Strategic Direction
A Competitive Private Sector Economy Aligned with the Global Economy
Strategic Direction
A Competitive Private Sector Economy that is Competitive and Aligned with the Global Economy.
This priority makes an explicit philosophical commitment: the private sector, not the government, is the primary engine of Oman’s future economic growth. This is a significant departure from the historical model of government-led, oil-funded development.
Performance Indicators
| Indicator | Baseline | 2030 Target | 2040 Target |
|---|---|---|---|
| Ease of Doing Business | 67.2 / Rank 78 (2018) | >79.58 / Top 20 | >81.55 / Top 10 |
| Economic Freedom of the World | 6.76 / Rank 89 (2018) | Top 50 | Top 40 |
| FDI Net Inflow (% GDP) | Low single digits | — | 10% |
| Corruption Perceptions Index | ~Rank 70 | — | Top 30 |
2025 Progress
Investment and Commercial Court (Royal Decree 35/2025): Perhaps the single most significant reform for the private sector investment environment — a dedicated court with commercial law expertise for resolving business disputes. This directly addresses the complaint that commercial dispute resolution was slow and unpredictable.
Corruption Perceptions Index: The 20-place improvement to rank 50th globally in 2024 is a meaningful signal to international investors that Oman is making measurable progress on institutional integrity.
Invest in Oman: The Invest in Oman hall activated, providing integrated investor services. National negotiation team established to support government in strategic investment project negotiations.
Green Hydrogen FDI: Two new green hydrogen investment agreements signed in 2024/2025, attracting major international energy companies to a new sector.
Unified Promotional Identity: A coherent national investment promotion identity launched, supporting OPAZ’s mandate to market Oman internationally.
The Private Sector Development Challenge
Transforming an economy where government has historically dominated into one where the private sector leads requires more than regulatory reform. It requires:
Capital market depth: Muscat Stock Exchange remains relatively small and illiquid by regional standards. Deepening capital markets — through IPOs of government entities, corporate bond issuance, and securities diversification — provides the private sector with domestic financing alternatives.
SME ecosystem: Large corporations and SOEs will not alone drive diversification. SME development, particularly in technology, professional services, and advanced manufacturing, requires dedicated financing, mentorship, and procurement access.
Public procurement reform: If government procurement can be channelled to Omani private sector suppliers, it creates a protected domestic demand base from which companies can grow before competing internationally.
International Cooperation
Oman’s neutral foreign policy — which has enabled it to maintain relationships with Iran, Israel, the United States, China, and Russia simultaneously — is also an economic asset. Free trade agreements (US-Oman FTA 2009), GCC customs union membership, and a network of double tax agreements with 37+ countries provide the legal infrastructure for international economic cooperation.
Key Institutions
Ministry of Commerce Industry and Investment Promotion, OPAZ, OIA, Muscat Stock Exchange, Capital Market Authority, Investment and Commercial Court.