Oman: Investing in Oman
According to UNCTAD's World Investment Report 2024, foreign direct investment (FDI) inflows to Oman amounted to USD 4.74 billion in 2023, showing a 13.4% decrease from USD 5.48 billion the previous year. By the end of the same period, the total stock of FDI reached USD 56.06 billion, equivalent to around 51.4% of the country’s GDP. According to preliminary figures from the National Centre for Statistics and Information, FDI reached OMR 30.04 billion by the end of 2024, up 18% from the previous year. The United Kingdom remains Oman’s largest foreign investor, with total investments of OMR 13.7 billion (51.3% of total FDI). Other leading investors include the United States with OMR 5.2 billion (19.5%), the United Arab Emirates with OMR 836.5 million (3.1%), Kuwait with OMR 833.5 million (3.1%), China with OMR 817.8 million (3.1%), and Switzerland with OMR 551.9 million (2.1%), based on a total FDI of OMR 26.7 billion. The majority of FDI is directed towards the oil & gas sector, with lower shares allocated to the financial services, manufacturing, and real estate sectors.
The enactment of the new Foreign Capital Investment Law in 2020 marked a significant step towards attracting further foreign investment in Oman. This law removed the minimum 30% Omani ownership requirement for Oman-based companies, aimed at streamlining registration and licensing procedures for foreign investors, and aligned foreign investors’ rights and incentives with those given to local investors. Nevertheless, Decision 435/2024, issued on 29 August 2024, amended Ministerial Decision No. 209/2020, which outlines business activities prohibited for foreign investment. An additional 28 activities have been added, increasing the total number of activities unavailable to foreign investors to 123. Special Economic Zones have also been instrumental in attracting substantial foreign investment, although there is potential to enhance spillover effects from these economic zones to the local economy, according to the IMF. Additionally, Oman introduced new incentives for foreign investors, including exemptions from certain fees and operational requirements for investment projects in the country's less-developed regions. However, Oman currently lacks a screening mechanism for investments concerning competition considerations, and there is no active competition commission in the country. Overall, Oman ranks 74th among 133 economies on the Global Innovation Index 2024 and 58th out of 184 on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 2,889 | 4,021 | 3,716 |
FDI Stock (million USD) | 41,841 | 45,844 | 49,560 |
Number of Greenfield Investments* | 24 | 35 | 50 |
Value of Greenfield Investments (million USD) | 6,205 | 4,708 | 10,005 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Oman | Middle East & North Africa | United States | Germany |
Index of Transaction Transparency* | 8.0 | 6.4 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 5.0 | 4.8 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 3.0 | 4.7 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
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Latest Update: May 2025