Foreign Direct Investment in Oman: Factors, Challenges, and Incentives

This report provides a comprehensive analysis of Foreign Direct Investment (FDI) in Oman, examining its significance for economic growth, particularly within the context of the Dhofar Governorate. The study delves into the factors influencing FDI, including macroeconomic indicators such as GDP, inflation, and trade dynamics. It explores the need for FDI in Oman to foster economic diversification and stimulate domestic investment, while also highlighting challenges such as Omanisation policies and ownership restrictions. The report further investigates the incentives offered to foreign investors and assesses the investment framework and opportunities available. Data collection methods include analysis of past studies and interviews with officials involved in FDI. The report concludes with key findings, recommendations for improving foreign investment promotion efficiency, and a strategic vision for FDI policy in the region.

Foreign Direct Investment in Oman

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Acknowledgement
Firstly, I would like to convey my thanks to Allah than I want to thank my family
for their support and encouragement throughout my study. I would also like to
express my great appreciation to my supervisor for his academic support, valuable
assistance and patient guidance. Finally, I would pay thanks to my colleagues for
their advice and support during the planning of this research.

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Abstract
This research examined the main factors & challenges that facing foreign direct
investment decision in Oman and why this investment needed, as FDI has become
an important source of private external finance for countries and economy
development. The study depends the fact that a high level of competition that is
present between numbers of developing countries gives raise to authors to search
how foreign direct investment in the country can foster its economic growth. In
this research, the motives, challenges, opportunities, and incentives for FDI offered
by Oman for foreign investors are mainly discussed in a thorough manner
particularly in the context of Dhofar Governorate in Sultanate of Oman. The
researcher has collected data from past studies as well as conducted the interview
with few officials that are linked with FDI in Oman. The research has found that
foreign direct investment is needed in Oman in order to grow its economy and
boost local investment however there are certain challenges that limit investors to
invest in Oman such as Omanisation policy and ownership policies.

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Table of Contents
Acknowledgement...........................................................................................................................2
Abstract............................................................................................................................................3
Chapter one: General Frame............................................................................................................5
1.1.Introduction............................................................................................................................5
1.2.Objectives of the Research.....................................................................................................6
1.3.Research Question.................................................................................................................7
1.4.Research Hypothesis..............................................................................................................7
1.5.Research Structure.................................................................................................................7
2.1.Foreign Direct Investment in Oman....................................................................................10
2.2.Need of Foreign Direct Investment......................................................................................11
2.3.Challenges for Foreign Direct Investment in Oman............................................................13
2.4.Incentive offered for Foreign Investors in Oman................................................................13
2.5.Investment framework and opportunities in Oman.............................................................14
Chapter three :Research Methodology...........................................................................................16
3.1.Research Design...................................................................................................................16
3.2.Data Collection Method.......................................................................................................17
3.3.Sampling Frame...................................................................................................................18
3.4.Data Analysis.......................................................................................................................18

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3.5.Limitations...........................................................................................................................19
3.6.Code of Ethics......................................................................................................................19
Chapter Four: Data Analysis & Discussion...................................................................................21
Chapter Five: Conclusion & Recommendations............................................................................22
Main findings:............................................................................................................................22
Recommendation.......................................................................................................................22
Conclusion.................................................................................................................................23
References......................................................................................................................................24

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Chapter one: General Frame
1.1. Introduction
The economic growth of a country is linked with the developments in productivity
(Tülüce and Doğan, 2014). The factors such as structural changes, growth in
economic efficiency, and exchange activities are responsible to drive the increase
and development in productivity. In order to improve these factors, trade and
innovation play a substantial role, however, there are many counties which have
high chances of economic growth but they have a lack of investment domestically
(Economic Structure and Context: Demographics and Labor Markets, 2011). To
bridge this gap present between the asset needed to stimulate economic growth of
the country, and domestic investments; foreign direct investment (FDI) is needed
(Abdallah, 2015). Therefore, this paper is aimed to highlight the potential of
Foreign Direct Investment (FDI) for the economy of Oman.
The Foreign direct investments in Oman are influences by various factors
which includes the Gross domestic product, inflation rate, import and export from
Oman. It stands at 88th freest economic the world with a high score of government
spending, government integrity, trade freedoms and labor freedom in the nation.
Apart from this there are general indicators of the growth factors of Oman which
includes the inflation of rate of the consumer prices along with import to and

