OPINION:
Nearly every city, town and hamlet in the United States has an Economic Development Council (EDC) of some sort. The municipality operates some. Some are an offshoot of their local Chamber of Commerce. A few are free-standing entities.
All of the EDCs trumpet why businesses should come to their community. It’s safe. It has good schools. It offers low taxes. Fill in the blank with the reasons, some more compelling than others. Nearly none of the EDCs are successful, however, because while they are busy patting themselves on the back for what an impressive community they have, they have no idea how to differentiate themselves from every other city throughout the United States. They also fail miserably in understanding how to communicate their message to potential investors.
A handful are successful. Greenville, South Carolina, may be the best example. They successfully recruited BMW to build and operate an auto manufacturing plant there. They piggybacked on that and attracted auto suppliers like Michelin Tires and Sage Auto Interiors. Prettl International, Inc. manufactures nonferrous automotive wire and cable in Greenville. In short, the city found an economic development formula that worked and continues to successfully reach out to the business world.
As the planet has become smaller through instant communication and global transportation, many nations are seeking investment from larger, successful economies, including the United States. Most are like the bulk of towns and cities mentioned above. They create a list of their self-perceived merits, which may or may not be what investors are looking for, and they seldom know how to reach a broad audience of potential investors with their message.
Then there is Oman. Call them the Greenville of the international world. They have something solid to offer, and they are executing a plan to successfully get the word out to those looking for a wise long-term investment opportunity.
Representatives of Oman’s government, businesses and a project called Invest Oman just finished a business roadshow in the United States, visiting Houston, Austin, New York City and Washington DC. They met with potential investors regarding a variety of business opportunities, including tech, tourism, mining and more.
The Oxford Business Group outlines some of the things that make Oman a desirable investment. Oman’s network of special economic and free zones plays a key role in attracting investment and boosting external trade. Fiscal incentives, advanced infrastructure, and strong connectivity with global and regional markets are attracting companies focused on value-added manufacturing and downstream processing to zones affiliated with the Public Authority for Special Economic Zones and Free Zones (OPAZ).
In short, Oman is safe, stable, has an amazing infrastructure in place, a well-educated population and provides a very business-friendly environment.
Business development is not just wishful thinking either. Oman is projected by the World Bank to be the fastest-growing economy in the Gulf region in 2023. It is listed on the Foreign Direct Investment Standouts Watchlist as the fourth most attractive country on earth to invest in. Perhaps most notably, the IMF predicts Oman will have the highest economic growth rate in the Arab World in 2024. That is among some stiff competition.
Oman-made goods can be bought in over 130 countries, and their non-oil exports, specifically to the U.S., hit a record ten-year high in 2022. The existing Free Trade Agreement with the United States makes work amazingly simple for U.S. investors. Unlike many of their neighboring countries, Oman provides that American companies can set up and wholly own companies without a sponsor.
There is a palatable momentum building on their existing success.
In America, we often half-jokingly say there are three keys to investment: Location, location and location. If that is true, Oman excels at all three. The country is located in a strategic position along both east and west trade corridors. While many Asian manufacturers take 30 days to ship to the United States, products leaving Oman can be in the U.S. in just 17. Likewise, they are located even more perfectly for shipments to Europe and Asia. Their free zones make their ports that much more desirable.
The nation has staggering oil and natural gas reserves, but Oman’s effort to diversify its economy is paying big dividends. Whether it is rare earth minerals, real estate development (commercial and residential), tourism or the best-positioned ports on the globe, Oman is doing it.
Her Excellency Ibtisam Al Farooji serves as Undersecretary for Investment. She sums it up this way, “The Oman-US Free Trade Agreement has generated substantial benefits for both nations, boosting trade, generating jobs and fueling economic growth. Indeed, we are determined to nurture and strengthen these mutually advantageous economic ties.”
Much like the success of Greenville, SC, in the United States, Oman is actually accomplishing what everyone else is talking about. They are planning, building, attracting and expanding economic opportunities that work well for both them and their partners.
In a worldwide economy where many are unsure where to invest, Oman makes a strong case as a viable option.
- Tim Constantine is a columnist with The Washington Times.
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