If you are looking for a new region for investment or business expansion, consider Oman. This Middle Eastern gem offers stunning natural beauty, modern infrastructure, and a high quality of life, which creates vast opportunities for entrepreneurs. A favorable investment climate, political stability, and Oman’s strategic location provide a strong platform for startups and corporate growth. Let’s study the advantages of opening a business in Oman, as well as potential challenges and drawbacks.
Oman as a gateway to success and prosperity
Located at the crossroads of two continents, Oman offers access to international markets via air and sea routes. Additionally, the country is rich in natural resources: it has oil, gas, and iron ore deposits, which support industrial growth and economic stability. The government fosters a favorable environment for foreign entrepreneurs: it ensures security, offers simplifying registration procedures, and develops Free Trade Zones with favorable tax policies.
Let’s take a closer look at these advantages, along with the pros and cons of doing business in Oman.
Geographic location – your business in a logistics hub
Situated in the southeastern part of the Arabian Peninsula, Oman serves as a bridge between Asia, Africa, and Europe. With a coastline stretching over 3,000 kilometers along the Arabian Sea and the Gulf of Oman, the country has direct access to major global trade routes. This geographic advantage helps businesses significantly reduce transportation time and costs.
Omani ports are key transit points for global shipping. For instance, around 20% of the world’s oil supply passes through the Strait of Hormuz. The country is actively modernizing its ports, transforming them into world-class logistics hubs that meet international standards. Beyond maritime trade, Oman also offers strong air transport capabilities to support both domestic and international logistics needs. A new international airport has recently been opened here. Thus, Oman has become a highly attractive destination for logistics, trade, and exports.
Legal framework – security and ease of doing business
Oman offers entrepreneurs a stable and transparent legal environment, which is the key reason for making the country one of the top choices for business ventures. The Sultanate actively attracts foreign investments and has introduced the following reforms:
- foreign entrepreneurs can own 100% of company shares in Free Zones without the need to involve a local partner;
- there is an opportunity for digital company registration, including licensing and document verification, to simplify the process and minimize bureaucratic barriers;
- low tax rates and the possibility of tax holidays for 25–30 years.
Oman’s legal system is designed to protect the interests of foreign investors: there are clear regulations for contract enforcement and dispute resolution. The legal framework is continuously updated to meet international standards.
Financial benefits and tax advantages: the advantages of opening a business in Oman
One of the main reasons to consider doing business in Oman is that the country offers owners extensive financial benefits, including:
- low tax burden — compared to European countries, Omani taxes are minimal. Additionally, businesses operating in Free Zones may be exempt from certain taxes;
- favorable conditions in Free Zones — special conditions, including tax holidays, are created for businesses established in these areas;
- low VAT rates — a standard rate of just 5%, while for some types of activities the rate can be reduced to 0%;
- investment grants in strategic sectors — to support enterprises operating in the field of technology, logistics and manufacturing, the country is developing financial incentives in the form of subsidies;
- exemption from customs duties — companies that operate solely within Free Economic Zones and do not trade within Oman are exempt from import duties.
For more details on financial incentives and available grants, consult with our agents.
High quality of life: comfort and inspiration in Oman
Oman is not just an attractive business destination but also a country with a high standard of living, where you can have a perfect work-life balance. The country offers access to high-quality healthcare and education, including top-tier schools and universities. Residential areas with modern exteriors and well-planned infrastructure are designed for comfortable living for all categories of the population.
Oman is also famous for its stunning natural landscapes, which include deserts, beaches, and mountains. Some of the country’s most notable attractions include:
- Muscat — the capital city, famous for its beautiful mosques, historic districts, and impressive architecture.
- The National Museum of Oman — a must-visit for those interested in the country’s rich history and culture.
- Jebel Shams — the highest mountain in Oman, a popular destination for nature lovers.
Free Zones and infrastructure: key growth points for business in Oman
Oman is actively developing Free Economic Zones (FEZs) to create optimal conditions for businesses. The country’s main Free Zones include:
| NAME | DESCRIPTION |
|---|---|
| Duqm Free Zone | One of the largest infrastructure projects in the region. The FEZ includes a deep-water port, an industrial complex, an oil refinery and a logistics hub. Benefits include: 100% foreign ownership, tax holidays of up to 30 years, and exemption from customs duties. |
| Sohar Free Zone | It’s adjacent to one of the oldest deep-water ports in Oman. This zone specializes in metallurgy, logistics, and petrochemicals. It also offers some of the most affordable land rental prices. |
| Salalah Free Zone | Situated near Oman’s largest port — a key trade hub connecting Asia, Africa, and Europe. The main industries include manufacturing, logistics, and assembly. New businesses benefit from 10-year tax holidays, zero VAT, and customs duty exemptions. |
Oman’s Infrastructure Includes:
- World-class ports — Duqm, Salalah, and Sohar.
- Modern international airports — in Muscat, Salalah, Duqm and Sohar.
- A well-developed road network – high-quality highways connecting all major cities and Economic Zones.
- Energy infrastructure – includes both traditional and renewable energy sources.
Disadvantages of doing business in Oman
Despite its many advantages, running a business in Oman does come with certain challenges:
| NAME | DESCRIPTION |
|---|---|
| Dependence on the oil economy: | the country’s economy is still heavily dependent on the oil and gas sector, which makes it vulnerable to fluctuations in global energy prices. |
| Limited domestic market: | Oman has a population of around 4.5 million, which restricts domestic consumption. Businesses are advised to focus on international markets from the outset. |
Who benefits from doing business in Oman?
Oman is an excellent choice for entrepreneurs looking to enter a new market or reduce their tax burden. The country’s strategic location and advanced port infrastructure make it highly attractive for logistics companies. Industrial businesses also benefit from favorable export conditions. Investors in innovative technologies and renewable energy can take advantage of government support programs and subsidies.
Relocating a business to Oman can be beneficial for large corporations seeking diversification as well as startups looking for a stable and business-friendly environment to grow.
How do we assist in a company setting up?
Doing business in Oman can open up many opportunities for a foreign investor. And we are here to make the process simple and efficient. We offer turnkey services, allowing you to focus on growing your business while we handle all the organizational matters.
Additionally, we offer extra services for specific needs, such as: opening a bank account, finding an office, or getting professional advice on how much it costs to set up a company in Oman and how to choose the most profitable sector for investment. We are confident that Oman is a land of opportunity, and we are ready to be your trusted guide on the path to success!
