Oman's FDI: A gateway for the region's prosperity
It brings innovation, advanced technologies, international expertise, and, most importantly, jobs. Together, these elements enable nations like Oman to transition from traditional oil dependence toward a diversified, future-ready economy.
The world economy, however, hasn't made this journey easy. According to the World Bank's Global Economic Prospects published in June 2025, global economic growth is projected to decelerate to 2.3% this year—the lowest pace since 2008 outside of full-blown recessions. At the same time, global FDI flows have been under strain due to rising trade barriers, geopolitical tensions, and a general sense of economic uncertainty. The World Bank notes that FDI inflows into emerging and developing economies have now dropped to less than half their 2008 peak and will likely remain subdued unless governments introduce smart reforms.
Amid this difficult global environment, the Middle East has shown remarkable resilience, and Oman has become a standout success story. According to the FDI Trends Report—July 2025 by the Public Authority for Special Economic Zones and Free Zones, greenfield FDI capital expenditure in the Middle East rose by 30.7% from January to May 2025 compared to the same period in 2024. Project numbers also went up by 14.5%, thanks to long-term planning, strategic diversification, and investor-focused policies across the region.
Oman has emerged as a regional leader in greenfield FDI growth. The same report highlights that Oman witnessed a staggering 4,402% increase in greenfield FDI capital spending during the first five months of 2025, alongside a 36% increase in the number of investment projects. This growth has been driven by strategic investments in renewable energy, ICT, real estate, and the expansion of special economic zones. Oman now ranks first in the region in terms of year-on-year growth in FDI, showing that the country is fast becoming a serious investment destination in the Gulf.
These growth numbers are not just impressive—they're real proof of investor trust. According to the National Centre for Statistics and Information (NCSI), Oman's total FDI stock reached $79.6 billion (equivalent to RO 30.6 billion) by the end of the first quarter of 2025, marking a 20.6% increase from the same period last year. While the oil and gas sector continues to take the lion's share—roughly $64.2 billion—other sectors are quickly catching up. Manufacturing has attracted $7.1 billion in foreign investment, and financial services have brought in $3.4 billion, all pointing toward meaningful economic diversification.
Oman is also drawing interest from global partners. South Korea leads the way, investing over $3.45 billion in Oman during early 2025. This includes a major project by LUPRO—a green ammonia facility in Duqm, built in partnership with Bait Muscat. This facility is expected to produce 5 million tonnes of green ammonia and is supported by a 200 MW power plant and a 2 GW renewable energy complex. China has also made its mark with a $564 million solar cell manufacturing plant in Sohar Freezone. Egypt, too, has committed to projects in ICT and manufacturing, making Oman a preferred destination across Asia and Africa.
All this progress is no coincidence—it is driven by vision and leadership. Oman Vision 2040, the country's blueprint for economic and social transformation, is guiding this shift. This vision aims to reduce the contribution of oil and gas to just 8.4% of GDP by 2040 and boost the share of non-oil sectors to 91.6%. Other goals include producing 1 million tonnes of green hydrogen by 2030 and generating 35% to 39% of electricity from renewable sources by 2040. These are not just numbers; they reflect Oman's strong commitment to sustainable growth and future-ready industries.
To attract more investors, Oman has introduced a host of reforms. The Foreign Capital Investment Law, introduced in 2019, allows 100% foreign ownership in most sectors and removes minimum capital requirements. There are also generous tax breaks in free zones, zero VAT, duty-free imports, and more relaxed Omanisation policies within special zones. Platforms like 'Invest in Oman' make it easy for investors to set up by offering a smooth and transparent approval process.
Another crucial piece of the puzzle is talent. Attracting the right kind of FDI requires skilled professionals—especially in government agencies that promote investment. These professionals must understand not just local rules and sectors but also global market trends, international finance, taxation, logistics, and real estate. Soft skills are equally important. The ability to market Oman's opportunities, build relationships, and negotiate deals is essential for success.
Recognising this, Oman is investing in its human capital. Investment promotion agencies like 'Invest Oman' are working to develop teams that combine technical expertise with strong interpersonal skills. According to experts cited in the FDI Trends Report, investment promotion today is not just about facts and figures—it's about communication, collaboration, and creativity.
To support this, Oman is hosting a major training initiative: the FDI Executive Program in FDI, SEZs & Investment Promotion. Scheduled for September 16–18, 2025, in Salalah, this program is being organized by Smart Investment & Consultancy Gateway (SIG) and NextZone. The sessions will cover global investment trends, strategic promotion, and how to use digital tools and AI for targeting the right investors.
