Oman expected to grow at a more sustainable pace this year

Muscat Oman is expected to show improved growth in 2010, although at a more moderate and sustainable rate, according to experts taking part at a presentation on 2010 Outlook on Oman and GCC Markets.

The event was organised by BankMuscat and presided over by Yahya Bin Saeed Al Jabri, Executive President of Capital Market Authority (CMA) yesterday.

Abdul Razzak Ali Eisa, Chief Executive of BankMuscat, representatives of leading fund managers, institutional investors and high net worth individuals attended the presentation organised by the Asset Management division.

Margaret Ruth Purcell, Chief Economist, BankMuscat, Dr. Tristan Clube, member of the investment committee of Oryx Fund, and S.R. Krishnan, head of Asset Management and Private Banking, BankMuscat, highlighted the underlying fundamentals of the sultanate's economy and the GCC markets in general, shedding light on prospective investment opportunities available for investors.

The experts noted that the continued steady progress on government's long-term vision and realisation that Oman escaped much of the global and regional turmoil will instil increased confidence in the economy in the years ahead.

Resilient

Oman proved resilient through the global econ-omic downturn, mainly due to the authorities' careful utilisation of Oman's oil wealth before and during the crisis, the experts said.

BankMuscat expects the oil price to return to trend and average above $70 per barrel for 2010 with the downside supported by demand from Asia, particularly China, and the upside capped by the low growth expected out of the developed economies, they added.

Oman's fundamentals remain sound with external debt low at less than 25 per cent of GDP, a current account surplus and over five months' worth of import cover.

The budget fluctuated for most of last year around zero after having been in deficit at the start of year as the government supported the economy. Oman is a diversified economy but heavily relies on oil revenues. Oil production is increasing in Oman along with gas production, the experts said.

Oman did not go untouched by global events and foreign trade fell in line with the steep drop in international trade in 2008. The recession brought the positive of a sharp drop in inflation at just over 0 per cent.