The role of FDI in Enhancing Oman?s diversification strategy: Legal framework

The aim of this study is to explore the role of the FDI in promoting the diversification strategy in Oman, addressing the issue from a legal perspective. The regulatory framework for FDI in any country or economy consists of the laws, regulations, policy declarations and guidelines that are relevant to FDI and related fields. The laws and regulations in this study have been selected to cover, inter alia: corporate law, including accounting and reporting regulations; incentives for, and restrictions on, FDI; Forms of establishment; mergers and acquisitions; securities; and taxation (mainly corporate and individual income tax); and transfer of technology.

The aim of this study is to explore the role of the FDI in promoting the diversification strategy in Oman, addressing the issue from a legal perspective. The regulatory framework for FDI in any country or economy consists of the laws, regulations, policy declarations and guidelines that are relevant to FDI and related fields. The laws and regulations in this study have been selected to cover, inter alia: corporate law, including accounting and reporting regulations; incentives for, and restrictions on, FDI; Forms of establishment; mergers and acquisitions; securities; and taxation (mainly corporate and individual income tax); and transfer of technology.

Overall, there is substantial literature linking the quality of institutions with FDI inflows. Empirically, a vast literature tried to investigate what are the main derivers of FDI flow to the recipient countries. A study of S?nchez-Mart?n, de Arceand Escribano (2014) explored the main factors influencing FDI in Latin America over the period 1990?2010, indicated that trade openness, low short-term debt levels and balance of payments deficit, government stability and low expropriation risk are main drivers behind FDI flows to Latin America. The flow of FDI in MENA region as studied by Mohamed and Sidiropoulos (2010) using panel data over the period 1975?2006, concluded that the size of the host economy, the government size, natural resources and the institutional variables are key derivers of FDI to the MENA region. Also, Kamaly (2002) in a dynamic panel model covering the period 1990?1999, showed that only the economic growth and the lagged value of FDI/GDP are significant determinants of FDI flows to the MENA region.