10 Reasons to Start a Business in Oman in 2025

Oman, often seen as a discreet jewel of the Arabian Peninsula, is emerging as one of the most promising markets for entrepreneurs and investors. In 2025, several key factors make the Sultanate particularly attractive for launching or expanding a business. Here are ten major reasons why Oman should be on your radar:

1. Political Stability and Security

Oman enjoys strong political stability under the leadership of Sultan Haitham bin Tariq. In a region sometimes marked by volatility, Oman remains a safe and predictable environment—an essential foundation for long-term business operations.

2. Expanding Economic Diversification (Vision 2040)

Oman’s Vision 2040 is accelerating efforts to diversify the economy away from oil. Key non-oil sectors seeing substantial growth include tourism, logistics, fisheries, manufacturing, mining, ICT, and renewable energy. This diversification opens significant investment opportunities for foreign and local entrepreneurs.

3. Ease of Starting a Business

Oman ranks favorably in regional ease-of-doing-business measures. Its “Invest Easy” portal allows company registration online in just a few days. In some sectors, full foreign ownership is now permitted without the need for a local partner—a major shift introduced in recent years.

4. Attractive Tax Regime

There is no personal income tax in Oman. Corporate tax remains moderate (15%), and businesses operating in free zones or special economic zones (Duqm, Sohar, Salalah) benefit from tax holidays, exemptions, and customs facilitation.

5. Strategic Location and Market Access

Oman is strategically positioned with access to key markets in the GCC, East Africa, India, and Southeast Asia. Its ports – especially Duqm and Sohar – serve as vital logistics hubs with international shipping and re-export potential.

6. Free Zones and Special Economic Zones (SEZs)

These zones offer benefits such as:

100% foreign ownership
No customs duties on imports/exports
Long-term land leases
Streamlined administrative processes
Sectors like manufacturing, petrochemicals, logistics, and renewables thrive in these zones.

7. Skilled and Cost-Effective Workforce

Oman has made significant investments in education and technical training. The workforce is young, educated, and increasingly skilled in administrative, technical, and engineering roles. Labor costs remain lower than in neighboring Gulf countries.

8. Strong Commitment to Sustainability

Oman has pledged to reach net-zero emissions by 2050 and is investing in green hydrogen, solar, and wind energy. This creates opportunities for startups in renewable energy, sustainable construction, waste management, and green tech.

9. High Quality of Life

Oman offers a peaceful lifestyle, modern infrastructure, low crime rates, and stunning natural beauty. This quality of life helps attract and retain expatriate professionals and their families.

10. Government Support for Startups and SMEs

Programs like Riyada, Sharakah, and Oman’s Authority for SMEs Development provide funding, mentorship, and incubation support. New digital platforms and startup hubs continue to make the ecosystem more vibrant and accessible.

Conclusion

In 2025, Oman stands out as a strategic destination for entrepreneurs—thanks to its political stability, investor-friendly policies, diversification drive, and high standard of living. Whether you’re an experienced investor or a first-time founder, Oman presents the right balance of opportunity and support to grow a successful venture.