The Sultanate of Oman is a beautiful place known for its sandy beaches, spectacular waterfalls, and unique cultural and architectural heritage. Strategically located in the south-eastern coast of the Arabian Peninsula, it occupies 300,000 sq. km of area of which 1700 sq. km are covered by the coastline making it a marine country. It is the part of Gulf Co-operation Council (GCC) and is considered as one of the most important logistics centres of the region.
Oman has achieved a stable balance between remaining true to its roots and being a globalized country. It has been focusing on driving economic growth and is now considered a high-income economy by The World Bank. The Sultanate of Oman is working towards formulating policies that would not only decrease the dependency of the economy on the export of oil but will also secure FDI’s from foreign investors. Let’s see some of the reasons that make setting up a business in Oman such a lucrative option for you.
Reasons to Choose Oman As A Business Destination
World Bank issued its annual Doing Business report for 2019 in which the Sultanate was ranked 78 in the Ease of doing Business globally. The International Monetary Fund (IMF) also has stated Oman to become the fastest growing economy in the GCC region and the sultanate’s real GDP is expected to increase by 5% in the year 2019. Some of the key features that makes Oman a very beneficial option are highlighted below:
Oman also holds the status of a marine country and due to its tactical location, controls one of the most important naval trade routes in the world, the trade route between the Arabian Gulf and the Indian Ocean. The location makes Oman the confluence of the African and Asian continents, which lead to various financial and business opportunities.
2.Availability of Numerous Amenities
A strong infrastructure, commercial connectivity, and security are some of the steps taken by the Ministry of Foreign Affairs and Commerce which encourages entrepreneurs to seize the investment opportunities and contribute to the development of the economy.
3.A Developing Economy
The economy of Oman has grown by leaps and bound over the years. The Sultanate has made huge social and economic improvements and has seen achievements such as multi-lane highways, equipped hospitals, state-of-the-art schools, and universities etc. Oman is also looking to leverage its position as a beautiful country with rich cultural heritage and focus towards tourism.
4.Revenue Generation from Non-Oil Products.
Although the discovery of oil was very crucial to Oman’s economy at the initial phase, it is focusing more towards diversifying the economy and investments in the foreign sector and incorporation of businesses in Oman are encouraged. Non-Oil revenue for Oman is to form 16.5 % of GDP in 2019.
5.Easy Tax Rates
You don't have to pay any income or individual tax. A company only needs to pay a flat rate of 15% corporate tax after establishment. All goods move freely across the GCC without any customs duties.
6.A Step towards the Growth of Oman (Vision 2040)
Oman’s vision 2040 strategy aims to develop multiple sectors like infrastructure, tourism, technology, hotel, transport, manufacturing, and mining industry. This initiative forecasts an increase of 31 billion riyals by 2040.
7.Ongoing Projects of Oman
For the prosperity of the economy, Oman has many projects which are ongoing or in the pipeline in different sectors. Some of the projects which are nearing completion are Salalah LPG Project, Mina Sultan Qaboos Waterfront etc.
It is very clear that there are many benefits of setting up a business in Oman. The location, the government incentive and the future vision for Oman, all provide a very conducive environment for you to start a business in Oman and help the Omani economy.
If you are planning to establish a company in Oman, Business Setup Worldwide will be alongside you and will help you in building your business in Oman. Our business experts will understand your business needs and will cater them accordingly. In case of any query, we’d be happy to help. Click here to reach out to us.