Reforms Fuel RO 30 Billion Surge in Foreign Direct Investment: What This Means for Business Growth in Oman
MUSCAT: The Sultanate of Oman has made significant progress in developing a diversified and competitive economy, driven by legislative reforms, digital transformation, and focused investment promotion.
From 2020 to 2024, non-oil exports rose from RO 3.4 billion to RO 6.2 billion, representing a growth rate of 21.9 percent. By 2025, this figure further increased to RO 6.885 billion, marking a 10.5 percent year-on-year growth. The manufacturing sector’s value added grew from RO 2.4 billion in 2020 to RO 4.1 billion in 2024, while wholesale and retail trade expanded to RO 3.3 billion during the same period.
Foreign direct investment (FDI) more than doubled between 2020 and 2024, climbing from RO 14.2 billion to approximately RO 30 billion. By the end of the third quarter of 2025, FDI reached over RO 30.9 billion, a 16.2 percent increase compared to the same period in 2024. Notably, manufacturing FDI alone hit RO 2.7 billion, up 11.1 percent.
Mubarak bin Mohammed al Duhani, Director General of Planning at the Ministry of Commerce, Industry and Investment Promotion, attributed these achievements to effective, integrated financial, legislative, and digital policies aligned with Oman Vision 2040.
Central to these reforms has been digitalisation. Nine integrated electronic platforms now support investors and entrepreneurs, including Oman Business, Invest in Oman, and Exports Oman. Between 2020 and 2025, over 700,000 automated licenses were issued, alongside upwards of 2.8 million electronic transactions. Active commercial registrations reached around 446,000.
On the regulatory front, 49 new decisions were implemented to modernise the business environment, addressing areas such as e-commerce, marketing practices, product identity, and foreign investment. The National E-Commerce Plan (2022–2027) had achieved 83 percent completion by 2025.
Industrial performance strengthened in 2025, with manufacturing contributing RO 3.879 billion to GDP, a 7.2 percent year-on-year increase. Industrial employment rose to 248,000, while FDI in the sector surged by 24.6 percent to RO 3.49 billion.
Oman’s global economic and innovation rankings also improved, moving from 76th to 58th in the Index of Economic Freedom and climbing from 84th to 69th in the Global Innovation Index between 2020 and 2025.
These indicators collectively demonstrate sustained momentum in economic diversification, supported by clearer regulations, competitive standards, and expanding digital infrastructure. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s rapid growth in non-oil exports, manufacturing, and foreign direct investment, driven by legislative reform and digital transformation, signals a robust shift towards a diversified, future-ready economy. For businesses and investors, this presents opportunities to capitalize on expanding industrial sectors and streamlined regulatory frameworks, while underscoring the importance of embracing digital tools to stay competitive in Oman’s evolving market landscape.
