OMAN - Maqbool Bin Ali Bin Sultan.

The Minister of Commerce, Industry and Minerals, bin Sultan was appointed to this post in December 1991 which he has retained in all subsequent cabinet changes. He is chairman of Oman Oil Co. (OOC), owned 100% by his ministry.

Bin Sultan hails from the prominent and numerous Sultan clan of the Lanatiya Tribe. He plays a big role in the petroleum sector, and expresses his views candidly. His ministry's Industry Division is in charge of major downstream projects to use Omani gas as feedstock.

The Commerce, Industry & Minerals Ministry and OOC co-ordinate with the MOG. Bin Sultan, who has the ear of Sultan Qaboos, is helps Oil and Gas Minister Rumhi.

Bin Sultan works closely with the powerful Minister of National Economy, Supervisor of the Finance Ministry and Deputy Chairman of the Financial Affairs & Energy Resources Council Ahmad al-Makki, who succeeded Qais al-Zawawi after the latter's death in September 1995. Makki's support is crucial for the projects of bin Sultan Rumhi (see Makki's profile in Downstream Trends).

Bin Sultan was behind Oman's signing of the Free Trade Agreement with the US last month. He expects the FTA promote the establishment of knowledge-based industries in the sultanate, besides giving a boost to bilateral trade. Bin Sultan on Feb. 3 was quoted as saying: "The FTA will further open the already liberal market of Oman to goods, services and investments from the US thus benefiting the US economy. Furthermore, the FTA would promote the establishment of knowledge-based industries in Oman". Once the agreement comes into force, he added, 100% of bilateral trade in consumer and industrial products would become duty free, with a phase-out of the remaining tariff in a 10-year period. He said: "The agreement will also cover agriculture products with a broad array of such goods becoming duty free upon ratification".

Bin Sultan said the FTA would also provide new opportunities in areas such as banking, insurance, telecom, express delivery services and construction. The accord provided a broad and stable platform for economic growth, he noted, adding: "For example, the agreement requires a secure and predictable legal framework for all forms of investment to occur and calls for streamlined customs procedures to facilitate trade".

US exports to Oman totalled $330m in 2004. Once the FTA goes into effect, 100% of US consumer and industrial products and 87% of agricultural goods will enter Oman duty free. Two-way trade between the US and Oman in 2005 was about $1 bn. Bin Sultan underlined that there had already been an increase in US corporate interest in Oman in the last few years, noting that AES and the National Power Co., both of which have significant US investment, operated power and water desalination plants in the north and south of Oman, respectively.

Bin Sultan noted: "Dow Chemical has teamed up with Oman Oil Co. (OOC) to form the Petrochemical Industries Corp. (PIC), a petrochemical complex which will serve as an anchor for the port city of Sohar. Bechtel Corporation has signed a [n EPC] contract with Sohar Aluminium Co. to construct a $2.2 bn smelter". He also pointed to a number of US firms involved in tourism development projects sprouting along Oman's shoreline with over $10 bn already booked, adding: "This agreement not only signals the beginning of a new relationship but also the continuation of already existing old partnership between our two countries".

Bin Sultan reiterated Oman's commitment to playing a key role in advancing economic freedom in the Middle East. He referred to the evaluation of the country's economy by think tanks such as the Fraser Institute, Atlas Economic Research Foundation and CATO Institute.

Bin Sultan signs all JV deals involving OOC, including a big petrochemicals plants being built in Oman in partnership with foreign companies. He also plays a very important role in the privatisation of the power sector, with gas-fired plants being built by local and foreign investors.

Bin Sultan's ministry and that of oil and gas have been behind the two gas pipelines inaugurated in January 2004. They supply the country's new industrial zones of Sohar in the north and Salalah in the south. Oman Gas Co., formed in 1999 with the government holding 80% and OOC holding 20%, now is the domestic marketer and distributor of gas and in charge of the two new pipelines (see DT No. 5).

Bin Sultan and former oil minister Shanfari were behind the Industrial Bank of Oman (IBO), a private venture launched in October 1997 when it offered 40% of its equity on the Muscat Securities Market (MSM). IBO, which began operations in February 1998, has become a key backer of new industries, particularly those of the downstream sector for oil and gas. The founding shareholders include Shanfari Investment Co., Muscat Overseas Co., the Ajit Khimji Group of Companies, Orient Dawn, and Ali Redha Trading Co.