Oman’s current Sultan is making remarkable efforts to modernize the country and make it more open. Though oil and gas remain as the most prominent sector, Oman’s economy is definitely diversifying to a large extent taking into account various industries to protect the economic composition of the nation. Oman now ranks as one of the most developed countries of Arab, which attracts a lot of global investors. It is forecasted that its GDP growth would go up to 3.5% this year. If you are planning to start your business or register a foreign company in Oman it is an ideal time to do so. You can set up different entities in Oman, be it an LLC company or a Sole Proprietorship. But before establishing your business in Oman, you must know about its economy and the benefits you would derive.
Opportunities of Business in Oman
The following are some of the most lucrative enterprise opportunities available in Oman:
- Travel and Tourism
- Fuel Station
- Electronics/Other Home Appliances
- Facility Maintenance
- Daily Commodities Store
Advantages of Setting up a Business Entity in Oman in 2019
Oman has been successfully attracting many international investors. Usually, investors take into account various parameters and then move towards foreign company registration in Oman. Some of the advantages that an investor would get on starting their business in Oman are as follows:
1. Oman’s Economy
The economic condition of any nation can be gauged by its economic freedom index. Oman’s economic freedom score was at 61.0, which took its economy to the rank of 93rd freest economy as per the 2018 Index. It was also ranked as number 8 among the 14 nations in the MENA region.
2. Strategic Location
Being at a distance of less than 2 hours from any key business centers of Europe, Asia, and North America, Oman prime location is a very big advantage. Because of its strategic location, the non-oil exports are reaching to almost 176 countries. Oman has now become the gateway to the Arabian Gulf and is a meeting place of the African and Asian continents, thus, opening the path for an array of business opportunities.
3. Global Appeal
Oman’s several trade agreements enable the country in carrying out free trades with multiple nations. A few of them are GAFTA, GCC, and FTAs with Iceland, US and Singapore, Norway and Switzerland.
4. Secure Environment
Investor-friendly and safe environment with no restrictions on resource and profit repatriation adds to the benefits. Other than that, only 15% of corporate tax (flat rate) is charged.
5. Talent Pool
Out of 4.3 million of its population, about 1.7 million are working, thus ample manpower is available.
Best-in-class infrastructure possessing internationally-ranked ports, roads and airports are a big plus point too. There has been a huge investment in railways to enhance the network so as to strengthen Oman’s transportation sector.
7. Natural Resources
It’s a fact that oil export has boosted Oman’s economy and the natural resources in the country are quite favorable for any business setup. But now the government is trying to diversify by also investing in private sector and international businesses and not depend completely on oil.
8. Pro-Business Steps by Government
Favorable government policies like offering incentives to support domestic and foreign enterprises with tax exemptions, free trade zones, interest-free loans etc, Oman has attracted many global investors.
9. Trade-Friendly Association with Neighboring Nations
The culture here fosters building strong bonds and collaborations in both social and business contexts. Oman is known to have built business-friendly relations with all its neighboring countries.
Several exemptions are given to entrepreneurs who want to set up their enterprise in Oman; for example, they are exempt from corporate income tax on initial OMR 30,000 and total exemption up to 50 years in case it’s a free zone registered company. There is an exemption also from customs duties if importing equipment or raw material for any production.
So if you are planning to start a new business in Oman, or in need of services for accounting services in Oman, do contact us and our business experts would be able to assist you with the process of establishing and running your business in Oman.