Oman Opens Doors Wider to Global Investors

Not long ago, setting up a business in a new country often meant paperwork, delays, and high entry costs. In Oman, that story has been quietly changing.

Over the past few years, the Sultanate has been steadily reshaping how it welcomes businesses—especially small and medium enterprises. Much of this shift is tied to Oman Vision 2040, a long-term plan that places economic diversification and private investment at the centre of national development. Instead of headline-grabbing announcements, the changes have been practical and process-driven, aimed at making everyday business tasks simpler.

One of the most meaningful turning points came in 2020 with the introduction of the Foreign Capital Investment Law. By removing the minimum capital requirement for foreign investors, Oman addressed one of the most common barriers to entry. For many SMEs and first-time investors, this made the idea of starting a business in the country far more realistic.

At the same time, the government began investing heavily in digital systems. Between 2021 and 2024, more than 1,700 government services were moved online. By the end of 2024, nearly three-quarters of all services had been digitised, up from just over half the year before. For business owners, this meant fewer office visits and faster approvals.

These changes are visible on platforms such as the Oman Business Platform, which handled over 827 transactions in 2024—an increase from the previous year. Oman also scored 72 percent on the Government Electronic and Mobile Services Maturity Index, reflecting steady progress in how public services are delivered.

According to World Bank data, Oman now compares favourably with larger regional economies when it comes to setting up a company. On average, a new business can be registered in about four to four and a half days, through just four procedures. There is no minimum capital requirement, and setup costs remain relatively low—under three percent of per capita income—making it accessible for smaller businesses operating on tight budgets.

Digital platforms have played a central role here. The ‘Invest in Oman’ portal brings together services from 15 government entities in one place, while the Oman Business Platform allows companies to be set up and managed remotely. An AI-based KYC service even enables investors to complete initial steps from outside the country, without being physically present.

Cost management has also been a focus, particularly for SMEs. Through initiatives like the reduction in expatriate labour permit fees—cut by 89 percent for eligible small companies registered with Riyada—the government has tried to ease operational pressures on smaller businesses.

Alongside these reforms, Oman introduced a long-term residency programme for investors, coinciding with foreign direct investment reaching OMR 30 billion by the third quarter of 2024. While investment figures are only part of the picture, they point to growing confidence in the country’s direction.

Oman’s broader appeal lies in its stability, established labour market, and location along key trade routes linking Asia and Africa. Looking ahead, the government plans to continue refining regulations, expand public-private partnerships, introduce more AI-supported services, and develop new economic zones as part of Vision 2040.

For SMEs watching the region, Oman’s approach offers a clear message: building a business-friendly environment doesn’t always require bold promises—sometimes, steady improvements make the biggest difference.