Economic transformation gains momentum as Oman accelerates diversification goals
Muscat: Oman's strides in economic diversification, sustainability and private sector expansion under Vision 2040 form the core of The Report: Oman 2025, the latest research publication by global advisory and research firm Oxford Business Group (OBG).
The report charts the country's progress in reducing its reliance on hydrocarbons, with non-oil sectors now contributing over two-thirds of GDP. Key areas of growth include manufacturing, logistics, tourism and green energy. The launch of the $5.2bn Future Fund Oman is positioned as a major development aimed at attracting targeted foreign direct investment, particularly in high-growth industries.
A dedicated chapter on Trade and Investment a first for the publication underscores Oman's efforts to expand its global trade footprint and enhance its appeal to international investors. The report examines new initiatives designed to streamline business procedures, including the establishment of the Invest in Oman lounge, which serves as a one-stop facility to support incoming investment. It also presents data on rising FDI inflows, robust export performance and sector-specific momentum in areas such as green energy, manufacturing and logistics. Oman's expanding network of trade agreements and its increasing engagement in multilateral trade forums are assessed, with particular focus on strategic partnerships, including deepening commercial ties with the US, Saudi Arabia, the UAE and other key regional players.
Strategic infrastructure developments, such as the expansion of broadband access and transport networks, are also covered in detail, alongside the role of multiple free trade economic zones such as Sohar, Salalah and Al Mazunah and SEZAD, the special economic zone to Duqm, in strengthening Oman's regional trade position. The report explores fiscal and regulatory reforms introduced to improve the business environment, from the implementation of VAT to labour law amendments.
Digital transformation efforts are given significant attention, with insights into the country's strategy to bridge the digital divide and leverage technology to drive competitiveness. The publication also includes an overview of ongoing banking sector consolidation, the growth of Islamic finance and the measures being taken to ensure monetary stability.
The Report: Oman 2025 contains contributions and perspectives from high-level public and private sector figures. Notable interviewees featured in the report include HE Qais Al Yousef, Minister Of Commerce, Industry and Investment Promotion; HE Abdulsalam Al Murshidi, President Oman Investment Authority; HE Dr Khamis Al Jabri, Chairman, Oman Vision 2040 Implementation Follow-up Unit; HE Eng. Said Al Maawali, Minister of Transport and ITC, HE Salim M. Almahruqi, Minister of Heritage and Tourism , HE Dr Saud Hamoud Al Habsi, Minister of Agriculture, Fisheries and Water Resources, HE Shaikh Abdullah Al Salmi, Executive President, Financial Services Authority; and Dr Aflah Al Hadhrami, Managing Director, Petroleum Development Oman.
Commenting as part of his interview with OBG, Qais Al Yousef, Minister of Commerce, Industry & Investment Promotion said that the sultanate's sustained push to deliver on climate goals was contributing to greater macroeconomic stability and investor interest.
'It is crucial Oman's trade system can tackle the issues of climate change and sustainability, to avert fragmentation, safeguard trade routes and maintain a steady and predictable business landscape.'
Dana Carmen Agarbicean, OBG's Country Director for Oman, said the findings reinforce the importance of collaboration across public and private sectors in delivering economic transformation.
'Our coverage reflects a deepening confidence in Oman's development trajectory. Interviews and analysis in this edition illustrate how policy implementation, fiscal discipline and new investment frameworks are supporting long-term, broad-based growth,' she said.
The Report: Oman 2025 has been produced in partnership with the Ministry of Commerce, Industry and Investment Promotion, InvestOman, and Ominvest. The publication is the result of a year of field research conducted by a team of analysts from Oxford Business Group. It provides a comprehensive analysis of the sultanate's economic performance and outlook, and is available in print and online: https://oxfordbusinessgroup.com/reports/oman/2025-report/
About Oxford Business Group
Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, spanning Africa, the Middle East, Asia, and the Americas. It is recognised internationally as a distinctive and respected provider of on-the-ground intelligence on world's fastest-growing markets, termed The Yellow Slice, in reference to OBG's corporate colour.
Through its range of products – Economic News and Views; OBG CEO Surveys; OBG Events and Conferences; Global Platform, which hosts exclusive video interviews; and The Report publications – as well as its Advisory division, OBG offers comprehensive and accurate analysis of macroeconomic and sector-level developments for sound investment opportunities and business decisions.
OBG provides business intelligence to its subscribers through multiple platforms, including its direct subscribers, Dow Jones Factiva subscribers, the Bloomberg Professional Services subscribers, Refinitiv's (previously Thomson Reuters) Eikon subscribers, and more.
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