Why You Should Invest in Oman: The Complete Guide for 2025

Overview of Investment in Oman

Why Investors Are Looking at Oman in 2025

Importance of Foreign Direct Investment

Foreign Direct Investment (FDI) isn’t just a line item in Oman’s budget, it’s the engine powering its long-term strategy to diversify away from oil dependency. Over the past decade, Oman has implemented a series of liberalization reforms to attract international capital:

• Regulatory Liberalization:
  Oman’s 2019 Foreign Capital Investment Law removed the need for local sponsorship in most industries. Foreigners can now fully own companies, a move that significantly reduces red tape and increases autonomy.
  
  

• Incentives via SEZs:
  Free zones like Duqm and Sohar offer perks ranging from corporate tax holidays (up to 30 years) to 0% customs duties, making them ideal entry points for new ventures.
  
  

• Future Fund (2023):
  In a move that turned heads regionally, Oman launched a $5.2 billion Future Fund to support SMEs and attract FDI into strategic sectors. It aims to reduce investor risk by co-financing and offering guarantees for high-impact projects.

Oman’s Vision 2040

Oman's Vision 2040 is a 20-year national roadmap with measurable goals designed to transform the Sultanate into a diversified, innovation-driven economy. It’s also a critical reason global investors are paying attention.

Discover our guide to the most developed Muslim cities to live in 2025 here.

▸ What Is Vision 2040?

Launched in 2021, Vision 2040 lays out strategic priorities for:

• Economic Diversification
  
  

• Private Sector Empowerment
  
  

• Talent Development and Education
  
  

• Sustainability and Green Energy

This plan is directly shaping policy across every level of government and guiding FDI priorities. Ministries are aligning sector-level reforms (e.g., tourism, real estate, logistics) with Vision 2040 metrics, creating a predictable policy environment for long-term investors.

Goals of Vision 2040

Vision 2040 is being largely enforced through budgets, licensing rules, SEZ mandates, and public-private partnerships.

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Best Investment Opportunities in Oman

Real Estate Investment in Oman

Oman’s real estate sector is turning heads in 2025, not because it’s flashy, but because it’s stable, accessible, and tied to long-term residency. For many investors priced out of Dubai or wary of sudden regulatory shifts elsewhere, Oman offers something rare: predictability.

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Market Trends:

• Freehold property for expats is now widely available in Integrated Tourism Complexes (ITCs), giving foreign investors ownership rights and eligibility for a residency permit. Popular developments like Al Mouj offer modern waterfront living with legal clarity and no local sponsor requirement.
  
  

• Rental returns are attractive, especially in key neighborhoods of Muscat and Salalah, where yields average between 6–8%. Unlike other GCC markets, Omani property prices have remained relatively stable over the past five years, with moderate annual growth and fewer speculative swings.
  
  

• Thanks to the updated Real Estate Development Law, Oman now mandates escrow accounts for off-plan developments and has tightened licensing for developers—offering buyers stronger legal protection and better oversight of the market.

Key Regions for Property Investment

Tourism Investment in Oman

Oman isn’t trying to be the next Dubai. Instead, it’s carving out a niche in sustainable, heritage-driven tourism, which makes it a magnet for long-term investors interested in real-world experiences, not just concrete and glass.

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Current Developments

• The $1 billion Yiti Tourism City outside Muscat is a prime example. It’s a next-gen smart coastal project with mixed-use zones, sustainable planning, and a strong private-sector investment push, now under construction with international partners (Global Construction Review).
  
  

• Heritage investments are growing too. The Ministry of Heritage and Tourism is supporting initiatives to restore historical sites, build tourism trails, and offer investment opportunities in eco-lodges, desert retreats, and UNESCO-protected village experiences.
  
  

• Oman’s ports and airports are being modernized to handle the growing number of cruise ship arrivals and flight routes, especially in Salalah and Muscat, creating opportunities for transport-linked accommodation and tourism services. These infrastructure upgrades are highlighted in the U.S. State Department's 2023 investment report.
  
  

Future Prospects

Oman’s tourism sector isn’t about mass volume, it’s about depth. That means longer stays, higher spending per visitor, and room for new players who value cultural preservation and environmental balance.

Business Environment in Oman

Oman’s approach to business in 2025 is all about clarity and access. For foreign investors, the reforms of the last few years have turned the country into a genuinely open marketplace, where 100% foreign ownership is allowed in most sectors, and long-term residency is now part of the deal.

▸ Overview of the Oman Business Environment

• 100% Foreign Ownership: Since the Foreign Capital Investment Law was updated in 2019, foreign nationals can own businesses outright in most sectors—no need for a local partner or sponsor. This applies to everything from real estate and retail to logistics and manufacturing.
  
  

• Special Economic Zones (SEZs): Oman has invested heavily in zones like Duqm, Sohar, and Salalah. These offer streamlined licensing, lower land lease rates, and access to incentives like tax holidays, customs duty exemptions, and reduced utility costs. Each SEZ is managed under its own authority, making setup faster and more investor-friendly.
  
  

• No Personal Income Tax: Oman doesn’t levy personal income tax on individuals, making it a tax-neutral destination for entrepreneurs and business owners relocating from high-tax countries.
  
  

• Improved Credit Ratings & Institutional Stability: After years of restructuring, Oman’s sovereign credit rating was upgraded to BB+ in 2024, reflecting greater fiscal control and improved investor confidence (AGSIW).
  
  

• Streamlined Company Formation: Registering a business can be done online via the Invest Oman portal, which acts as a one-stop shop for permits, licenses, and approvals.
  
  

Corporate Income Tax in Oman

Oman’s corporate tax regime is relatively simple, especially compared to other countries in the region.

