YOUR LOGO REVIVING INVESTMENT IN THE MENA REGION: POLICY OPTIONS FOR PROTECTION, PROMOTION AND RISK MITIGATION OECD Headquarters – Paris Salem Moosa J. Hassan – Chairman of Namma Development – Representative of the Public Authority for Investment Promotion and Export Development in France

YOUR LOGO Table of contents Part 1 – Namma Development - PAIPED Part 2 – Reigonal Analysis – Focus on GCC Part 3 – Key Indicators – Sustainable Progress Part 4 – Doing Business in Oman Part 5 – Recommendations December 6 th 2011 – OECD Headquarters

YOUR LOGO Part 1 – Namma Development Consulting company in activity since March 2009 Promotes Business Opportunities between France and Oman Works through innovative non-retainer based Consultancy Agreements Representatives of the Public Authority for Investment Promotion and Export Development in France (formally known as OCIPED) Member of the Task Force for Energy and Infrastructure at the MENA-OECD Investment Programme Works closely with Omani and French governmental institutions In France: Market Studies, Networking, Stratregy Counsel, Letter Drafting, Account Maintainence In Oman: Market Studies, Networking, Stratregy Counsel, Letter Drafting, Follow-up on Accounts General Information

YOUR LOGO Part 1 – Namma Development Viability Study Consultancy Agreement Mobilization Negotiation Maintaining Accounts Study of the viability of the mission that Namma will undertake – trends/price/market competitors Process Commercial Department : Dedicated Commercial Agents for your products/services Legal and Financial Department Continuous Legal and Price Monitoring to remain competitive Whether its accounts opened prior or after the signature of a Consultancy Agreement, Namma upkeeps and maintains accounts by paying visits, collecting concerns, general information, etc No retainers - commission on sales of product/success of a mission - advance payable upon signature on a one shot basis deductable and reimboursable A team of experienced *French Native speaking* negotiating team – we insure that you will maximize sales/acquire the best deal

YOUR LOGO Part 1 – Namma Development Export Development being a priority for the government, this Privet Public Partnership works in perfect synergy Our client database is utilized at the fullest and regular communication where synergies can be created is applied wherever possible Platform for commercial exchange between France and Oman Having a large database of partners on the French and Omani market, we believe in synergies by enticing dialog between all parties Synergy and Reciprocity Philosophy

YOUR LOGO Page 6 Part 2 – Regional Analysis – Focus on GCC

YOUR LOGO Part 2 – Regional Analysis – Focus on GCC Forecasts IMF forecasting economic growth of about 3.9% expected across MENA region Oil prices outlook remains strong in IMF forecasting $107/barrel in 2011, $108 in 2012 Oil exporters growth 4.9% (GCC = 7.8% (oil), 5.3% (non oil)) But, Egypt and Tunisia down % year-on-year. Libya off the agenda

YOUR LOGO Page 8 Part 2 – Regional Analysis – Focus on GCC

YOUR LOGO Part 2 – Regional Analysis – Focus on GCC Concerns Rising food and commodity prices = threat to incomes in LEDCs, adding to social tensions Growing debt and debt servicing costs Rising inflation may lead to tightening stimulus spending in GCC Public sector salary hike puts pressure on private sector Greater economic divide MEED

YOUR LOGO Page 10 Part 2 – Regional Analysis – Focus on GCC

YOUR LOGO Part 2 – Regional Analysis – Focus on GCC Bahrain est. $398m benefits package = 1.5% of GDP Provide cash transfers of $2,660 each to families Oman est. $825m benefits package =1.25% of GDP Employment for 50,000 Omanis Establishment of monthly unemployment benefit of $390 Possible assistance from the GCC Kuwait est. $4.32bn benefits package = 2.5% of GDP Provide free staple food to citizens for the next 14 months together with cash transfers UAE est. $1.82bn benefits package = 0.5% of GDP Infrastructure programme focusing on the northern emirates 70% increase in pensions for military personnel State subsidies for rice and bread

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress Billion US $

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO Part 3 – Key Indicators – Sustainable Progressan

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO Page 18 Part 2 – Regional Analysis – Focus on GCC

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress NoSectors Amount in RO Million Amount in US $ Million 1 Road1,233.33, Airport652.41, Sea Ports502.11, Water451.71, Housing448.01, Health Education Information & Communication Technology Marine Major Projects of The 8 th five year plan

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress NoSectors Amount in RO Million Amount in US $ Million 10 Agriculture Vocational Training Town Planning & Municipalities Sanitary Drainage Dams Information & Culture Youth & Sports Sector Justice Total4, ,303.6 Major Projects of The 8 th five year plan

