OMAN - The Omani Centre for Investment Promotion and Export Development (Ociped).

The Omani Centre for Investment Promotion and Export Development (Ociped), created in late 1997 by Bin Sultan's ministry, now acts as a conduit between investors, industrial and power projects and the government. Ociped has a major role in Oman's privatisation, focusing on power and desalination plants, gas-based industries and fisheries.

Salem bin Nasser al-Isma'ili is the president of Ociped. A prominent reformer, Isma'ili has overseen a compilation of an economic freedom index for the Arab world which Ociped undertook in 2004 jointly with the Fraser Institute of Canada. Commenting on this project, Isma'ili in late 2003 said: "People are talking about religious and political reforms. This will not happen unless you have economic reforms". Isma'ili is an engineer.

Bin Sultan plays the role of keynote speaker at conferences held in Oman, particularly at those on major new projects and investment opportunities in the sultanate, such as the one held annually by MEED. Isma'ili was spoke in one held in Muscat on Feb. 24-25, 2004, and his presentation was titled: "Putting Oman on the Map: Making Regional Comparisons".

The Commerce, Industry & Minerals Ministry is also in charge of tourism in Oman. The ministry's Under-secretary for Tourism is Muhsin bin Khamis al-Balushi. He and Minister Bin Sultan have promoted major touristic ventures. One of their main projects in this field is a resort being developed in the coastal region of al-Sawadi, about 100 km north of Muscat, for which the government has allocated 35 sq km of land (see background in Vol. 62, DT No. 8).

A strong advocate of a free market economy, Bin Sultan has backed the "Thatcherite society" of share-owners, to be achieved through widespread privatisation. Another of his priorities is the "Omanisation" programme. He was one of the key figures behind the amendment of the corporate tax laws, which Sultan Qaboos decreed in late October 1996.

Encouraging foreign investment and promoting industrial diversification, one of the laws now treats all companies equally, regardless of their ownership structure. Previously, companies with foreign ownership used to be discriminated against and the state levied taxes on firms according to the size of their profits and the proportion of foreign shareholders.

Bin Sultan until 1991 was president of the Chamber of Commerce and Industry from 1986. His father, Hajji Ali Bin Sultan, once was president of the chamber, which was established in 1975 as the main sphere of authority for Sultan Qaboos over the private sector. The head and members of the chamber's board are among the most prominent Omani businessmen chosen upon Sultan Qaboos' recommendation.

In his late 50s or early 60s, Bin Sultan has been a director on the board of his family's business, Taylor Woodrow-Towell Co. He resigned from the board in late 1996 as Sultan Qaboos issued a "Basic Law" which, among other things, forbids high government officials and ministers from serving as directors in any companies. WJ Towell & Co. is one of the partners in Sohar Power Co., an IWPP in Sohar.

The Oman Power and Water Procurement Company (PWP) plays an important role in the electric power and water sector of the sultanate. This is headed by an acting chairman, Muhammad al-Mahrouqi. The PWP has a central role in the privatisation of the sector. Mahrouqi is to make a presentation at a MEED conference on Middle East power and water desalination to be held in Abu Dhabi on March 12-13, 2006. His paper is titled: "Detailing Oman's privatisation plan and the new sector law. A session on Oman will cover two other topics: "Assessing the Power and Desalination Needs for the Future", and Deregulating the Power & Water Sector - Implications and Benefits. The session will also have a case study on the Sohar IWPP to be presented by Frederic Henning, CEO of Sohar Power Co.

A key figure at Bin Sultan's ministry is Hamad bin Hashem al-Dhahab, the director general of industry. Among many downstream projects, Dhahab has been promoting two major methanol plants at Sohar, being built beside a polypropylene (PP)plant within the new oil refining complex coming on stream later this year (see DT No. 6), and a another major methanol plant in Salalah. Dr. Omar al-Zawawi is a major investor in the Sohar methanol plants through his company Omzest. The major investor in the Salalah methanol plant is Mubadala Development Co., owned by the local government of Abu Dhabi and parent of Dolphin Energy Ltd (DEL) which it controlled, with Total of France and Occidental Petroleum of the US each holding 24.5%. DEL is developing a portion of Qatar's offshore North Field to produce natural gas and pipe it to Abu Dhabi for distribution in the UAE and Oman in an integrated gas E&P/midstream and downstream venture. This gas will start reaching Oman in early 2008, with the UAE to receive its needs from late 2006 or early 2007.

Shaikh Muhammad bin Zayed al-Nahyan, the crown prince of Abu Dhabi and UAE chief of staff, has been the force behind Mubadala, DEL and related ventures, together with his full-brothers. Shaikh Hamdan bin Zayed, a deputy prime minister of the UAE, is the chairman of DEL.

Shaikh Dhiab bin Zayed, another full-brother, is head of the Abu Dhabi Water and Electricity Authority (ADWEA) holds 40% in Sohar Alaminium Co., a huge smelter being built in Sohar by Bechtel. OOC holds 40% and the remaining 20% is held by Alcan of the US (see down6Oman-RefPetchFeb6-06).

Muhammad al-Harthy is chairman of Sohar Industrial Port Co. (SIPC) and under-secretary at the Ministry of Transport and Communications. SIPC is developing a huge harbour and adjacent to it is an industrial zone. SIPC's CEO is Jan Meijer and the port's development is being co-managed by the Rotterdam Municipal Port Management.

Meijer was in November 2003 quoted as saying: "Rotterdam is the major petrochemical port in Europe and there are many synergies with what is emerging in Sohar. We are using a landlord model, which is common in Europe". Historically, Sohar used to be at the centre of an Omani maritime trading empire stretching from Zanzibar in East Africa to China.