Thursday 14 / November / 2024
Muscat: Oman scores high when it comes to business climate among the emerging markets, according to the Agility Emerging Markets Logistics Index 2016 report.
“Among the countries in the Index, Oman, UAE and Qatar are rated as the most business friendly, based upon a combination of market access, risk, regulation, foreign investment, urbanisation and wealth distribution,” it says.
In the overall 2016 Index, Oman is placed in 14th position and in the market connectedness index, Oman is placed sixth.
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While considering the market compatibility ratings in the Middle East and North America (MENA) region, Oman was rated third, after UAE and Qatar.
The report adds that Oman, along with Qatar, scores highest for its business environment among smaller emerging market economies having GDPs of less than $300b.
The report also places Oman as having good prospects and easy market entry.
“Oman is emerging as a most successful economy in the region at a good pace. Rules are now made to attract more investments and development activities are carried out with a plan to aid market connectedness,” Mohammed Hassan Al Ansi, vice-chairman of the committee for logistics and transportation affairs at the Oman Chamber of Commerce and Industry (OCCI), told Times of Oman.
“In Oman, every commercial seaport has a nearby airport,too. Where else we can see this? We are confident that Oman will soon emerge as a prime spot for investment in the region,” Al Ansi added.
According to the report, the number of shipping lanes linking emerging markets with the EU and US grew spectacularly, but most gains came from relatively small base volumes, such as Uruguay-EU (up 56.8 per cent), Oman-US (up 56.7 per cent) and Turkey-US (up 30.2 per cent).
The report adds that EU-Oman freight lanes also increased by 59.4 per cent.
While welcoming Oman’s improvements in its business climate, an industrialist said there is room for more improvement.
“Investors should not feel uncomfortable in Oman. If we can change that, sure Oman can grow more,” Anvwar Al Balushi, an industrialist and investor, told Times of Oman.
The Index, in its 7th year, ranks 45 leading emerging countries based on their size, business conditions, infrastructure and other factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.
The Index also includes a survey of more than 1,100 global logistics and supply chain executives.
Meanwhile, Essa Al Saleh, President and CEO of Agility Global Integrated Logistics, said that despite the turbulence, the fundamentals driving growth remain consistent, including a rising middle class with spending power, progress in poverty reduction, and growing populations.
“That’s why we are still positive on the outlook for emerging markets and see them driving global growth,” noted Al Saleh.
John Manners-Bell, Chief Executive of Transport Intelligence (TI), a leading analysis and research firm for the logistics industry, which compiled the Index, noted, “The world’s economy is still riven by instability, and emerging markets, such as China and Brazil, have not been immune.
“However others, such as Mexico, are in a far stronger position and will benefit from the economic growth experienced in the US and Europe.
“More than ever, investors in emerging markets need to be discerning and the results of our Index are critical to providing clarity in a confusing and complex world.”
