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Business in Oman

100% Foreign Ownership With 30 Year Tax Exemptions


Vision 2040 transforms Oman into the Gulf's fastest-growing investment destination.
While competitors mature, Oman delivers early-stage infrastructure at 40% lower costs.

PI Startup Advisory positions 700+ businesses to create maximum returns.

3.4% GDP Growth 2025 | 0% Personal Tax | 30-Year Tax Holidays

Oman's Strategic Position Creates Competitive Advantage

Geographic location determines market access. Oman sits at the crossroads of Asia, Africa, and Europe. The Strait of Hormuz handles 21% of global petroleum traffic. Duqm, Sohar, and Salalah ports connect directly to 3 billion consumers across three continents.

Economic momentum builds from government commitment. Real GDP is projected to grow 3.4% in 2025, outpacing regional averages. Non-hydrocarbon sectors drive expansion through $5.2B Future Fund investments. Foreign direct investment surged 16.2% in Q3 2024 versus the previous year.

S&P Global upgraded Oman's credit rating to BBB- with a stable outlook. International confidence validates transformation progress. Business opportunities in Oman exist because infrastructure investment happens now, not after market saturation.

Vision 2040: Government-Backed Economic Transformation

His Majesty Sultan Haitham bin Tariq is reshaping Oman's economy away from oil dependence. Seven priority sectors receive targeted infrastructure spending, regulatory reform, and investor incentives. This creates documented opportunities for partnership business in Oman.

  • Economic Diversification

    Non-hydrocarbon sectors now lead the GDP growth trajectory. Manufacturing, logistics, technology, tourism, and renewable energy attract foreign capital. The government targets genuine multi-sector development, not oil-focused growth.

  • Infrastructure Investment

    $7-8B HyDuqm renewable hydrogen project under construction. 50,000 km² allocated for green hydrogen development. Duqm Special Economic Zone expansion continues with port modernization and the development of industrial estates.

  • Regulatory Modernization

    Foreign Capital Investment Law permits 100% ownership across most sectors. Labor reforms streamline expatriate hiring processes. Tax incentives support priority investments in the Omani business environment.

  • Skills Development

    98% national literacy rate, with 70% of graduates STEM-focused. AI, cybersecurity, and digital economy training programs align the workforce with investor requirements. English proficiency supports international operations.

High-Growth Sectors & Best Business in Oman Under Vision 2040

Government infrastructure spending and regulatory support are concentrated in eight strategic sectors. The top business in Oman aligns with these priorities.

Renewable Energy & Green Hydrogen

The HyDuqm project aims to produce 200,000 tonnes of hydrogen annually. $7-8B committed investment from Engie and Posco. The government aims to position Oman as a competitive low-emissions hydrogen supplier by 2030.

Digital Economy & Technology

The ICT market is expected to expand from $5.96B to $9.11B by 2030. National Digital Economy Programme backs AI and cybersecurity startups. Government e-services modernization creates opportunities for software and consulting.

Logistics & Transportation

Duqm, Sohar, and Salalah ports handle 60M+ tonnes annually. #1 Middle East port infrastructure ranking. Cross-continental freight forwarding benefits from its strategic position at the Strait of Hormuz.

Tourism & Hospitality

12M visitors target by 2040 from the current baseline. $7.8B government investment in 13 integrated tourism complexes. 12 additional projects in the development pipeline. Eco-tourism and adventure tourism infrastructure are expanding.

Manufacturing & Industrial

Duqm and Sohar free zones attract petrochemical and pharmaceutical investments. Semiconductor manufacturing initiatives are launching. Low utility costs support export-focused operations with duty-free access to the GCC.

Agriculture & Fisheries

30 government projects are developing strategic crops and aquaculture. A long coastline offers opportunities for fish farming. Hydroponics and vertical farming receive technical support. Food security focus reduces imports.

Real Estate & Development

Urban expansion drives demand for residential and commercial properties. Smart city projects are launching across regions. Integrated Tourism Complexes permit foreign freehold ownership. Construction opportunities from infrastructure programs.

Financial Services & Fintech

Banking modernization supports the wave of business formation. Fintech regulatory framework under development. Mobile payment infrastructure is expanding. Regional financial hub positioning for import export business in Oman.

Tax Structure: Clear Financial Advantages

The business environment in Oman provides transparent taxation with multiple exemptions. Which business is best in Oman depends partly on tax optimization.

    • VAT & Indirect Taxes

      VAT Rate: 5% standard on most goods and services

      Customs Duties: Typically 5% on imports

      Municipal Tax: Applied to property rentals

      Free Zone Benefits: Import duty exemptions in designated areas

    • Capital Repatriation

      Capital: 100% repatriation permitted

      Profits: No restrictions on dividend transfers

      Currency: No exchange controls imposed

      Timing: Immediate transfers allowed post-compliance

    • Personal Income Tax

      Salary Income: 0% tax on employment earnings

      Investment Income: 0% on dividends and capital gains

      Rental Income: 0% personal tax (municipal fees apply)

      Status: No personal income tax is currently implemented

    • Corporate Income Tax

      Standard Rate: 15% on net profits

      Small Business Rate: 3% for companies under OMR 100,000 in revenue

      Free Zone Exemptions: 10-30 years of corporate tax holidays

      Strategic Sectors: Additional incentives for tourism, education, and agriculture

    • Withholding Tax

      Standard Rate: 10% on non-resident payments

      Treaty Benefits: Reduced rates available through 40+ double-tax treaties

      Application: Royalties, interest, management fees, technical services

      Exemptions: Certain service categories receive treaty benefits

Free Zone Incentives for Business in Oman for Foreigners

Five specialized zones offer enhanced benefits beyond mainland operations. Each zone serves specific industries with targeted infrastructure.

