About Oman
Oman is the oldest independent state in the Arab world, its roots trace back to an industrial presence around Aybut Al Auwal about 100,000 years ago. The Omani empire was prominent in the 18th century, as it stretched from Oman to the east coast of Africa. In 1970 Sultan Qaboos bin Said changed the name of the country to simply Oman and this ushered in a new period for the country.
Historically Oman has a rich and long history as a trading hub due to its oil based natural resources and its strategic location on the south eastern coast of the Arabian Peninsula in Western Asia. It is bordered by the United Arab Emirates (UAE) to the northwest, Saudi Arabia to the west and southwest, and Yemen to the southwest. The monarchy is led by His Majesty Sultan Haitham bin Tariq Al Said, following the succession of Sultan Qaboos bin Said in January 2020.
Under the leadership of Sultan Haitham Oman seeks to diversify its economy beyond oil, focusing on sectors like tourism, logistics, and manufacturing. The launch of Oman Vision 2040 signifies the country's commitment to overcoming challenges, seizing opportunities, and fostering economic competitiveness and social well-being. The Vision 2040 aims to modernize the country while maintaining traditional values. It emphasizes tourism development, infrastructure, and renewable energy, and addresses challenges include youth unemployment and the impact of global oil price fluctuations.
Omani culture is a blend of historical heritage, geographic diversity, and Islamic values. With deep rooted Arabian traditions, the Omani identity has been shaped by influences from trade routes linking the Middle East, India, Africa, and Europe. Oman's cultural vibrancy thrives through diverse artistic avenues from jewellery, to textiles, performing arts and more traditional art form such as painting. From a commercial perspective, the culture that has been fostered is rooted in respect and aligning with local practices. Establishing strong personal relationships is crucial, as trust is paramount for Omani entrepreneurs and family businesses. Success in Omani business culture hinges on cultivating relationships, demonstrating commitment, and understanding the interplay of tradition and modernity.
The key industries and sectors currently driving the Omani economy include, tourism, fisheries, logistics, mining, technology services, and manufacturing. Oman's oil revenues have historically contributed to rapid economic growth, the government's development plan emphasises reducing dependency on oil by focusing on diversification, industrialization, and privatization. The government actively promotes foreign direct investment and has utilized oil and gas revenues to enhance infrastructure, human resources, and the business environment. Oman's strategic location along vital trade routes, such as the Strait of Hormuz, enhances its accessibility to markets in the Middle East, India, South East Asia, Africa, and Europe. Oman's 10th Five Year Plan, covering the period from 2021 to 2025, focuses on six key sectors to drive GDP growth and economic diversification. These sectors include Manufacturing & Industries, Transport & Logistics, Tourism, Fisheries, Mining, and Education. The plan aims to achieve a targeted real GDP growth rate of 3.5% annually, with each sector contributing to this goal. Notably, Manufacturing & Industries is expected to increase its GDP contribution from 10.8% to 12.2%, and Fisheries' share is projected to more than double from 0.9% to 2%. Other sectors such as Transport & Logistics, Tourism, and Mining are also expected to see growth in their contributions. Additionally, Education, traditionally a service sector, is being positioned as an important driver of GDP growth, with its share expected to rise from 4.9% to 6.2%. The 10th Five Year Plan aligns with the Oman 2040 Vision. Through this guide our lawyers are sharing their experience and expertise with you, and they provide insights relating to the regulatory and business environment in Oman. If you have any questions regarding the content of this guide our lawyers are on hand to provide further information on the topics covered.
