Why Oman

Why Oman for international business

Oman is actively welcoming foreign investment under Oman Vision 2040. Here are the facts investors ask about first, each with a dated source.

Data as of October 2026
Whitewashed coastal town between rugged mountains and a turquoise bay at golden hour
Bright modern office with floor-to-ceiling windows overlooking the sea
Aligned with Oman Vision 2040
Why Oman

A stable, open and tax-efficient gateway to the Gulf

Oman is actively welcoming foreign investment. Reforms under Oman Vision 2040, the Sultanate's long-term national strategy, are opening the economy to the private sector and to international partners.

  • 100% foreign ownership is generally permitted under the Foreign Capital Investment Law (Royal Decree 50/2019), with no mandatory Omani shareholder in most activities.
  • Competitive taxes: 15% corporate income tax, 5% VAT, no personal income tax at present and no withholding tax on dividends to non-residents.
  • Strategic locations: free and special economic zones at Sohar, Salalah and Duqm for trade, logistics and industry.
  • Expat-friendly living and working environment for your leadership team.
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Open activities and conditions vary; a negative list applies. We confirm eligibility for your business first.

Why Oman?

Oman pairs a stable, investment-grade economy with ports on open water, 100% foreign ownership in most activities and a calm, safe way of life. Tap a card for the sourced detail.

Global connectivity

Ports on open water

A long coastline on the Arabian Sea and the Gulf of Oman, with major ports located outside the Strait of Hormuz.

3,165 km of coastline

Source [1]

Sources for the cards
  1. Invest Oman (Ministry of Commerce, Industry and Investment Promotion), “Why Oman”, accessed 21 Oct 2026. investoman.om
  2. S&P Global Ratings BBB- (affirmed 27 Mar 2026); Moody’s Baa3 (July 2025); Fitch BBB- (December 2025), as reported by the agencies and Omani media.
  3. Foreign Capital Investment Law, Royal Decree 50/2019 (in force 1 Jan 2020), WIPO Lex. wipo.int
  4. Numbeo, Quality of Life Index by Country 2026 (crowd-sourced), accessed 21 Oct 2026. numbeo.com

Oman at a glance, with sources

Indicators investors ask about first. Each figure carries its source and date; crowd-sourced indices are labelled as such.

Foreign direct investment (stock)

32.2 bn OMR

End of Q2 2026, +6.4% year on year

[1]

Logistics Performance Index

43rd globally

Score 3.3 of 5

[2]

Safety Index (crowd-sourced)

6th of 150

Score 81.6, 2026 ranking

[3]

Quality of Life (crowd-sourced)

4th of 89

Highest-ranked country in Asia, 2026

[4]

Special Economic Zone at Duqm

2,000 km²

On the Arabian Sea

[5]

Industrial cities (Madayn)

14 cities

Four new cities in the 2026–2030 plan

[6]

Vision 2040 investment target

10% of GDP

FDI net inflows by 2040 (4.12% in 2017)

[7]

Sovereign ratings

BBB- / Baa3

Investment grade at all three agencies

[8]

As of October 2026. Indicative only; figures can be revised by the publishers. Numbeo indices are crowd-sourced perception data.

Sources

  1. NCSI preliminary data via Times of Oman, “Oman’s FDI rises 6.4% to OMR32.2bn by end-Q2 2026”, 17 Oct 2026. timesofoman.com
  2. World Bank, Logistics Performance Index 2023 (published April 2023). lpi.worldbank.org
  3. Numbeo, Safety Index by Country 2026 (crowd-sourced), accessed 21 Oct 2026. numbeo.com
  4. Numbeo, Quality of Life Index by Country 2026 (crowd-sourced), accessed 21 Oct 2026. numbeo.com
  5. OPAZ, Special Economic Zone at Duqm (area, incentives), accessed 21 Oct 2026. opaz.gov.om
  6. Madayn, Investment Opportunities (“14 Industrial Cities”), accessed 21 Oct 2026; and Gulf News, “Oman to establish four new industrial cities under 2026-2030 development drive”, 12 Aug 2026. madayn.om · gulfnews.com
  7. Oman Vision 2040 document (2040 target: FDI net inflows of 10% of GDP; baseline 4.12% in 2017). unescwa.org (PDF) · oman2040.om
  8. S&P Global Ratings BBB- (affirmed 27 Mar 2026); Moody’s Baa3 (July 2025); Fitch BBB- (December 2025), as reported by the agencies and Omani media.

