Oman’s strategic location at the crossroads of regional markets, combined with its modern, efficient infrastructure and an educated, largely bilingual workforce, make it an attractive location for U.S. trade and investment. Approximately one hundred U.S. firms have operations or do business in Oman. The Omani economy has made a strong recovery following a slump due to COVID-19 and low oil prices. Oman’s economic fundamentals are good. The government used revenues from high oil prices to pay down external debt to around 35 percent of GDP and invest in development projects. These fiscal reforms resulted in Moody and Standard & Poor (S&P) returning Oman’s credit rating to investment grade after nearly seven years, during which its rating dropped due to the decline in global oil prices and COVID-19. Oman is making strides to diversify its economy, including investing in new space, AI, and energy technologies.  For now, it remains dependent on oil and gas revenues. 

Oman’s success in 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 requirements to hire a certain percentage of Omanis for their workforce and problems letting go of non-performing or redundant employees. The government recognizes these challenges and is working to address them as part of efforts to improve the investment climate and achieve its economic development goals under Oman’s Vision 2040 development plan. Some Omani citizens and residents have engaged in boycotts of U.S. brands, particularly in the food and beverage sector, due to perceived U.S. support for Israel in the Gaza conflict, but they continue to use U.S. products without clear substitutions such as pharmaceuticals, aircraft, and technology.  Despite some public sentiment favoring boycotts, the government continues to actively encourage U.S. companies—particularly in the technology sector—to invest.

Under Sultan Haitham bin Tarik Al Said’s leadership, Oman is developing incentives for foreign investors, including a program of tax and fee incentives, permissions to invest in several new industries, lower government fees, expanded land use, and increased access to capital for qualifying companies. Special incentives also exist for investors in industrial areas and economic zones, such as the city and port of Duqm – Oman’s premier infrastructure project, with an 800-square-mile free trade zone and logistics hub. 

Oman seeks to diversify its economy through projects in manufacturing, logistics, tourism, mining, and fishing. Several large-scale Integrated Tourism Complexes are in development, including a Trump International Hotel and golf development. The government is also overseeing the development of several food-related projects to strengthen long-term food security. The Oman Investment Authority (OIA), the country’s sovereign wealth fund, is involved in the privatization and sale of state-owned assets. Oman successfully created a public-private partnership (PPP) in its utilities sector, and it seeks U.S. investment and expertise to develop more PPP projects. One of the key objectives of Oman Vision 2040 is to increase the contribution of the digital economy to the country’s GDP.  The government has prioritized the development of information and communications technology (ICT) – including artificial intelligence (AI) and data centers – and several U.S. firms are at the forefront of ICT development in Oman. 

Oman’s continued success in attracting investment will depend on its ability to open additional sectors to private-sector competition and foreign investment, minimize bureaucratic hurdles, address labor policy concerns, make its tender system more transparent, and increase access to credit, including for entrepreneurs. 

Oman has enacted several laws that facilitate investment. Oman allows expatriate residents with work visas to own residential units and offered long-term residency visas to attract investors. Five and 10-year renewable residence visas are available to foreign investors in tourism, real estate, education, health, information technology, and other key sectors. These moves followed five significant laws promulgated in 2019 to promote investment: the PPP Law; Foreign Capital Investment Law (FCIL); Privatization Law; Bankruptcy Law; and Commercial Companies Law. The FCIL removed minimum share capital requirements and limits on the amount of foreign ownership of an Omani company. To facilitate the FCIL, Oman created the Investment Services Center to streamline procedures for foreign investors. In May 2023, the government cut commercial registration fees for foreign investors and exempted companies from providing temporary insurance/bid guarantee on tender bids. The new 2024 labor law reduced the minimum weekly working hours, increased sick and maternity leave, added new mandatory employment contract terms, added new possible forms of employment, and established guidelines which should help companies remove underperforming or redundant workers. 

The United States and Oman share a strong bilateral relationship based on a joint commitment to the security, stability, and prosperity of the region. In 2009, the two countries signed the U.S.-Oman Free Trade Agreement (FTA), which 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 FTA also reduces the minimum share capital requirements for a U.S.-owned business, expedites the movement of goods and provision of services, safeguards intellectual property rights, and provides dispute resolution procedures. Both sides have benefited from increased trade and Sultan Haitham has told U.S. leaders he wants stronger U.S.-Oman economic ties based on the FTA. 

The United States was the largest foreign direct investor in Oman in Q1 2025 with $7.4 billion, an increase of 58 percent over Q1 of 2024, and overtook the UK at $7 billion.  While the UK’s total investments into Oman reached $40 billion, the United States held a strong second place with $20 billion, while China ranked third with $3.4 billion, according to published government data.  The United States registered a trade surplus of $634 million for 2024 and a cumulative trade surplus of $6.3 billion since the FTA went into effect in 2009. Principal U.S. merchandise exports to Oman included vehicles, aircraft, petroleum products, chemicals, plastics, and industrial engines. The United States is an investment destination for Oman with OIA announcing more than seven U.S. investments just during the 2024-25 timeframe.

The Export-Import Bank of the United States (EXIM) signed a $500 million memorandum of understanding (MOU) with Oman’s Ministry of Finance to facilitate procurement of U.S. goods and services for government projects in Oman and finance U.S. exports to Oman. Post, in collaboration with the Omani government, hosted a U.S.-Oman Free Trade Agreement Symposium in December 2024 to celebrate 15 years of signing the FTA; which was attended by over 150 people and included high-level government officials. Multiple bilateral trade missions and government visits to both countries have furthered increased commercial ties. For example, Oman sent its largest ever delegation – a combination of 20 public and private sector individuals – to the 2025 Select USA Investment Summit and opened a trade office in the United States in May 2025, which provides assistance for Omani companies seeking to invest in or gain access to the U.S. market.  Other examples included the FTA Joint Committee reconvening in April after a 12-year hiatus to explore ways to better leverage the agreement and reduce trade barriers, as well as Oman’s Minister of Commerce leading a high-level public- and private-sector delegation to New York, Washington, D.C., and Arizona in September 2024 to advance cooperation in sectors such as banking, finance, space, and semiconductors.

Visit the State Department’s website for background on the country’s political and economic environment.