If you are looking for the best country to start a business abroad, in order to move to another country, or are planning to expand into global markets, Oman and the UAE are two promising options to consider. The Arab world is renowned for its wealth, safety, and high living standards. Their governments actively promote economic growth by simplifying business registration for foreigners, supporting tech startups, and establishing Free Trade Zones with tax incentives. Oman, in particular, can be an interesting alternative to the UAE as a country that has recently begun to attract foreign investment. Below, we compare these two jurisdictions to help you determine the best choice for your business.
Who benefits from doing business abroad?
Starting a business abroad can be beneficial for various types of entrepreneurs, from those seeking new market opportunities to those planning international relocation. That is, business in Oman or the UAE is especially advantageous for:
- International firms, that want to enter a promising market and thereby diversify risks in the face of periodic global crises.
- Tech startups, looking for government incentives and tax-friendly conditions.
- Small and medium-sized enterprises, seeking tax advantages to strengthen their market position.
- Export/import businesses working in Free Trade Zones to reduce customs costs and enhance growth potential.
- Unique skilled professionals in fields such as IT, graphic and web design, and consulting, who can obtain freelance licenses or establish agencies.
Which country to choose for doing business?
Advantages of doing business in Oman
Oman attracts businesses due to its political stability, strategic location at the crossroads of major global trade routes, and business-friendly economic policies. Additionally, nearby are countries that are rapidly developing. Access to the sea provides opportunities for international trade and logistics, as well as engaging in maritime industries.
The country offers low tax rates and no personal income tax, 100% foreign ownership in Free Economic Zones, and a simplified business registration process with the possibility of obtaining a residence permit. In addition, the government supports investment in non-oil sectors such as tourism, logistics, mining, and manufacturing.
Advantages of doing business in the UAE
The United Arab Emirates (UAE) attracts businesses as an international financial and trade hub known for its highly developed infrastructure, business-friendly tax policies, and numerous Free Economic Zones that allow 100% foreign ownership.
The country has one of the highest levels of digitalization in business processes and is a leader in fintech, artificial intelligence, and green energy innovations. Additionally, the UAE offers a globally connected transportation network, a high standard of living, and a stable currency, making it an ideal platform for expanding businesses into the markets of the Middle East, Africa, and Asia.
Unlike Oman, the UAE is a more secular country with a stronger orientation toward European markets. Due to its smaller oil reserves, the UAE is also more attentive to international regulations and compliance with sanctions.
Country comparison
Comparison table — which is better: Oman or UAE?
| INDICATORS | Oman | UAE |
|---|---|---|
| Visas | Investor and work visas available. | Various visa options, including work, freelancer, investor, dependent,Green Visa, and Golden Visa. |
| Residency | Residency available with a property purchase of at least $650,000. | No traditional residency permit, but a 10-year Golden Visa is available with a $550,000 property investment. |
| Terms of trade | Lower competition as the country has only recently opened up to foreign investors. Office rental costs are 30-40% lower than in the UAE. | The country has been a global business hub for decades, making market entry more challenging. However, it offers more opportunities for international businesses. |
| Taxation | Corporate tax — 15%, VAT — 5%, dividend tax — 10-15%. Also, Free Zones have the right to pay 0% on profits for up to 25 years. | Corporate tax 9%, VAT – 5%. |
Features of doing business in each country
Oman may look more promising for doing business, as this country has recently become open to investment. This is an ideal platform for startups: meaning less competition and lower registration costs. However, the UAE provides better infrastructure, simplified taxation, and a legal system influenced by European business values.
When choosing between the two, it is also important to consider that the best country for doing business abroad may be the one that offers the best long-term growth potential and aligns better with your relocation plans. Oman, unlike the UAE, offers lower real estate costs and provides an opportunity to obtain a residence permit. In addition, Oman is less affected by international sanctions.
How do we assist with company registration?
Now that you have a clearer understanding of the differences between Dubai and Oman, making the right decision will be easier.
To help you make an informed decision, schedule a consultation with us where we’ll discuss your specific concerns in detail. We also offer turnkey company registration services at competitive rates – this includes simplifying the process of documentation, licensing, and obtaining necessary permits. We can handle part of the work online so that when you arrive, you’ll only need to finalize the formalities and quickly enter the new market.
