Oman: An emerging regional hub for foreign industrial investment

MUSCAT: Foreign investment in the Sultanate of Oman is witnessing rapid growth and a promising future, supported by Oman Vision 2040. The results achieved by the industrial sector during 2025 reflected the success of government policies implemented to enhance the industrial business environment and the effectiveness of incentives and facilities offered to investors. The growth achieved in the contribution of manufacturing industries, foreign investments and non-oil exports confirms the sector’s ability to respond to the objectives of economic diversification.
According to Invest Oman, one of the most important incentives for investment in Oman is the allowance of 100% foreign ownership in most industries under the new Foreign Capital Investment Law. There are no restrictions on capital, profit repatriation, or dividend transfers. In addition, there are income tax reductions for small and medium-sized enterprises (SMEs), long-term residency permits for foreign investors, streamlined procedures for business activities; and a supportive and investor-friendly legislative environment.
Oman attracts foreign investment due to its strategic location connecting Eastern and Western markets, as well as its proximity to millions of consumers in the GCC countries and emerging economies in Asia and Africa. This location makes it a vital hub for trade and investment, supported by a sophisticated logistics network that ensures easy and efficient import and export processes. The Sultanate of Oman also offers a stimulating investment environment through its special economic zones, industrial parks, free zones and oases. Technology makes Oman an ideal destination for entrepreneurs and innovators. Furthermore, Oman is a great place to live and work, enhancing quality of life and career development opportunities.
Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), stated during his participation in the “Together We Move Forward” forum, that the manufacturing sector is the second largest sector attracting foreign investment, based on an attractive investment environment and integrated infrastructure in terms of incentives, stimulating legislation and promising markets.

According to recently published official data and preliminary statistics, the volume of foreign investment in the industrial sector is expected to rise to RO 3.490 billion during 2025. Signifying a 24.6% increase compared to 2024, when it reached RO 2.8 billion, this reflects growing investor confidence in the industrial sector and its investment environment. The value of non-oil exports also rose to RO 6.885 billion in 2025, achieving a 10.5% growth compared to 2024, when it recorded RO 6.232 billion, an indicator reflecting the expansion of national products in foreign markets. Meanwhile, the number of employees in the industrial sector increased to 248,000 in 2025, marking a 3% increase compared to 2024, when the number of employees was 240,761, confirming the sector's growing role in job creation.
Oman's efforts in developing the industrial sector have garnered widespread international and local praise. The United Nations Industrial Development Organisation (UNIDO) commended the radical transformation of the industrial sector, driven by the acceleration of high-tech industries. A World Bank report also emphasised the pivotal role of the sector. The industrial sector is diversifying income sources and achieving a current account surplus. Standard & Poor's, in its September 2025 report, indicated that the manufacturing, services and construction sectors are the main drivers of economic growth in the Sultanate of Oman.
Since the implementation of the Foreign Capital Investment Law and the Public-Private Partnership Law in 2020, the Sultanate of Oman has reaffirmed its openness to business and investment. The strategic direction of economic diversification, in line with the objectives of Oman Vision 2040, is driving the attraction of more foreign direct investment within a legally protected and business-friendly investment framework. The Foreign Capital Investment Law helps investors understand the government's direction and thinking, providing them with confidence in the protection of their interests and the potential challenges of investing in the Omani market. The introduction of corporate tax has also contributed to attracting investment, as it has a direct positive impact on the standard of living of citizens and residents and on infrastructure development.
Allowing 100% foreign ownership in special economic zones is a pivotal factor in boosting investor confidence, along with transparency in partnerships, confirming Oman's commitment to openness and growth. Oman Vision 2040 is a road map for sustainable growth and global integration. Looking ahead, opportunities and challenges will continue to arise in achieving this vision and Oman's journey towards realising its Oman Vision 2040 can serve as a valuable model for other countries facing challenges and striving for economic diversification, sustainability and integration.