Oman, an Arab country with Muscat as its capital, lies in the south-east end of the Arabian Peninsula. It shares its borders with 5 countries, namely, Yemen, Iran, Saudi Arabia, Pakistan, and the UAE. It has been the centre of investment for foreign investors for a long time. The country has a monarchical type of government promoting business and commerce. The country has been developing itself year after year. By 2040, the economic growth of Oman is expected to grow by 10%. Presently, it holds a population of 4.7 billion. According to the World Bank, it has been ranked 71st for the ease of doing business in 2018.
Are you planning to establish your business roots in Oman? If yes, then you are on the right track. At this point, you should be aware as to why Oman is a hub of investment. Have a glance at the points below.
1. Multiple Facilities
A well-built infrastructure, commercial connectivity, high security, property rights, and international networking steps taken forward by the Ministry of Foreign Affairs and Commerce of Oman provide a favourable climate for entrepreneurs to grab the investment opportunities, convert business ideas, and contribute towards economic development.
2. Oman’s Ninth Five-Year Development Plan (2016-2020)
This plan gives more importance completion of projects through Public Private Partnerships. Vision 2020 aims at building a strong economy for the future by developing business incorporation, human resource, economic diversification and private sector development.
3. Start-Up and Entrepreneurship
The government of Oman aims at building a smart-city. Strong international networking and trade agreements have widened the scope of foreign investment in Oman, which helps even the small and medium industries and start-ups in Oman to gain the benefits. The country also takes initiatives in building the first oil and gas institute to develop professionals in the energy sector.
4. No Personal Tax
Oman comes under the tax-free zone. Yes, you don't need to pay income or any individual tax. Once established, a company only has a flat 15% corporate tax to be paid. Goods across the Gulf Cooperation Council (GCC) moves free of customs duties. All in all, the taxation system has been a catalyst in attracting the investment opportunities in Omani market.
5. Company Formation in Oman and Ownership
According to Omani Law, there are 3 major formats of company formation in Oman: Limited Liability Company (LLC), Closed Joint Stock Company, and Open Joint Stock Company. Amongst these, an LLC is the most common type of company formed in Oman. The ownership of a foreign investor is 70%; in special cases, it gets extended even to 100%.
6. Export of Non-Oil Products
The government is taking initiatives to expand the export of non-oil products, which creates a huge opportunity for sectors like fishing, manufacturing, pharmaceutical, mineral mining, etc. According to Oman’s business news, its export increased by 28% during 2017-2018.
7. Oman’s Vision 2040
Oman has a fairly developed oil and gas industry. It is considered the backbone of the country’s economy. Apart from this, several measures have been initiated to develop multiple sectors like infrastructure, tourism, technology, hotel, transport, manufacturing, mining and perfume industry. Muscat would serve as a link between Asia and Africa. This initiative foresees an increase of 31 billion riyals by 2040 – a substantial growth.
8. Oman Projects
The country has been engaging itself in the completion of various projects in different sectors for the welfare of the economy. Some of the ongoing projects are Salalah LPG Project, Mina Sultan Qaboos Waterfront Project, and Extension of Muscat International Airport. These projects would be an add-on to the growth and development of Oman’s economy.
Thus, we can see that Oman is a platform to set up new businesses. The government encourages investors to invest in both national and international projects to contribute towards the world economy. Business Setup Worldwide is a platform to help you establish your business in Oman. We help our clients through business support services like company registration, accounting, bookkeeping, tax advisory and intellectual property protection. For more details, do contact us. We would be happy to assist you and be a part of your success journey.