In the end, FDI extends beyond capital—it encompasses knowledge transfer, partnerships, and innovation. For Oman, it means more than economic growth. It's about creating clean energy, new industries, and job opportunities for future generations. It's about placing Oman firmly on the global investment map—while holding true to its heritage, values, and vision. The world is changing fast, but Oman is not merely adapting to global trends—it is shaping them with clarity of vision and strategic intent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Muscat Daily
2 hours ago
- Muscat Daily
65% Omanis in private sector earn less than RO600
Muscat – Omani nationals employed in the government sector continue to earn significantly higher wages compared to their counterparts in the private sector, according to 2024 data from National Centre for Statistics and Information. Out of 740,877 Omanis insured in 2024, 392,011 work in the government and 348,866 are in the private sector. Despite this near-even split, a stark contrast emerges in wage distribution. The private sector has a heavy concentration of Omanis in the lowest wage brackets. A total of 138,632 private sector employees earn between RO325 and RO400 monthly, representing nearly 40% of all Omanis in the private sector. In contrast, 5,077 government employees fall within this bracket, which is 1.3% of all those employed in the government sector. The disparity persists across other low-income bands. A total of 47,713 private sector employees earn RO400-RO500, compared to 11,047 in government. In the RO500-RO600 bracket, 40,387 are in private jobs versus 30,090 in government. Combined, more than 65% Omanis in the private sector earn less than RO600, whereas less than 12% government employees fall into this category. At the higher end of the wage spectrum, the imbalance is reversed. In the RO2,000 to RO2,500 range, 4,987 are government compared to 7,797 private sector employees. Among those earning RO2,500 or more, 16,172 are in the private sector while 5,689 are in government. This suggests a narrowing gap at the very top but a broader divide across the lower and middle wage tiers. Gender disparities are also evident. Of the total 740,877 Omanis insured, 215,671 are women and 525,206 are men. Male employees dominate all income categories, especially the higher wage brackets. Sector-wise, Omanis in the private sector are spread across different fields. The construction sector employs the largest number of Omanis – 76,573 – followed by manufacturing (57,627), wholesale, retail trade and repair of vehicles (56,543), agriculture and fisheries (47,929), and transport and storage (47,428) making the top five sectors employing citizens. For expatriates, the construction sector is the largest employer (439,924), followed by wholesale, retail trade and repair of vehicles (277,247), those employed by households (272,542), manufacturing (183,134) and administrative and support services (134,275), making the top five sectors employing expatriate workers.
Muscat Daily
21 hours ago
- Muscat Daily
Oman's vehicle registrations rise 5.5% to nearly 1.8mn
Muscat – The total number of registered vehicles in Oman reached 1,798,062 till the end of June this year, marking a 5.5% increase compared to the same period last year, according to the National Centre for Statistics and Information (NCSI). Private vehicles made up the majority of registered vehicles, accounting for 79.3% with 1,425,308 units. Commercial vehicles followed at 14.7% (264,913), while rental vehicles represented 2.3% (41,386). The remainder included taxis, government vehicles, and other categories. White vehicles remained the most common on Omani roads, representing 42.3% of the total, or 761,358 vehicles. Silver was the second most popular colour at 12.9% (231,822), followed by grey with 181,140 registered vehicles. In terms of engine capacity, vehicles with engines between 1,500cc and 3,000cc comprised the largest share at 54.5% (979,300), while those with capacities between 3,001cc and 4,500cc made up 22.2% (399,770). Vehicles weighing under 3 tonnes formed the largest weight category, representing 90.7% of total registrations, or 1,631,392 vehicles.
Times of Oman
a day ago
- Times of Oman
Registered vehicles in Oman rise by 5.5%
Muscat: The total number of registered vehicles in the Sultanate of Oman increased by 5.5% by the end of June 2025, reaching 1,798,062 vehicles compared to June of the previous year. According to data released by the National Centre for Statistics and Information, private vehicles accounted for the largest share of registered vehicles in Oman, making up 79.3% with a total of 1,425,308 vehicles. Commercial vehicles followed at 14.7% with 264,913 vehicles, while rental vehicles constituted 2.3% with 41,386 vehicles. The remaining percentages were distributed among taxis, government vehicles, and others. In terms of colors, white vehicles topped the list of the most registered colors at 42.3%, totaling 761,358 vehicles. Silver came next at 12.9% with 231,822 vehicles, followed by gray vehicles at 181,140. Regarding engine capacity, vehicles with engines between 1500cc and 3000cc recorded the highest proportion among registered vehicles at 54.5%, amounting to 979,300 vehicles. This was followed by engines between 3001cc and 4500cc at 22.2%, totaling 399,770 vehicles. The statistics also revealed that vehicles weighing less than 3 tons constituted the largest share of registered vehicles, accounting for 90.7% with 1,631,392 vehicles.
