In January, Oman’s Ministry of Economy unveiled its 10th Five Year Plan (2021-2025) aimed at driving the diversification of the Sultanate’s economy. This is the first executive plan for paving the way to implement the Oman 2040 Vision. One focus of the new plan is to readjust the GDP contribution targets of five key diversification sectors, namely manufacturing, transport & logistics, tourism, fisheries, mining and education.

Following the issuance of a Royal Decree dated 9th December 2020, the Ministry of Agriculture, Fisheries and Water Resources will now be in charge of defining the national strategy for water management & wastewater treatment. The Public Utilities Regulatory Authority will be responsible for regulating the electricity and natural gas transmission market, as well as the water & wastewater sector.

It should be noted that businesses are required to obtain a special license to import certain categories of goods, such as alcohol, livestock, poultry, firearms, narcotics and explosives.

For 2024, we anticipate higher oil revenues and higher FDI (notably Chinese), a lower budget deficit thanks to budgetary reforms should allow Oman to stabilize its external debt by relative to GDP and probably raising most of its foreign exchange needs on the financial markets.

It should be noted that the Sultanate applies a 15% tax on the profits of foreign companies present on its territory.

Means of Payment & Banking Specificities

Since 1986, the country’s currency, the Omani Rial, has been pegged to the US Dollar at a fixed rate.