Middle East Deal Study | Market Spotlight: Oman

Oman traditionally had a stable economy. While levels of M&A and JV activity in the country have to date been relatively muted compared to neighbouring countries with more aggressive and ambitious growth plans, several factors could mean that opportunities for deal making in Oman are likely to increase as we look ahead. One of the reasons is the recent promulgation of public private partnership and privatisation laws, which are likely to result in PPP projects as well as privatisation of different state assets. We are also seeing the results of the diversification efforts of the country in the form of the new Liwa Plastics projects coming up, in the form of new investments around the Duqm Special Economic Zone taking place and other industrial projects being set up in the deep-sea ports that the country has. We are also witnessing projects in the food securities sector coming up. We are also likely to witness consolidation in the banking and insurance sectors which will spur more deal making activity in the country. Traditionally, healthcare and education sectors have witnessed a lot of M&A and JV activity in the region. That has not been the case in Oman so far but that is likely to be the case moving ahead and finally we see that a lot of the businesses in the country are still owned by family groups or the sovereign wealth funds. As they move away to diversify their own portfolios, this is likely to result in both M&A and joint venture activities in the country.