REVIVING INVESTMENT IN THE MENA REGION POLICY OPTIONS

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. YOUR France. LOGO

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

Part 1 – Namma Development General Information 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 YOUR LOGO

Part 1 – Namma Development Process Study of the viability of the mission that Namma will undertake – trends/price/market competitors Viability Study Commercial Department : Dedicated Commercial Agents for your products/services Legal and Financial Department Continuous Legal and Price Monitoring to remain competitive Consultancy Agreement No retainers - commission on sales of product/success of a mission - advance payable upon signature on a one shot basis deductable and reimboursable Mobilization 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 Maintaining Accounts Negotiation 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 Synergy and Reciprocity Philosophy 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 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 YOUR LOGO

Part 2 – Regional Analysis – Focus on GCC Page 6 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 2011 -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 2. 5 -4% year-on-year. Libya off the agenda YOUR LOGO

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

Part 2 – Regional Analysis – Focus on GCC Concerns Rising food and commodity prices = threat to incomes in LEDC’s, 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

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

Part 2 – Regional Analysis – Focus on GCC Bahrain est. $398 m benefits package = 1. 5% of GDP Provide cash transfers of $2, 660 each to families Kuwait est. $4. 32 bn benefits package = 2. 5% of GDP Provide free staple food to citizens for the next 14 months together with cash transfers Oman est. $825 m benefits package =1. 25% of GDP Employment for 50, 000 Omanis Establishment of monthly unemployment benefit of $390 Possible assistance from the GCC UAE est. $1. 82 bn 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 2009 Billion 2005 2000 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

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

Part 3 – Key Indicators – Sustainable Progress Major Projects of The 8 th five year plan No Sectors Amount in US RO Million $ Million 1 Road 1, 233. 3 3, 195. 1 2 Airport 652. 4 1, 690. 2 3 Sea Ports 502. 1 1, 300. 8 4 Water 451. 7 1, 170. 2 5 Housing 448. 0 1, 160. 6 6 Health 270. 7 701. 3 7 Education 244. 7 633. 9 8 Information & Communication Technology 44. 4 115. 0 9 Marine 43. 8 113. 5 YOUR LOGO

Part 3 – Key Indicators – Sustainable Progress Major Projects of The 8 th five year plan No Sectors Amount in RO Million US $ Million 10 Agriculture 16. 0 41. 5 11 Vocational Training 54. 1 140. 2 12 Town Planning & Municipalities 172. 0 445. 6 13 Sanitary Drainage 72. 8 188. 6 14 Dams 38. 4 99. 5 15 Information & Culture 52. 0 134. 7 16 Youth & Sports Sector 24. 6 63. 7 17 Justice 42. 2 109. 3 Total 4, 363. 2 11, 303. 6 YOUR LOGO

Part 3 – Key Indicators – Sustainable Progress Case Study: DUQM CITY 500 km south of Muscat, located directly on the Arabian Sea Major components include 2 nd 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, 250 m quay and depth of 18 m to be operated by Antwerp in JV with Govt of Oman First rate infrastructure with latest technologies YOUR LOGO

Part 3 – Key Indicators – Sustainable Progress 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 YOUR LOGO

Part 3 – Key Indicators – Sustainable Progress Duqm Special Economic Zone Land availability: area is 1, 620 km 2 – largest in Middle East 25 km 2 tourist area on pristine 18 km 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 150 km 2 industrial area with full services Renewable energy alternatives A 1000+ gas-fueled power plant under study YOUR LOGO

Part 3 – Key Indicators – Sustainable Progress IRAN Ras Musandam a. The rail route is part of proposed Inter. GCC railway running from Kuwait to Salalah (and possibly to Yemen) DUBAI ABU DHABI 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 130 km to Salalah UAE Al Buraymi Sohar Nizwa Sur KSA b. Expected to start operating by 20162018 c. R 31 R 32 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 Muscat Masirah Hayma Duqm Phase 1 Phase 2 YOUR LOGO YEMEN Salalah

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

Part 4 – Doing Business in Oman 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 0. 385) YOUR LOGO

Part 4 – Doing Business in Oman 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 YOUR LOGO

Part 4 – Doing Business in Oman 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% YOUR LOGO

Part 4 – Doing Business in Oman 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 YOUR LOGO

Part 4 – Doing Business in Oman 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. YOUR LOGO

Part 4 – Doing Business in Oman 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 YOUR LOGO

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

Part 4 – Doing Business in Oman 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 of Land Property (Tourist Designated Complexes). YOUR LOGO

Part 5 – Recommendations Next step? YOUR LOGO

Do You Have Any Questions? YOUR LOGO