Oman: Emerging Regional Hub for Foreign Industrial Investment – What It Means for Your Business Growth
MUSCAT: Foreign investment in the Sultanate of Oman is experiencing rapid growth, supported by the strategic framework of Oman Vision 2040. The industrial sector’s performance in 2025 highlights the success of government policies aimed at enhancing the industrial business environment and the effectiveness of incentives and facilities offered to investors. The sector’s increasing contribution to manufacturing industries, foreign investments, and non-oil exports underscores its vital role in advancing economic diversification.
According to Invest Oman, a key incentive attracting investment is the allowance of 100% foreign ownership in most industries under the new Foreign Capital Investment Law. The law imposes no restrictions on capital movement, profit repatriation, or dividend transfers. Additional benefits include income tax reductions for small and medium-sized enterprises (SMEs), long-term residency permits for foreign investors, streamlined business procedures, and a supportive legislative environment designed to foster investment.
Oman’s strategic location, bridging Eastern and Western markets and its proximity to millions of consumers in the GCC, Asia, and Africa, makes it a crucial hub for trade and investment. This position is bolstered by a sophisticated logistics network facilitating efficient import and export operations. The Sultanate also offers an attractive investment climate through its special economic zones, industrial parks, free zones, and oases, positioning itself as an ideal destination for entrepreneurs and innovators. These economic opportunities are complemented by a high quality of life and promising career prospects for expatriates and investors.
Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), highlighted at the “Together We Move Forward” forum that the manufacturing sector is the second-largest sector attracting foreign investment. This is due to an appealing investment environment supported by integrated infrastructure, attractive incentives, progressive legislation, and promising market potential.
Recent official data projects foreign investment in the industrial sector to reach RO 3.49 billion in 2025, a 24.6% increase from RO 2.8 billion in 2024, signaling growing investor confidence. Non-oil export values are also expected to climb to RO 6.885 billion in 2025, reflecting a 10.5% rise from RO 6.232 billion the previous year, showcasing the expanding presence of national products in international markets. Employment in the industrial sector is set to grow to 248,000 in 2025, a 3% increase from 240,761 employees in 2024, underscoring the sector’s role in job creation.
Oman’s industrial development has earned commendations from global institutions. The United Nations Industrial Development Organisation (UNIDO) praised the sector’s radical transformation and the acceleration of high-tech industries. Similarly, a World Bank report emphasized the sector’s key role in economic growth, while Standard & Poor’s highlighted manufacturing, services, and construction as principal growth drivers in its September 2025 report.
Since the enactment of the Foreign Capital Investment Law and the Public-Private Partnership Law in 2020, Oman has reinforced its commitment to an open and investor-friendly business environment. These legal frameworks align with the goals of Oman Vision 2040, fostering increased foreign direct investment within a protected and transparent regulatory system. The introduction of corporate tax has further supported investment by enhancing the standard of living and funding infrastructure development.
Crucially, the allowance of 100% foreign ownership in special economic zones has significantly boosted investor confidence and transparency in partnerships, reaffirming Oman’s dedication to openness and sustainable growth. Oman Vision 2040 remains a roadmap for sustainable development and global economic integration. As Oman continues its journey toward achieving this vision, it offers a valuable model for other nations pursuing economic diversification, sustainability, and international integration.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s robust Foreign Capital Investment Law and strategic focus on economic diversification under Oman Vision 2040 have created a highly attractive environment for foreign investors, evidenced by significant growth in industrial foreign investments and non-oil exports. Businesses should capitalize on 100% foreign ownership incentives and streamlined regulations, positioning Oman as a critical trade hub between East and West. Smart investors must weigh the opportunities in manufacturing and high-tech industries, while leveraging the country’s expanding infrastructure and economic zones to gain competitive advantage in emerging markets across Asia, Africa, and the GCC.
