Oman Vision 2040: What It Means for Investors

Key Objectives Of Oman Vision 2040

Here are the key objectives of Oman Vision 2040:

Economic Diversification and Innovation

Based on the many consultations with citizens, businesses, and international partners, Oman created a 20-year plan named Oman Vision 2040, which focuses on transforming Oman from a hydrocarbon-dependent economy into a diversified and innovative hub in the Middle East. Oman’s main ambition is to increase the non-oil share of GDP to 90% and raise FDI net inflows to more than 10% of GDP with the help of digitalization and advanced technology.

The World Bank states, that Oman wants to achieve economic diversification and build a knowledge, technology-driven economy. This means investing in digital infrastructure, focusing on new industries, and R&D. In the macro poverty report, the World Bank mentioned that manufacturing had an 8.3% annual growth and became the fastest-growing sector in 2024. By Q3 2024, the share of hydrocarbons in Oman GDP had declined to 30%. These trends show the early success of trying to create a diversified non-oil economy.

Sustainable Development and Green Energy

Achieving sustainable development is yet another key objective in Vision 2040. Oman has a goal to protect the environment and focus on renewable resources. Oman wants to have 30% of its electricity from renewables by 2030 and highlights projects such as the Ibri II Solar Plant and the Dhofar Wind Power Project. Additionally, the country encourages investments in green hydrogen production. This means that the country’s priority is not only to reduce carbon emissions, but also to create exporting opportunities in hydrogen and renewable technologies.

Human Capital and Innovation Ecosystem

Developing human capital is a very important factor to achieve Vision 2040 goals, because it allows Oman to have a competitive workforce. The Vision document highlights the importance of education, promotes scientific research, and lifelong learning. The World Bank states that Oman’s ambition is to rank among the top 20 countries in global education indices by 2030, and top 10 by 2040​. During the past several decades, investments in schools and universities have significantly increased. The number of public schools grew from just 3 in 1970 to over 1,200 today​. The 2025 Macro Poverty Outlook states that Vision 2040 aims to create 220,000 new jobs for Omani nationals by 2032. Oman also started to work on women’s skills development.

Governance and institutional reform

To make sure Vision 2040 is implemented, Oman created the Vision 2040 Implementation Follow‑up Unit that reports directly to the Council of Ministers. The Vision 2040 emphasizes the importance of governance, transparency, and accountability to build trust in the Oman economy. Important reforms include FCIL, the Commercial Companies Law, and government service digitalization.

Priority Sectors for Investment

To experience a non-oil economic growth, in its Vision 2040, Oman identified several key sectors for diversification. 

Renewable Energy

Oman has large amounts of solar and wind resources and positions itself as a regional leader in renewable energy. In fact, solar projects like Ibri II and wind projects like the Dhofar Wind Power Project help the government achieve its goal of producing 30% of electricity from renewables by 2030. The country also invests in green hydrogen production. The Duqm Special Economic Zone (SEZAD) attracts green hydrogen and renewable energy projects.

Oman’s free zones have special advantages for those who want to be part of renewable projects. Duqm SEZAD provides a 30‑year tax holiday, 100% foreign ownership, and duty‑free imports. During 2025, Duqm attracted investors like BP, Huawei, and ACWA Power.

Logistics and Maritime Trade

Oman’s geographic location makes it a perfect logistics hub. According to the World Bank report, Oman has prioritized modernizing ports, free zones, and airports. Oman is planning to make Duqm’s  2,000 square kilometre SEZ become a global logistics and trade hub.

Oman’s free zones, Duqm, Sohar, Salalah, and Al Mazunah, are the main logistics investment hubs. They provide 100% foreign ownership, tax holidays, and fast‑track licensing. Duqm targets industrial, logistics, and green hydrogen projects, Sohar focuses on heavy industry and petrochemicals, and Salalah positions itself as a logistics and export hub.

Technology, Fintech, and the Digital Economy

Other cornerstones of economic growth in Oman are digital transformation and innovation. The most important areas under this sector are smart government services, digital economy initiatives, and investment in 5G networks and data centres. Thanks to this initiative, the number of Omani tech SMEs is increasing.

Healthcare, Education, and Smart Infrastructure

Oman has prioritized human capital development and focuses on two main aspects: education and healthcare. The government specifically highlights the importance of science, technology, engineering, and mathematics. Oman Vision 2040 aims to develop healthcare systems and ensure social well‑being.

