Sultanate of Oman is a country on the south-eastern coast of the Arabian Peninsula in Western Asia. Located in a strategically important position at the mouth of the Persian Gulf, Oman is a growing business center. It is one of the growing GCC nations that is also an established home to foreign ex-pats with a lot of business opportunities. The Omani Government has been continuously proceeding towards the nation’s development and has initiated multiple steps to give comfort to the foreign ex-pats and grab more foreign investors. If you are planning to diversify your business at an international level, Oman is a location that you can count on.
The location of Oman, near to the Persian Gulf makes it naturally a strategic location for all kinds of businesses. Since 1970s, Oman is witnessing continuous and extensive economic reforms that change the economy and business. At one side, development of tourism and real estate sector move forward in a fast pace. Now days, Sultanate makes all efforts to attract maximum foreign investment, paving the way for even more business opportunities in Oman.
Here are top Five reasons by which Oman is suitable to start a business.
One: Strategic Location
Oman’s geographic location is very much important in promoting business possibilities in the country. Geographically Sultanate of Oman locates at a strategic location, which is most favorable for business development. It has a travel time of less than two hours to major commercial hubs of Asia, Africa and Europe. Based on this advantage Oman is planning to develop as a global logistics hub. The sultan’s long-term development strategy, Oman Vision 2020, emphasises industrialisation, privatisation and Omanisation. Logistics, tourism and industrial manufacturing have been identified as potential future economic drivers.
Two: Strong Economy
Oman is a country with a relatively stronger economy in the region. From the 1998 Oil price crisis, Oman started diversifying its economic base to different sectors. Vision 2020 is really targeting to decrease oil sector share to less than 10 percent of GDP. Vision 2040, at the same time, plans to attract large-scale foreign investment in the fields of tourism, infrastructure, technology, and manufacturing.
Three: Favourable Tax and Investment Laws
Oman offers favorable tax and investment laws which makes ease of doing business better. In Oman, there is no personal income tax for business owners or employees. There are no foreign exchange restrictions or levies, and there is an exemption from corporate income tax on the first OMR30,000. Once established, a company typically has a flat rate of 15% corporate tax. Within free zones, there is a complete exemption from corporate taxes for up to 50 years.
Four: International Appeal
Oman is part of various trade agreements which allows free trade and liberalised laws, including trade agreements of GCC, GAFTA, FTAs with US and Singapore, Iceland, Norway, Switzerland.
Five: Political Stability
Oman is the Arab country with highest political stability. It is firs country which got independence in the region. Business environment in Oman is absolutely safe. No any kind of political or social issues which hinder act of business. More over only a flat rate of 15% of corporate tax is charged.
Oman has a world-class infrastructure that can compete with any of the countries in GCC and outside. Highly developed ports, airports, and large road networks make Oman a business-friendly nation.
Seven: Natural Resources
The oil reserve is one of the backbones of Oman’s economy. Increased oil prices and other natural resources make Oman’s economy much stronger.
Eight: Vision 2040 Oman
Oman Government is continuously making efforts for business development in the country. The government has started single window system through which companies can start working smoothly. Moreover, the Government offers incentives like tax exemptions, interest-free loans, free trade zones and preference in the allocation of government land. As per vision 2040, the focus of Oman economy will change from Oil to many other fields like tourism, technology, hotel, real estate, infrastructure and production. For this, Government has a favorable policy for any kind of business initiatives. Hence this is the most important factor attracts business to the country.