Foreign-owned companies often choose Oman as their entry point into the GCC markets, which include Saudi Arabia, Kuwait, the United Arab Emirates (UAE), Qatar, Bahrain, and Oman itself.
There are several reasons why international companies consider Oman a strategic location for their future expansion in the GCC. Continue reading to learn about these factors in detail, along with the necessary information about establishing your business in Oman.
Why Oman is the Ideal Starting Point for Growth in GCC Markets
Below are some of the reasons why foreign-owned businesses choose Oman as their gateway to GCC markets:
- Strategic Location and Market Access
Oman has a highly advantageous location for businesses planning to expand across the GCC. First, it is situated at the crossroads of Asia, Africa, and Europe, connecting businesses to international trade routes and facilitating imports and exports.
Second, the ports in Oman provide a seamless passage for cargo from around the world. They also offer shipping and logistics services for smooth supply chain operations.
Additionally, Oman’s proximity to the GCC countries enables companies to access a multitude of regional markets and a wide customer base. This advantage is further enhanced by the Free Trade Agreements within the GCC, which allow goods to move freely between member states without customs duties.
These factors make it easier for businesses to access GCC markets with fewer barriers, reduced costs, and greater opportunities for growth.
- People, Culture, and Infrastructure
Omanis are known for their hospitality, business ethics, and collaborative approach to partnerships. This strong foundation is complemented by a young and dynamic workforce, further strengthened through government-supported training initiatives. To facilitate business operations, the country offers modern infrastructure, including world-class airports, ports, and road networks. Additionally, Oman provides a safe and stable environment with a high quality of life, making it an attractive destination for expatriates and international businesses alike.
- Business-Friendly Environment
Oman offers foreign-owned companies an exceptionally business-friendly environment through various regulations and incentives, ultimately aimed at encouraging foreign investments and driving economic growth.
For example, Omani law allows 100% foreign ownership in most sectors, which is a major advantage for foreign companies, allowing them to establish a strong presence in Oman without needing local partners.
Oman also has dedicated free zones, in which foreign investors can enjoy numerous benefits like full profit and capital repatriation, complete business ownership, and exemption from import and export duties.
- Competitive Taxation and Legal Framework
Regarding taxes in Oman, the corporate tax rates are lower than those in other countries, making up only 15%. The VAT is 5%, and Customs is 5%.
On the other hand, Oman’s legal framework is structured to secure and support foreign investments through laws and regulations effectively protecting intellectual property and resolving legal disputes.
- Stability in the Market
Foreign-owned companies will find Oman’s stability in the market extremely advantageous. Including economic, political, and regulatory stability, businesses can plan long-term and benefit from reduced risks thanks to the stable business environment and minimised uncertainties.
- Oman 2040 Vision
A national strategy focused on economic diversification, innovation, and sustainable development. It aims to enhance Oman’s competitiveness, attract foreign investment, and foster a knowledge-based economy through advancements in technology, renewable energy, and human capital development. Oman 2040 Vision enables and supports international investors and international companies, making it favourable for them to start a business in Oman.
- Skilled Workforce and Omanisation Balance
Omanisation is hiring Omani nationals to create more job opportunities for Omani people. Compliance with these regulations is essential, and strong HR management is key to attracting and retaining talent for business success.
Foreign-owned companies establishing their presence in Oman can depend on the skilled Omani workforce thanks to the Omanisation policy while also hiring foreign labour, achieving the ideal balance.
- Key Sectors Driving Foreign Investment in Oman
Oman is actively encouraging foreign investments in many sectors. This diversification holds great potential for oil and gas, tourism, renewable energy, information technology, manufacturing, food security, health, and logistics.
How to Start Your Business in Oman
Considering the above factors, it is evident why businesses prefer to establish their presence in Oman first before expanding to the GCC markets. However, setting up a business in Oman can be a challenging and complex process, and this is where Bondoni offers strategic assistance.
Bondoni offers you a one-stop shop for company formation and outsourced business support services, also known as business setup, to help you establish your business in Oman. These services encompass formalising corporate structure, registering the business with the right government authorities, and ensuring legal compliance.
With Bondoni, you will receive expert guidance, simplified and efficient company formation procedures, compliance assurance, and solutions tailored for your business and unique needs. Explore company formation services from Bondoni now for more information.