recognized as a global leader in fully integrated facilities management (FM) services for over a decade. Hill has participated in over 10,000 project assignments with a total construction value of more than $500 billion. Hill is ranked as the 8th largest construction management firm in the United States according to Engineering News-Record magazine.

2. What sorts of changes did Hill make early on in the pandemic, both on a global level for all offices, and here in Oman?

Our company responded and adapted well at the early onset of Covid-19 by informing our staff, globally and locally about how the virus spreads and ways to keep safe and work in a clean, socially distanced environment. We took protection measures such as providing our staff with the necessary PPE like masks and sanitizers, as well as checking temperatures of employees and encouraging our staff to continue practicing good personal hygiene. We made sure to speak to all our clients to coordinate and align our new hygiene methods amongst all sites to try and limit the possibilities of our staff getting infected. A fruitful result of our proactivity is that we recorded 0 infected cases in Oman. We asked our staff who didn’t feel well not to come to work and we paid for them to get the PCR test.

Hill International also followed the recommendations that were regularly sent from our global COVID-19 advisory & action committee, which has been diligent in researching all the up-to-date related information and sending it across the company. Due to our actions, we managed to take preventative measures to ensure the well being of our staff and clients without needing to shut down for a long period or take time off of work.

3. What has the day-to-day work been like in the past few months and how does it compare to the work before COVID19?

In line with government regulations, our offices were closed for a short period of time and the head office staff were asked to work from home. Despite this adjustment our project teams maintained operations on sites, while maintaining social distancing, with the required permits from the local authorities. Although health and safety regulations were held to a high standard prior to COVID-19, they were heightened as a result of the pandemic to ensure the safety of all our employees. Everyone had to put on masks, check their temperature before coming into the workplace, sanitizers became ubiquitous and setting up socially distanced offices has shaped the dynamic of our day-to-day work. Adhering to social distancing regulations and limiting groups of people meant that we had to cancel all our events and conferences until the situation improved and it is safe to do so.

4. What is the biggest challenge you are facing during this Pandemic?

The biggest challenge was to keep our people safe during these unprecedented times, and raise awareness and knowledge about COVID-19. We made sure to apply more hygiene rules in all of our labor camps and provide our workers with safety equipment.  Another challenge we faced was the disruption that occurred in the global supply chain as travel regulations were limited, affecting distribution across countries as well as locally.

5. What do you feel is the biggest strength of your company right now?

Our greatest strength is our ability to adapt to change, as we managed to support our clients throughout this process and meet their needs despite these unprecedented times.

6. Anything else you’d like to add?

Hill International is constantly evolving and changing for the better. Even during Covid-19, our company is flourishing and striving to be bigger and better in this industry. We are continuing to stay positive and be patient during this time as we know that it is vital for the safety of all humanity.Hill International has taken many measures to ensure the safety of all of its employees and has been successful so far in all of its endeavours, and we look forward to working with other members of the OABC and in the greater business community.