This section of the research project presents a summary of the research findings, the conclusion thereof, and suggestions for further research, as observed by the researcher during the study.
5.2 Summary of findings of the study
In this section, the analysis of the evaluation of difficulties and challenges facing foreign capital investment in Oman has been presented. The research questions and objectives are re-stated and linked with the findings. The research is, therefore, guided by the following questions and specific objectives.
What causes the challenges and difficulties of foreign capital investment opportunities in Oman?
For this question, I found different causes for the challenges and difficulties facing foreign capital investment opportunities in Oman. They include the following;
Political due to the current Sultanate regime failure to enact effective political and economic strategies and policies suitable for foreign investment opportunities. The lack of preparation of the Sultan successor after the late Sultan, Qaboos Al Said Bin Said, and also the long equation of the current Sultan with his country prosperity as the founder is worrying for the future of the country after his demise. Political unrest due to tension among Omanis after the late Sultan demise. The dictatorial nature of the regime scares away foreign capital investors, paralyzes their business operations, or limits the market capacity of the Omanis to the investors.
The economic factors affecting capital foreign investment opportunities in Oman are; the country has issues of credit downgrades, reliance on oil and gas economy which nowadays prices of oil keep on fluctuating, unsupported Islamic finance segment and delayed payments, challenges in managing the liquidity of the liability products in the Islamic finance segment and an expected weakening of Oman economic resiliency.
On sovereignty, the change in oil prices may affect the Omani Rial currency, mostly based on the petro-currency. Also, there is an interference of the creation of a macroeconomic view of the operating environment during investments in the equity of the specified companies existing in Oman. A decline in sovereign wealth fund of Oman.
On social issues, the country is affected by; poor salaries, and the Omani living conditions may not be a good market source for the investors. The Islamic region may not provide a market for specific products. There is a high likelihood of language barrier among foreigners with the locals since the locals only prefer their Arabic language. The foreigners may find it hard to reside in the Islamic culture due to the extremism of the locals toward Arabic culture and religion. Xenophobia also affects some of the Oman areas. The country’s small population does not provide a sufficient market for some of the foreign investments. The Omanis also have a habit of promoting their fellow Omani businesses, which dramatically affects the demand for foreign entrepreneurs.
In terms of environment, the country is disadvantaged with the hot and dry climate of the region, desert environment with water shortages at times, and the presence of storms in some areas may be a hard task for investor adaptation.
What is the current state of Oman economy?
As indicated by the most recent authority figures, Oman’s actual total national output (GDP) contracted by 0.9 percent in 2017, from 5 percent in 2016. The high development in 2016 was driven by record levels of oil creation and a critical drop in actual net expenses (as far as GDP at creation factor costs, the nation accomplished just 1.8 percent development in 2016). In 2017, Oman focused on the OPEC+ bargain, under which the Organization of the Petroleum Exporting Countries, Russia, and different makers consented to check oil yield to 1.2 million barrels for every day. The outcome was compression of 2.7 percent in the hydrocarbon segment, somewhat repaid by the 0.4 percent development in the non-hydrocarbon sector, outstandingly fisheries. The Omani Rial is now equivalent to US$2. 6008.
What are the primary and other sources of the Oman economy?
The primary source of the Oman economy is revenue from oil and gas resources. Traditionally, Oman’s economy was majorly based on fishing and agricultural activities before
Can the challenges and difficulties of investing in Oman be solved, and how?
Most of them can be solved if the government put and implement effective economic, political, and social strategies. The Omani government needs to engage with various business stakeholders to hear out their demands, challenges, or suggestions to the problems and difficulties encountered while investing in Oman. The Omanis need Both the government’s and people’s wills can transform current Oman’s investment environment to a better one.
Which methods or how can the challenges and difficulties of investing in Oman be solved?
What and how do ethical issues affect foreign investment in Oman?
Specific/Sub objectives
To assert the impacts of the challenges and difficulties of foreign investment in Oman country.
The challenges and difficulties in investing in Oman has caused Oman the following;
Reduced foreign investment projects in Oman due to discomfort, scaring away, lack of motivation of the foreign entrepreneurs.
Negative rating from international bodies and various organizations of the Omani Sultanate in terms of its ability to provide a conducive investment environment.
Decline or limited growth of [1]The Oman economy due to reduced foreign capital investment opportunities in Oman.
To come up with solutions to the difficulties and challenges [2]Of foreign capital investment opportunities in Oman.
The Oman government and citizens, therefore, have to do the following to create a conducive investment ground curb the challenges facing the foreign investors in a particular country;
The Oman government needs to develop effective economic, political, social, environmental, and sovereign strategies that will provide reasonable investment grounds for foreigners.
It should make some amendments to the Royal decree acts and regulations involving foreign investment opportunities and also on other laws that have to do with the foreigners.
The Omani citizens need to be receptive to the foreigners by avoiding bad vices such as xenophobia and racism.
They should also be willing to follow and act according to the government’s laws and suggestions involving foreign investment opportunities.
To compare the problems facing Oman concerning foreign capital investment opportunities with other countries.
Other nations, especially Gulf countries, share some similar foreign capital investment problems that are in Oman. The other nations may encounter political unrest, lack of proper economic and economic strategies, strict and demanding laws to the foreign investors, poor climate conditions unreceptiveness, racism or xenophobia from the citizens, etc.
To envision the effects if the difficulties and challenges of foreign capital investment opportunities in Oman were not there.
There would be increased investment opportunities in Oman, considering that the numerous economic opportunities in Oman.
The Oman economy would have significantly improved from its current state.
[1] Christianity’, The New Encyclopedia Britannica (15th edn, 2018) <https://www.britannica.com/topic/Christianity/Church-tradition> accessed 24 December 2018.
[2] Christianity’, The New Encyclopedia Britannica (15th edn, 2018) <https://www.britannica.com/topic/Christianity/Church-tradition> accessed 24 December 2018.