Oman Attracts Record FDI as Reforms Deepen

Oman has firmly established itself as one of the Gulf’s most investor-friendly destinations, with foreign direct investment (FDI) reaching a record RO 30.1 billion by the end of 2024, according to the National Centre for Statistics and Information. The sharp increase from RO 22.9 billion in 2023 reflects growing international confidence in the Sultanate’s stable political environment, progressive regulatory reforms, and strategic infrastructure development.

The surge in FDI has been driven by opportunities across a diversified economic base. While oil and gas still account for around 79% of total inflows, sectors such as manufacturing, logistics, finance, real estate, and green energy are gaining traction. Manufacturing alone attracted RO 2.1 billion, while financial services drew RO 1.3 billion and real estate nearly RO 1 billion.

Central to Oman’s transformation is the Foreign Capital Investment Law, introduced in 2019, which allows full foreign ownership across most sectors and eliminates minimum capital requirements. The law has streamlined business formation and bolstered investor protection, significantly reducing entry barriers for international firms. Complementing these reforms is the “Invest in Oman” digital portal, which consolidates business registration, site selection, and licensing in a single interface, offering services in both English and Arabic.

The government’s pro-business stance includes tax exemptions of up to 25 years in designated free zones, customs duty waivers, free repatriation of profits, and long-term residency options for investors and their families. Strategic economic zones such as Duqm, Sohar and Salalah have become focal points for investment, offering access to world-class infrastructure and global shipping lanes. Duqm alone has secured over RO 6 billion in investments across hydrogen, petrochemicals, logistics and tourism. Sohar Industrial Port has attracted more than $30 billion in cumulative investment, with strong interest from Europe, China and neighbouring Gulf states.

Investor sentiment is underpinned by Oman’s location at the crossroads of major trade routes, supported by three seaports, four international airports, and expanding road and rail links. Salalah Port ranks among the most efficient globally, and Duqm is rapidly evolving into a fully integrated industrial and trade hub. These assets position Oman as a key node in global logistics and re-export supply chains.

Digital facilitation has played a central role in Oman’s success. The “Invest in Oman” platform has issued over 1.2 million electronic documents and more than one million automatic licences since its launch, signalling the country’s commitment to digital governance and administrative transparency.

The UK leads foreign investment into Oman, with RO 13.7 billion, followed by the US at RO 5.2 billion. Other major contributors include the UAE, Kuwait, China and Switzerland. The British-Omani Business Council has highlighted new opportunities beyond energy, particularly in education, healthcare and clean technology.

Anja Palm, a business development manager at the Skellefteå municipality, noted the attractiveness of Oman’s strategic location, stability and skilled workforce. “The government is supportive, and procedures are clear and efficient,” she said, reflecting growing international appreciation for Oman’s business environment.

Oman’s appeal lies in its political stability, transparent legal framework, and zero personal income tax, making it a rare combination of regulatory clarity and economic openness. As it continues to roll out major projects under its Oman Vision 2040 strategy, the Sultanate is steadily positioning itself as a leading destination for sustainable, long-term investment in the region.