Doing business in Oman

The Sultanate of Oman is strategically located in the southeastern corner of the Arabian Peninsula, at the confluence of the Persian Gulf and the Arabian Sea. With an area of 309,501km², it boasts a coastline of approximately 3,165km, making it the third largest country on the peninsula. It shares land borders with Saudi Arabia, the United Arab Emirates (UAE) and Yemen, and maritime borders with Iran and Pakistan.

Oman is a monarchy, led by His Majesty Sultan Haitham Bin Tariq. The country’s capital is Muscat and while Arabic is the official language, English is widely used in business settings. Additionally, Oman is an Islamic nation and follows a Sunday to Thursday working week.

The official currency is the Omani Rial (OMR), pegged to the US Dollar at a rate of OMR 1 = USD 2.6. It has a population of about 5.21 million, comprising 2.96 million Omani nationals (approximately 56.8 percent) and 2.25 million expatriates (around 43.2 percent).

For the fiscal year 2024, the state budget estimates OMR 7.49 billion from oil and gas revenues, which represents roughly 68 percent of total revenues, and OMR 3.52 billion from non-oil and gas sources (approximately 32 percent). The country’s credit rating is BB+ with a positive outlook from Standard & Poor’s, Ba1 with a positive outlook from Moody’s, and BB+ with a stable outlook from Fitch. In 2019, Oman was ranked 53^rd in the World Economic Forum Global Competitiveness Index, 68^th in the Ease of Doing Business Index, and aims to be in the top 10 countries in the Ease of Doing Business Index by 2040.

On the international stage, Oman is a member of various key organizations, including the International Monetary Fund (IMF), the League of Arab States, the United Nations (UN), and the World Trade Organization (WTO). It is also a founding member of the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE. The GCC provides a cooperative framework facilitating coordination, integration and inter-connection among its member states, with a focus on creating a customs union, a common market, mutual benefits to citizens of the member states, as well as defense and security cooperation.

Oman’s legislative structure is bicameral, consisting of two chambers, the State Council (Majlis al-Dawla) and the Consultative Assembly (Majlis al-Shura). The legal system is primarily based on Royal Decrees, supplemented by secondary legislation in the form of Ministerial Decisions. The Civil Transactions Law, issued under Royal Decree 29/2013, regulates all matters that are not addressed by other specific laws. Under the Civil Code, commercial arrangements between parties are governed by the contract between them, unless the law imposes a contrary requirement. Principles of Sharia can also be relevant when interpreting a contract. Oman’s Basic Law, issues under Royal Decree 6/2021, serves as the constitution. The judiciary comprises the Primary Courts (Courts of First Instance), the Appeal Courts and the Supreme Court.