- Investment grade with S&P, Moody’s and Fitch since December 2025; no sovereign default on record since 1983
- Foreign direct investment stock OMR 31.4 billion at the end of 2025, up 8.1% in a year (NCSI)
- 100% foreign ownership in most sectors, corporate tax 15%, VAT 5%, free-zone tax holidays of up to 30 years
- Oman–US Free Trade Agreement in force since 2009: duty-free access and 100% ownership rights for US investors
Oman’s investment case in brief
Oman is a small, stable, dollar-pegged economy of about USD 110 billion that has spent the past five years fixing its public finances and opening its doors. Government debt fell from about 69% of GDP in 2020 to about 35% at the end of 2025. All three major rating agencies now rate the sovereign investment grade. Growth is modest but accelerating, inflation is close to 1%, and the non-oil economy already accounts for more than 70% of real output. Foreign investors can own 100% of a company in most activities, repatriate capital and profits freely, and operate from special economic zones with tax holidays of up to 30 years.
This page sets out that case with the data behind it: the economy and its trajectory, where the opportunities are, what Oman Vision 2040 commits the state to, how the free trade agreement with the United States works, what the practical steps are, and, plainly, where Dune & Deed fits in and where it does not. Every figure carries its source and date. For the lifestyle case, see Why Oman.
- Nominal GDP, 2025
- USD 109.5 billion; USD 20,064 per head (NCSI)
- Real GDP growth
- 1.6% in 2024; 2.4% in 2025; about 3.7 to 4% forecast for 2026
- Inflation
- 1.0% average in 2025; about 2.6% forecast for 2026
- Government debt
- 34.6% of GDP at end 2025, down from 68.8% in 2020
- Credit ratings
- S&P BBB-, Moody’s Baa3, Fitch BBB-, all stable
- Foreign direct investment stock
- OMR 31.4 billion at end 2025; OMR 32.2 billion by March 2026
- Currency
- Rial pegged to the US dollar at 0.3845 since 1986
- Population
- 5.36 million at end 2025, 43% expatriate
- Corporate tax and VAT
- 15% and 5%; no stamp duty; no personal income tax until 2028
Sources: Central Bank of Oman Annual Report 2025 (8 September 2026); IMF staff visit statement (16 June 2026); World Bank Macro Poverty Outlook, Oman (April 2026); NCSI foreign investment statistics (11 April 2026) and Statistical Year Book 2026; National Bank of Oman investor presentation citing NCSI (Q1 2026).
Why invest in Oman
The short version is that Oman offers the Gulf’s stability and tax position with a lower cost base, a government that has demonstrated fiscal discipline through an oil-price cycle, and a geography that no neighbour can copy. Its coastline faces the open Arabian Sea and the Gulf of Oman; the ports of Salalah, Duqm and Sohar sit outside the Strait of Hormuz, which the World Bank noted in April 2026 gives Oman’s trade a degree of resilience that Gulf-side ports do not have. Its foreign policy of friendship with all sides has kept it out of the region’s conflicts for half a century and made Muscat the venue of choice for quiet diplomacy.
The legal framework caught up with the ambition in 2020. The Foreign Capital Investment Law, Royal Decree 50/2019 in force from 1 January 2020, allows 100% foreign ownership in all activities except a negative list, removed the old minimum capital requirement, guarantees the free transfer of capital and profits, and lets an investor sell the project to another foreign or Omani investor. Commercial registration is digital through the Oman Business platform, and Invest Oman acts as a single window for larger projects. The rating agencies’ upgrades in 2024 and 2025 were explicitly about this: lower debt, better spending discipline, a fiscal breakeven oil price below USD 70, and a sovereign wealth fund, the Oman Investment Authority, that now carries much of the national project pipeline without burdening the budget.
