The Report: Oman 2025

Economy

Oman is becoming a more attractive destination for foreign investment due to sound economic policies, rising hydrocarbons prices and strategic development initiatives. The country benefits from strong regional and global relations, a stable domestic environment and a strategic location along key trade routes. Building on long-standing efforts to diversify the economy, Oman is now seeing tangible progress, particularly under the ongoing implementation of its Oman Vision 2040 development plan. A key milestone in this effort is the launch of a multi-billion-dollar investment fund in 2024, aimed at boosting private sector activity green energy, manufacturing, maritime resources, technology and tourism. These initiatives highlight Oman’s commitment to sustainable growth and its proactive role in the global shift towards cleaner energy sources.

This chapter contains interviews with Hussain Al Lawati, CEO, Development Bank; and Sultan Al Wahaibi, CEO, Oman Broadband Company.

Trade & Investment

Oman is solidifying its role as a key trade and investment destination in the region, with strong growth in international trade and rising foreign direct investment. Recent policies aim to strengthen existing economic ties through the development of special economic zones, investor-friendly regulations and improved infrastructure. The country is also embracing digitalisation and transparent governance to create a more attractive business environment. Backed by steady economic growth and a strategic location at the crossroads of major international trade routes, Oman is well-positioned to enhance its trading profile and attract more global investors.

This chapter contains interviews with Qais Al Yousef, Minister of Commerce, Industry and Investment Promotion; Faisal Al Farsi, CEO, Social Protection Fund; and Ali bin Masoud Al Sunaidy, Chairman, Public Authority for Special Economic Zones and Free Zones.

Banking

Banking continues to be a key pillar of Oman’s financial sector, responsible for the majority of credit for individuals and institutions – both government-owned enterprises and the private sector. In recent years credit and deposits have expanded alongside the increasing reach of banking services and the overall advancement of the economy. The sector faces the challenges of enabling continued bottom-line growth while also tackling long-standing issues over expenditure. The adoption of more financial technology and greater consolidation are both helping with this, as are the sultanate’s overall development plans, with banking remaining a major force in Oman’s diversification strategy.

This chapter contains interviews with Sheikh Waleed Khamis Al Hashar, CEO, Bank Muscat; Khalid Jamal Al Kayed, CEO, Bank Nizwa; and Said Abdullah Al Hatmi, CEO, ahlibank.

Financial Services

Oman’s financial services sector is experiencing steady growth, particularly in insurance and capital markets. In 2024 the insurance segment recorded increased revenue and profitability, while the stock market advanced initiatives to expand offerings in areas like bonds and Islamic finance. These efforts coincided with significant regulatory reforms, including the creation of a dedicated supervisory authority for insurance and capital markets. This move reflects a growing maturity in the sector and aligns with the country’s broader economic diversification goals. Financial and insurance activities contributed notably to GDP in the third quarter of 2024, showing year-on-year growth. As Oman continues to modernise its financial infrastructure and implement supportive policies, the sector is expected to play a key role in long-term economic development.

This chapter contains an interview with Abdullah Al Salmi, Executive President, Financial Services Authority; Haitham Al Salmi, CEO, Muscat Stock Exchange; Abdulaziz Al Balushi, Group CEO, Ominvest; Tariq Sulaiman Al Farsi, CEO of National Finance; and Khalid Al Balushi, CEO, TANMIA.

Energy

Oil and gas remain the largest contributors to Oman’s economy, accounting for about a third of its GDP and playing a key role in employment and exports. Exploration, production and infrastructure upgrades in this sector offer significant opportunities for international investment. While the country continues to maximise the value of its remaining hydrocarbons resources, it is also positioning itself as a growing regional player in renewable and alternative energy. Efforts to attract private investment in solar, wind and hydrogen projects reflect a broader national push towards sustainability. These initiatives support the sultanate’s long-term goal to achieve net-zero emissions by 2050.

This chapter contains interviews with Mazin Rashid Al Lamki, CEO, Energy Development Oman; Aflah Al Hadhrami, Managing Director, Petroleum Development Oman; Hamed Al Naamany, CEO, Oman LNG; Abdulaziz Shidhani, CEO, Hydrom; Mansoor Al Abdali, CEO, OQ Gas Networks; and Salim Al Hashmi, Managing Director, Oman Tank Terminal Company.