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export from Oman. All of these factors are being analyses in the research project
determine the relation and dependability of FDI on other factors of economic
growth. The economic growth of a nation is depicted through the various factors
mentioned above and Oman being an agricultural nation is on the development
path at present times. The major factors which contribute to the growth of
economy is the Foreign direct investment by the foreign investors in the nation
which effects the inflation, GDP, import and export of the nation. In the present
report all these factors are analyzed with the use of statistical tools.
1.2. Objectives of the Research
The objectives of this research are as follows:
 To define the challenges for FDI in Oman
 To explain the need of FDI in Oman
 To discover the opportunities of FDI in Oman
 To carry out critical exploration for promotion of foreign direct investment
in the Dhofar Governorate of Oman
 To give recommendations on solutions of improving foreign investment
promotion efficiency
1.3. Research Question
The research questions of this study are given below:

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 What are the methodologies to promote foreign direct investment in the
Dhofar Governorate of Sultanate of Oman (being largest of the eleven
Governorates in the Oman with respect to area)?
 What is the efficacy of these methodologies and what can be done in order
to improve these approaches?
 What would be the strategic vision for the succeeding 10 years particularly
for the policy of foreign direct investment (FDI) in Governorate of Dhofar?
1.4. Research Hypothesis
This research’s hypothesis is that:
HI: For the sustainable economic development of Oman, especially its Dhofar
Governorate, raising foreign direct investment is very essential.
H0: For the sustainable economic development of Oman, especially its Dhofar
Governorate, raising foreign direct investment is not essential.
1.5. Research Structure
This research is based on five distinct chapters wherein first chapter provide all the
foundation information related to the topic of this research is presented such as
background information, research question, research objectives and hypothesis. In
the second chapter, the information from various research papers on the topic of
research has been gathered which include thorough analysis of its GDP, inflation

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rate, and import and export structure in order to reflect upon the need of FDI. In
addition to that different themes as per the objective and research question of this
study has also been explored in the literature review chapter. In the third chapter,
methodological aspects of the research are unfolded which highlights the process
and methods incur while completion of this research study. In chapter four, the
analysis of data along with its discussion is given and the entire research study is
concluded in the last chapter of this study.

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Cchapter two: Literature Review
The major objective of Vision 2020 of Oman is to support and encourage foreign
direct investment in order to contribute to the country’s economy. To this end, a
major role of Public Establishment for Industrial Estates (PEIE) is played in order
to encourage the establishment and sustainability of manufacturing areas, business
incubators, and free zones (Pauceanu, 2015). His Majesty Sultan Qaboos has also
highlighted the points that reflect upon the need of foreign direct investment for the
process of sustainable growth of the economy in Oman (Economic Structure and
Context: Demographics and Labor Markets, 2011). In this regard, the government
of Oman have introduced several processes in order to privatize some of the
economic activities while encouraging foreign people to invest in the country so
that nationals of the country can be laboured which ultimately promote economic
growth.
In addition to that, the government of Oman has also put laws and guidelines in
place regarding capital contribution and foreign direct investment to the country
along with the guidelines for FDI in the Dhofar region of the country. According to
the study of Al – Hasan, (2012), the nation has distinctive recognition towards FDI
that allow significant contributions to the growth of industries, resources, and
infrastructure of Dhofar. Thus the policy that is friendly and promising for FDI, is

