Bilateral Economic Relationship
The GCC States-Oman economic relationship is anchored by intra-GCC trade exceeds $2 billion. Investment flows have strengthened as Oman’s economic diversification creates new opportunities aligned with GCC investor expertise and strategic interests.
Existing GCC Investment Presence
Notable GCC investments in Oman include Emaar Properties, Kuwait Finance House, Saudi Aramco supply chain. These established operations demonstrate the viability of GCC business models within the Omani market and provide potential partnership and supply chain integration opportunities for new entrants.
Regulatory Framework
Oman’s Foreign Capital Investment Law permits up to 100% foreign ownership in most sectors, with specific provisions for GCC investors under applicable bilateral agreements. The Commercial Companies Law governs entity formation, with LLC and branch office structures most commonly used by GCC investors.
| Requirement | Detail |
|---|---|
| Foreign ownership limit | Up to 100% (sector dependent) |
| Minimum capital (LLC) | OMR 20,000 |
| Company registration time | 5-10 working days |
| Visa processing | 2-4 weeks |
| Tax rate (standard) | 15% corporate |
| Free zone tax rate | 0% (up to 30 years) |
Tax Considerations
Oman’s corporate tax rate is 15% with a tax-free threshold for small businesses. GCC States-Oman double taxation agreements should be reviewed for withholding tax optimisation. Free zone entities benefit from extended tax holidays. VAT is not currently applied in Oman.
Key Risks for GCC Investors
Specific risk considerations include regional competition for FDI, regulatory harmonisation gaps, labour mobility. These risks are manageable through appropriate structuring, local advisory engagement, and phased market entry.
Entry Mechanisms
Recommended entry pathways include GCC Common Market framework, unified investment licence discussions, GCC rail connectivity. The Invest Oman portal provides centralised investor services including company registration, visa processing, and sector-specific guidance.
Vision 2040 Alignment
Oman’s Vision 2040 explicitly prioritises foreign direct investment as a catalyst for economic diversification. GCC investors with expertise in priority sectors including energy transition, manufacturing, technology, and tourism are actively sought through dedicated investment promotion campaigns.