Overview
The regulatory environment governing Oman’s mining 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 mining 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. Public Authority for Mining, Oman Mining Company, Al Tasnim, Minerals Development Oman 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. Limited geological survey data for frontier areas, small-scale artisanal operations lacking efficiency, water scarcity for processing, environmental permitting bottlenecks, and low domestic value addition (most minerals exported as raw ore). 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. Copper smelting and refining (Oman has significant sulphide deposits), limestone for cement and construction materials export, rare earth element exploration, marble and dimension stone for luxury markets, and critical minerals for battery supply chains.
Vision 2040 Targets
Raise mining GDP share to 3-5 percent; complete national geological survey; establish three mineral processing zones; double mining exports; achieve 60 percent Omanisation.