Oman is open for business

Consider the world as it stands today. The Strait of Hormuz, through which roughly one-fifth of global oil supply flows, has in recent tensions seen severe disruption. Maritime traffic that once averaged over 150 vessel transits a day has declined sharply. Maersk, Hapag-Lloyd, CMA CGM and COSCO have at times suspended Gulf transits. War-risk insurance has surged.
Oil prices have spiked in response to uncertainty. Simultaneously, the global trade system continues to absorb the aftershocks of sweeping tariff escalations that have contracted merchandise trade and forced companies to reconfigure their supply chains. Against this backdrop, a simple question deserves a thoughtful answer: where does a business go when the traditional corridors close?
One answer is Oman. Not because it is immune to the turbulence around it — no country in the Gulf is — but because the Sultanate of Oman has spent years building the institutional resilience, the physical infrastructure and the policy frameworks that allow it to operate when others cannot.
What makes Oman’s proposition distinctive is not a single advantage but the convergence of several: geographic positioning outside the chokepoint, deep-water port capacity on the Arabian Sea, a diversified economic base that is no longer tethered solely to hydrocarbons and a governance culture that prizes stability, predictability and long-term commitment over short-term spectacle.
Geography is destiny in logistics and Oman’s geography is now proving its worth. The Sultanate of Oman’s major deep-water ports — Al Duqm, Salalah and Suhar — sit on the Arabian Sea and the Sea of Oman, providing access to open shipping routes beyond the immediate chokepoint.
While ports inside the Arabian Gulf may face disruption during periods of tension, Oman’s maritime gateways are being positioned as contingency hubs for cargo flows into the wider Arabian hinterland.
Logistics providers operating in the region have already begun rerouting. Overland trucking corridors connecting Oman to the UAE and Saudi Arabia, initially developed in response to earlier Red Sea disruptions, have become critical arteries. The Special Economic Zone at Duqm, with its 2,000-square-kilometre footprint and direct access to open ocean, is no longer a future promise — it is rapidly emerging as a functioning alternative.
This resilience is not accidental. It is the product of deliberate policy. For the better part of a decade, Oman has been systematically building an economy that can absorb shocks. The IMF projects real GDP growth of around 3.7 per cent in 2026, driven not by oil but by sustained momentum in manufacturing, services and logistics.
For businesses evaluating where to establish or expand operations, these are not theoretical figures. They represent an economy that is growing steadily while much of the world is bracing for contraction.
Equally important is how Oman has positioned itself within the global trade architecture. In December 2025, Oman and India signed a landmark Comprehensive Economic Partnership Agreement — the Sultanate of Oman’s first bilateral trade deal in nearly two decades — across a relationship worth more than $10 billion annually.
That same month, Oman and Türkiye signed a protocol targeting $5 billion in bilateral trade over five years. The US-Oman Free Trade Agreement continues to underpin over $3.3 billion in annual commerce and the January 2026 Strategic Dialogue in Muscat deepened cooperation on critical minerals and supply chain security. These are deliberate acts of economic architecture — building bridges before the storms arrive.
International capital is responding. By early 2025, cumulative FDI reached RO 30.6 billion, up 20.6 per cent year-on-year. The Foreign Capital Investment Law permits 100 per cent foreign ownership. Free zones offer tax holidays of up to 30 years and fast-track licensing. Moody’s upgraded Oman to investment grade in 2025 and government debt has fallen to roughly 35.5 per cent of GDP. In a world where capital is growing cautious, these signals tell investors that Oman is not only welcoming business but managing its own house with discipline.
So where does the opportunity lie? In green hydrogen, Oman is advancing seven large-scale projects targeting one million tonnes of annual production by 2030, backed by a $3.6 billion incentive package and interest from over 130 global companies.
In manufacturing, 243 major industrial establishments have been registered since 2020 and foreign investment in the sector exceeds RO 2.7 billion. In logistics, vessel traffic at Omani ports rose by 11.1 per cent in early 2025 — before the current crisis made that infrastructure even more vital. In tourism, the Sultanate of Oman’s heritage and landscapes continue to attract visitors in growing numbers.
What underpins all of this is governance. Oman Vision 2040 is a structured development framework with five-year implementation plans and institutional accountability. The Invest Oman platform consolidates government services.
A dedicated Investment and Trade Court offers legal clarity. Future Fund Oman has mobilised private capital alongside state investment. These are not the reforms of an economy in crisis. They are the steady improvements of a country that understood, well before the current disruptions, that credibility is built in calm weather so it holds in a storm.
The world is living through compounding uncertainty. Maritime chokepoints are contested. Trade corridors are fragmenting. Tariff regimes shift beneath the feet of businesses that planned for a different era. In such a moment, what matters is not the loudest voice but the most reliable partner.
Oman does not claim to have all the answers. What it offers is something increasingly scarce: a stable, well-governed economy with world-class infrastructure, open market access and a genuine commitment to long-term partnership. The Sultanate of Oman is not merely open for business. In a fractured world, it may be one of the most reliable pathways for it.