Bilateral Economic Relationship
The South Korea-Oman economic relationship is anchored by bilateral trade valued at $8.2 billion. Investment flows have strengthened as Oman’s economic diversification creates new opportunities aligned with Korean investor expertise and strategic interests.
Existing Korean Investment Presence
Notable Korean investments in Oman include Korea Gas Corporation LNG, Samsung Engineering EPC, Hyundai operations. These established operations demonstrate the viability of Korean 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 Korean investors under applicable bilateral agreements. The Commercial Companies Law governs entity formation, with LLC and branch office structures most commonly used by Korean 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. South Korea-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 Korean Investors
Specific risk considerations include concentrated sector exposure in hydrocarbons, won exchange considerations. These risks are manageable through appropriate structuring, local advisory engagement, and phased market entry.
Entry Mechanisms
Recommended entry pathways include Korea-Oman economic committee, KOTRA facilitation, KEXIM financing. 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. Korean investors with expertise in priority sectors including energy transition, manufacturing, technology, and tourism are actively sought through dedicated investment promotion campaigns.