- Stability: a sultanate with an orderly succession in 2020, a neutral foreign policy and third place in the Middle East on the Global Peace Index 2025
- Sound money: rial pegged to the US dollar since 1986; inflation averaged 1.0% in 2025
- Fiscal credibility: debt cut by about half as a share of GDP in five years; investment grade with all three agencies
- Open ownership: 100% foreign ownership under the Foreign Capital Investment Law; no minimum capital; free repatriation
- Low tax: 15% corporate tax, 5% VAT, no stamp duty, no personal income tax until 2028; free-zone holidays of 25 to 30 years
- Geography: ports outside the Strait of Hormuz on the routes between Asia, East Africa, the Gulf and Europe
- A plan: Oman Vision 2040 with published indicators, and a second five-year plan (2026 to 2030) that targets 60,000 new jobs
Sources: Foreign Capital Investment Law, Royal Decree 50/2019 (WIPO Lex); Moody’s rating action (10 July 2025); Fitch via Ministry of Foreign Affairs (9 December 2025); S&P Global Ratings (27 September 2024 and 25 September 2026); World Bank Macro Poverty Outlook (April 2026); Ministry of Economy, Eleventh Five-Year Development Plan launch (January 2026); Global Peace Index 2025.
Economic growth and resilience
Oman’s economy grew 2.4% in real terms in 2025, up from 1.6% in 2024, with non-hydrocarbon activity growing 3.1% and agriculture, fisheries, manufacturing and services all contributing. The Central Bank projects growth of 4.0% in 2026 and the IMF about 3.7%, led by higher oil output as OPEC+ limits ease and by continued non-oil expansion. Non-oil activities made up 73.3% of GDP at constant prices by the third quarter of 2025, against a Vision 2040 target of 83.9% by 2030. Inflation has stayed among the lowest in the region, at 0.6% in 2024 and 1.0% in 2025, under the dollar peg and administered prices for staples.
The resilience is in the balance sheet. Oman went into the 2020 oil-price shock with debt near 69% of GDP and came out of the next five years at about 35%, through spending discipline, VAT, subsidy reform and the transfer of state-owned enterprise debt to the Oman Investment Authority. Moody’s put the fiscal breakeven oil price below USD 70 a barrel for 2024 to 2025, down from USD 84 in 2016 to 2020. The IMF expects fiscal and external surpluses in 2026 and 2027 at current oil prices, and Oman has no record of sovereign default since 1983. For an investor, that combination, low debt, low inflation, a hard peg and an upgrade cycle, is what distinguishes Oman from larger but more leveraged emerging markets.
| Indicator | 2024 | 2025 | 2026 forecast |
|---|---|---|---|
| Real GDP growth | 1.6% | 2.4% | 3.7% (IMF) to 4.0% (CBO) |
| Non-hydrocarbon GDP growth | 3.3% | 3.1% | 2.5% (IMF) to 3.2% |
| Inflation, annual average | 0.6% | 1.0% | About 2.6% |
| Government debt, % of GDP | 35.4% | 34.6% | Falling; Vision 2040 ceiling 60% |
| Fiscal balance | Surplus | Close to balance despite lower oil prices | Surplus of about 4.5% of GDP (IMF) |
| Oil production | About 1.0 mbpd | 1.005 mbpd | Rising toward 1.2 mbpd by 2027 to 2029 |
IMF staff visit statement, 16 June 2026. The Central Bank of Oman’s own 2026 projection is 4.0% (Annual Report 2025, September 2026).
Sources: Central Bank of Oman Annual Report 2025 (September 2026); IMF Article IV press release (15 January 2026) and staff visit statement (16 June 2026); Times of Oman citing NCSI on the non-oil share (January 2026); Moody’s (July 2025); S&P (September 2026) on oil production.
Foreign investment is rising
Foreign direct investment stock in Oman reached OMR 31.4 billion (about USD 81.6 billion) at the end of 2025, 8.1% higher than a year earlier, and OMR 32.2 billion by the end of March 2026, according to the National Centre for Statistics and Information. The United Kingdom is the largest investor with 52% of the stock, followed by the United States with OMR 8.45 billion, then Kuwait, China, Qatar and the UAE. Oil and gas still account for about 81% of the stock, which is the honest context for every diversification claim: the non-oil investment story is real but young, with manufacturing at OMR 2.7 billion, financial services at OMR 1.5 billion and real estate, utilities, transport and tourism each in the hundreds of millions.
