Estimated Rise of 90% of Oman's GDP by 2040

by Zaara 05, Sep 2022

oman gdp

The location of Oman is on the south-eastern coast of the Arabian sea and the Arabian Peninsula. Besides being one of the favourite tourist spots, the country is also a good business location.

According to the World Bank, the Sultanate of Oman is a high-income economy. Moreover, it has been beneficial since the government has shifted its focus toward the non-oil segment.

Over the decade, Oman’s GDP noticed a significant spike after incorporating the number of business entities. An investor must have a complete idea of the nation's economic condition.

An economically and politically stabilized country can guarantee success, and it is also preferable in the long run for international exposure.

Vision 2040 for Enhancing the Oman Economy

The audience had been briefed on Madayn Vision 2040 by Director Mariya Al Zadjali (Strategic Planning and Corporate Performance Assessment at Madayn), which aspires to build world-class corporate cities while preserving the Omani character to support economic growth.

The vision focuses on advancing all-encompassing and sustainable economic and social development by enhancing public-private partnerships, creating and running business cities with integrated services, keeping up with changing conditions, and implementing the top technologies and solutions to satisfy business needs while adhering to environmental standards.

A Considerable Oman GDP Growth in the Non-Oil Segment

Mainland company formation in Oman and non-oil activity have increased post-COVID. The government in 2020 had rolled out the Medium-Term Fiscal to restore the balance and fiscal stability by 2025.

The sultanate's non-oil exports increased by about 40% in the first quarter of this year, aided by the recovery of the global economy and increased demand for Omani goods in the Middle East, India, and the United States markets.

Following the twin shocks of the coronavirus outbreak and the drop in oil prices the year before, the economy stabilized in 2021. The growing demand for Omani exports indicates that the sultanate's economy is well on its way to recovery.

Oman's nominal GDP expanded at a healthy rate of 25.7 per cent in the first quarter of 2022, helped by a robust recovery in oil prices and government economic stimulus programs. According to NCSI data, practically all Oman's key trading partners are experiencing a robust recovery in non-oil exports.

The robust trade results demonstrate that Omani exporters are making considerable progress in luring foreign orders.

Budget Objectives in Oman

Some of the budget objectives are as follows:

  • To encourage investment and push the private sector to revitalize and lead the economic sectors
  • To expand partnership projects with the private sector
  • To prioritize implementing projects that serve the social and economic objectives and are related to the productive sectors
  • To provide the required incentives for encouraging the establishment of public sector companies.

All about the Madayn for Doing Business in Oman

The Public Establishment for Industrial Estates (PEIE) - Madayn manages the zone according to Royal Decree No. (103/2005). Also, with effect from August 2020, the transactions can be completed digitally through e-payments for services related to logistics.

Incentives for the Investors Incorporating Their Best Business in Oman

The following are the incentives that Madayn provides to investors and company owners in its network of industrial cities around the sultanate:

  • You can waive the lease right for the remainder of the contract
  • The right to sell constructions and buildings on the leased land
  • The right to include new partners in the lease contract
  • The right to a fair evaluation of buildings and facilities upon the termination of the lease contract
  • Developed and well-equipped lands with basic services (water, etc.)
  • The lease period of lands and facilities for up to 30 years renewable for the same period.

Register with the Oman Chamber of Commerce and Industry to meet the compliance requirements. Mentioned below are the other benefits that one gets to avail of a free zone company setup:

  • Profit exemptions from income tax for thirty years without providing a declaration of income
  • The transaction process is flexible for remittance and dealing with foreign exchange
  • Exemptions of customs duties and commercial agencies
  • Permission to import all eligible goods in Oman
  • No minimum investment is required, and freedom for using currencies other than R.O.
  • 100% foreign ownership is available
  • Yemeni workforce is allowed to work in the free zone without a permanent residence permit in Oman or an entry visa
  • Omanisation percentage is twenty
  • Certificates of origin issued
  • A national certificate of origin is granted
  • Residence visas are facilitated for ex-pats who want to invest
  • Availability of both Omani and Yemeni products through a single common market at affordable prices
  • Adopting Yemeni customs data for goods received from there
  • Establishing a representative office within the customs territory of the country.

 

Now, to set up your company in Oman hassle-free, you need to avail professional aid. We at Commitbiz provide an end-to-end service regarding company formation and secretarial services.

Our experts manage legal proceedings safely and in a cost-effective manner. Contact us and let our experience guide you.

FAQs

What is the focus of the Oman Vision 2040?

The vision focuses on advancing all-encompassing and sustainable economic and social development by enhancing public-private partnerships, creating and running business cities with integrated services, keeping up with changing conditions, and implementing the top technologies and solutions to satisfy business needs while adhering to environmental standards.

What is the estimated rise in GDP from the Oman non-oil sectors by 2040?

90% of the total GDP.

What is the lease duration for lands and facilities offered by Madayn?

30 years.

What are the budget objectives in Oman?

The budget objectives are as follows:

  • To encourage investment and push the private sector to revitalize and lead the economic sectors
  • To expand partnership projects with the private sector
  • To prioritize implementing projects that serve the social and economic objectives and are related to the productive sectors
  • To provide the required incentives for encouraging the establishment of public sector companies.

What is the growth percent of Oman’s GDP in the 1st quarter of 2022?

Oman's nominal GDP expanded at a healthy rate of 25.7 percent in the first quarter of 2022.

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