Trade & Investment
From The Report: Oman 2025
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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.

Articles from this Chapter

Overview

Capital destination: Policy reform, strategic sector development and business infrastructure are boosting investment opportunities
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With its international trade showing robust growth and its foreign direct investment (FDI) flow continuing to strengthen, Oman is already an important destination for trade and investment in the GCC. In recent years, a new raft of policies and plans have been put in place to boost existing economic relationships still further. New special economic zones (SEZs), investor-friendly regulations, integrated infrastructure, transparent policies and digitalisation are all key elements of this drive. Bolstered by sustained economic growth, Oman is seeking to leverage its unique geostrategic location, as well as its solid reputation as a welcoming destination…

Interview

Growth engine: Abdulsalam Al Murshidi, President, Oman Investment Authority, on driving economic diversification
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Interview: Abdulsalam Al Murshidi What drivers have helped boost Oman’s investment appeal within the region and beyond? ABDULSALAM AL MURSHIDI: Oman’s investment attractiveness has improved in recent years, driven by strategic initiatives under Oman Vision 2040, which aim to diversify the economy beyond oil and gas. Sectors such as logistics, manufacturing, mining, renewable energy and tourism have been prioritised to create a more resilient and sustainable economic landscape. Additionally,…

Interview

Global reach: Qais Al Yousef, Minister of Commerce, Industry and Investment Promotion (MCIIP), on positioning the country as a key node in global energy and trade networks
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Interview: Qais Al Yousef What are the priorities for enhancing Oman’s integration into the evolving global trade landscape? QAIS AL YOUSEF: The focus areas include economic diversification, investment in infrastructure, improving the business environment, promoting investment, developing human capital, creating jobs, enhancing trade, increasing in-country value and digital transformation. These priorities align with Oman Vision 2040 and are further reinforced by the country’s commitment to…

Analysis

Bilateral partnership: The Comprehensive Economic Partnership Agreement between India and Oman is set to expand bilateral trade relations
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When the new OR12m ($31.2m) Maritime Museum in Sur opens its doors in 2025, visitors will be able to experience the narrative of Oman’s seafarers. For centuries, mariners journeyed far and wide, across the Arabian Sea to Africa, India and beyond. One of the principal sponsors of the museum is the Oman India Fertilizer Company (OMIFCO) – a $969m joint project between national energy firm OQ and India’s fertiliser companies IFFCO and KRIBHCO, and an affiliate of the Oman Investment Authority (OIA). In 2023 India was the sultanate’s fourth-largest source of imports, while Oman was India’s fourth-largest source of oil exports. The goods…

Analysis

Financing the future: Future Fund Oman is part of the sultanate’s drive to encourage more targeted, sustainable foreign direct investment
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In January 2024 the OR2bn ($5.2bn) Future Fund Oman (FFO) began operations, aiming to mobilise public and private capital behind one of the largest investment rollouts in the sultanate’s history. Set to provide OR400m ($1bn) per year from Oman’s budget over the 2024-28 period, FFO has already made a significant impact. In the first three quarters of 2024 the fund secured OR832m ($2.2bn) in financing, of which OR609m ($1.6bn) came from foreign investors. These projects were officially announced in November of that year and span 10 key sectors, including tourism, renewable energy, manufacturing, technology and electric vehicles. Some 1600 jobs…

Interview

Changing schemes: Faisal Al Farsi, CEO, Social Protection Fund, on fostering greater inclusion in social insurance systems
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Interview: Faisal Al Farsi What is the current state of the insurance and social protection sector following recent restructuring? FAISAL AL FARSI: Oman’s insurance and social protection sector has undergone a significant realignment to improve efficiency and accessibility. The industry was fragmented, leading to inefficiencies and a lack of cohesive coverage. The July 2023 merger shifted the focus towards creating a more unified and integrated system, bringing everything under one umbrella to…

Interview

Catalysing growth: Ali bin Masoud Al Sunaidy, Chairman, Public Authority for Special Economic Zones and Free Zones (OPAZ), on the transition to sector-specific industrial clusters
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Interview: Ali bin Masoud Al Sunaidy What are the priorities for industrial development, and how are they reflected in economic zones? ALI BIN MASOUD AL SUNAIDY: OPAZ policies are aligned with Oman’s industrial strategy, which focuses on sectoral clustering – grouping complementary industries in dedicated zones to deepen value chains and boost economic resilience. This approach builds on existing strengths and guides future development through targeted planning. For example, in Sohar Free Zone,…

Analysis

Connecting the world: Duqm is paving the way for the country’s leadership in industry, innovation and sustainable development
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Located halfway between Muscat and Salalah, Duqm exemplifies Oman’s rapid economic development in recent years. In the decades leading up to 2025, the city has evolved from a small fishing village to a regional trade centre, highlighted by the globally significant Special Economic Zone at Duqm (SEZAD). Positioned between the Arabian Sea and the Indian Ocean, SEZAD is strategically situated to capitalise further from growing trade and investment from other emerging markets, while maintaining ties to other GCC countries and well-established markets. In the first half of 2024 SEZAD reported a cumulative investment of OR6bn ($15.6bn) – a 55%…