The zones are where the next wave is landing. Committed investment in the special economic zones, free zones and industrial cities overseen by the Public Authority for Special Economic Zones and Free Zones reached OMR 22.4 billion at the end of 2025, 6.8% higher than in 2024, with about OMR 1.4 billion of new commitments in the year. The Special Economic Zone at Duqm alone passed OMR 6.3 billion, and in June 2026 investors from Asia, Europe and the Middle East signed a further USD 7.5 billion of agreements there in clean energy, electric mobility, industrial supply chains and tourism.
NCSI foreign investment statistics via the Ministry of Foreign Affairs and Muscat Daily (11 April 2026) and the NCSI data portal (Q1 2026). Preliminary figures.
Sources: NCSI (April 2026); Public Authority for Special Economic Zones and Free Zones, 2025 results (16 February 2026); Special Economic Zone at Duqm, investor agreements (9 June 2026); Ministry of Foreign Affairs on Duqm investment (26 January 2026).
Where the opportunities are
Oman is not trying to be everything. Its strategy concentrates on sectors where geography, energy or policy give it an edge, and the state is co-investing through the Oman Investment Authority and its Future Fund Oman. These are the six we are asked about most, with what the published numbers say.
Real estate and urban development
Sultan Haitham City (20,000 homes to 2045, with RO 280 million of infrastructure packages awarded by May 2026 and more than RO 500 million of developer partnerships), the Greater Muscat Structure Plan with 300 costed projects to 2040, and the integrated tourism complexes on the coast. Foreigners may buy freehold in designated zones and, under the 2025 free-zone law, developers may sell freehold units to non-Omanis inside the zones. See commercial and investment property.
Tourism and hospitality
About 4 million visitors and more than OMR 1 billion of inbound spending in 2025, 5 million hotel guests and 1,475 hotels. Vision 2040 targets tourism at 3.5% of GDP by 2030 and 5.3% by 2040, with 12 million visitors a year and roughly 80,000 hotel rooms by 2040, against about 33,000 in 2025. The Ministry of Heritage and Tourism signed 36 usufruct contracts worth OMR 100 million for new projects in the first nine months of 2025.
Logistics, ports and rail
Three deep-water ports outside Hormuz, airport free zones at Muscat, Sohar and Salalah created in 2022, and Hafeet Rail, the 238 km line to the UAE, 40% built by April 2026. The Special Economic Zone at Duqm is the largest in the Middle East and North Africa at 2,000 km², with a port, dry dock, refinery and airport.
Manufacturing and industry
Sohar’s metals, petrochemicals and food clusters; Duqm’s refinery and petrochemical zone; a RO 70 million wind-turbine plant and a RO 41 million steel-mould plant signed in Duqm in 2025 and 2026; a solar-cell and module plant targeting 6 GW of cells a year in Sohar; and 12 Madayn industrial cities with 2,493 investment contracts. Five-year tax holidays apply to industrial projects outside the zones.
Energy and green hydrogen
Hydrom’s awarded portfolio stood at nine large projects worth more than USD 50 billion in commitments and nearly 1.5 million tonnes of green hydrogen a year by 2030, backed by about 35 GW of renewables. ACME’s second and third phases in Duqm alone carry USD 4.2 billion. Vision 2040 targets 20% renewable electricity by 2030 and 35 to 39% by 2040, with a net-zero commitment for 2050.
Technology and digital
Oman ranked 41st of 193 in the UN E-Government Development Index 2024 and 33rd in the Digital Readiness Index 2025; 17 international submarine cables land in the country; a special economic zone for data centres and cloud computing is in preparation, and the National Digital Economy Programme (2026 to 2030) prioritises fintech, AI and digital industry.
Sources: Oman Observer on Sultan Haitham City (30 May 2026); Broadway Malyan (19 May 2026); NCSI tourism bulletin via Oman News Agency (12 September 2026); Ministry of Heritage and Tourism (April 2025) and Bank Muscat Asalah (November 2025); OPAZ zone profiles and 2025 results (February 2026); OPAZ investment agreements (26 April 2026); Hafeet Rail (22 April 2026); Hydrom (18 May 2025); SEZAD (9 June 2026); KPMG Doing Business in Oman (July 2026); Oman Vision 2040 report 2024 to 2025; UN E-Government Survey 2024; MTCIT.
