The six-month mandate calls for the team to advise Muscat throughout the divestment process, which is expected to take the form of an initial public offering (IPO) for 30 per cent of shares and distribution of about 10 per cent of stock among local pension funds. The IPO, which has been in the pipeline for several years, is due to take place by the end of 2004.

The privatisation of Omantel coincides with restructuring of the company as it prepares for the entry of competition to the local market. Award of a second GSM licence is imminent, having been due in early May (see Telecoms Briefing, page 6).