YOUR LOGO Part 3 – Key Indicators – Sustainable Progress Case Study: DUQM CITY 500km south of Muscat, located directly on the Arabian Sea Major components include 2nd largest dry dock in the Middle East to be operated in JV with Daewoo and Govt of Oman … repair 10 ships … soft opening next month Airport: annual 500,000 passenger capacity Strategic, multi-purpose port with a 2,250m quay and depth of 18m to be operated by Antwerp in JV with Govt of Oman First rate infrastructure with latest technologies

YOUR LOGO 1.PORT AND DRY DOCK AREA 2.AIRPORT AREA 3.NEW TOWNSHIP 4.LOGISTICS 5.INDUSTRIAL AREAS 6.TOURISM ZONE 7.FISHING HARBOUR & INDUSTRY 8.LOCAL INDUSTRY 9.TRANSPORT SYSTEM 10.POWER & UTILITIES 22 Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO Duqm Special Economic Zone Land availability: area is 1,620 km2 – largest in Middle East 25 km2 tourist area on pristine 18km beach shore Cluster fishing complex: harbor, processing, farming, etc. Large residential area - up to 100,000 people Large logistical center Best international business practices Potential oil refinery, petrochemicals & natural gas supplies 150km2 industrial area with full services Renewable energy alternatives A gas-fueled power plant under study Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO a.The rail route is part of proposed Inter- GCC railway running from Kuwait to Salalah (and possibly to Yemen) 1 st Phase – 900 km long rail network from Al Ain (UAE) to Sohar Industrial Area to Muscat to Duqm 2 nd Phase – 500 km long coastal rail network from Duqm to Thumrayt and 130km to Salalah b.Expected to start operating by c.The railway line is expected to provide greater capacity for freight and passenger transport to: reduce cost and road freight services create faster transfer of goods services between countries in GCC YEMEN R 32 R 31 Sur Ras Musandam Masirah Salalah Nizwa Duqm Muscat IRAN UAE KSA DUBAI ABU DHABI Hayma Sohar Al Buraymi Phase 1 Phase 2 Part 3 – Key Indicators – Sustainable Progress

YOUR LOGO Access to Market WTO AGCC Common Market Arab Free Trade Zone FTA with USA FTA between AGCC and Singapore. Part 4 – Doing Business in Oman

YOUR LOGO Branch office Only an option if foreign company is performing a contract with the Oman Government or a quasi- Government entity (e.g. PDO) Branch is a footprint of the foreign parent company. Taxed at 12% on earnings over RO 30,000 (US$ 1 = RO ) Part 4 – Doing Business in Oman

YOUR LOGO Limited Liabilities Company (LLC) Simplest form of company to set up Minimum of 2 shareholders required Constituted by way of a simple constitutive contract Taxed at 12% on earnings over RO 30,000 Part 4 – Doing Business in Oman

YOUR LOGO LLC – ownership 100% GCC/US owned LLCs are permitted United States nationals benefit Oman/US Free Trade Agreement For everyone else, ownership is limited to 70% Part 4 – Doing Business in Oman

YOUR LOGO LLC – Minimum Capital Requirements RO 150,000 for an LLC with foreign ownership. RO 20,000 for an LLC with 100% GCC and/or US ownership. Certain advantages in increased capital of RO 250,000 Part 4 – Doing Business in Oman

YOUR LOGO LLC – Key Advantages Common form –flexible and with basic reporting requirements. Simple LLCs can be set up in 4 to 6 weeks. Most corporate decisions can be reached by written shareholder resolution without convening a meeting. It is possible to have disproportionate dividend split between shareholders, which is ideal for a silent shareholder arrangement. Part 4 – Doing Business in Oman

YOUR LOGO Tender board Applies to large (above RO 250,000) Government tenders Transparency and due process Not all Government bodies –MOD, PDO Local tenders versus International Tenders Online Part 4 – Doing Business in Oman

YOUR LOGO Strategic location Stable economic framework Comprehensive legal framework Excellent infrastructure support investors local labor Free Trade and open market policy Advantages in Oman Part 4 – Doing Business in Oman

YOUR LOGO General Regulations & Incentives Customs Duty & Corporate Tax Exemption for up to ten years Competitive Utility Rates No Personal Income Tax Free Repatriation of Capital & profits 100% Foreign Ownership Foreign Ownership of Land and Property (Tourist Designated Complexes). Part 4 – Doing Business in Oman

YOUR LOGO Part 5 – Recommendations Next step?

YOUR LOGO Do You Have Any Questions?