Overview
The regulatory environment governing Oman’s healthcare sector has undergone significant reform under Vision 2040. Key legislative changes include the Foreign Capital Investment Law (2019), updated Commercial Companies Law, and sector-specific regulations aimed at improving ease of doing business. Oman’s ranking in the World Bank Doing Business index improved notably, though further regulatory modernisation is needed.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Primary Regulator | Sector ministry | Enhanced governance |
| FDI Framework | Open with conditions | Fully liberalised |
| Licensing Complexity | Moderate | Streamlined |
Analysis
Regulatory reform in the healthcare sector balances investor attraction with national interest protection. The sector’s regulatory framework is administered by relevant ministries with oversight from the Supreme Council for Planning. MOH, SQU Hospital, Diwan of Royal Court hospitals, Badr Al Samaa, Aster DM operate within a licensing regime that has been progressively simplified. The introduction of the Invest Easy portal has reduced business setup time from weeks to days. However, inter-agency coordination remains a bottleneck, with overlapping mandates between sector regulators and cross-cutting bodies like the Environmental Authority and Labour Ministry.
Challenges
Regulatory complexity and enforcement inconsistency remain key concerns. Rising non-communicable disease burden (diabetes ~15 percent prevalence), specialist physician shortage, geographic access disparities in Al Wusta and Dhofar, limited private insurance uptake, and high pharmaceutical import dependency (~90 percent). Additionally, the pace of regulation often lags behind technological and market developments, creating uncertainty for first movers.
Opportunities
Regulatory sandboxes, digital permitting platforms, and outcome-based regulation can unlock growth. Medical tourism from GCC and East Africa, pharmaceutical manufacturing (Oman Pharma City), digital health and telemedicine, genomics-driven personalised medicine, and PPP models for new hospitals.
Vision 2040 Targets
Increase healthcare GDP share to 7 percent; reduce pharmaceutical import dependency to 50 percent; train 5,000 Omani specialist physicians; achieve universal health insurance coverage; establish a regional genomics research centre.