a day ago
Oman emerges investor friendly destination
MUSCAT, June 29
In a rapidly evolving regional economic landscape, Oman has emerged as one of the Gulf's most promising and investor-friendly destinations. Anchored by Oman Vision 2040, a stable business environment, and a suite of progressive investment laws, Oman continues to attract robust foreign direct investment (FDI) across a range of strategic sectors.
According to the latest data from the National Centre for Statistics and Information (NCSI), total FDI in Oman soared to RO 30.1 billion by the end of 2024, up sharply from RO 22.9 billion in 2023. This growth has been fuelled by opportunities in manufacturing, logistics, finance, real estate and green energy — alongside the traditional oil and gas sector.
The Foreign Capital Investment Law, enacted in 2019, has opened the door to a more competitive investment environment. It allows full foreign ownership across most sectors and removes minimum capital requirements, significantly simplifying company formation for international investors.
The Ministry of Commerce, Industry and Investment Promotion emphasises that this legal framework provides strong investor protections and has greatly reduced registration times, supported by the unified digital platform "Invest in Oman," which streamlines licensing and government approvals.
Oman offers a suite of incentives, including tax exemptions of up to 25 years in free zones, customs exemptions, free repatriation of profits and capital, and long-term residency visas (5 to 10 years) for eligible investors and their families.
While hydrocarbons still account for around 79 per cent of total FDI, there is notable diversification into non-oil sectors. Manufacturing attracted RO 2.1 billion, financial services RO 1.3 billion, and real estate nearly RO 1 billion.
'We chose Oman because of its stability, strategic location, and skilled workforce,' says Sanjay Menon, an Indian entrepreneur operating a light industrial facility in the Salalah Free Zone. 'The government is supportive, and procedures are clear and efficient.'
Free zones and economic areas have become major investment engines. The Special Economic Zone at Duqm (SEZAD) has attracted over RO 6 billion in committed investments across hydrogen, petrochemicals, logistics, and tourism. Meanwhile, Sohar Industrial Port has secured more than $30 billion in cumulative investment, drawing strong interest from European, Chinese and GCC investors.
With three world-class ports (Salalah, Sohar and Duqm), four international airports, and an expanding highway and railway network, Oman is strategically positioned as a logistics and re-export hub. The World Bank ranks Salalah Port among the most efficient globally, while Duqm is quickly developing into a fully integrated industrial and trade city.
Oman's location offers unique logistical advantages and enhanced security, key factors valued by global supply chains.
The Sultanate Oman is also leading in digital facilitation. The 'Invest in Oman' portal functions as a one-stop platform for business registration, site selection, licensing and scheduling meetings with government agencies. It supports both English and Arabic and provides tailored advisory services for foreign investors.
Since its launch, the portal has issued more than 1.2 million electronic documents and over a million automatic licences, underscoring Oman's push towards digital governance and transparency.
Investor confidence continues to rise, with the UK leading at RO 13.7 billion in investments, followed by the US with RO 5.2 billion. Other key contributors include the UAE, Kuwait, China and Switzerland.
The British-Omani Business Council notes, 'Oman offers significant opportunities not only in energy but also in education, healthcare, and clean technologies. The investment environment is maturing - it's time for global players to take a closer look.'
Guided by Oman Vision 2040, Oman aims to transform into a competitive, knowledge-based economy and position itself as a regional leader in sustainable development.
Key advantages include political stability, a transparent legal system, zero personal income tax, and a strategic geopolitical location. Oman scores consistently high on regional transparency indices and remains largely insulated from regional volatility.
For investors, Oman offers a blend of economic openness and regulatory clarity, with predictable policies, efficient dispute resolution mechanisms, and dedicated commercial courts for investment cases.
As Oman rolls out major reforms and mega-projects under Oman Vision 2040, international interest is only set to grow. Whether you are a startup looking for a regional base, a logistics company seeking new trade routes, or a green energy firm with global ambitions — Oman offers the access, incentives and confidence to thrive.
