Investment Climate

The Sultanate enjoys investment components that facilitate, encourage and attract local and foreign investments. Its strategic location and world-wide commercial linkages play a major role in opening up the horizons of investment and free trade opportunities.

Moreover, the Omani government is undertaking constant efforts to develop sound legal framework that support and encourage local and foreign investments. Oman represents a dynamic investment destination that is well connected to the markets in the Gulf, the Middle East, Asia and Africa.

Investment incentives in Oman ⁽¹⁾

• A strategic location within the east-west nexus joining markets in Europe and Asia.
• Omani ports are one of the most strategically placed in the world and provide fast sailing times to major markets in Asia.
• Good air connectivity and road infrastructure facilitate access to other GCC countries.
• Oman does not impose any personal income tax and allows full repatriation of capital, net profit and royalties
• Highly skilled local labor force is highly skilled
• Competitive services' prices.
• Tax exemption for five years and it could be longer under certain conditions.
• Freedom of transferring capitals and profits and freedom of exchanging foreign currency with fixed exchange rate.
• One Stop Shop service: It helps investors to get all the inquiries and transactions they need as soon as possible.
• Companies that run their businesses with the Government are allowed to open new offices or commercial representative offices in Oman.

The new Foreign Capital Investment law (FCIL) in Oman – Effective January 2020

A new foreign capital investment law came into force in Oman on 7 January 2020, which repealed the old foreign capital investment law. The New FCIL facilitates an investment-friendly regulatory regime in Oman, as it allows 100% foreign ownership in all companies established in Oman other than those practicing any activity contained in 'blacklist'.

In 2021, Oman introduced new incentives for foreign investors, including exemption from certain fees and operational requirements for investment projects in the country's less-developed regions.

Invest easy (one stop shop) ⁽²⁾

Invest Easy is a comprehensive suite of e-services designed to provide the business community with a single window to interact with the government, starting from establishing a new company, licensing the activities and ending with submitting annual reports. The initiative is based on the government’s national plan of e-Transformation.

Investment opportunities in Oman ⁽³⁾

The government has published a list of projects in which investor participation is currently being sought, spanning a wide range of manufacturing, construction and agricultural- and mineral-processing activities. The country's2023 budget highlights education and healthcare as priorities for capital investment spending in 2023 and beyond. Fields of logistics and renewable energy, are having great potential as well , given Oman's strategic location and abundant solar and wind resources.⁽⁴⁾

Foreign Direct Investment (FDI) - inflows

According to UNCTAD's 2022 World Investment Report, FDI inflows to Oman reached USD 3.61 billion in 2021, showing an increase from USD 2.86 billion in 2020, despite the global economic crisis triggered by the Covid-19 pandemic. Investment has quickened, thanks to the development of the Duqm Special Economic Zone, which involves the construction of a port, an airport, a refinery and tourist facilities.

According to figures by the National Centre for Statistics and Information (NCSI), the main investing countries are the UK, followed by the United Arab Emirates, Kuwait, Qatar, and Bahrain. The bulk of FDI was directed towards the oil & gas sector, with lower shares going to the financial services, manufacturing and real estate sectors.

Foreign Direct Investment (FDI) – outflows

According to the investment cost of the projects, India, KSA, UAE, Yemen, Thailand, Qatar, China, Indonesia, Singapore, and Brunei are among the most significant nations receiving Omani investments. Top of the list of the most significant Omani businesses investing abroad was Oman Oil Company.

^{(1) Omanuna – The Official Oman e-government Service Portal: https://omanportal.gov.om/}

^{(2) Invest easy portal https://www.business.gov.om/ieasy/wp/en/.}

^{(3) Omanuna – official e-government services portal}

^{(4) EIU- One -click report: Oman, June 2023.}