Organization’s Description
The state project Al-Mazunah Free Zone is an investment site with tremendous opportunities. The zone is located in Oman, 4 km from the border with Yemen, and covers 3 million square meters (The project, n.d.). Numerous facilities are located in this area, such as shopping centers, hotels, car showrooms, administrative centers, showrooms, service centers, clinics, shops, livestock areas, multipurpose areas, parking, green areas, and a mosque. The zone has all the necessary infrastructure – roads, bridges, drainage systems, Internet, telephone, and mobile communication. A unique investment advantage of the project is its proximity to the border with Yemen, which creates the preconditions for attracting the Yemeni workforce without visas and paperwork. As a result, investors will be able to choose the future employees of enterprises more freely. It is assumed that the site will become a location for commercial, investment, industrial, and tourism businesses. Besides, the state offers investment advantages in the form of tax and administrative benefits.
Al-Mazunah Free Zone includes sites for several industries. The commercial sector provides opportunities for the storage and trade of cars, equipment, and agricultural goods. Further, the industrial sector offers sites for food, clothing, plastics, woodworking, automotive and machinery plants, and factories. There are also platforms for assistant services in the zone, including transport, distribution, clearing services, restaurants, translation bureaus, office services such as printing, Internet, fax. Given the overall attractiveness of the Yemeni market, with a total purchasing power of $ 55.4 billion and a population of 28 million people, and the high purchasing power of the Omani market, the project is an ideal trading platform (Investment opportunities, n.d.). It should also be noted that Yemen’s main export products are seafood, fish, and agricultural products.
Another benefit of the Al-Mazunah Free Zone is government support, as Oman has developed a package of incentives to attract investors to the zone. In particular, all investors receive an exemption from income tax for 30 years without filing an income tax return (Investment benefits, n.d.). The zone also provides an opportunity for easy handling of foreign currencies and capital input. Besides, Oman guarantees investors exemption from the Commercial Agency Act, customs duties, and import tax on all permitted goods. Investors are also not subject to the minimum investment requirement and receive 100% equity ownership. Finally, Oman guarantees visa-free employment for Yemeni labor and reduces Omani labor’s recruitment rate to 10%. Moreover, all factories and plants receive a national certificate of origin. Besides, investors receive a residence permit in Oman under a simplified procedure and permission to open a representative office in Oman’s customs zone. Among other benefits of the location, the ease of movement between Oman and Yemen should be mentioned, and the Yemeni capitals’ vast potential.
The Al-Mazunah Free Zone was developed, taking into account investors’ interests. It provides a massive range of services for conducting international business and trade. The primary stake is in the fact that Al-Mazunah Free Zone will become a trade hub with the presence of small and large entrepreneurs. Al-Mazunah Free Zone also assumes the placement of many enterprises that will serve businessmen’s needs – restaurants, parking lots, green areas, a mosques. The target group of investors comprises European, Asian, Asia-Pacific, American, Australian, and African businesses. Al-Mazunah Free Zone, as a governmental profit organization, will quickly find its niche in the market, competing with similar sites in the UAE and countries of the Persian Gulf.
Description of the Marketing Issue
As can be seen from the information above, Al-Mazunah Free Zone is a government high potential organization. The project was created to attract as many investors as possible from all over the world. However, investors from both Yemen and the Horn of Africa deserve special attention, as these markets are traditionally considered the closest to the Omani market. Therefore, the marketing issue is the necessity to attract investors from Yemen and the Horn of Africa.
Although Oman welcomes any investment and the project is potentially successful, building strong trade relations with neighboring states will strengthen the state economy and Oman’s geopolitical role. Therefore, it is vital to find ways to solve the presented marketing issue and determine its edges. In particular, the boundaries are expressed by the fact that Yemen and the Horn of Africa are traditional Oman trading partners and competitors. Strengthening trade relations between these countries can be a welcome bonus to establishing Oman’s role in the market as an international business hub and facilitating its entry into new markets.
In particular, Yemen is an excellent market for consumer goods, while the Horn of Africa could be useful trading partners in agriculture and car sales. It is also important to note that, thanks to the simplified customs relations between Yemen and Oman, it will be easier to establish trade and business processes in this direction. At the same time, the taxation and administration benefits will be particularly advantageous in the formation of connections with investors from the Horn of Africa. Finally, to promote Al-Mazunah Free Zone as an investment platform targeting Yemen and the Horn of Africa investors, websites in respective languages could be created.
Management Question
The management question will be focused on specific management actions based on detailed marketing analysis that the company will need to take to reach the marketing issue objectives. Therefore, the management question will be: What particular steps should the Al-Mazunah Free Zone governmental organization undertake to attract $ 10 million in investment from Yemen and 10 million in investment from the Horn of Africa in 2021? The answer to this question will form the bulk of the study and help Al-Mazunah Free Zone successfully develop in its chosen direction.
References
Investment benefits. (n.d.). Web.
Investment opportunities. (n.d.). Web.
The project. (n.d.). Web.