The coherence of Oman national economy in 2000 was greater when compared with the previous year. The development plans adopted by the government were fruitful, the GDP rose by 25% while the non oil sector grew by 5.2% and the refining sector grew by 30% during the first half of the year.

MSM general index dropped in the year 2000 by 20% to stand at 179 points level. However, experts expect better performance of the national economy in 2001 with likely positive reflection on MSM.

As on September of 2004, the sultanate’s exports rose by 69% and the non oil exports rose by 33% as a result of the gas projects reaching their operational phases. The Sultanate’s imports also rose by 6.5% and the government expenditure rose by 7.7% and the budget deficit was reduced by 64% as compared to the 1999 figures. With the Sultanate’s joining the WTO and the adoption of new measures allowing foreign participation in local projects up to 70%, amendments to taxation regulations, privatization of major energy and communication projects, the national economy is expected to see a boost in the near future.

The reduction in interest on rates in the USA is expected to weaken the dollar; this will also have a favorable effect on the Sultanate’s national economy as a result of lower costs of borrowing. However, the decrease in the rates of interest on deposits has negatively affected the Establishment’s investments in this sector and as a result other tools of investments such as property and stocks are being considered by investors.

The year 2000 witnessed extensive activities resulting in the utilization of 62% of the total stocks investment provision in public stock companies shares. The Establishment also made decisions to sell part of its stock with the aim of securing better returns.

PASI also utilized 73% of the total bonds investment provision in government bond.

Following the governmental decisions to suspend investments in foreign projects, PASI suspended its plans until further notice and restricted its investments on local stocks and other local investment projects.

The year 2000 also witnessed the merger of the ports services pension fund with the Establishment’s social insurance system. This resulted in an increase of 8.1% in the Establishment portfolio and 13.1% in the bank deposits.

Table (I) illustrates the allocations of the Establishment’s investments in the year 1999 and 2000 sector - wise.

Table (II) illustrates the Establishment’s new investments made in 2000.

Table (III) illustrates the ratio of the Establishment’s annual revenues on investment as on 2000 end.

As the establishment follows a trend to expand and diversify its investments, detailed proposal have been laid to participate in many of the projects under privatization.

Distribution of Invested Assets in 1999 and 2000 Sector - wise