The Sultanate of Oman basks itself in the field of oil. Although oil and gas is the most significant sector, the economy is getting diversified to a wide extent considering multiple fields to safeguard the economic structure of the country. Oman, with its capital Muscat, is considered to be one amongst the most developed and stable countries of Arab. When it comes to the GDP growth, it is projected that the growth will reach 3.5% in 2019 and 2.9% in 2020. The economy has established itself so as to attract international investors to a big count. If you are an investor or planning to set up your business entity at an international level, Oman is a place you can count on. The flexibility to operate different business entities in Oman is widely available ranging from an LLC company to a Sole Proprietorship. Now, before setting up a business in Oman, you need to know certain points regarding the economy, benefits that you would derive etc. This article will take you through the necessities that you must be aware of. Let’s start…
Business Opportunities in Oman
Oman is a platform for many business entities dealing in different sectors. Some of the major businesses include Agriculture and Fishing, Resources and Power, Manufacturing, Finance etc. Since the Omani government has taken the decision to widen the reach across various other sectors, listed below are the lucrative business opportunities in which one can set up their business in Oman:
- Travel and Tourism
- Filling Station
- Electronics and Home Appliances
- Facility Maintenance
- Commodity Store
Thus, you can see that multiple business opportunities in Oman are available in all the mentioned sectors. Now, you must be wondering how business in Oman can benefit you. Well, read below to figure out the answer.
Benefits of Establishing a Business Entity in Oman
Oman has been successful in grabbing the attention of international investors. Investors consider a wide range of parameters and finally proceed to their first step towards company registration in Oman. Few of the benefits that an investor can avail by establishing a business in Oman include the following:
1. Oman’s Economy
The economic state of any country can be understood by the economic freedom index that a country achieves which specifies the degree of economic freedom in the world’s nation. Oman has scored an economic freedom score of 61.0 which has made its economy as the 93rd freest in 2018 Index. Another important aspect that has lifted the economy is that it has scored 8th rank among the 14 countries in the MENA region.
2. Prime Location
It is considered to be a prime location which is at a distance of fewer than 2 hours from the major business centers of Asia, Europe, and North America. Another important feature that highlights the prime location is that the non-oil exports have reached to 176 countries. The Sultanate is considered the gateway to the Arabian Gulf and makes Oman the meeting place of the Asian and African continents, paving the way for a plethora of financial business opportunities.
3. International Appeal
Oman has various trade agreements that help the nation to have free trades with multi-nations. Some of them include GCC, GAFTA, FTAs with US and Singapore, Iceland, Norway, Switzerland.
4. Safe Environment
Investor friendly environment has been set and no restrictions have been set on capital and profits repatriation. Apart from that, only a flat rate of 15% of corporate tax is charged.
5. Talent Pool
Within a population of almost 4.3 million, 1.7 million are working employee. So, you can estimate the talent available over there along with competitive salary rates. The nation has also got a strong hold on Research and Development.
World-class infrastructure has been set with globally ranked ports, airports, roads. A huge investment has been made in railway to improvise it far better that would strengthen the transportation sector to a great extent.
7. Natural Resources
Oil export has drastically improved Oman’s economy. Due to the sustained high oil prices in recent years have helped build Oman’s budget, trade surplus, and foreign reserves. They are also trying to not completely depend on oil as there have been few attempts to diversify the economy by investing in the private sector and foreign businesses.
8. Governments Pro-Business Initiatives
Due to favorable government policies that attract investors from all over the world for either investing monetarily or by starting a business in Oman, the government also has had its fair share in establishing the country. The Omani government offers incentives to encourage local and foreign businesses such as tax exemptions, interest-free loans, free trade zones and preference in the allocation of government land.
9. Business-Friendly Relations with Neighboring Countries
The people of Oman are known for their generosity, tolerance, and friendliness. This has attracted short-term visitors and has also encouraged businesses to set up with help from local communities. Omani culture emphasizes the building of strong bonds and relationships in both social and professional contexts. Therefore, foreigners are advised to spend time with their Omani business counterparts and make an effort to establish a good rapport with them.
10. Exemptions Available
There are many exemptions available for entrepreneurs who want to establish their business in Oman, like, exemption from corporate income tax on first OMR 30,000 and complete exemption from corporate tax up to 50 years for free zone registered companies. There is also an exemption from customs duties on import of equipment and raw material for production purpose.
By looking at the range of advantages we can say that Oman has spread its wings in the field of different businesses. The economy has got huge plans for the future and has already initiated its journey to be one of the top business centers at a global level. Now, you must be wondering how to start a business in Oman. Well, the best thing you can do is to approach a business consultant who is well-versed with the Omani regulations and its laws and can help you to set up your business entity. Wondering whom to approach? Business Setup Worldwide will accompany you in the entire process of incorporation, settle the legal activities and will help you in building your business foundation in Oman, the future business hub. Our business experts will take you through the process of starting a business in Oman. For any other information or any query, do contact us. We’d be happy to assist!