Oman Vision 2040 and the road to 2030
Oman Vision 2040 is the national plan adopted in 2020 to move the country from oil dependence to a diversified, knowledge-based economy, with published targets for 2030 and 2040 that the government reports against each year. It is implemented through five-year development plans: the tenth ran from 2021 to 2025, and the eleventh, launched for 2026 to 2030, anchors the 2026 budget on non-oil growth and fiscal sustainability, with a target of 60,000 new jobs, 50,000 of them in the private sector. The point for an investor is not the slogan but the discipline: the targets are numeric, the readings are public, and policy, from the free-zone law to the personal income tax, has followed the plan.
| Indicator | Latest reading | 2030 target | 2040 target |
|---|---|---|---|
| Non-oil share of GDP | 72.5% | 83.9% | 91.6% |
| Non-oil revenue to GDP | 8.5% | 15% | 18% |
| Gross debt to GDP | 35.4% | Not above 60% | Not above 60% |
| Total public expenditure to GDP | 29.5% | 34% | 25% |
| Renewable energy, share of consumption | 4% | 20% | 35 to 39% |
| Economic Complexity Index, rank | 68 | Top 20 | Top 10 |
| Environmental Performance Index, rank | 49 | Top 40 | Top 20 |
- 2020Oman Vision 2040 adopted; Foreign Capital Investment Law in force; Oman Investment Authority established
- 2021VAT introduced at 5%; Tahawul digital government programme begins; tenth five-year plan starts
- 2024S&P returns Oman to investment grade (27 September); Sultan Haitham City phase one construction under way
- 2025Moody’s upgrade (10 July); Investor Residency relaunch (31 August); Sultan Haitham City 30% residency rule (September); new Law of Special Economic Zones and Free Zones; Fitch upgrade (8 December)
- 2026Eleventh five-year plan (2026 to 2030) begins; Real Estate Registry Law in force (18 May); Greater Muscat Structure Plan launched (19 May); sponsor-free Owner Visa (22 June); first residents in Sultan Haitham City (from October)
- 2028Personal income tax of 5% on income above OMR 42,000 scheduled to begin (1 January)
- 2030Vision 2040 interim targets; Sultan Haitham City phase one complete; Hydrom hydrogen projects in production
Sources: Oman Vision 2040 Implementation Follow-up Unit, vision indicators page (reading as of March 2026) and Vision Document (2020); Ministry of Economy and Ministry of Foreign Affairs, Eleventh Five-Year Development Plan (January 2026); World Bank (April 2026).
The Oman–United States Free Trade Agreement
Oman is one of only two Gulf states with a free trade agreement with the United States. Signed on 19 January 2006 and in force since 1 January 2009, the agreement gives duty-free access for all industrial and consumer products traded between the two countries, and contains binding chapters on services, investment, financial services, government procurement, intellectual property, electronic commerce, labour and the environment. For a US company it means the right to own 100% of an Omani business, with no minimum investment and national treatment, rights that Oman later extended to all foreign investors through the 2020 law. For an Omani-based manufacturer it means tariff-free entry to the US market for goods that qualify.
Qualifying is the practical question. Under the agreement’s rules of origin a product must be wholly produced in Oman or the United States, or be a new article of commerce in which the value of Omani and US materials plus the direct cost of processing in either country is at least 35% of the appraised value, with unlimited cumulation of US content. There is no de minimis rule, and certain agricultural and textile goods have their own rules and quotas. Bilateral trade has exceeded USD 3 billion a year since 2021; in 2024 US goods exports to Oman were USD 2.0 billion and imports from Oman USD 1.3 billion. The United States is Oman’s second-largest foreign investor, with OMR 8.45 billion invested at the end of 2025, concentrated in energy, infrastructure and technology.
