MUSCAT, NOV 10
Oman is stepping up efforts to strengthen private sector participation and attract foreign capital as part of its economic diversification agenda under Oman Vision 2040, with the latest indicators pointing to gradual progress in investment performance and an improving business environment.
According to the first-quarter report on Oman Vision 2040, private investment accounted for 16.8 per cent of GDP in 2025, compared with 15.7 per cent in 2020. The value of private sector investment reached RO 7.073 billion last year, highlighting its growing contribution to capital formation and economic activity.
The indicator peaked at 19.2 per cent in 2021 before declining to 15.7 per cent in 2022. It subsequently recovered, reaching 16.5 per cent in 2023 and 16.7 per cent in 2024.
The improvement reflects ongoing efforts to enhance the investment climate through regulatory reforms, stronger public-private partnerships and initiatives such as the Invest in Oman platform and the investor residency programme. The establishment of the Oman Future Fund has also strengthened efforts to channel capital towards promising economic sectors.
Meanwhile, net foreign direct investment (FDI) inflows rose to 4.5 per cent of GDP in 2025, up from 2.9 per cent in 2020. The Vision 2040 targets are 7 per cent by 2030 and 10 per cent by 2040, highlighting the scope for further growth.
Oman's FDI stock reached approximately RO 32.211 billion by the end of the second quarter of 2026, according to data from the National Centre for Statistics and Information (NCSI), reflecting continued international investor interest in the Sultanate of Oman.
However, the concentration of a significant share of foreign investment in oil and gas highlights the need to diversify capital flows towards non-oil activities, particularly manufacturing, logistics, tourism, renewable energy and the digital economy.
The next phase of the investment agenda is expected to focus not only on attracting greater capital flows but also on maximising their economic impact. Priorities include technology transfer, local industry development, job creation and stronger integration between foreign investors and domestic enterprises, particularly small and medium-sized enterprises.
The Oman Future Fund is expected to play an important role in mobilising private capital and supporting commercially viable projects in emerging sectors.
As Oman advances towards its 2030 milestones, strengthening investment quality, improving business competitiveness and expanding non-oil productive capacity will be central to achieving the broader ambitions of Vision 2040.
The challenge now is to translate investment growth into sustainable economic value, reinforcing the private sector's position as a key driver of diversification and long-term growth.
Oman Observer is now on the WhatsApp channel. Click here