• No Withholding Tax on Capital Gains
  
  

• No VAT on most real estate transactions
  
  

• Losses can be carried forward for 5 years
  
  

In 2024, Oman updated its tax system to improve digital reporting, introduce e-filing requirements, and strengthen auditing for larger companies, all part of its broader fiscal modernization program backed by the Oman Investment Authority (IFSWF profile).

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Investor Visa Process

Long-term stay in Oman isn’t just possible, it’s encouraged. The Investment Residency Program (IRP) offers 5- and 10-year residency permits in exchange for qualifying investments in real estate or business.

How to Obtain an Oman Investor Visa

Oman’s Investment Residency Program has two tiers:

Tier 1

10-Year Residency

• Minimum Investment:

• Invest OMR 500,000 (~$1.3M) in a company or in government bonds

• Or buy real estate worth at least OMR 500,000
  
  
  
  

• Alternative Route:

• Establish a business employing 50+ Omani nationals (no minimum capital needed)
  
  
  

• Fee:
  OMR 551 per applicant
  
  
  

• Renewable:
  Yes, every 10 years
  
  

Tier 2

5-Year Residency

• Minimum Investment:

• Invest OMR 250,000 in a company or real estate
  
  
  

• Alternative Route:

• Expatriates with at least OMR 4,000 monthly income may apply
  
  
  

• Fee:
  OMR 326 per applicant
  
  
  

• Renewable:
  Every 5 years

Due Diligence & Practical Tips for Foreign Investors in Oman

Even in an investor-friendly market like Oman, doing your homework is key. The country’s systems are open, but understanding the landscape on the ground can make the difference between a smart investment and a frustrating one.

What to Know Before Entering the Market

/01

Regulatory Clarity Doesn’t Mean No Bureaucracy

Oman has made big improvements to simplify licensing and registration. But on-the-ground processes can still be slower than in places like the UAE. Plan for longer processing times, especially for property transfers and municipal permits.

/02

Understand ITC vs. Non-ITC Property Zones

Foreigners can only buy property in specific designated areas known as Integrated Tourism Complexes (ITCs). These include premium developments like Al Mouj, Muscat Bay, and Jebel Sifah. Properties outside these zones are not available for freehold purchase unless specific exceptions apply—so always confirm before making offers.

/03

Hire Local Legal Counsel

A local lawyer isn’t optional, it’s essential. From reviewing contracts in Arabic to dealing with ministries, having someone on the ground who knows the system can save you time, money, and stress.

/04

Currency & Banking Tips

Oman’s currency, the Omani Rial (OMR), is pegged to the US dollar, which helps reduce forex volatility. That said, opening a bank account as a non-resident can be time-consuming, so expect to work through intermediaries unless you hold an investor visa.

/05

Verify Land Titles Thoroughly

Especially in areas outside ITCs, it’s critical to verify ownership records through the Ministry of Housing and Urban Planning. Cases of informal land sales or outdated records still occur, so title checks are a must.

 Fast Checklist: Before You Invest

Specific Investor Benefits: What You Actually Gain in Oman in 2025

Forget vague promises, here’s what you’re really getting by investing in Oman in 2025:

/01

Residency That’s Tied to Real Assets, Not Bureaucracy

Unlike many countries where residency is granted through complex point systems or delayed visa approvals, Oman gives long-term residency directly tied to property or business ownership.

You buy a qualifying property → you apply → you stay. It’s that simple. No quotas, no annual renewals, no grey areas.

/02

No Capital Gains or Income Tax on Foreigners

Oman doesn’t tax personal income, capital gains, or foreign-sourced business profits. For investors running businesses remotely or renting out property, this results in clean, predictable earnings, without the burden of reporting across multiple jurisdictions.

/03

Safe Currency, Dollar Peg, No Inflation Shock

The Omani Rial (OMR) is pegged to the US dollar, offering a high degree of stability. For investors coming from volatile FX environments, this means less currency risk, especially when tied to long-term real estate or leasehold contracts.

/04

Entry Point into a $2.3 Trillion GCC Market

By setting up in Oman, you gain customs-free access to all GCC markets via the Gulf Cooperation Council trade framework. You can sell, export, and operate regionally from a base with lower costs and easier entry procedures than many of its neighbors.

/05

Low Speculation = Long-Term Asset Value

Unlike Dubai or Doha, Oman’s property and business markets aren’t overheated. That means assets tend to reflect real utility and rental income, not artificial hype. You’re buying into intrinsic value, not chasing inflated yields or fast exits.

/06

Early-Stage Opportunity with Institutional Support

Oman’s strategic sectors are still early-stage. That gives private investors room to grow before valuations spike. With backing from the Oman Investment Authority and co-financing through the $5.2 billion Future Fund, you’re not entering alone, you’re entering alongside a government actively de-risking your capital.

Future Perspectives: Why Timing Matters in 2025

Oman today feels a lot like the UAE in the early 2000s, quietly laying the foundation for something much bigger. 

The difference? It's doing so without the breakneck speculation. Vision 2040 isn’t just about diversification on paper, it’s being executed through fiscal discipline, infrastructure spending, and public-private alignment that favors long-term capital.

With the rollout of smart city developments, clean energy mega-projects, and institutional investment platforms like the Oman Investment Authority, the country is steadily shifting from regional middleweight to a strategic investment node in the Gulf. 

Over the next 5 to 10 years, as GCC integration deepens and global interest in the Indian Ocean corridor grows, Oman’s early-stage reforms could turn into major capital inflows.

For investors who value timing and positioning, 2025 offers a rare opportunity: get in while the regulations are fresh, prices are reasonable, and competition is still thin. 

Because once regional markets adjust and visibility increases, Oman won’t be a hidden play anymore, it’ll be an established one. And early movers tend to win when the infrastructure’s already in place.

4.09k subscribers

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4.09k subscribers

58 videos