- Signed and in force
- 19 January 2006; 1 January 2009
- Goods
- Duty-free access for all industrial and consumer products; some agricultural tariff-rate quotas
- Rule of origin
- Wholly produced, or 35% Omani plus US value content and processing
- Investment
- 100% ownership rights, national treatment, investor protections and dispute settlement
- Services
- Cross-border services, financial services and telecoms chapters
- Bilateral trade
- More than USD 3 billion a year since 2021
- US investment in Oman
- OMR 8.45 billion at end 2025, the second-largest source
- Oversight
- US–Oman Joint Committee
Trade policy moves. The IMF noted in January 2026 that United States tariff measures during 2025, including 50% duties on steel and aluminium from June 2025, raised the effective US tariff on imports from Oman to about 20%, from close to zero, despite the agreement. Before relying on duty-free treatment for a specific product, confirm its current status with US Customs and Border Protection or a customs broker. Free zones in Oman also market access to the agreement; eligibility depends on the product meeting the rules of origin, not on the zone.
Sources: Office of the United States Trade Representative, Oman FTA page and final text; US Customs and Border Protection, Oman FTA FAQs (August 2024) and 19 CFR Part 10 Subpart P; US Department of State remarks at the FTA 15-year symposium (9 December 2024) and Investment Climate Statement (2023); Ministry of Foreign Affairs of Oman (9 December 2024); NCSI (April 2026); IMF Article IV staff report (January 2026).
Setting up: the practical framework
The mechanics are simpler than they were. Most foreign investors use a limited liability company or a single-person company, both of which may be 100% foreign-owned outside the negative list, registered through the Ministry of Commerce, Industry and Investment Promotion’s Oman Business platform. The alternative is a free-zone or special-economic-zone entity, which trades tax holidays, customs exemptions and relaxed Omanisation for a location in Duqm, Sohar, Salalah, Al Mazunah, Khazaen or the airport zones. The choice usually turns on where your customers are: a mainland company for the Omani and GCC market, a zone company for export, logistics and industry.
- Choose the vehicle and locationMainland LLC or single-person company for domestic trade; a free-zone or special-economic-zone company for export and industry. Check the negative list of 123 restricted activities before you plan.
- Register and licenseCommercial registration on the Oman Business platform, then activity licences from the relevant ministry. Banking, tourism, telecoms, manufacturing, education and health need sector approvals.
- Tax and complianceRegister for corporate tax (15%, or 3% for qualifying small businesses) and VAT (5%, mandatory above OMR 38,500 of annual supplies). Keep audited accounts; file within four months of year end.
- Bank account and capitalNo minimum capital under the Foreign Capital Investment Law; banks apply their own due diligence. See bank account support.
- People and residencyInvestor visas are issued through the zones and ministries; a company that owns a residential unit can obtain the sponsor-free Owner Visa for its legal representative under ROP Decision 87/2026. Omanisation ratios apply by sector and are relaxed in the zones.
- Premises and propertyLease on the mainland, usufruct of up to 50 years in the zones, or freehold where designated. See commercial property and usufruct and long leases.
Sources: KPMG, Doing Business in Oman (July 2026); PwC, Doing Business in Oman 2025 and Worldwide Tax Summaries (July 2026); Dentons, Global tax guide to doing business in Oman; Ministerial Decision 209/2020 as amended by 435/2024 (negative list); OPAZ zone incentives; Royal Oman Police Decision 87/2026.
