The potential of foreign direct investment (FDI) as a means of developing ports: Evidence from Oman

Abstract

This article examines the potential of foreign direct investment (FDI) in developing the port sector in Oman. Data was collected through an administered questionnaire with a sample of 110 respondents selected randomly from three ports: Sohar, Salalah and Sultan Qaboos. The study used SWOT analysis, Chi-square and t-test to establish that the strategic location of the country, social and political stability, easy access to skilled manpower from neighbouring countries and good infrastructure are the main factors that attract FDI to Oman’s port sector. The benefits of FDI to Omani ports include providing access to capital, bringing new organizational and managerial practices, creating more jobs, supplementing domestic investment and transferring advanced technology.