Oman sees surge in US investment
MUSCAT: The United States of America emerged as the leading source of foreign direct investment into Oman in early 2025, with American inflows rising by 57.7% as investor confidence in the Sultanate's economic direction strengthened.
According to the latest bulletin released by the National Centre for Statistics and Information (NCSI), the US accounted for more than RO 2.8 billion in new investments, overtaking the United Kingdom, which maintained a strong position with a 21% increase in FDI, reaching RO 2.7 billion. Switzerland also stood out, recording a 101.9% jump in investments, while regional interest from Qatar rose sharply by 65.3%.
The rise in US investments is being interpreted by analysts as a long-term vote of confidence in Oman's energy reforms and industrial policies. The Sultanate's push to enhance economic diversification, coupled with regulatory clarity and enhanced investor protections, has made Oman an increasingly attractive destination for global capital.
The total value of FDI inflows reached RO 30.6 billion, up from RO 25.4 billion in Q1 2024. This significant increase of over RO 5 billion highlights growing international investor interest in Oman. By contrast, the same period last year saw more modest growth of around 8%, with capital inflows concentrated largely in traditional energy sectors. The 2025 figures reflect not only larger volumes but also a broader diversification of investor countries and sectors, indicating a structural shift in Oman's FDI landscape.
Much of the 2025 growth was driven by heightened activity in strategic sectors including oil and gas exploration, manufacturing, and financial intermediation. The oil and gas sector alone attracted over RO 4.8 billion, a 24.2% increase, while manufacturing investments grew by 27.5%.
In addition to hydrocarbons, the manufacturing sector saw significant gains, particularly in chemicals, base metals, and plastics. The government's localisation strategies and focus on value-added production appear to be drawing sustained interest from foreign investors seeking regional manufacturing hubs.
Economic experts attribute the FDI uptick to a combination of favourable reforms, improved investment climate, and Oman's strategic geographic position. Efforts under Oman Vision 2040, aimed at reducing dependency on oil, enhancing the private sector's role, and boosting global trade connectivity, are translating into measurable economic inflows.
Further supporting the investment momentum are bilateral partnerships, tax incentives in economic zones, and infrastructure upgrades across ports, logistics corridors and energy systems.
The outlook for FDI in Oman remains optimistic. As global investors look to diversify their portfolios in a volatile geopolitical environment, Oman's political stability, economic reforms, and improving credit profile continue to offer a reliable gateway into the wider Middle East and Indian Ocean regions.
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