Tax at a glance for businesses
| Tax | Rate | Notes |
|---|---|---|
| Corporate income tax | 15% | 3% for Omani companies with capital of OMR 50,000 or less, 15 or fewer staff and revenue of OMR 100,000 or less; 55% for petroleum concessions |
| Value added tax | 5% | Since 16 April 2021; zero-rated exports and 513 essential goods; residential rent and financial services exempt |
| Withholding tax | 10% | On services, royalties and certain fees paid to non-residents; withholding on dividends and interest is suspended |
| Personal income tax | 0% until 2028 | 5% on personal income above OMR 42,000 a year from 1 January 2028; expected to affect about 1% of residents |
| Capital gains | As income | Corporate gains taxed as ordinary income; gains on Muscat Stock Exchange securities exempt; no capital gains tax for individuals |
| Stamp duty and property tax | None | A 3% municipal tax applies to property rents; no annual property tax |
| Free zones and SEZs | Holidays | Corporate tax exemption of up to 25 years in Sohar and 30 years in Duqm, Salalah and Al Mazunah; 0% customs; no minimum capital |
| Global minimum tax | Pillar Two | Top-up tax on Omani parents of low-taxed foreign subsidiaries from 2025 (Royal Decree 70/2024); domestic application still to be announced |
Sources: Oman Tax Authority, tax rates (updated 29 October 2025); PwC Worldwide Tax Summaries, Oman (7 July 2026); Dentons global tax guide; OPAZ; S&P Global Ratings (25 September 2026) on the personal income tax base. Tax rules change; confirm with a licensed adviser before acting.
How Dune & Deed fits in
We are a buy-side property advisory, not a law firm, an accountant or a licensed corporate-services provider, and we say so because the distinction protects you. What we do ourselves is help you find, assess and buy the right property in Oman, whether a home, an investment unit or a commercial asset, and understand the residency that may attach to it. What we arrange, through licensed Omani partners whose fees we disclose, is the rest of the journey: company formation and licensing, bank introductions, tax registration and legal work. What we do not do is advise on exchange control or remittance rules in your home country; your bank and adviser do.
- Property investment guidance: which communities and asset types fit your purpose, with comparable rents and a dated cost sheet for every shortlist
- Identifying investment and commercial property: residential units for letting, offices, retail and whole-project opportunities in designated freehold zones
- Access across developments: we work with every developer in Sultan Haitham City and the integrated tourism complexes, and we are tied to none of them
- Residency guidance: which route applies, Owner Visa, Investor Residency or the Sultan Haitham City 30% rule, confirmed in writing before you commit
- Business enquiries: we map the mainland or free-zone options, introduce the licensed firms that handle formation, licensing, accounts and banking, and stay involved until your company and your home are both in place
- Honest limits: no guarantees of residency, no yield promises, no advice on moving money out of any country
If you are weighing Oman against the UAE or Saudi Arabia for a regional base, tell us what the business does and where its customers are. We will give you a straight comparison and, where Oman is not the right answer, we will say so. Start with business setup in Oman, investment advisory or tax and compliance guidance, or use the form on this page.
Key terms
- Foreign Capital Investment Law
- Royal Decree 50/2019, in force 1 January 2020: 100% foreign ownership outside a negative list, no minimum capital, free transfer of capital and profits.
- Negative list
- Ministerial Decision 209/2020 as amended: 123 business activities reserved for Omani ownership, mostly small trades and crafts.
- Special economic zone and free zone
- Designated areas overseen by OPAZ with tax holidays, customs exemptions, 100% ownership and relaxed Omanisation: Duqm, Sohar, Salalah, Al Mazunah, Khazaen, the airport zones and the new Al Dhahirah and Al Rawdah zones.
- Oman Investment Authority
- The sovereign wealth fund, established 2020, which holds state enterprises and co-invests in national projects; its Future Fund Oman backs non-oil ventures.
- Oman Vision 2040
- The national development plan adopted in 2020 with published indicators for 2030 and 2040, delivered through five-year plans.
- Omanisation
- Minimum ratios of Omani employees by sector; lower in the free zones.
- Usufruct
- A long-term right to use and develop land, up to 50 years renewable in the zones, used where freehold is not available.
- Rules of origin
- The test under the US agreement for duty-free entry: wholly produced, or at least 35% Omani and US value content plus processing.
Frequently asked questions
Can a foreigner own 100% of a company in Oman?
What is Oman’s corporate tax rate?
Is Oman really investment grade?
How does the US free trade agreement help my business?
Which sectors is Oman prioritising?
Can I get residency by investing in a business?
Does Dune & Deed set up companies?
What are the risks?
Page reviewed 2 November 2026. Availability, prices, payment terms and residency rules are confirmed in writing before you commit and may change.