MUSCAT, 21 September 2007 — Oman has imposed a rent cap of 15 percent after inflation rose to its fastest pace this year in July, spurred on by spiraling rent and food costs.
The government said rents should not be increased by more than 15 percent in the next two years, echoing similar moves by other Gulf Arab states such as the United Arab Emirates. Municipal authorities would monitor the implementation, the government said in a statement on official news agency ONA.
Annual inflation in Oman accelerated to 5.98 percent in July, its fastest pace this year. Rents, which have a weight of about 15 percent in the consumer price index, rose 8.5 percent.
Annual inflation in Oman accelerated to 5.98 percent in the year to July, up from 5.57 percent in June, official data showed. The consumer price index rose to 111.6 points compared with 105.3 points in the same month a year earlier, according to data published on the Ministry of National Economy website.
Meanwhile, foreign investors accounted for 26 percent of the value of traded shares on the Muscat bourse in August, up from 23 percent in July, official data showed. Investors from other Gulf Arab countries accounted for 12.39 percent of the total 128.68 million rials ($334.3 million) of turnover on the Muscat Securities Market in the month ended Aug. 31, the bourse’s latest investors’ guide said.
Oman’s index, up more than 19 percent, is the second best performer in the Gulf this year after Kuwait.
“Transparency and disclosure norms of the Omani bourse are better than other regional markets (which is) attracting regional investors,” said Kannan Rajagopal, investment manager of Global Omani Investment Co.
The earnings of Oman’s 30 biggest listed companies jumped 29 percent in the first half of the year compared with the year-earlier period, which is attracting investors, said Sankar Kailasam, head of research at Gulf Investment Services.
Shares of Bank Muscat
