Oman is a regional power and investments in Oman play a major role in the economies of the West and the East. Oman is the 64th largest economy in the world, growing steadily at a rate of 2.3%. The Sultanate of Oman has been actively involved in getting the country’s economy beyond the production of oil and gas.
The government’s measures for economic development have been exceptional in the past decade. Sultanate liberalized Omani markets to become a member of the World Trade Organization and its membership was accepted in 2000. This move allowed Oman to trade among the world powers of Asia, Europe, and North America.
Reasons to Invest in Oman
Oman’s dependence over the production of crude oil became an obstacle when the oil prices fell. Since then the Sultanate has been developing the necessary infrastructure for making the foreign investment procedures feasible. The measures of the sultanate are proving to be fruitful lately as the GDP of the country continues to grow and investments in non-oil resources expand. The following are some of the facts that prove Oman to be a hot investment hub in Asia.
- Oman is a member of the Gulf Cooperation Council, along with Saudi Arabia, UAE, Qatar, Kuwait, Qatar, and Bahrain.
- The financial system of Oman is stable with a low non-performing loan ratio.
- Oman has been actively investing in its ports in developing the sites for tourism. This will further shift the dependence of Oman on Oil.
- The amount of foreign direct investment in Oman exceeded 24 billion USD in the year 2017.
- The United Kingdom is on the top of the list of the largest investors in Oman, followed by the UAE and Kuwait.
- US-Oman bilateral trade has grown since forever. This allows Oman stability in its worldwide trade.
- The Geo-strategic location of Oman falls among the most used international and regional sea lanes.
Advantages of Investment in Oman
Oman neighbors countries such as Saudi Arabia, Kuwait, and the United Arab Emirates, all of which are hubs of international investment. Oman’s large portions of the GDP depend on Oil and Gas resources which are the staple economic drivers of its neighboring countries as well. However, the geographical location of Oman is blessed because of its ports and the sultanate is working on its ports’ development to bring in more foreign investment. Here are the advantages of investing in Oman.
The Five-Year Plan of Oman
The five-year plan was the result of the massive decline in oil prices. Oman’s finances were hurt badly by this global downfall and the only option was to harness non-oil resources. The plan focused on developing resources such as fishing, farming, mining, tourism, and manufacturing. This five-year plan, ending in 2020, will bring down the contribution of oil in GDP of 44 percent in the year 2015 to 22 percent in the year 2020.
One of the major concerns of any investor doing business abroad is the tax policy of the government. Oman’ five-year plan imposed tax exemptions all over the country under fewer conditions. Income tax for individuals pushed down to nil and his Majesty Sultan Qaboos bin Said ruled that any new investor looking to invest in the tourist industry of Oman will be entertained by tax breaks. The sultanate issued a directive that the tools, equipment, and building material required for building the tourism project will not face any customs duty during the construction period, and the investors of tourism projects will get an exemption from 5% municipal tax and 4% tourism tax during the project building tenure.
Oil and Gas
Oman’s finances were hurt terribly when the prices of oil fell. However, in recent years the oil prices have recovered and have aided Oman’s budget, trade surplus, and foreign reserves. But the sultanate’s measures have been directed towards building an economy that thrives on oil as well as non-oil resources. Nevertheless, oil and gas remain the no 1 factor in Oman’s economic success and power.
Despite the massive size of Oman’s economy, it has been growing at a steady rate for years. The growth faced a record low decline of -0.90 in the year 2017 due to the declining oil prices, but recovered shortly and is expected to be 2.5% in the year 2019.
Statistical Advantages of Investing in Oman
- Foreign Direct Investment Inflow stands at 1.9 billion USD
- Government Integrity is calculated to be 53.8 percent and increasing.
- Tax Burden is downwards 97.8 percent and expected to fall even more in the coming years.
- Trade Freedom stands firmly at 87 percent and is still increasing. Source: Heritage
- Ranked 32nd easiest country to start a business in globally.
- Globally ranked airports, roads, and some of the most strategically placed ports in the world.
Investment Opportunities in Oman
The economy of Oman is one of the most stable ones in the Gulf region. Since its damaged position in the year 2017, due to the decreased oil prices, it has been flourishing its non-oil sectors. Because of the heavy government spending over the non-oil industries, the following industries have been the most profitable recently.
- Transportation and Logistics
- Tourism and Travel
- Technology-Based Startups
- Event Management
- Medical Consultancy
- Health Sector
How to Invest Smartly in Oman
Oman might seem a gold rush region for the investors looking at the mind-boggling economic indicators. However, the actual investment procedures in Oman and the other Gulf regions involve complex practices involving the culture of the country. The Sultanate of Oman provides luxurious benefits and tax exemptions to the investors, but these benefits come under some conditions. Investment consultants help global investors make smarter investments in Oman. These are the people who provide solutions to any regional difficulty faced by global investors. Arabian Gulf Investments is one of the established and rising consultant companies in the Gulf region.
Arabian Gulf Investments – Your Investment Consultant in Oman
Arabian Gulf Investments is a group of serial entrepreneur experts in financial knowledge and a spirit for enabling global investors to start businesses in the Gulf Region.
The team of consultants at AGI is well aware of the regional business culture as well as the rules and regulations governed by the Sultanate of Oman. The company leverages this financial and regional expertise for consulting the global investors making investments in Oman.
AGI’s State-of-the-Art Private Investment Marketplace
The easiest method of doing business in our age is digital. Investors around the world can make investments anywhere using their laptops. AGI provides a digital marketplace that allows its users access to exclusive off-market and regional transactions.
Through such exclusive investment opportunities and consulting services, AGI aims to create a globally trusted investment ecosystem to empower regional companies, improve transparency and uphold the integrity and confidentiality of the regional marketplace.