Business opportunities in Oman are emerging under the umbrella of Vision 2040, a national and economic development plan focused on the time between 2021 and 2040. Considering its objectives and pillars, this strategy brings forth many opportunities for all businesses aiming to establish themselves and expand in the Omani market.
Continue reading to learn more about Oman Vision 2040 and how it creates valuable growth opportunities that foreign investors can benefit from. This article will also help you understand the priority sectors for business development, in addition to the benefits and requirements of opening a business in Oman in those fields.
Overview of Oman Vision 2040
Simply put, Oman Vision 2040 is a national framework for economic and social development from 2021 to 2040, and it functions as the source for national five-year development plans. This national strategy is based on a few pillars, which shape the future path of business opportunities in Oman, and they are as follows:
- Society and People: Focused on developing human capital and nurturing creativity through training and education.
- Responsible State Agencies: Highlighting the significance of strong and accountable institutions.
- Competitive Economy: Diversified, productive, and innovative across a variety of sectors.
- Sustainability: Ensuring a well-preserved environment and balanced ecosystems.
- Innovation and Technology: Working on digital transformation and smart infrastructure.
These pillars are the driving factors of business development, as they actively shape policies, investment priorities, and development goals. That being said, Oman Vision 2040 has a multitude of objectives, such as:
- Economic Diversification: By reducing Oman’s dependence on oil and expanding other sectors.
- Digital Transformation: To achieve technology adoption and smart governance.
- Workforce Development: Includes increased national participation, in alignment with the Omanisation strategy.
- Private Sector Empowerment: Aiming to create a more business-friendly environment to boost the economy.
- Knowledge-Based Economy: Achieved through innovation, research, and knowledge creation.
Business Opportunities in Oman in Priority Sectors for Growth
Priority sectors act as the strategic directions that Oman Vision 2040 is following. They also serve as the top sectors in which international investors can find business opportunities in Oman, making it essential for you to understand them. Below is a general overview of each field:
1. Manufacturing
Business opportunities in Oman’s manufacturing sector are most prominent in shipbuilding, pharmaceuticals, renewable energy, machinery, cables, textiles, electrical connectors, food & beverage, building products and materials, mineral products, and base metals. So, if you are opening a business in Oman, these areas offer rich opportunities for growth and expansion, especially considering that the manufacturing field contributed US$ 8 billion to Oman’s GDP in 2021. With Oman Vision 2040, manufacturing is expected to keep growing and contribute more to the country’s GDP.
2. Green Energy
Developments made in the green energy sector are focused on green hydrogen initiatives and solar and wind energy projects, making it highly advantageous for opening a business in Oman in this field. Since 30% of the country’s electricity will come from renewables by 2030, business growth in this area is incredibly promising, particularly considering the innovative essence of Oman Vision 2040.
3. Logistics
This key area presents business opportunities in Oman in freight forwarding, warehousing, port development, transportation, cold storage, e-commerce fulfilment, and last-mile delivery. Oman’s logistics field is facilitated by the country’s strategic location and world-class roads, ports, free zones, and global connectivity, positing it as an attractive business environment for international investments.
4. Mining
Business opportunities in Oman are extremely rich in the mining industry, especially in key minerals like dolomite, limestone, clay, silica, gypsum, ornamental stones, and various building materials. In addition, the country has an abundance of other resources like copper, gold, gabbro, and salt—making it a favourable investment environment for those wanting to utilise Oman Vision 2040’s focus on natural resources.
5. Tourism
The government is encouraging private sector participation in the tourism sector, presenting many business opportunities in Oman, particularly in developing hotels, resorts, eco-tourism projects and experiences, desert camps, and heritage trails. This represents a natural progression in tourism, which currently contributes 3% to the GDP and is projected to reach 10% by 2040.
6. Food Security (Agriculture and Fisheries)
To boost food security, Oman is investing in fisheries, rural farm development, and agriculture, specifically agriculture modernisation, to achieve self-sufficiency. These developments are creating space for businesses focused on key food products such as dates, tomatoes, seafood, poultry, dairy, and aquaculture. Businesses operating in this sector contribute significantly to Oman Vision 2040 goals, one of which is to have fisheries contribute US$5.2 bn to the GDP by 2040.
7. IT and Tech
Oman’s IT and technology sector is fostering an environment of digital transformation and tech-friendly regulations, making it an abundant area with business opportunities in Oman—it is ideal for global enterprises and IT startups. The field’s main focus is on cybersecurity, fintech, AI, SaaS, semiconductor design, electronic programming, and software development. Such focus is motivated by the Oman Vision 2040 strategy and its goal of achieving a knowledge-based economy.
Benefits and Requirements of Opening a Business in Oman’s Priority Sectors
The requirements of opening a business in Oman differ from one sector to another, making it essential to work with professionals like Bondoni to help you in company formation and registration. Generally speaking, investors must get various government licences and approvals according to their field—a process that Bondoni can handle on your behalf. For instance, those working in mining need to obtain special licensing for bonded warehouse operations, while businesses in food security have to acquire land leasing for agriculture or fish farming.
The benefits of establishing a business in Oman also differ from one sector to another. For example, investing in green energy grants you government support, excellent infrastructure, and streamlined logistics. On the other hand, businesses in mining get access to favourable regulations, land access, and reserves with long-term potential. Experienced professionals with a rich local and international network, like Bondoni’s team, will ensure that you are in the know of the requirements and benefits of opening a business in Oman in addition to handling a variety of processes and tasks.
Opening a Business in Oman with Bondoni: Your Starting Point to Long-Term Success
Bondoni is a one-stop shop for all foreign investors and foreign-owned companies wanting to establish themselves in any of Oman’s markets. Bondoni’s team of experts will guide you through all steps and phases of company registration, company formation, and post-company registration needs. Bondoni provides you with all kinds of services needed for opening a business in Oman, which streamline various processes while simultaneously ensuring regulatory and legal compliance.
Are you interested in business opportunities in Oman? Contact Bondoni today to get started.