OMAN FY08 BFIF REQUEST

UNCLAS MUSCAT 000035

SIPDIS

SIPDIS

STATE FOR EEB/CBA (DWINSTEAD),NEA/ARP
COMMERCE FOR ITA THOFFMAN

E.O. 12958: N/A
TAGS: BEXP ETRD ECON MU
SUBJECT: OMAN FY08 BFIF REQUEST

REF: 07 STATE 159597

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SUMMARY
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1. Continued Business Facilitation Incentive Fund (BFIF)
assistance will be essential in helping the Embassy promote
the soon-to-be-implemented U.S.-Oman Free Trade Agreement
(FTA). Post requests $6,807 in BFIF program funds for
outreach to the local community on the benefits of the FTA,
strengthening our relationship with our Commercial Service
(CS) partnership posts in the UAE, and supporting the
programming efforts of the Muscat American Business Council
(MABC). End Summary.

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PROMOTING THE FTA
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2. As we approach implementation of the FTA, the Embassy has
received numerous inquiries from the business community
regarding the contents of the Agreement. For this reason,
the Embassy requested that consultant Booz Allen Hamilton,
under contract to the USG through the Middle East Partnership
Initiative to develop a competitiveness study of the Omani
economy, build into the finished product an overview of the
benefits expected from the FTA, both from a broad-sweeping
perspective and from its analysis of the following sectors:
information, communications, and technology; transportation;
and energy. The analysis has been completed and translated
by Booz Allen Hamilton into Arabic. In order to make this
study more widely available, the Embassy requests BFIF monies
to print the publication for distribution to key contacts in
the business community. The estimated cost to produce 300,
40-page color booklets is $4500. We are ready to proceed
with its publication, so consideration of this proposal at
the earliest would be greatly appreciated.

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LEARNING THE ROPES OF A TRADE SHOW
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3. The Embassy depends on its partnership with its CS sister
posts in Abu Dhabi and Dubai in efforts to improve its
commercial service offerings. As the FTA nears
implementation, the Embassy would like to take advantage of
this unique opportunity to promote U.S. exports by sending
our Commercial Assistant FSN to our CS partnership post in
Dubai. The purpose of her visit would be to learn how to
work a trade show for U.S. products, how to manage a booth at
trade expositions, how to better utilize the e-menu programs,
and how to better attract Omani participation in
international buyer programs, which has been identified as a
top commercial service goal for 2008. The estimated cost of
this 3-day, 2-night proposal is $1468.50 ($350 airfare, $724
lodging, $357.50 per diem, $37 taxi expenses). CS Abu Dhabi
has identified an opportunity for our Commercial Assistant to
participate in the Arab Health trade show on January 27-30,
making consideration of this proposal a priority.

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PROVIDING GUIDANCE FOR BUSINESS COUNCIL
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4. The Muscat American Business Council (MABC) plays an
important role in promoting stronger ties between the U.S.
and Omani business communities. Sponsored by the Embassy,
the organization is now in its fourth year of operation. The
MABC is now recognized as an affiliate member of the U.S.
Chamber of Commerce, and the Chamber's Vice President for the
Middle East and Africa recently visited with MABC officials
to discuss the chapter's near-term plans. With the
implementation of the FTA, the MABC has the opportunity to
play a key role in fostering FTA-related programs for its
membership, especially with regard to tariff-free treatment
of goods, understanding of rules of origin requirements, and
regulatory updates, including the sweeping changes to Oman's
labor code.


5. The MABC faces challenges in serving as an independent,
institutional voice for the American business community in
Oman. The executive director, a former Fulbright scholar in
Oman, has now taken on a full-time position with an Omani
company. To assist the new executive director in crafting
the MABC's message, the Embassy requests BFIF assistance to
bring the executive director of the American Business Council
of Dubai and the Northern Emirates (ABCD) to Muscat for a
one-day mentoring session. Aside from providing an overview
on the operation of a business council, the ABCD executive
director would be able to provide best practices on how to
better address membership expectations through enhanced
program offerings and how to manage an annual meeting, which
the MABC has not hosted in recent years. The estimated cost
of this 2-day proposal is $838 ($350 airfare, $172 lodging,
$274 per diem, $42 taxi expenses). Post would wait until a
suitable candidate has been identified and brought on-board
before committing funds to this proposal.


6. Embassy appreciates the opportunity to use BFIF monies to
advance USG commercial goals in Oman. The Embassy's point of
contact for the BFIF program is Economic/Commercial Officer
Brian Grimm, phone (968) 2464-3623, GSM (mobile) (968)
9945-9887, email: GrimmBM@state.gov.
GRAPPO