Oman is ideal at the centre of the east-west nexus joining markets in Europe, Asia and North America. Just outside the Persian Gulf and the Strait of Hormuz, along busy shipping lanes carrying a significant share of the world's maritime commercial traffic, Oman has convenient access and connections to the Gulf, Africa, and the Indian subcontinent.
Are you looking to invest in an economically, politically and socially stable country in the MENA region? A country with a modern business law framework, respect for free markets, a prime location, a business-friendly environment, a contract sanctity, and respect for property rights? A place with relatively low taxes, an educated and largely bilingual workforce, a modern transport infrastructure, and where it is easy to start your business? Then Oman is the country for you.
In this blog, we mention the reasons for business setup in Oman.
1. Ideal Location
Oman, a perfect location at the centre of the east-west nexus joining European, Asian, and North American markets, shares its borders with five countries- Saudi Arabia, the UAE, Yemen, Iran, and Pakistan.
Just outside the Strait of Hormuz and the Persian Gulf, along the busy shipping lanes carrying a prominent share of the world's maritime commercial traffic, Oman has connections and easy access to the Gulf, the Indian Subcontinent and Africa.
Rich in cultural diversity, heritage, and racial harmony, Oman also has some natural beauty, complete with magnificent mountains and wadis and over 3000km of public open coastal line. These attractive characteristics make Oman a tourist place and an investment hub.
2. International Appeal
International links are ranging from the powerful concentration of global brands like Lulu, BP, Shell, Air Liquide, Vale, Jindal Power & Steel, Larsen & Toubro, Rio Tinto Alcan and Carrefour; Oman also has some commendable trade agreements being a signatory to WTO, GCC Common Market, GAFTA, FTAs with Singapore and the US, Norway, Switzerland, Iceland, and Lichtenstein.
3. No Income Tax
Yes, you read it right, Oman falls under the tax-free zone. Once a company establishes, the company has only a 15% corporate tax to be paid. No personal Income tax or any individual tax is levied in Oman. In addition, goods across the GCC countries move free of customs duties.
Oman has an investor-friendly legislative environment and no restrictions on capital or profit, or repatriation. About 70% of foreign investment in most sectors, 100% in exceptional cases and specific economic zones.
With over a billion consumers in its doorstep, Oman has globally ranked ports, airports, roads, and some of the most strategically placed ports in the world.
Oman is one of the safest and secure countries with one of the lowest crime rates globally. In addition, it has an affordable city living with housing and rental prices well below the Gulf's regional average. As a result, Oman is considered one of the best places in the Gulf to bring up a family.
Oman is home to a vibrant ex-pat and foreign investor community, compared to most Middle East countries, amounting to almost half the country's total population.
Oman government focuses on diversification, industrialization, and privatization to reduce reliance on hydrocarbon revenues, and the country is committed to economic diversity and investment.
Oman has a leading advanced telecommunication infrastructure supporting interconnected international and domestic networks. The Oman Sultanate's government has been making a steady and ambitious investment in the country's infrastructure, including the manufacturing sector, seaports, special economic zones, rail and airports, educational and health systems, facilities, and telecommunications.
6. Oman's Talent Pool
Oman has a young, multilingual and educated local talent pool equipped for the 21st century. Oman also has some of the most competitive salary rates in the Gulf, with a 4.3 million population and 1.7 million employees and over 239,000registered businesses.
7. Free Zones
Stressing on the prominence of magnifying the benefit of the strategic positioning of the Sultanate and economic diversification, besides the consideration of the benefits gained by the foreign investment, the government adopted the idea of free zones establishment in different parts of the country. The free zones are- Salalah Free Zone, Salalah Port, Mazyona Free Zone, Sohar Free Zone, Sohar Industrial Port, and Musandam Free Zone.
8. Scope for Economic Growth in Oman
The International Monetary Fund (IMF) forecasts that Oman is the fastest growing economy in the GCC region in the next year with an estimated growth of over 6 per cent. According to the fund's world economic outlook report released recently, the IMF revised its forecast about Oman's growth to be 6.2% in 2020 from its prior estimate of 2.7 per cent growth.
9. Oman's Vision 2040
Apart from the somewhat developed oil and gas industries, Oman has implemented several measures to improve multiple sectors like tourism, hotel, technology, transport, perfume, and mining industries. In addition, Muscat, the country's capital, serves as a connection between Africa and Asia. As a result, a substantial increase of 31 billion riyals by 2040 is foreseen in the country's economy.
10. Oman's Development in Construction
Madinat Sandan, constructed as a beacon for business and a home for the staff, was established in early 2019. The industrial zone spans over 250,000 square meters and house over 2400 outlets, including 1250residential units and 400 offices.
Madinat Al Irfan- City of the Future is possibly the most ambitious project started in the Sultanate of Oman; a billion riyals development houses everything from the Oman Convention and Exhibition Center (OCEC) to five-star hotels, a smartly planned city.
These reasons are more than enough for you to make investment in Oman. If you need help registering your business, then take help from a business setup consultant based in Oman.
We at commitbiz is a talented team dedicated to assisting a wide variety of business setup services ranging from Incorporation services, accounting and taxation services to visa services. For further information or in the case of any query or assistance for your business needs, do not hesitate to click here and contact us.