Investor-friendly Policies and Incentives

The Oman government has created many benefits for foreign investors to make the country an attractive investment destination. Here are some investor-friendly policies and incentives:

Foreign Capital Investment Law and 100% Foreign Ownership

In 2019, the country announced the Foreign Capital Investment Law (FICL). It removed minimum capital requirements and allows 100% foreign ownership in most sectors, allowing foreigners to establish a business without any local sponsors/partners. Outside free zones, some sectors still have Omanisation quotas and restrictions. However, inside free zones, these requirements are much lower.

Free Zones and Special Economic Zones

Investors in Duqm, Sohar, Salalah, and Al Mazunah have the following benefits:

• 100% foreign ownership,
• 30‑year tax holiday and 0% VAT (value‑added tax),
• Duty‑free import and export of goods,
• Fast‑track licensing,
• Lower Omanisation requirements,
• Strategic locations for industries (e.g., Duqm is ideal for heavy industry and hydrogen, Sohar for petrochemicals, Salalah for logistics and exports, Al Mazunah for trade).

These incentives attracted many foreign investors.

The Invest in Oman Lounge, which was launched in 2023, works like a one-stop center for investors. It offers around 50 online services and helps move projects forward in tourism, real estate, aviation, and industry. By mid-2025, it had already supported 43 projects valued at more than OMR 2.25 billion and hosted delegations from 23 countries.

Tax Exemptions and Future Income Tax

Oman has a very favorable tax system. The country currently has a 15% corporate income tax on most sectors. However, companies performing in free zones can have tax holidays for up to 30 years. In June 2025, the government announced the upcoming personal tax, which will be effective starting from January 2028.

Simplified Business Registration and Licensing

Oman simplified the business registration process to make it more attractive for entrepreneurs. 76.5% of government services were digitized by 2025. The Tas’eera initiative cut fees for 137 services and completely removed fees for 20 more, making it much more affordable to run a business. The government is also working to reduce slow, bureaucratic processes outside the free zones by updating regulations and improving workforce training.

Golden Visa and Residency Incentives

Oman introduced a Golden Visa program in 2021. In August 2025, the program was updated. The minimum amount of investment threshold got even lower. Currently, investors can get a 10-year residency by investing at least OMR 200,000 in one of the announced 7 ways. The program is a part of Oman Vision 2040, which aims to create a competitive business environment. If you want to learn more about the 7 investment pathways and have personalized guidance, book a free consultation with our experts.

Support for Startups and SMEs

To attract startupers, the government provides grants, low‑interest loans, and mentorship programs through agencies like Riyada and Oman Technology Fund. Additionally, innovation parks and incubators collaborate with private companies to turn projects created by students into marketable products. 

Opportunities and Risks

Here is a breakdown of Oman Vision 2040 opportunities and risks:

Opportunities

• Quick FDI growth and improved credit rating make borrowing costs even lower. This means that financing a project became more affordable for investors, and they have access to a more stable business environment.
• Oman’s strategic location and political neutrality reduce geopolitical risk for shipping. This means that companies can benefit from much safer trading paths and use Oman as a logistics hub for the GCC, Africa, and Asia.
• Investing in wind or solar projects and green hydrogen could be very beneficial, as Oman positions itself as a regional renewable energy transition leader. 
• As the main goal of the Oman Vision 2040 is to diversify its economy, investing in non-oil projects like manufacturing could be beneficial.
• Oman is currently developing its ICT infrastructure, adopting e‑government, and creating opportunities in fintech, AI, cybersecurity, and digital services. Thanks to its supportive regulatory system, tech companies can scale a lot.
• Large hospitality projects and eco-tourism initiatives create a growing tourism sector, so investing in tourism could also bring some returns.

Risks

• Despite starting economic diversification, the World Bank states that hydrocarbons still account for 30% of the GDP. In other words, the economy is still sensitive to oil price fluctuations, hence investor returns in some sectors may be affected during periods of low oil revenue.
• It’s expected that Oman’s real GDP will grow by 2.9% in 2025 and 4.0% in 2026. But the current account balance is projected to drop from a 2.9% surplus in 2024 to a 1% deficit in 2025 because of lower oil prices and slower growth in non-oil exports. External shocks, such as global recessions or geopolitical crises, could negatively affect trade and investment.
• Outside free zones, Oman still has complex licensing procedures and mandatory employment quotas for Omani nationals, which can cause some delays.
• Some sectors, like tailoring or commercial fishing, are only allowed to Omani nationals. Foreign investors need to adjust their business plans to sectors that are available to them.
• Oman has a very young population (64% of the population is under 30), but unemployment is still high, especially among women and young people. This means that investors may face some challenges in finding a matching talent.