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most likely to endure for longer terms and holds beneficial impacts on the
economy of the country.
2.1. Foreign Direct Investment in Oman
Based on the world investment report by UNCTAD in the year 2018, it is found
that inflow of foreign direct investment in Oman has reached 1.8 billion USD in
2017. It implies that FDI stock of Oman has been greatly resorted since the time of
crisis in 2010 and remain solid. By the virtue of the development of the Special
Economic Zone Authority of Duqm; investment has been accelerating in various
areas such as in an airport, in tourists’ facilities, in the refinery, or in the
construction of the port. Based on the data of SEZAD, the area of Duqm has alone
attracted approximately 11 billion dollar investment into the country.
On the other hand, the statistics of 2017 given by the National Centre for Statistics
and Information (NCSI), the main investing countries were include UK, UAE,
Qatar, Kuwait, and Bahrain that have directed a bulk of FDI in Oman towards gas
and oil sectors (National Centre for Statistics Information, 2014) whereas, a low
rate of investment in manufacturing, financial services, and real estate services
(Abdallah, 2015). The strategy chosen by Oman in order to attract investors for
FDI is to offer custom duty exemptions and tax incentives. Despite having a stable
macroeconomic and political situation in Oman, one of the major barriers to
foreign investment are pressure on foreign companies from the government to

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employ local personnel and access to the limited number of sectors (Tülüce and
Doğan, 2014). It is also found in the latest Doing Business report of World Bank
that Oman is ranked at 78 which is seven places lower than its rank in last year
(2019 Doing Business report).
2.2. Need of Foreign Direct Investment
It is found in the research studies that Omani Government has been very profound
in encouraging and promoting FDI in the country Almfraji and Almsafir, (2014) as
the figure given below has also reflected. The need of foreign direct investment in
Oman is based on one prominent reason that is to sustain and enhance the growth
of its economy foe the reason of achieving economic diversity. It can be said that
realising economic growth and diversity are main factors that leads towards the
needs of FDI in the country. Businesses that are owned by the foreigners are
usually permissible given that the unanticipated plans of investment make growth
of economy of the country is their main plan. Moreover, according to World Bank,
(2016) there is no restriction in terms of turf on return of investment and currency
exchange accompanied by dividend transfer.
Currently, the government of Oman has the possession of a system of taxation
which is very considerable in the form of corporate tax. In most of the cases, it is
very low without presence of individual incomes tax (Abdallah, 2015). The

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country also have labour laws which are flexible enough in promoting the growth
and productivity.
Figure 1: Foreign Direct Investment
Oman has a very strategic geography that leads its port sector for the need of
Foreign Direct Investment (Al – Hasan, 2012). The main reasons why Omani port
is required FDI so as to create more jobs, transfer technologies, being new
managerial and organisational practices, and boost investment on domestic level
(Economic Structure and Context: Demographics and Labor Markets, 2011). In
this regard, the main factors that attract foreign direct investment to the port sector
of Oman include easy access to skilful labour from bordering states, government
policies, and strategic geography of the country (Pauceanu, 2015).

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2.3. Challenges for Foreign Direct Investment in Oman
Though Foreign Direct Investment is found to be very beneficial for the economic
growth of Oman in terms of employment, fiscal growth, diversity, or boosting
domestic investment; however, there are some of the underlying challenges that are
also discovered in the literature. The very first challenge that foreign investors seek
in order to establish business in Oman is the time that is incurred in setting up the
local business outside of free trade zones (Siroen and Yücer, 2014). On the other
hand fulfilling the requirements of local ownership and acquiring licenses for
operating is also a challenge for foreign investors outside of free trade zones. It
implies that setting a business that is owned completely by a foreigner is not
possible. On the top of that the policy of Omanisation which require companies to
employ nationals of Oman as a condition (Al Shubiri, 2016). These are some of the
barriers that hurdles the foreigner investor to approach for foreign direct
investment in Oman.
2.4. Incentive offered for Foreign Investors in Oman
As mentioned earlier as well that location of Oman is very strategic as it joins the
markets in Asia and Europe. In addition to that ports of Oman are also placed most
strategically in order to offer fast sailing times. Access to GCC regions is also
facilitated by the good road infrastructure and good air connectivity of Oman
(Bätzner, 2015). Foreign investors are also encouraged for FDI in Oman based on

