MUSCAT: The Sultanate of Oman is continuing to strengthen its legislative and regulatory framework to create a more competitive and transparent business environment, supporting the objectives of Oman Vision 2040 and efforts to build a diversified, private sector-led economy.
Competition protection and anti-monopoly legislation have become central to market regulation, helping ensure equal opportunities for businesses while improving the efficiency and resilience of the national economy. The introduction of the Competition Protection and Anti-Monopoly Law in 2014 marked a major step in regulating market practices, followed by the establishment of the Competition Protection and Anti-Monopoly Centre under Royal Decree No 2/2018 to oversee implementation and monitor anti-competitive behaviour.
The law aims to safeguard fair competition by preventing monopolistic agreements, abuse of market dominance, price manipulation and practices that restrict market access. The Centre has been granted broad regulatory powers, including judicial authority for its employees, inspection rights and the ability to impose administrative fines of up to RO 5,000, with penalties doubled for repeat violations. Serious breaches may also be referred to the Public Prosecution.
These measures have contributed to stronger market discipline and growing investor confidence. Economic indicators show Oman’s competitiveness index improved from around 59 per cent between 2015 and 2017 to nearly 65 per cent in recent years, supported by enhanced oversight mechanisms and institutional reforms. Reported anti-competitive cases also declined to around 14 in 2024, indicating improved compliance within the market.
Oman has also strengthened its global standing in several international rankings. The Sultanate of Oman ranked 74th globally in the 2024 Global Innovation Index among 133 economies, while also securing 70th position in the Ease of Doing Business Index and 11th globally in the Paying Taxes indicator.
The improving business climate has been reflected in rising foreign direct investment inflows, which reached around RO 5.2 billion, compared with RO 4.1 billion during the same period last year. Economists say the increase reflects growing confidence in the Omani market and the effectiveness of reforms aimed at improving transparency and competitiveness.
Dr Yousuf bin Hamad al Balushi, economist and founder of Smart Investment Gateway, said global economic shifts and increasing competition among countries require stronger economic legislation and more advanced competitiveness frameworks.
Al Balushi said Oman Vision 2040 has placed business environment reforms at the centre of the country’s economic strategy since its launch in 2021, adding that the results are gradually becoming visible through continued FDI growth.
He noted that although much of the investment remains concentrated in the oil and gas sector, non-oil industries are also recording notable expansion and contributing to economic diversification across the Sultanate of Oman’s governorates.
Al Balushi stressed that the next phase will require further improvements in legislation, greater transparency and stronger implementation mechanisms to keep pace with evolving economic demands. He also highlighted the importance of clear investment frameworks in supporting sustainable development and attracting long-term capital.
Oman is also prioritising intellectual property protection as part of efforts to encourage innovation while ensuring such rights are not misused to create monopolistic barriers that restrict competition. Current legislation subjects misuse of intellectual property rights to competition law provisions, helping maintain balance between innovation protection and market openness.
Small and medium enterprises are expected to benefit significantly from these policies, as competition laws help reduce market concentration and create wider opportunities for SMEs to participate in supply chains and expand within the domestic economy. The framework also supports local content initiatives aimed at empowering Omani talent, encouraging innovation and increasing in-country value.
Experts believe the next stage of reform should focus on improving enforcement efficiency, raising awareness within the business community and strengthening partnerships between the public and private sectors to ensure legislation translates into sustainable economic growth and a more competitive business environment. — ONA
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