Rising crude oil prices and increased government investment in non-oil sectors will boost growth in Oman’s construction sector in 2018 by 10.4% and in 2019 by 11.5% outstripping the MENA construction sector average according to a recent report by BMI Research, a unit of Fitch Ratings.

An earlier report by intelligence provider BNC in April 2018, identified a total of 2,410 active construction projects in Oman with a combined value in excess of US$190bn. Ongoing projects comprise 1,840 projects worth US$61bn urban construction projects, 70 projects worth US$39bn in the oil and gas sector and 150 projects worth US$32bn in transportation.

BMI predicts continued strong growth for the sector over the course of the next five years. The upward trajectory is underpinned by Oman’s favourable foreign investment regulations and incentives, as well as an ambitious economic diversification agenda and robust government support for infrastructure sectors like power and water, tourism, and transport and logistics and the establishment of special economic zones to serve as an investment focus for companies seeking infrastructure opportunities.

Against this substantial project pipeline, AMJ’s construction specialists, managing partner, Mansoor Malik, and senior associate, Henry Mitchell, have contributed an overview of Oman’s construction law regime to the latest Legal 500 Construction Comparative Guide. For guidance on the procurement, financing, permitting and licensing of construction activity in Oman as well as standard contract terms relating to the obligations of parties, taking of security, termination and dispute resolution,

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Developing a robust debt capital market to sustain long-term economic growth has been high on Oman’s policy agenda for some years. This policy is beginning to pay dividends with the value of the bonds and sukuk segment of the Muscat Securities Market (MSM) growing by 32% to OMR2.63 billion during the period 2016 to 2017. This represents about 15% of the MSM’s total market capitalisation and an average annual increase of 46% over the last five years.

In a keynote address to the Oman Debt Capital Market Conference held in Muscat on April 18, the head of Oman’s Capital Market Authority (CMA), Sheikh Abdullah Al Salmi, attributed the strong growth to CMA measures to promote debt capital market instruments as an alternative funding mechanism for both government and private sector in addition to stimulating FDI. CMA measures include focusing on key areas of market infrastructure, regulation and product innovation in both the conventional and Islamic segments.

The day-long conference organised by the Gulf Bond and Sukuk Association (GBSA) in partnership with Al Busaidy Mansoor Jamal & Co (AMJ), and Maisarah, Bank Dhofar’s Islamic banking window, assembled industry players, legal experts and stakeholders to discuss the development of both conventional and Islamic debt markets. A panel moderated by AMJ’s Islamic finance specialist, Asad Qayyum, identified the introduction of more diverse and complex instruments and structured products as a key factor to driving development and promoting financial stability.

As at June 2018, the value of bonds and sukuks on the MSM has risen to OMR2.85 billion.

AMJ partnered the Islamic Finance News in staging a successful third Oman Forum at the Grand Millennium, Muscat on March 13. The day-long annual event attracted a record number of industry players, regulators and legal experts gathered to deliberate the future of Islamic retail banking, capital markets and takaful in Oman. In his keynote address to an audience of more than 200 bankers, issuers and other key stakeholders from across the Middle East, Europe and Asia, new Central Bank of Oman chief, Tahir Salim Al Amri, noted that while Islamic banking in Oman accounted for OMR 3.03bn (12.9 per cent) of total banking assets at the end of 2017, the impressive growth trajectory of the segment shows signs of tapering. He urged Islamic banks and windows to focus on innovation and the introduction of new sharia-compliant financial products and services that are not clones of conventional banking offerings. This recurrent theme had been highlighted by AMJ’s managing partner, Mansoor Jamal Malik  in the 2017 Forum when he called for alternative investment products to maintain growth and create a vibrant and sustainable market.

During the course of the day, a high-level line-up of speakers participated in a series of panel discussions, case studies and presentations, on the opportunities and challenges in the Islamic market for both capital-raising and investment. Senior associate, Asad Qayyum , participated in a panel session of experts discussing the sharia-compliant project finance structures and future of Oman’s Islamic capital markets.

AMJ won the inaugural ‘Oman Law Firm of the Year 2017’ award at The Oath Middle East Awards ceremony hosted by Niche Publishers at Jumeirah Beach Hotel in November 2017. The Firm also received an honourable mention in the small regional firm category.

Over 300 legal professionals from the region attended the Oath Award. The event debuted in 2015 to celebrate law firms, general counsel and in-house teams who are ‘revolutionising the region with their outstanding contribution’. The judging panel includes prominent regional counsel and the Awards process is independently audited by Grant Thornton.

AMJ’s founder and managing partner, Mansoor Jamal Malik commenting on the Award said, “We are delighted to be the first recipients of The Oath’s Oman Law Firm of the Year Award and to have been shortlisted in the small regional law firm of the year category. Recognition by the top legal counsel and industry leaders in the GCC region is a stellar achievement for an Omani firm. It underscores the partnership’s unwavering commitment to raising standards of legal advice and service to the business community in Oman and beyond.”

The previous month, AMJ had won the ‘Oman Law Firm of the Year’ for the seventh year in a row at the International Financial Law Review (IFLR) 2017 Middle East Awards, as well as the IFLR’s ‘Domestic Deal of the Year’ award for its work on a merger between the International Petroleum Investment Company and Mubadala Development Company.

For more information, contact Bernadette Bhacker-Millard