Oman’s investment landscape is evolving rapidly, offering a wealth of opportunities for both local businesses and foreign investors. With strategic reforms, financial incentives, and a focus on diversification, Oman is becoming a prime destination for corporations and SMEs looking to grow. In this guide, we’ll explore the latest developments and sectors that hold the most promise.

1. New Investment Projects in Buraimi: Expanding Regional Growth

In March 2025, Oman announced 21 new investment projects in Buraimi, targeting sectors such as agriculture, livestock production, and water bottling. These projects reflect Oman’s commitment to regional development and economic diversification. For corporations and SMEs, Buraimi presents a fresh avenue for investment with support from the government and streamlined regulations.

2. Growing Foreign Direct Investment: A Sign of Confidence

FDI in Oman has surged by 17.6% over the past five years, reaching USD 52 billion by early 2025. This growth is driven by investor-friendly policies, tax incentives, and a simplified regulatory framework under Vision 2040. For businesses, this means a more accessible and attractive investment climate with lower barriers to entry.

3. Privatization Initiatives: Unlocking New Opportunities

Oman’s plan to privatize or partially privatize 35 state-owned enterprises by 2027 is a significant opportunity for investors. Sectors such as telecommunications, energy, and infrastructure are now open for private and foreign investment. For instance, Green Energy Oman is spearheading projects in renewable energy, including green hydrogen production—offering lucrative opportunities for investors interested in sustainable ventures.

4. Strategic Sectors to Watch: Where the Growth Is

Oman’s economic diversification strategy highlights several key sectors for investment:

• Renewable Energy: With projects like Hyport in Duqm and Salalah Hydrogen leading the way, Oman is positioning itself as a global leader in clean energy. For investors, this sector offers substantial opportunities in solar, wind, and green hydrogen projects.

• Logistics and Infrastructure: Oman’s strategic location and projects such as the Duqm Special Economic Zone and Sohar Free Zone make it a logistics powerhouse. Investment opportunities range from warehousing to e-commerce fulfillment centers.

• Digital Transformation: With the rollout of 5G networks and initiatives under Vision 2040, Oman’s ICT sector is booming. Investments in cloud computing, cybersecurity, and digital infrastructure are set to yield high returns.

• Tourism and Hospitality: With ongoing investments in tourism infrastructure, Oman is becoming a hotspot for luxury travel and eco-tourism, presenting opportunities in hotel development and niche tourism services.

For businesses exploring these sectors, the combination of financial incentives, tax breaks, and streamlined regulations makes Oman a fertile ground for investment.

5. Strategic Advantages for Investors: Why Choose Oman?

• Tax-Friendly Policies: Oman offers tax exemptions for foreign investors in key sectors, enhancing profitability.

• Ease of Business Setup: Initiatives like Invest Oman simplify the process of establishing and operating businesses.

• Special Economic Zones (SEZs): Areas like Duqm and Sohar provide reduced fees, tax breaks, and logistical advantages, making them ideal for businesses looking to scale quickly.

With a business-friendly environment and clear incentives, Oman offers a compelling case for corporations and SMEs to invest.

Conclusion: Now Is the Time to Invest in Oman

Oman’s forward-thinking reforms, financial incentives, and focus on key sectors present a lucrative opportunity for businesses seeking growth. Whether you’re a local SME or a foreign investor, the time to tap into Oman’s evolving market is now.

Looking to explore investment opportunities in Oman?

Reach out to Lion Muscat Services (LMS) for expert financial advisory and investment consulting to help you navigate the Omani market with confidence.