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its low currency risk since the currency of Oman is riyal which is pegged to USD
and there are high levels of foreign exchange by the Central Bank of Oman
(Economic Structure and Context: Demographics and Labor Markets, 2011). In
addition to that there is no personal income tax imposed in Oman and it offers full
return on investments, royalties, and net profits. Since there is a challenge of
Omanisation policy; but there is an advantage that labour force of Oman is
competent and skilled to benefit the business (Abdallah, 2015).
2.5. Investment framework and opportunities in Oman
In terms of freedom of establishment, it is found in the research study of Pauceanu,
(2015), that non-national of Oman is not eligible to own more than 70% of the
company’s share expect for the non-Omanis in US or GCC. Consequently, there is
a condition that locals in Oman must hold at least 30% of the share. FDI by a
foreign investor for the business in Oman can employ expatriates along with
employing local people as well. With respect to the acquisition of holdings, the
share of a foreigner in the company of Oman cannot surpass the total capital of
49%. In addition to that, purchasing of share by a foreigner is only possible in the
stock exchange market of Muscat by the help of an official stockbroker.
For the context of the request for specific authorisations, public organisations in
Oman have the right for inspecting foreign direct investment projects to check
whether they are compliant with health, environment, and other standards at any

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stage of their operations. In sectors like water and electricity, the rule or limitation
of 70% ownership us not applicable thus foreign investors can attain full
ownership. Furthermore, the rights of the foreign investor to own a company can
be extended exceptionally if recommended by the Minister of Commerce or the
investment and activity is very critical and crucial for the development of its
economy (Abdallah, 2015).
To sum up the entire literature review, it is found that foreign direct investment is
one of the critical need of Oman and for this the country is promoting and
encouraging a number of foreign investors however there are certain of the barriers
that are present in Oman in terms of ownership and other policies (Al – Hasan,
2012). Yet the position of Oman is strategically well that allow attracting many of
the investors in the country. A number of research papers were analysed
thoroughly in order to gather information about Oman and its statistics. By
promoting foreign direct investment in the country, Oman is capable to improve its
economic growth, employment, and diversity.

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Chapter three :Research Methodology
This chapter of the research is comprised of providing information on research
design and approach, data collection tools and method, sampling frame, data
analysis, and code of ethics. A thorough detail is given with respect to the adopted
strategy in this research in terms of collecting and analysing data. It has also
provided insight into the relation of information to the related materials and models
of literature. In this way, this chapter has given the guideline upon how the
research study has been conducting and how the findings, discussion, and
conclusion are devised. In a nutshell, the working principle of this research study is
being revealed in this chapter.
3.1. Research Design
The past studies on the topic of methods for the promotion of foreign direct
investment in Dhofar region of Oman are not available widely in spite of the great
advancement of works in Oman in some of these years (Pauceanu, 2015). The
methodology of this any study covers the topics such as its scope, data collection
process, data analysis process and how recommendations are given. The literature
has defined that research design plays a very important character in the

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methodology of the study as it provides the framework of data collection and
analysis which is mandatory in every research study (Wilson, 2013).
The design of this research study is qualitative in which the data and information
about the FDI in Oman are collected by means of past studies. The reason why the
qualitative study is used as the research design because the aim of this study was to
explore the approaches that are used by Oman to promote FDI and challenges that
are present in Oman regarding FDI. The research was not limited to a certain
theory which also suggests the qualitative nature of the research. In addition to
that, interviews were also conducted with the officials that are involved in the
promotions of foreign direct investment. In this way, secondary and primary data
has been used in this study but of qualitative nature.
3.2. Data Collection Method
Since it was exploratory research, the logic that was employed in this research for
the purpose of data collection was inductive based on a qualitative approach. After
considering the suggestion in many research papers, as a result, the data collection
method used here is based on the analysis of past studies which is compared with
the primary data gathered from the interview of FDI officials. Relevant articles
were retrieved using multiple databases of scholarly articles which have been
chosen by reading them thoroughly. When an adequate amount of articles were
retrieved, the key information from each of the accessed research papers was