Utilities

Oman’s utilities sector is experiencing significant change as the country places greater emphasis on renewable energy. With a growing population of 5.5 million as of early 2025, the demand for electricity and water is rising. In response, efforts are being made to improve the efficiency and cost-effectiveness of distribution networks through regulatory reforms and infrastructure upgrades. Private investment is being encouraged, particularly in power generation and water production – an especially critical area given Oman’s limited groundwater resources. Additionally, the introduction of an electricity spot market marks a step towards liberalising the sector. This move aims to make electricity procurement more competitive and transparent, potentially attracting international investors. The broader transition aligns with Oman’s long-term economic goals, promoting sustainability while ensuring reliable service delivery. These developments position the utilities sector as a key area of opportunity for both domestic and foreign investment in the years ahead.

This chapter contains interviews with Mansoor Al Hinai, Chairman, Authority for Public Services Regulation; and Ahmed bin Salim Al Abri, CEO, Nama Power and Water Procurement.

ICT

Oman is actively advancing its ICT and telecommunications sectors as part of its broader goal to become a digital-first economy. This transformation is reshaping the country’s financial landscape and positioning it as a hub for innovation and digital development in the region. Significant investments are being made to improve digital infrastructure, expand internet access, and enhance cybersecurity and data governance. These efforts are also reflected in the improvement of digital government services, with a focus on efficiency and accessibility. Oman is fostering innovation through technology parks, start-up support, and partnerships with global technology firms. The country is also investing in artificial intelligence and digital skill development to prepare its workforce for the future. Overall, ICT and telecommunications are playing a key role in Oman’s strategy for economic diversification and sustainable growth, helping to build a more competitive and digitally connected economy.

This chapter contains interviews withTalal Al Mamari, CEO, Omantel; Bassam Al Ibrahim, CEO, Ooredoo Oman; Bader Al Zidi, CEO, Vodafone Oman; and Maqbool Al Wahaibi, CEO, Oman Data Park.

Construction & Real Estate

Oman’s construction and real estate sectors are experiencing significant growth, driven by rising demand for housing, increased foreign investment, and national plans for economic diversification. Government support has focused on developing housing to accommodate a growing population, while also encouraging mixed-use and industrial projects aligned with broader development goals. These initiatives are part of a long-term vision to diversify the economy and boost sectors such as manufacturing. The expansion of free zones and reforms allowing foreign property ownership have made Oman more attractive to international investors. At the same time, the push for sustainable development and the creation of industrial cities are drawing more residents and visitors, further stimulating activity in real estate and construction. This growing interest has led to stronger private sector involvement in large-scale infrastructure and property projects, making construction a key pillar in Oman’s strategy to support population growth, industrialisation and economic transformation.

This chapter contains interviews with Khalfan Saeed Mubarak Al Shueili, Minister of Housing and Urban Planning; and Nailesh Khimji, Director, Khimji Ramdas Group.

Industry & Retail

Oman is steadily transforming its economy by reducing reliance on oil and gas, and promoting growth in other sectors. While hydrocarbons remain important, the country has made significant strides in expanding its manufacturing and retail industries. These developments are supported by government reforms, strategic investment, and large-scale infrastructure and industrial projects. As a result, employment in manufacturing and retail has been growing faster than the national average, reflecting a broader economic shift. Improvement in regulatory frameworks and institutional support has helped create a more advanced and globally integrated business environment. This evolving landscape positions Oman’s industrial and retail sectors for sustainable growth, while also aligning with the country’s long-term economic diversification goals. The focus on creating a more balanced economy is reshaping the job market and attracting both domestic and international investment, contributing to a more resilient and competitive economic model for the future.

This chapter contains interviews with Ahmed Akaak, Acting CEO, Special Economic Zone at Duqm; Dawood Al Hadabi, CEO, Public Establishment for Industrial Estates; and Harssha Shetty, CEO, Jindal Shadeed Iron & Steel.

