Oman, with an emerging economy, is a promising destination for investors and entrepreneurs looking for opportunities and growth in the Middle East. The Sultanate’s major features such as dynamic location, tax incentives, business-friendly government policies, and economic diversification efforts offer a profitable environment. The country earns most of its revenues through oil and gas. However, it is now expanding its scope by focusing on sectors such as manufacturing, logistics, tourism, mining, and fishing. This further allows entrepreneurs to choose from the diverse business opportunities in Oman.
Whether you are a foreign investor or a startup looking to begin or expand your business, Oman can be an ideal location. Here’s a list of reasons why opening a business in Oman can be a profitable venture for you.
Dynamic Geographic Location
Oman is situated at the crossroads of the major economies such as Asia, Africa, and the Middle East. It helps the country get seamless access to major trade routes. The presence of a long coastline offers world-class ports such as Port Sultan Qaboos, Sohar Port, and Salalah Port. The dynamic location further makes Oman an ideal logistics and distribution hub for manufacturing, import/export, and e-commerce companies. The Gulf Cooperation Council (GCC) membership also opens up additional Oman business opportunities through free trade and expansion.
Transparent Government Policies
Oman, which has a stable political environment, offers transparent regulatory framework and government policies. The government strictly adheres to transparency, rule of law, and investor protection laws. It has helped enhance the ease of doing business in Oman, which eventually leads to simplified company registration in Oman.
Major Industrial Zones
Entrepreneurs from across the globe are doing business in Oman. The key reason for this is the investments made to build a robust infrastructure to support both industrial and commercial activities. The state-of-the-art infrastructure such as efficient roadways to tech-enabled logistic corridors have encouraged many investors to invest in Oman. The modern infrastructure has also led to the establishment of several Special Economic Zones (SEZ) such as Salalah free zone, Duqm SEZ, and Sohar free zone. These major industrial zones offer a host of benefits such as:
- Full foreign ownership
- No import or export duties
- Simplified business registration
- Full repatriation of profit and capital
- Investor-friendly legislative environment
- Tax exemption for up to 30 years
All these benefits have encouraged global investors towards company formation in Oman.
Low Operational Costs
Doing business in Oman is quite profitable due to its low operating costs. The cost of living and labour here is lower when compared to other Gulf countries. The rent for office space, utility bills, and general administrative expenses are all low. The corporate taxes in Oman are also low and there is no personal income tax. It is ideal for small and medium company formation. Such exemptions lead to higher profit margins for the companies.
Sustainability and Innovation
Oman is positioning itself as a leader of green and sustainable development. This lean towards sustainability and responsible business practices has led to ease of doing business in Oman. Companies can now invest in Oman through various green initiatives such as solar energy projects, wind energy projects, eco-tourism initiatives, and much more. The country is aligning its development projects with global Environmental, Social, and Governance (ESG) standards.
Skilled Workforce
Today, Oman boasts of a young, dynamic, and skilled global workforce. The Sultanate has prioritised education and vocational training. It is helping produce a talent pool that is ready to meet the demands of a modern economy. For companies doing business in Oman for longer terms, this skilled workforce will be a valuable asset. They will add to the overall profitability of opening a business in Oman.
Vision 2040
Oman’s economy has been heavily dependent on oil and gas revenues. The Oman Vision 2040 plans to diversify the economy by launching into diverse industries. This roadmap aims to develop major sectors such as tourism, logistics, mining, fisheries and agriculture, and technology and innovation. Such developments will encourage starting a business in Oman and earning good profits.
Conclusion
Oman provides a unique fusion of modernity, environmental responsibility, economic diversification and cultural integrity. It offers firms a profitable, strategic, and stable environment with lots of incentives and expansion potential. If you are planning to start your company in Oman, contact Commitbiz for a simplified business setup process. Our experts will ensure you the best of services while you concentrate on starting your business venture.