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recorded. Study on the approaches used by Oman for promoting FDI in the country
was then started. On the other hand, the data collection of primary data, as
previously mentioned, interviews with officials that are involved in promoting and
encouraging direct foreign investment in the country. The process of the interview
has been occurred by meetings and discussion whereas the questions of the
interview were mailed to the participants beforehand. The transcript of interviews
was maintained and used in order to support the secondary findings.
3.3. Sampling Frame
For the secondary data, more than 15 research studies were gathered and their
findings, key points, and findings were incorporated into the study. The limitation
was set for the research papers that were published within the duration of past 7
years only which is why the research papers that are older than 7 years were
eliminated from the sample of the study. Similarly, for the primary data, three
participants were in the sampling frame based on the criteria of having directly
linked with FDI in Dhofar Governorate of Oman specifically. Since interview
sessions are usually detailed; it is recommended to select short sample size
therefore only three of the participants were selected.
3.4. Data Analysis
Information that has been collected by means of literature review and interviews
with the officials (participants) responsible for promoting FDI in Oman

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specifically in Dhofar Governorate were analysed using descriptive strategy so as
to find the answers for the research question. The major approaches that were
adopted by the government of Oman were activities in order to promote foreign
direct investment within the region of Dhofar. The data was reviewed using
information coding and results generated by critically analysing the past research
papers. Therefore the approach of constant comparative was undertaken.
3.5. Limitations
Though research study has incorporated a wide range of secondary data along with
interviews with the most associated or relevant people; this research lacks the
incorporation of qualitative data. Nonetheless, statistics are provided in the study
regarding GDP, Import Export, and Inflation rate in Oman along with several
charts or figures for representing investing and FDI in Oman, but the lack of
primary data in terms of survey is its limitation which could further fortified the
results of this study.
3.6. Code of Ethics
In particular, the nature of this study was qualitative which means that findings or
other studies and reports has been the part of this research paper and that
information is required to be incorporated as per the code of ethics. In this regard,
the author of this research has ensured that every phase of the research remained to
adhere to ethical consideration. This study was conducted using the procedures and

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steps that have no chance of violating the rules and regulation of academy as well
as the research. The studies that are incorporated into the study were given full
credit and the researcher did not leave them uncited to fulfil the ethics of
copyrights. In addition to that, the consent forms were given to the customer and it
is made sure that none of the personal information has incorporated in the study.
Here, it is important to note that research has also acquired the approval or
permission from all the associated authorities such as database, institutes, or other
resources and those not data or person is approached illegally or unethically.
Chapter 4
4.1 Descriptive statistics
Year FDI import export GDP Inflation
2007 7.9 40 56.5 4.5 5.8
2008 4.8 37.2 58.5 8.2 12.4
2009 3.1 34.6 50.6 6.1 3.5
2010 2.1 41.2 65.7 4.8 3.3
2011 2.4 43 72.9 -1.1 4
2012 1.8 44.9 71.5 9.3 2.9
2013 2 53.1 75.4 4.4 1
2014 1.6 47.1 70.2 2.8 1
2015 -3.2 53.4 56.7 4.7 0.1
2016 3.4 47.4 47.1 5 1.1

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2017 4.1 49.3 52.1 -0.9 1.6
FDI import export GDP Inflation
min -3.2 34.6 47.1 -1.1 0.1
max 7.9 53.4 75.4 9.3 12.4
mean 2.73 44.65 61.56 4.35 3.34
Standard
deviation
2.68 6.13 9.94 3.21 3.44
FDI
Interpretation: Graphical presentation clearly exhibits thatFDI levelin Oman decresaed
significantly over the years from 7.9 to 4.1 at the end of 2017. Further, descriptive statistical
evaluation shows that average and SD valueof FDI is near to each other. It can be stated that in
the near future mean value of FDI will deviate from the figure of 2.68 respectively.

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Import
Interpretation: Column graph depicted above clearly shows that import level of Oman
enhanced from 40 to 49.3 significantly. Increasing import level places positive impact on living
standard but negatively influences aspect pertaining to balance of payment.
Export

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Interpretation: Line graph presented above is showing fluctuated trend in the export level
of Oman. In 2017, export level was higher than import. Cobsidering this, it can be mentioned
that BOP of Oman was good in the year of 2017 as compared to others.
GDP
Interpretation:During the period of 11 years, in 2011 & 2017, GDP level of Oman was
negative such as -1.1 and -1.9 significantly. Graph shows that after 2011 GDP level og Oman
improved significantly. However, in comparison to other years GDP level of Omanwas poor in
2017.
Inflation

