Oman

Excellence Audit & Accounting Services, Oman – Global Accounting Alliance Member

Economic Overview & Business Opportunities – Oman

Nestling in the Persian Gulf, the Sultanate of Oman certainly lives up to its slogan,” Beauty Has an Address.” Mountainous regions and golden sand dunes contrast starkly with dazzling blue seas, lush oases, and an irresistible old-world charm. However, it’s not just a stunning tourist destination, as Oman is one of the wealthiest countries in the world. Its economy is also one of the fastest growing in the Gulf, providing excellent business opportunities in Oman. 

The Sultanate’s culturally rich but strictly traditional governance began a new era in 1970 under Sultan Qaboos bin Said. Oman is now a modern, peaceful, prosperous country that continues attracting serious entrepreneurs and investors. Infrastructure, industrialisation, and Omanisation continue to benefit from far-sighted and strategic cultural, economic, and development policies. The International Monetary Fund’s (IMF) latest statement reports a robust economic outlook that supports higher growth. 

 

The Economy of Oman

Oman has a population of 5.3 million, and its economy depends primarily on oil and gas production. Real gross domestic production (GDP) growth for 2022 is forecast at 4.4%, reaching approximately USD75 billion. Non-oil exports include chemical products, base metals, and plastics, while imports include minerals, transport equipment, and livestock.

Oman’s international seaports in Duqm, Salalah, and Sohar indicate a busy year with steady growth. The Arab Monetary Fund’s Economic Outlook Report forecasts Oman’s economy to grow by 4.7% in 2022. Overall economic activity for mid-2022 shows the following relevant figures:

• Fiscal surplus of USD2 billion
• Oil and gas revenue increase of 137.8%
• A 19% increase in foreign direct investment (FDI)
• Total exports of USD5.3 billion with a 51.4% year-on-year growth 
• Total Imports of USD3.4 billion with a 17.5% year-on-year growth

Oman also has a non-oil economy which includes manufacturing, tourism, real estate, and logistics. These sectors are benefitting and showing growth from the Government’s new fiscal and legislative policies. Capital investment continues to drive job creation and new business opportunities in Oman.

 

Why Invest in Oman

The Sultanate of Oman is at the forefront of Gulf nations when it comes to business and investment. It has a competitive business climate, with access to Asian, African, Middle Eastern, and other international markets. Approximately 40% of global oil and gas exports navigate Omani territorial shipping lanes via the Straits of Hormuz. There is currently no personal taxation regime, and the country has a skilled and diverse workforce.

The Government is also accelerating new plans and policies that will lessen the Sultanate’s reliance on the oil industry. Diversification is a critical component with a focus on tourism, transformative technology, supply chain logistics, and renewable energy sectors. Business opportunities in Oman are also ramping up due to the Sultanate’s position as a regional ICT and data hub. 

This aligns with the country’s 2040 Vision toward becoming a digitally innovative economy with world-class connectivity and infrastructure. Along with Tanfeedh, the Sultanate’s economic diversification plan, Oman continues its drive to create a diverse and sustainable economy.