Doing business in Oman represents a strategic investment that offers numerous benefits and a distinct competitive advantage, laying the foundation for lasting development and achievement. Before identifying the ideal business partner for your business setup in Oman, it is crucial to understand why the country stands out as such an appealing destination for foreign-owned companies. Below are key factors that position Oman as one of the region’s most attractive hubs for business and investment.
Key Benefits of Doing Business in Oman
When expanding into a foreign market, it is essential to evaluate the unique benefits that the destination country offers and leverage them for your success. The following list highlights key benefits of doing business in Oman, illustrating why it stands out as a strategic and promising investment choice.
1. Strategic Geographic Location
Business setup in Oman is especially advantageous for international companies that rely on strategic geographic positioning. Industries such as logistics, mining, manufacturing, IT, tourism and hospitality, among others, gain significant benefits from Oman’s access to international shipping routes, world-class ports, seamless customer reach, and close proximity to vital natural resources.
These advantages stem from Oman’s unique location as a gateway to the GCC, Asia, and Africa. Positioned on the south-eastern tip of the Arabian Peninsula—bordering the Arabian Sea and the Gulf of Oman—Oman lies directly along some of the world’s busiest maritime trade corridors, including the Strait of Hormuz and the Indian Ocean routes. This strategic placement makes it a natural hub for global trade and a prime destination for companies seeking to expand internationally.
2. Stable Political and Economic Environment
Oman holds strong investment appeal for international companies due to its political stability, as the country is recognised for its neutrality and balanced diplomacy. Equally significant is the country’s economic environment, which makes doing business in Oman a smart and strategic choice.
Thanks to government initiatives and support, the economy is diversifying beyond the oil and gas sector into areas such as logistics, manufacturing, fisheries, mining, tourism, and renewable energy, in line with the Vision 2040 national strategy.
This combined political and economic stability reduces risks for companies, enhances credibility for investors, and ensures consistent governance without sudden disruptions. With minimised uncertainty, foreign companies can confidently invest in Oman with peace of mind.
3. Investor-Friendly Legal Framework
Business setup in Oman benefits from an investor-friendly legal and regulatory framework, ensuring smooth procedures, operational ease, and strong legal protection. The framework is specifically designed to attract international investment, offering various incentives and advantages for companies establishing a presence in the country. To illustrate, 88% of the business activities in Oman can be 100% foreign-owned.
Strong investor protection is guaranteed under the Foreign Capital Investment Law (2019), which ensures equal treatment with local businesses and safeguards against expropriation. Qualifying foreign investors can also access the Investor Residency Program, offering 5- to 10-year long-term residency for added security for business owners and their families.
4. Attractive Tax Incentives and Free Zones
Oman offers a simple tax system and structure for companies in Oman. Some of the taxes that are applicable for companies in Oman are corporate income tax, withholding tax, value added tax (VAT), excise duty, customs duties, and municipality tax.
That said, Oman’s free zones are specially designated economic areas designed to attract investment by offering businesses incentives such as 100% foreign ownership, tax holidays, streamlined licensing, and modern infrastructure. They cater to sectors like manufacturing, logistics, trade, and industrial development.
The main free zones in Oman include the Sohar Free Zone, the Duqm Special Economic Zone, and the Salalah Free Zone. Each one of them provides tailored facilities, easy regulatory procedures, and access to global shipping routes, making them attractive hubs for doing business in Oman.
In addition to these areas, tax incentives further strengthen Oman’s appeal as an investment destination. Companies operating in free zones can benefit from corporate tax holidays of up to 30 years, exemptions from customs duties and import/export taxes, duty-free import of raw materials and components, and simplified export procedures.
5. Robust Infrastructure and Connectivity
Oman’s strategic logistics infrastructure offers seamless connectivity across land, sea, and air, making it a highly attractive hub for international trade and investment. The country’s deep-water ports, including the Sohar, Salalah, and Duqm ports, are located outside the Strait of Hormuz, facilitating faster turnaround times and efficient global shipping operations.
The Salalah Port serves as a major transhipment hub connecting Oman to Europe, East Africa, and Asia, while Sohar Port integrates with an industrial free zone to support aluminium, steel, and petrochemical industries. Duqm Special Economic Zone combines port, industrial, and logistics facilities to handle large-scale manufacturing, petrochemicals, and trade operations.
Moreover, Oman’s connectivity extends beyond its ports. Muscat International Airport and regional airports link the country directly to major business centres across Europe, Asia, and the GCC, while a comprehensive road network, including the Oman Expressway, connects Muscat with Sohar, Duqm, Salalah, and border points with the UAE and Saudi Arabia, facilitating smooth domestic and regional trade.
6. Government Support and Incentives
Doing business in Oman is made easier through government support, including streamlined processes, dedicated investment authorities, and digital platforms that simplify registration, licensing, and approvals. Official policies are also aligned with Vision 2040, focusing on key sectors such as logistics, manufacturing, tourism, fisheries, and renewable energy, ensuring growth opportunities for foreign investors.
Oman also offers financial support programmes, including grants, soft loans, and co-investment schemes, alongside Public-Private Partnership (PPP) initiatives that promote collaboration in infrastructure, energy, and industrial projects. Moreover, regulatory reforms continuously improve commercial, labour, and investment laws to enhance the overall business environment.
7. Growing Skilled Workforce and Omanisation Programme
Doing business in Oman is a smart decision as the workforce continues to grow and develop under national strategies. Central to this effort is the Omanisation policy, which requires employers across both private and public sectors to hire Omani nationals, creating more job opportunities for locals. Beyond job creation, this policy is supported by vocational training programmes, technical colleges, and universities that equip graduates with the skills needed to enter the workforce confidently and contribute effectively.
Foreign businesses also gain significant advantages by hiring Omani locals, as many Omanis are bilingual (in English and Arabic), making communication and operations smoother in both regional and international markets. This growing pool of skilled professionals ensures that investors and companies benefit from a capable, adaptable, and well-prepared workforce.
8. Single Commercial Registration (CR) for the Entire Country
The Single Commercial Registration (CR) system is one of the most attractive advantages for international companies doing business in Oman. With just one CR, businesses gain the ability to operate nationwide without the need for separate city-level registrations. This nationwide coverage simplifies company setup, eliminates redundant paperwork, and reduces bureaucracy, allowing investors to focus more on growth and operations rather than administrative procedures.
This system also brings clear financial and strategic benefits. By streamlining licensing, permits, and compliance requirements, it lowers both setup time and costs compared to countries that mandate multiple CRs. For regional and international companies, this investor-friendly framework makes Oman a faster and more flexible market to enter and expand in. It further supports multi-city operations under a single legal framework, giving businesses in Oman the freedom to scale across the country with efficiency and ease.
Want to set up a business in Oman? Discover Bondoni today, your trusted local partner for company formation, business development, and ongoing support after launch. With Bondoni, you will leverage the various benefits of doing business in Oman, setting you up for continuous expansion and achievement.
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