Identifier
Created
Classification
Origin
07MUSCAT978
2007-10-23 12:33:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Muscat
Cable title:
MINISTER REAFFIRMS ADHERENCE TO MARKET PRINCIPLES
how-toVZCZCXYZ0017 RR RUEHWEB DE RUEHMS #0978 2961233 ZNR UUUUU ZZH R 231233Z OCT 07 FM AMEMBASSY MUSCAT TO RUEHC/SECSTATE WASHDC 8888 INFO RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS MUSCAT 000978
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP
COMMERCE FOR ITA COBERG
TREASURY FOR OTA VALVO
E.O. 12958: N/A
TAGS: ECON EFIN MU
SUBJECT: MINISTER REAFFIRMS ADHERENCE TO MARKET PRINCIPLES
REF: MUSCAT 860
UNCLAS MUSCAT 000978
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP
COMMERCE FOR ITA COBERG
TREASURY FOR OTA VALVO
E.O. 12958: N/A
TAGS: ECON EFIN MU
SUBJECT: MINISTER REAFFIRMS ADHERENCE TO MARKET PRINCIPLES
REF: MUSCAT 860
1. (U) On October 7, Commerce and Industry Minister Maqbool
bin Ali Sultan addressed the Oman Journalists' Association
(OJA) in the midst of calls from the public for government
action to halt general price increases, especially with
regard to housing and food. Aside from the recent Council of
Ministers' decision to limit rent hikes for the cities of
Muscat and Sohar to 15% for 2007 and 2008, the Minister
reaffirmed the government's position not to set price caps
for food and other commodities for fear of spurring a black
market. Maqbool acknowledged that the maintenance of the
dollar peg was helping to create imported inflation, as the
index rose to 6.5% in August. Nevertheless, he reiterated
the Central Bank's stance that the currency arrangement would
remain unchanged and noted that a weaker rial had the dual
benefit of attracting more foreign investment to the
Sultanate while making Omani exports cheaper for foreign
buyers.
2. (SBU) Comment. The OJA event, well-attended by Omanis and
Arab expatriates, entailed an open and detailed discussion
between the media and the minister on the government's
economic policies. Maqbool came well-prepared, and offered
in-depth responses to challenges from participants. He used
the public forum to stress adherence to free market
principles, echoing statements by National Economy Minister
Ahmed bin Abdul Nabi Macki in previous public engagements.
Maqbool's willingness to appear before the media association
reflects a recent trend by the economy and commerce
ministries towards more openness and transparency. This, in
turn, has generated some critical reporting from the new
Arabic daily "Azzamn," which questioned the Minister's
hands-off approach in dealing with the price hikes. Of
further interest is that the Ministry of Interior, which
approves "Azzamn" articles, allowed it to be published. End
Comment.
GRAPPO
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP
COMMERCE FOR ITA COBERG
TREASURY FOR OTA VALVO
E.O. 12958: N/A
TAGS: ECON EFIN MU
SUBJECT: MINISTER REAFFIRMS ADHERENCE TO MARKET PRINCIPLES
REF: MUSCAT 860
1. (U) On October 7, Commerce and Industry Minister Maqbool
bin Ali Sultan addressed the Oman Journalists' Association
(OJA) in the midst of calls from the public for government
action to halt general price increases, especially with
regard to housing and food. Aside from the recent Council of
Ministers' decision to limit rent hikes for the cities of
Muscat and Sohar to 15% for 2007 and 2008, the Minister
reaffirmed the government's position not to set price caps
for food and other commodities for fear of spurring a black
market. Maqbool acknowledged that the maintenance of the
dollar peg was helping to create imported inflation, as the
index rose to 6.5% in August. Nevertheless, he reiterated
the Central Bank's stance that the currency arrangement would
remain unchanged and noted that a weaker rial had the dual
benefit of attracting more foreign investment to the
Sultanate while making Omani exports cheaper for foreign
buyers.
2. (SBU) Comment. The OJA event, well-attended by Omanis and
Arab expatriates, entailed an open and detailed discussion
between the media and the minister on the government's
economic policies. Maqbool came well-prepared, and offered
in-depth responses to challenges from participants. He used
the public forum to stress adherence to free market
principles, echoing statements by National Economy Minister
Ahmed bin Abdul Nabi Macki in previous public engagements.
Maqbool's willingness to appear before the media association
reflects a recent trend by the economy and commerce
ministries towards more openness and transparency. This, in
turn, has generated some critical reporting from the new
Arabic daily "Azzamn," which questioned the Minister's
hands-off approach in dealing with the price hikes. Of
further interest is that the Ministry of Interior, which
approves "Azzamn" articles, allowed it to be published. End
Comment.
GRAPPO