Oman FDI Surges Past RO 31 Billion in 2025: What This Means for Investors and Business Growth in Oman
MUSCAT: The Sultanate of Oman’s foreign direct investment (FDI) stock increased by 8.1 percent, reaching RO 31.38 billion by the end of the fourth quarter of 2025, according to preliminary figures from the National Centre for Statistics and Information. This growth highlights sustained investor confidence in the Omani economy.
This marks a rise from RO 29.02 billion recorded in the same period of 2024. However, annual FDI inflows declined to RO 2.36 billion, down from RO 3.56 billion the previous year, indicating a slowdown in new capital investments despite the overall expansion in total FDI stock.
Sector-wise, the oil and gas extraction sector remained dominant, constituting 80.9 percent of total FDI, equivalent to RO 25.41 billion, with inflows of RO 2.53 billion. The manufacturing sector followed with investments totaling RO 2.67 billion, although it experienced a decrease in inflows by RO 127 million.
The financial intermediation sector held investments of RO 1.50 billion but saw inflows drop by RO 69.1 million. Other sectors showed mixed results, reflecting diverse investment trends across the economy.
Investments in real estate, rental, and business services amounted to RO 584.3 million, with inflows declining by RO 14.4 million. The transport, storage, and communications sector attracted RO 312.5 million, supported by modest inflows of RO 2.5 million.
The electricity and water sector recorded investments of RO 318.7 million, with inflows increasing by RO 25.8 million. The trade sector reported investments of RO 281 million, with inflows rising by RO 4 million, indicating steady activity in domestic commerce.
Meanwhile, the hotels and restaurants sector accounted for RO 112.8 million in investments, with a slight reduction in inflows of RO 700,000. The construction sector saw RO 99.1 million in investments, supported by an increase in inflows of RO 9.9 million. Other activities collectively attracted RO 85.7 million, with inflows rising by RO 2 million.
By country of origin, the United Kingdom remained the largest investor, contributing 52.3 percent of total FDI, valued at RO 16.42 billion. The United States was the second-largest investor with RO 8.45 billion, followed by Kuwait at RO 1.36 billion.
Other significant investors included China with RO 887.3 million, Qatar RO 763 million, the United Arab Emirates RO 626.2 million, Bahrain RO 528.5 million, the Netherlands RO 525.1 million, Switzerland RO 329.7 million, and India RO 275.2 million. Investments from other countries totaled RO 1.21 billion.
This data underscores Oman’s continued ability to attract long-term foreign investment, supported by sectoral diversification and a dynamic investment climate, despite fluctuations in inflow volumes influenced by global economic conditions.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s 8.1% rise in FDI stock to RO 31.38 billion highlights strong investor confidence, particularly in the oil and gas sector, which dominates FDI. However, the decline in new inflows signals potential caution amid global economic uncertainties, urging businesses and investors to diversify portfolios and seize emerging opportunities in manufacturing, utilities, and trade. Smart investors should closely monitor sectoral shifts and geopolitical investment sources to strategically position themselves for sustained growth.