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Interpretation: Decreasing trend assessed in the inflation level of Oman during the period
of 11 years. As, in 2007 inflation level in Oman was 5.8, whereas at the end 2017 it reached on
1.6.
4.2 Regression analysis
Hypothesis 1
Null hypothesis (H0): There is no significant difference in the mean value of FDI and import.
Alternative hypothesis (H1): There is a significant difference in the mean value of FDI and
import.
Regression
Model Summaryb
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F
Change
1 .568a .322 .247 2.32535 .322 4.282 1 9 .068

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a. Predictors: (Constant), import
b. Dependent Variable: FDI
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 23.156 1 23.156 4.282 .068b
Residual 48.665 9 5.407
Total 71.822 10
a. Dependent Variable: FDI
b. Predictors: (Constant), import
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) 13.809 5.401 2.557 .031 1.592 26.027
import -.248 .120 -.568 -2.069 .068 -.519 .023
a. Dependent Variable: FDI
Hypothesis 2
Null hypothesis (H0): There is no statistical significant difference in the mean value of FDI and
export.
Alternative hypothesis (H1): There is a statistical significant difference in the mean value of FDI
and export.
Model Summaryb
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F
Change

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1 .247a .061 -.043 2.73728 .061 .586 1 9 .464
a. Predictors: (Constant), export
b. Dependent Variable: FDI
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 4.387 1 4.387 .586 .464b
Residual 67.434 9 7.493
Total 71.822 10
a. Dependent Variable: FDI
b. Predictors: (Constant), export
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) 6.830 5.424 1.259 .240 -5.441 19.100
export -.067 .087 -.247 -.765 .464 -.264 .130
a. Dependent Variable: FDI
Hypothesis 3
Null hypothesis (H0): There is no statistical significant difference in the mean value of FDI and
inflation.
Alternative hypothesis (H1): There is a statistical significant difference in the mean value of FDI
and inflation.
Regression
Model Summaryb
Model R Change Statistics

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R
Square
Adjusted R
Square
Std. Error of
the Estimate
R Square
Change
F
Change
df1 df2 Sig. F
Change
1 .558a .311 .235 2.34429 .311 4.069 1 9 .074
a. Predictors: (Constant), Inflation
b. Dependent Variable: FDI
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 22.361 1 22.361 4.069 .074b
Residual 49.461 9 5.496
Total 71.822 10
a. Dependent Variable: FDI
b. Predictors: (Constant), Inflation
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) 1.277 1.008 1.266 .237 -1.004 3.558
Inflation .435 .216 .558 2.017 .074 -.053 .922
a. Dependent Variable: FDI
Hypothesis 4
Null hypothesis (H0): There is no statistical significant difference in the mean value of FDI and
GDP.
Alternative hypothesis (H1): There is a statistical significant difference in the mean value of FDI
and GDP.
Regression

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Model Summaryb
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F
Change
1 .009a .000 -.111 2.82480 .000 .001 1 9 .978
a. Predictors: (Constant), GDP
b. Dependent Variable: FDI
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression .006 1 .006 .001 .978b
Residual 71.815 9 7.979
Total 71.822 10
a. Dependent Variable: FDI
b. Predictors: (Constant), GDP
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) 2.762 1.480 1.866 .095 -.587 6.110
GDP -.008 .279 -.009 -.028 .978 -.638 .622
a. Dependent Variable: FDI
4.3. Analysis:
1. Descriptive statistics
Descriptive statistics is a statistical method which is used for measuring a
range of observed and collected data in such a way so that final results from the

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overall observation could be derived. There are several tools such as mean, mode
median, standard deveiation, etc. that are being used for measurement purpose.
By analysing the above table based on the calculation of various descriptive
tools, it can be analysed that the minimum values of data collected for the year
2007 to 2017 regarding FDI is -3.2, for import, it is 34.6, 47.1 fir export and -1.1
for GDP and for inflation it is 0.1. On the other hand, max shows the maximum
values of the observed data that has been derived for FDI 7.9, for import 53.4 and
so on.
Mean is the tool which is used for the purpose of determining average of a
large number of collected data. FDI's mean has been determined by 2.73, for
export, it is 61.56 and so on. On the other hand, the tool standard deviation is being
used for the purpose of determining the variation between two observed data. from
the above table of descriptive data analysis, it can be evaluated that the maximum
amount of variation has been observed in the data related to export which is 9.94.
On the ither hand, the minimum variation is in the data related to FDI which has
been calculated 2.68.
2. Relation between FDI and import
Charts

