The Sultanate of Oman is a member of the Gulf Co-operation Council (GCC), whose economy is open to foreign investors. Oman has been ruled by Sultan Haitham bin Tariq since 2020. Oman's economy is recovering thanks to higher oil prices and higher production and export volumes. Further economic and fiscal reforms have also improved public finances and the business environment.
Oman's economy is dominated by its dependence on oil (65% of GDP). Then there is tourism and agriculture.
The Omani Ministry of Economy has unveiled the 10th Five-Year Plan (2021-2025) for the economic diversification of the Sultanate. This is the first operational plan for the implementation of the Vision 2040 roadmap. In particular, the new plan readjusts the GDP contribution targets for the five key sectors of diversification – manufacturing, transport and logistics, tourism, fisheries, mining and education.
Following the publication of a royal decree on December 9, 2020, the Ministry of Agriculture, Fisheries and Water Resources will now be in charge of defining the strategy of the Omani state in terms of water management and wastewater treatment. The Public Utilities Regulatory Authority will be responsible for regulating the electricity and natural gas transmission market and the water and wastewater sector.
The official religion of the Sultanate of Oman is Ibadi Islam, which makes it the only Muslim country whose mainstream is neither Sunnism nor Shiism. This religious originality of the country allows it to maintain good relations with Saudi Arabia, Iran, the United Arab Emirates, Qatar and even Israel.
Note that companies must obtain a special licence for the importation of certain categories of goods, such as alcohol, livestock, poultry, firearms, narcotics and explosives.
For 2025, we expect steady oil revenues and higher FDI, a lower fiscal deficit through fiscal reforms should allow Oman to stabilise its external debt relative to GDP and probably lift most of its foreign exchange needs in financial markets.
The Sultanate applies a 15% tax on the profits of foreign companies present in its territory.
Means of payment & banking specificities
The Omani Rial has been pegged to the US$ Dollar at a fixed rate since 1986.
There are no restrictions on the convertibility of the Omani currency into another free currency, provided that this is done through authorised legal entities, including banks. There is no exchange control or capital controls. Oman's foreign exchange system is free of restrictions on payments and transfers for international transactions.
The means of payment usually used internationally are available. However, when it comes to imports, account must be taken of specific procedures and documentary constraints (legalisation, rules of origin, supporting documents, etc.) and regulations that may restrict the import of certain products.