Mining

Oman’s mining sector is undergoing a significant revival, marked by the recent export of copper concentrate for the first time in decades. This milestone highlights the country’s efforts to boost domestic mineral production, focusing on resources such as copper, iron and silica, as well as expanding capacity for materials like limestone and marble. The sector’s development is supported by dedicated oversight and investment, aiming to position Oman as a key supplier in regional and global markets. Its strategic location offers strong potential to meet growing demand from nearby Gulf countries, as well as from major economies like India and China, especially for minerals essential to green energy industries. Oman’s broader goal is to strengthen its role in global supply chains by increasing output and capitalising on shifting international trade dynamics. The mining sector plays a vital part in the country’s diversification strategy, contributing to long-term economic resilience and competitiveness.

Transport

Oman is leveraging its strategic location on the Arabian Peninsula to enhance its infrastructure as part of its broader economic diversification goals. Significant investment is being made in transport networks, including roads, ports, airports and railways, aimed at improving regional connectivity and building an integrated system to support trade and logistics. The country is also advancing digital initiatives to streamline trade processes, such as an electronic platform to simplify procedures and expedite customs clearance. Additional programmes focus on fostering innovation and strengthening regulatory oversight in logistics. These efforts have led to improvements in the country’s infrastructure and trade environment, enhancing its competitiveness. Oman’s commitment to enhancing national quality systems, alongside these infrastructure projects, is designed to attract foreign investment, support sustainable development and drive long-term economic growth, positioning the country as a regional centre for business and trade.

This chapter contains interviews with Saeed bin Hamoud bin Saeed Al Mawali, Minister of Transport, Communications and IT; and Hamouda bin Musbah Al Alawi, Acting CEO, Oman Airports.

Agriculture & Fisheries

Oman’s agriculture and fisheries sector is supported by a strong and evolving regulatory framework aligned with national goals for sustainable development and economic diversification. This sector is central to the country’s strategy to boost domestic production and retain more value within the national food supply chain. Oman’s coastal geography and climate enable year-round fishing, contributing to consistent growth in the seafood market, especially as demand for fresh and healthy food rises. While government entities remain key players, private sector involvement is increasing, with investment focused on improving productivity and self-sufficiency. Major initiatives, including the development of agricultural markets and the expansion of dairy operations, reflect the sector’s growing role in meeting local needs and supporting export opportunities.

This chapter contains an interview with Saud Hamoud Al Habsi, Minister of Agriculture, Fisheries and Water Resources.

Tourism

Tourism is a key focus of Oman Vision 2040, with the government aiming to strengthen the sector through both public and private investment. Over the past decade, the industry has shown consistent growth, recovering well after the Covid-19 pandemic, with visitor arrivals nearly reaching pre-pandemic levels. The government is committed to sustainable tourism development, demonstrated by the creation of more national parks and a focus on community development. By encouraging small and medium-sized enterprises to participate in the sector, the government hopes to stimulate local economies. As Oman continues its economic diversification beyond hydrocarbons, tourism is expected to play an increasingly important role, contributing significantly to the country’s growth and providing new opportunities for both local businesses and international investors. The emphasis on sustainability and community involvement ensures that tourism development will benefit the sultanate in the long term.

This chapter contains interviews with Salim M Almahruqi, Minister of Heritage and Tourism; and Hashil Al Mahrouqi, CEO, Oman Tourism Development Company

Education & Health

Oman’s education and health sectors have undergone significant transformation in recent decades, driven by long-term development strategies and effective mid-term plans. The government has made progress in addressing the labour market skills gap through the promotion of the Omanisation of the workforce. Key indicators, such as literacy and life expectancy rates, have improved due to increased investment in education and health care. Collaboration with international organisations has further enhanced the quality of health and education services, contributing to higher standards in both sectors. Additionally, the government has accelerated the adoption of digital technologies, modernising the health care and education systems. These efforts have improved the well-being of the population and equipped the workforce with the necessary skills to support economic diversification. As a result, Oman is building a more resilient and prosperous future, with a strong foundation in education and health that aligns with its broader development goals.

This chapter contains in interview with Saeed Hamad Al Rubaie, Vice-Chancellor, University of Technology and Applied Sciences.

The Guide

The Guide contains a selection of hotel and accommodation options throughout Oman for both business and leisure travellers. Helpful information is provided on visa regulations, dress considerations, business etiquette, and public and private transport options.

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