Oman’s FDI Surges Over RO 30 Billion in Q1 2025: Implications for Investors and Business Growth
Foreign Direct Investment in Oman Surges to RO 30.611 Billion in Q1 2025
The Sultanate of Oman has experienced a significant increase in foreign direct investment (FDI), which reached RO 30.611 billion by the close of the first quarter of 2025, as reported by the National Centre for Statistics and Information (NCSI). During this period, inflows grew to RO 5.225 billion, up from RO 4.111 billion in the same quarter of 2024.
The oil and gas extraction sector continued to be the leading attraction for foreign investment, capturing an impressive 81% of total FDI, with investments amounting to RO 24.701 billion. Inflows in this sector during the quarter were RO 4.812 billion. The manufacturing sector followed, securing RO 2.749 billion in FDI and experiencing inflows of RO 592.3 million, demonstrating sustained investor confidence in Oman’s industrial landscape.
In financial intermediation, investments reached RO 1.3 billion with inflows of RO 217.8 million. Conversely, the real estate, rental, and commercial project sectors saw a decline, with total investments reported at RO 653.1 million, marking a 36.8% decrease compared to the same quarter last year.
FDI in the transport, storage, and communications sector amounted to RO 357.9 million, but inflows were modest at just RO 3.2 million. Investments in the electricity and water sector totaled RO 292 million, reflecting an 11% year-on-year decline. The trade sector garnered RO 262 million in FDI, with cash inflows of RO 14.5 million.
The hotels and restaurants segment recorded investments of RO 116.6 million, a slight decrease of 0.5% compared to Q1 2024. The construction sector attracted RO 88.5 million in total FDI, although inflows fell by RO 4.9 million. Additionally, investments categorized under ‘other activities’ reached RO 89.9 million, with inflows of RO 7.3 million.
The United Kingdom remains the largest foreign investor in Oman, with contributions totaling RO 15.574 billion, or 50.9% of total FDI. The United States follows with RO 7.824 billion, followed by Kuwait (RO 1.223 billion), China (RO 894.9 million), the United Arab Emirates (RO 753 million), and Qatar (RO 669.3 million). Bahrain, the Netherlands, India, and Switzerland also maintained significant investment levels, while other countries collectively contributed RO 2.238 billion.
Special Analysis by Omanet | Navigate Oman’s Market
The surge in foreign direct investment (FDI) in Oman signals unprecedented confidence in the nation’s economic potential, particularly in the oil and gas sector, which continues to dominate investments. Businesses should look to capitalize on opportunities within the manufacturing and financial intermediation sectors, while keeping an eye on areas experiencing decline, such as real estate, to mitigate risks. Strategic investors should focus on aligning with key foreign partners and diversifying portfolios to leverage the growing FDI landscape effectively.
