Why invest in Oman?
Foreign direct investment provides opportunities for companies to
increase market share and diversify their income. The Sultanate of Oman
is a Middle Eastern country whose government is actively seeking foreign
investors. Although Oman is a relatively small market due to its small
population of 3.83 million, Oman offers a stable economy and lies
strategically on the trading route of Europe, Asia and the Far East.
Oman’s geographic proximity to Gulf Cooperation Council (GCC) and
international markets serves as a platform for investors to enter the Asian
and African markets. Here are some great reasons why you should invest
Efficient banking and financial sector
The banking and financial sector is highly efficient and able to cater for both regional and international development.
The banking sector comprises of several commercial banks, Islamic banks and international banks that offer personal
accounts and corporate banking products and services for businesses. The commercial and international banks are the
primary source of short, medium and long-term finances. There are also two government-owned specialized banks: the
Oman Housing Bank and the Oman Development Bank. Oman also has a diverse pools of business and financial
service expertise who specializes in accounting, banking, legal services, management and marketing.
First-class infrastructure and skilled workforce
There are many commercial office property, industrial, warehouse and manufacturing units that are competitively priced
in places such as Sohar, Salalah Port, Al Mazunah Free Zone and Knowledge Oasis Muscat. The advanced
telecommunications infrastructure support interconnected domestic and international networks. A large number of
infrastructure and developmental projects that are under construction include new build ports, airports, roads, industrial
zones, specific economic zones and a new railway line. In addition, Oman has a highly-skilled, multilingual workforce
that has expertise in oil and gas, tourism, manufacturing, ICT, logistics, shipping, mining and agriculture and fisheries.
The OMR12 million Innovation Park Muscat (IPM) which is due to be completed in 2015 is a science and technology
hub that will provide a thriving research and innovative environment for businesses. It will also act as a knowledge hub
linking higher education institutions in Oman with the industry. Companies located within IPM will have access to
academic resources, seminars and regular networking events.
Advantages offered by US-Oman Free Trade Agreement
The Free Trade Agreement (FTA) signed between the US and Oman helps to remove the barriers and increase
opportunities for US investors to do business in Oman. The FTA not only reduces barriers to US trade but also requires
reforms of Oman’s legal and business environment. US companies and investors will be treated as if they are domestic
businesses, irrespective of whether they invest in Oman or enter the Omani market by establishing a local branch
office, enter a joint venture with a local partner or set up a local company. Under the FTA, all consumer and industrial
goods that originate from the US will be duty-free.
Attractive tax incentives
Oman has a flat tax of 12% for all businesses with the first $78,000 in profit tax exempt. The taxes for oil and gas
investors may differ according to terms in individual contract. The flexible tax system allows exemption on profits of
foreign investment projects for 5 years, renewable for further 5 years. There is no personal income tax and no
restrictions on repatriation of imported capital and profits.
Oman welcomes investors to transfer technology and provide employment and training for Omanis. It is looking certain
that the know-how developed through international collaboration and the development of local competencies will drive
economic development still further for Oman in the coming years.