Role of Foreign Direct Investment in Oman- A Study

Role of Foreign Direct investment
in Oman- A Study

TABLE OF CONTENTS
Executive summary
1
Keywords 2
Introduction
3
Review of Literature
3
Research Methodology
8
Data Analysis
10
Recommendations
15
Conclusion
15
References
16

EXECUTIVE SUMMARY
Foreign direct investment (FDI) is when a company takes controlling ownership in a business
entity in another country. With FDI, foreign companies are directly involved with day-to-day
operations in the other country. This means they aren’t just bringing money with them, but
also knowledge, skills and technology. Generally, FDI takes place when an investor
establishes foreign business operations or acquires foreign business assets, including
establishing ownership or controlling interest in a foreign company.
Foreign Direct Investments are commonly made in open economies that have skilled
workforce and growth prospect. FDIs not only bring money with them but also skills,
technology and knowledge. It plays an important role in the growth and development of a
Nation. FDI is used when the domestically available capital is not sufficient for the purpose
of the overall development of the economy. Furthermore, investment in the Infrastructure,
Energy, Healthcare, Industrial Parks, IT, Leather, Manufacturing, Mining & Exploration of
metals & non-metal ores, Other Financial Services, Automobiles and Consumer durables are
considered as the crucial drivers of the economic growth as it supports in creating
employment which is an important part of the economic growth and development. The study
is an attempt to examine the role of FDI in Oman.
FDI inflows can boost the growth of an economy particularly in emerging economies like
Oman. In addition, it also explores the impact of increasing FDI and its contribution to
economic growth of the country. On the basis of the findings, the decision would be taken as
how these facts can further strengthen to boost the economic growth for overall development.
Key Words
Foreign Direct Investment (FDI): Foreign direct investment (FDI) is when a company takes
controlling ownership in a business entity in another country. With FDI, foreign companies
are directly involved with day-to-day operations in the other country. This means they aren’t
just bringing money with them, but also knowledge, skills and technology.
Motives for FDI: The main aim to go ahead with FDI is making an investment in the foreign
country to seek opportunities in new markets for overall growth and development. In simple
terms, grabbing the new opportunities available in the new foreign market, acquiring benefits