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By analyzing the data showing relation between FDI and import, it can be
analysed that as the model summary shows relation of .568, they belongs to null
hypothesis. further, as the significance between FDI and import is .068, in this
regard, there is no relation between these two dvariables. both moves in the same
direction.
3. Relation between FDI and export
Charts

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As regression between FDI and export has been derived .247 and
significance between them is .464, it can be analyses that both variables have
relation of null hypothesis between each other, and hence they do not get affected
by each other. By analyzing the data showing relation between FDI and import, it
can be analyzed that as the model summary shows relation of .568, they belong to
null hypothesis. Further, as the significance between FDI and import is .068, in this

34
regard, there is no relation between these two variables. Both moves in the same
direction.
4. Relation between FDI and GDP

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By analysing the tables showing relation between FDI and GDP, it can be
evaluated that the regression betweeen FDI and GDP is .009 on the other hand
regression square of these two us 0.000. Further, as the ANOVA table of FDI and
GDP shows the significance between these two variables as .978, it can be
analysed that there is higher relation between these two variables. In this order, it
can be interpret that both FDI and GDP have have null hypothesis. On the other
hand, both have a higher amount of effect with each other. Therefore change in one
variable will have a significant effect over other.

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5. Relation between FDI and inflation

37
By analyzing the above regression table showing relation between FDI and
inflation, it can be evaluated that regression between FDI and inflation is .558. In
this regard, it can be evaluated that they have relation alternative hypothesis with
each other. further, as significance relation between them is .074, it can be said that
they have moderate relation with each other, and hence, gets affected by each other
in a small amount.
Main findings:
The research has reached the following finding:

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1. The trends of the foreign direct investment of Oman are recorded for the
period of 2007 to 2018 as the percentage of the GDP defining the net
inflows for a year from the FDI. The highest inflow of FDI as percentage of
GDP was 7.9 and was last seen n the year 2007. Since, then the contribution
of the FDI have remained fluctuating \and it has gone negative in 2015 at -
3.2. This low was last experience by the nation in 19745 when it FDI fell to
3.7 % negative. Yet the economy have shown a growth and for the year
2016 and 2017 the FDI contribution to the GDP was 3.4 and 4.1 %
respectively.
2. For relation between FDI and imports operates at lower level of relatio n
and this shoes that the dependability of FDI over imports in nation is very
lower and import percentage do not get effected by FDI in Oman.
3. The relation of FDI and inflation is at moderate level as there is neither low
nor high impact of inflation trends on the FDI of Oman.
4. The GDP and FDI factors of economic growth do not share a significant
relation rather the is a very low level of relation between them this shows
that the impact of GDP on FDI is way to low and nil in Oman.
5. The relation of FDI and export is also very low and there is on significant
relation between these two factors.

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Chapter Five: Conclusion & Recommendations
Conclusion
To conclude this research project it can be stated that there are various
factors to analyse the economic growth of Oman. With carrying out the statistical
analysis of the Data collected over 5 different factors that is FDI, inflation, GDP,
import and exports the trends in Oman growth have been analysed. From the
analysis it has been concludes that in respect of the FDI of Oman the other factors
of economic growth have a moderate or lower level of relation and level of
independence. Also, it has been seen that with there for all 4 factors regarding the
relation of mean value of FDi, there is no significant relation between FDI and
them.
Recommendation
Based on the above analysis, the study recommends the following:
1. Form the above trends it can be seen that the FDI percentage net inflow as
GDP percentage have been falling since long and it is at recovery position
from past 2-3 only, so it is recommended to operate at the present level of
international trade and polices related with investment to remain at the same
position.

40
2. It is further recommended that to operates at the same level of economic
growth and to raise this percentage the government of Oman need to make
the policies and procedure more lenient and also enter into international
trade and commerce Treaties to make the FDI more precise and let it effect
lesser with other factors of economic growth.

41
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