Duqm Special Economic Zone

Location

East coast, 550km from Muscat

Size

2,000 km² - largest in MENA region

Tax Holiday

30 years of income tax exemption

Ownership

100% foreign ownership permitted

Omanisation

Relaxed 25% requirement

Focus

Logistics, tourism, fisheries, heavy industry
Duqm Special Economic Zone

Sohar Free Zone

Location

Northern coast adjacent to the Port of Sohar

Size

45 km² industrial area

Tax Holiday

25 years' exemption

Ownership

100% foreign ownership

Omanisation

15% first 10 years

Focus

Steel, metals, logistics, food processing
Sohar Free Zone

Salalah Free Zone

Location

Southern Oman near the Port of Salalah

Infrastructure

Adjacent to a super-hub port on equatorial routes

Tax Holiday

30-year exemption

Ownership

100% foreign ownership

Omanisation

20% requirement

Focus

Chemicals, pharmaceuticals, logistics, manufacturing
Salalah Free Zone

Al Mazunah Free Zone

Location

Southern border with Yemen

Tax Holiday

30 years (extendable with high Omani employment)

Ownership

100% foreign ownership

Omanisation

20% requirement

Focus

Warehousing, food processing, re-export to Africa

Special

Yemeni nationals work without permits
Al Mazunah Free Zone

Knowledge Oasis Muscat

Location

Near Muscat International Airport

Established

2003 Technology Park

Tax Holiday

30-year exemption

Ownership

100% foreign ownership

Minimum Capital

OMR 20,000 ($52,000)

Omanisation

Starts at 10%, increases to 25% over 5 years
Knowledge Oasis Muscat

Government Investment Support Programs

Oman Investment Authority and ministries actively facilitate the flow of foreign capital through structured initiatives.

  • Future Fund Oman

    Size: $5.2B investment capacity

    Focus: Tourism, manufacturing, green energy, logistics

    Structure: Co-investment opportunities for qualified partners

    Management: Oman Investment Authority

  • Long-Term Residency Visas

    Duration: 5-10 year visa options

    Benefits: Family sponsorship permitted

    Requirements: Registered company and minimum investment

    Process: Streamlined application for business owners

  • Investment Relationship Managers

    Service: Dedicated Oman Investment Authority support

    Scope: Inquiry through execution assistance

    Access: Government connections and approval facilitation

    Eligibility: Qualified investors in priority sectors

  • Nazdaher Programme

    Full Name: National Program for Investment and Exports Development

    Goal: Position Oman as a competitive investment hub

    Services: Export facilitation and market access support

    Target: Foreign investors seeking regional expansion

  • In-Country Value Initiative

    Purpose: Enhance the local economy through sourcing and workforce development

    Benefits: Supply chain participation opportunities

    Requirements: Training investment for long-term workforce benefits

    Impact: Preferred vendor status for government contracts

  • Advantage Oman Forum

    Format: Annual international investment forum

    Purpose: Showcase sector opportunities to global investors

    Participants: Government officials, international investors, industry leaders

    Resources: Investment guides and sector analyses

US-Oman Free Trade Agreement Benefits

Oman Investment Authority and ministries actively facilitate the flow of foreign capital through structured initiatives.

  • Tariff Elimination

    Agricultural Products: Duty-free access to the US market

    Industrial Goods: Zero tariffs on most manufactured products

    Textiles & Apparel: Full duty elimination

    Consumer Goods: Tariff-free export capabilities

  • Market Access

    US Market Size: $27T economy with 335M consumers

    GCC Market: 57M population with high purchasing power

    Combined Reach: Dual market access from a single location

    Trade Volume: Bilateral trade exceeded $4.8B in 2024

  • Competitive Edge

    Production: Manufacture in Oman free zones

    Export: Zero duties to the US market

    Re-export: GCC market access under customs union

    Cost: Lower operational expenses than US/EU production

Oman Economic Indicators 2025

Projected growth with diversified revenue streams

Direct port infrastructure to Asia, Africa, and Europe

No income tax on employment or investment earnings

Competitive rate with exemptions for SMEs and free zones

Complete foreign control permitted across priority sectors

Digital economy growing from $5.96B at an 8.88% annual rate

Land allocation for green hydrogen production projects.

Tourism target by 2040 with $7.8B infrastructure investment

4G/5G mobile network supports digital business operations

Oman Economic Indicators 2025

Frequently Asked Questions

No. Oman currently imposes no personal income tax on employment, investment, or rental income. This applies to both citizens and foreign residents.

What is the corporate tax rate?

Standard rate: 15% on net profits. SMEs under OMR 100,000 revenue: 3% rate. Free zone companies: 0% for 10-30 years, depending on the zone. Oil/gas sector: 55% special rate.

Can I get a residence visa through my Oman company?

Yes. Company owners and shareholders receive investor visas. Employee visasare  available for hired staff. Family sponsorship permitted for visa holders. Long-term residence options for substantial investors.

Which free zone is best for my business?

Depends on the industry. Duqm: Heavy industry, logistics. Sohar: Manufacturing, metals. Salalah: Chemicals, pharma, export. Al Mazunah: Re-export, warehousing. Knowledge Oasis: Technology, IT.

Do I need an Omani partner?

No for most sectors. Mainland companies in approved sectors allow 100% foreign ownership. Free zones guarantee full foreign control. Some restricted activities require an Omani partnership.

Can my Oman company operate in other GCC countries?

Yes, under GCC commercial cooperation agreements. Additional registrations may be required in target countries. Free trade agreements facilitate cross-border operations and exports.

What is Omanisation?

Government policy requires a percentage of Omani national employees. Mainland: 30% (relaxed first year). Free zones: 10-25% depending on the zone. The requirement for Knowledge Oasis Muscat increases over time.