Oman Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in oman, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies.  They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

  • Openness to, and Restrictions upon, Foreign Investment,
  • Investment and Taxation Treaties,
  • Legal Regime,
  • Industrial Policies,
  • Protection of Property Rights,
  • Financial Sector,
  • State-owned Enterprises,
  • Corruption,
  • Labor Policies and Practices,
  • Political and Security Environment, and
  • U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors.

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.

 

Executive Summary - Oman

Oman’s location at the crossroads of the Arabian Peninsula, East Africa, and South Asia and in proximity to larger regional markets is an attractive feature for potential foreign investors. Some of Oman’s most promising development projects and investment opportunities involve its ports and free zones, most notably in Duqm, where the government envisions a 2,000 square-kilometer free trade zone and logistics hub. With a “friends of all, enemies of none” foreign policy, Oman does not face the external security challenges of some of its neighbors, and its domestic political situation is stable.

Since October 2023, Oman citizens and residents have responded to social media calls to boycott U.S. products because of what they see as U.S. support for Israel against the Palestinians in the /Gaza conflict. The government has not publicly opposed the boycott movement. The main targets are iconic U.S. brands like Starbucks, McDonald’s, Coca-Cola, Pepsi, and others, some of which have experienced significant losses. A February 2024 Oman Chamber of Commerce report noted that continued boycotts could lead to negative economic repercussions for Oman, including loss of tax revenues and job losses, but it received strong criticism by those in favor of the boycott.

The United States and Oman share a strong bilateral relationship based on a joint commitment to regional security, stability, and prosperity. The 2009 U.S.-Oman Free Trade Agreement (FTA) removed most customs duties, allowed citizens to set up businesses without a local sponsor, and gave businesses and investors the right to 100 percent ownership of companies in Oman. The United States was the second largest foreign direct investor in Oman in Q3 2023 ($10 billion) after the UK ($30 billion). In February 2023, Oman hosted the first U.S.-Oman Strategic Dialogue, with a strong focus on trade and investment. The Export-Import Bank of the United States (EXIM) and the Omani government signed a memorandum of understanding to use $500 million in EXIM financing to establish projects in biotechnology, renewable energy, agriculture, water and wastewater treatment, mining, and manufacturing, among others.

Oman is making strides to diversify its economy from oil and gas; for now, it remains dependent on oil and gas revenues. High oil prices and fiscal consolidation improved Oman’s fiscal and external balances considerably in 2023, leading to a budget surplus of $2.4 billion for the financial year 2023. Under its Vision 2040 development plan, Oman wants to diversify its income sources and develop the logistics, manufacturing, technology, gas, food, and tourism sectors, among others. Oman’s sovereign wealth fund oversees many of the country’s economic initiatives, including privatization of government assets and attracting foreign direct investments. Oman wants U.S. investments and expertise to develop projects in-country, leveraging its ports, economic free zones, and the FTA.

Oman’s continued success in attracting investment and growing its economy will depend in part on revising labor policies, which some U.S. companies tell us can be challenging to navigate. Smaller companies with limited or no local or regional experience report bureaucratic difficulties, including sometimes lengthy approvals processes to establish operations. Government mandates to allocate projects to local Omani companies exclude foreign companies from some tenders. Oman’s success in attracting investment will also depend on its ability to open additional sectors to private-sector competition and foreign investment, minimize bureaucratic hurdles, increase transparency in its tender system, reduce its expansion of taxes and government fees, and increase access to credit, including for entrepreneurs. The continued boycott of U.S. products also detracts from U.S. investments in Oman.

To access the full Oman Investment Climate Statement, visit https://www.state.gov/reports/2025-investment-climate-statements/oman/

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