From Oman to four regions

A practical base for trade and partnerships across the GCC, Asia, Europe and Africa. Here is what is verifiable today.

01

GCC · Regional access

Oman is a GCC member state and part of the GCC customs union, with road links to the UAE and Saudi Arabia and a time zone (UTC+4) shared with the UAE.

02

Asia · Trade and sourcing

The India–Oman CEPA has been in force since 1 June 2026, covering trade in goods and services; direct flights link Muscat with Istanbul, Baku and Tashkent.

[1]

03

Europe · Capital and expertise

The United Kingdom is the largest source of foreign direct investment in Oman (OMR 16.8bn at end-June 2026), followed by the United States.

[2]

04

Africa · Sea routes south and west

Salalah and Duqm face the Arabian Sea and the Indian Ocean, on the routes towards East Africa, with ports located outside the Strait of Hormuz.

[3]

Sources

  1. Ministry of Commerce, Industry and Investment Promotion / Government of India: India–Oman CEPA in force 1 Jun 2026.
  2. NCSI preliminary data via Times of Oman, “Oman’s FDI rises 6.4% to OMR32.2bn by end-Q2 2026”, 17 Oct 2026. timesofoman.com
  3. OPAZ, Salalah Free Zone (Royal Decree 62/2006), accessed 21 Oct 2026. opaz.gov.om
Facts and figures

Oman in numbers, with sources

Each figure is dated and sourced. Treat them as indicative and confirm before you decide.

Corporate income tax
15%

Headline rate; 3% for qualifying small businesses

PwC Worldwide Tax Summaries · 2026

VAT
5%

Standard rate, against 19% in Germany and 20% in the UK

PwC Worldwide Tax Summaries · 2026

Personal income tax
0%today

Today. A 5% tax above OMR 42,000 is planned from 1 January 2028

PwC · reviewed July 2026

Foreign ownership
100%

Permitted in most activities; a negative list applies

Royal Decree 50/2019

Sovereign credit
BBB-S&P

Investment grade at all three agencies: S&P BBB- (Mar 2026), Moody's Baa3 (Jul 2025), Fitch BBB- (Dec 2025)

S&P · Moody's · Fitch

Mobile internet
15thglobally

Median mobile download of 245.10 Mbps

Speedtest Global Index · Sep 2026

Currency
2.6008USD

US dollars per rial, under a fixed peg in place since 1986

Central Bank of Oman

Owner residency
Since 2026

Sponsor-free owner visa and residency for property owners and their families

ROP Decision 87/2026 · 22 Jun 2026

Sources (accessed October 2026)

  1. PwC Worldwide Tax Summaries, Oman: corporate and individual taxes, reviewed 2026. taxsummaries.pwc.com
  2. Foreign Capital Investment Law, Royal Decree 50/2019 (in force 1 January 2020).
  3. S&P Global Ratings, "Oman Ratings Affirmed At 'BBB-/A-3'; Outlook Stable", 27 March 2026; Moody's upgrade to Baa3, July 2025 (Reuters, 10 July 2025); Fitch upgrade to BBB-, December 2025. reuters.com
  4. Speedtest Global Index, Oman, updated September 2026 (mobile rank 15, median download 245.10 Mbps). speedtest.net
  5. Central Bank of Oman, "The Fixed Peg of the RO to the US Dollar" (OMR 1 = USD 2.6008), accessed October 2026. cbo.gov.om
  6. Royal Oman Police Decision 87/2026, Official Gazette 1653, effective 22 June 2026. decree.om
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