Overview
The Heritage Foundation’s Index of Economic Freedom assesses 184 countries across twelve quantitative and qualitative factors grouped into four pillars: rule of law, government size, regulatory efficiency, and open markets. Scores range from 0 to 100, with higher scores indicating greater economic freedom. The index is closely watched by free-market policy advocates and international investors.
Oman’s Position
Oman is typically classified as moderately free, with scores ranging between 60 and 66. The Sultanate scores well on fiscal health (low tax burden, manageable government spending) and trade freedom (relatively open borders with low tariff barriers). Government integrity and property rights receive moderate scores. The weakest areas tend to be financial freedom and investment freedom, reflecting state dominance in key sectors and historical restrictions on foreign ownership.
Regional Comparison
The UAE and Bahrain lead the GCC, both consistently rated as mostly free with scores above 70. Qatar and Saudi Arabia occupy the upper end of moderately free. Oman and Kuwait typically bring up the rear among Gulf states, though Oman’s score exceeds the world average. The gap with UAE and Bahrain primarily reflects differences in financial-sector openness and regulatory burden.
Trajectory
Recent reforms position Oman for meaningful improvement. The introduction of foreign investment law reforms allowing 100 percent ownership in most sectors, free zone expansion, VAT implementation (broadening the fiscal base), and ongoing privatisation of state-owned enterprises all address historically weak pillars. If sustained, Oman could realistically move into the mostly free category within three to five years.