The political index is an indicator of political stability, seen as a pre-requisite for a stable economy and business environment. The long-term political score considers more structural elements such as: Is there a functioning democracy? ...Have recent governments pursued similar, enlightened policies amid a stable political environment? The short-term political score considers more transient influences such as: Have there been recent large-scale demonstrations or strikes? To what extent have these threatened the political status quo? ...What is the current position in the political cycle � to what extent is this contributing to political risk? Is the government having trouble passing legislation?
...Benefiting from considerable oil resources and having a stable politi- cal risk profile (compared with regional peers), Oman ranks favourably in our proprietary Operational Risk Index for the Middle East and North Africa region. The government has allocated significant funds to improve sectors such as infrastructure, healthcare and tourism, which in turn has attracted foreign investors. ...The government has allocated significant funds to improve sectors such as infrastructure, healthcare and tourism, which in turn has attracted foreign investors. Indeed, a transparent legal system and relatively low bureaucracy are the main features setting Oman s busi- ness environment apart, and as long as the political outlook remains stable the country will continue to be perceived as investor-friendly. That said, the intensification of Omanisation measures � attempts to replace expatriates in the private sector with local staff � raises the costs for firms, and increases long-term policy uncertainty. ...Indeed, a transparent legal system and relatively low bureaucracy are the main features setting Oman s busi- ness environment apart, and as long as the political outlook remains stable the country will continue to be perceived as investor-friendly. That said, the intensification of Omanisation measures � attempts to replace expatriates in the private sector with local staff � raises the costs for firms, and increases long-term policy uncertainty.
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