FDI (Foreign Direct Investment)
Definition
Foreign direct investment refers to an investment made by a firm or individual in one country into business interests in another country, involving the establishment of business operations or the acquisition of a controlling interest in a foreign company.
Context
Attracting FDI is a central pillar of Oman’s Vision 2040 strategy. The 2019 Foreign Capital Investment Law removed most restrictions on foreign ownership, and special economic zones offer incentive packages designed to draw international capital into the Sultanate.
Example
A Chinese consortium investing in a petrochemical plant in the Duqm Special Economic Zone constitutes foreign direct investment, as it involves establishing a productive enterprise with long-term operational commitment.