Overview
The regulatory environment governing Oman’s tourism 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 tourism 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. Ministry of Heritage and Tourism, Oman Tourism Development Co., Muriya, Kempinski, Anantara 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 airlift capacity, seasonal demand concentration, shortage of mid-range accommodation, low brand awareness compared to Dubai and Abu Dhabi, and infrastructure gaps in remote tourism sites. 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. Eco-tourism and adventure tourism niches, cruise tourism via Muscat port expansion, medical tourism leveraging new hospital capacity, cultural heritage trails, and MICE (meetings/incentives/conferences) segment growth.
Vision 2040 Targets
Reach 10 million visitors annually; increase GDP share to over 10 percent; develop 30,000+ additional hotel rooms; create 500,000 tourism-related jobs; achieve 60 percent Omanisation in hospitality.