Overview
Foreign direct investment is crucial for both Oman and the UAE as they diversify their economies. The UAE has consistently attracted the lion’s share of GCC inward FDI, but Oman is reforming its investment climate to compete more effectively for international capital.
FDI in Oman
Oman’s inward FDI stock is approximately USD 40 billion, concentrated in oil and gas, manufacturing, and logistics. Recent reforms include allowing 100 percent foreign ownership in most sectors, streamlining business registration, and establishing investment incentives in special economic zones. Oman’s FDI strategy targets quality investments that create jobs and transfer technology.
FDI in the UAE
The UAE attracts over USD 20 billion in annual FDI inflows, with a cumulative stock exceeding USD 200 billion. Dubai’s free zones, world-class infrastructure, and lifestyle appeal make it the GCC’s primary FDI destination. The UAE’s 2020 reforms expanded foreign ownership rights and introduced long-term residency visas to attract entrepreneurs and skilled professionals.
Key Differences
The UAE benefits from first-mover advantages in FDI attraction, including established free zones, deeper capital markets, and a larger expatriate business community. Oman offers lower operating costs, strategic port access, and less competition in certain sectors. The UAE’s FDI is more diversified across services, while Oman’s remains concentrated in extractives and manufacturing.
Verdict / Bottom Line
Oman cannot match the UAE’s FDI volumes, but it can compete in sectors where it has natural advantages: logistics, mining, green energy, and heavy industry. Improving the ease of doing business, strengthening intellectual property protections, and developing Duqm’s infrastructure are key to attracting the quality FDI that Vision 2040 requires.