Oman, with its proximity to major oil-producing nations such as Saudi Arabia, the United Arab Emirates, Pakistan, Yemen, and Iran, is heavily influenced by their economic and business activities. These neighboring countries are diversifying their focus beyond oil production and exploring opportunities in fintech, technology, and other service sectors. In this article, we aim to provide information about the process of company formation in Oman.
Taking cues from the economies and business trends of its neighbors, the Sultanate is actively encouraging investors and entrepreneurs who are seeking new business prospects in Oman. The government is particularly focused on attracting foreign direct investments to boost the country's GDP potential.
As the capital city of Oman, Muscat not only serves as the largest city but also offers an ideal location for starting a venture due to its modern infrastructure network. It provides easy access to global markets, a secure and stable investment environment, a skilled and educated workforce, active international networking, favorable trade agreements, and a thriving economy.
According to a reliable source, it is projected that the Omani economy will grow by 10% by the year 2040. The Omani government has been diligently implementing various measures and initiatives to position the country as a hub for lucrative business opportunities.
Government’s Initiatives for Investment Opportunities in Oman
To enhance business prospects for both Sole Proprietorship in Oman and Limited Liability Companies, the Omani government has been implementing effective strategies. Here are some of the initiatives:
1. Oman Business Forum (OBF)
The Oman Business Forum serves as a platform for collaboration between the public and private sectors, aiming to unlock business ideas and foster growth opportunities in Oman. The key objectives of this forum include knowledge sharing, facilitating business opportunities, fostering collaborative partnerships, and promoting value-added networking.
2. Vision 2040
With the ultimate goal of boosting the economy by 2040, there is a significant focus on attracting expatriates to live and work in the country. Based on analysis, it is projected that the population will reach approximately 5 million people in the coming years.
3. Export of Non-Oil Products
Traditionally reliant on oil exports, Arabian countries are gradually diversifying their focus towards non-oil sectors. Oman, recognizing the importance of economic diversification, is following suit by expanding its business opportunities beyond the oil industry. This strategic move aims to benefit the overall economy by encouraging growth in non-oil sectors.
Business Ideas in Oman for Company Formation
If you are considering registering a company in Oman, here are a few highly lucrative new business concepts in the Omani market.
1. Technology-based Company
The city of Muscat in Oman presents a promising landscape for technology-focused startups. Investing in ventures such as food delivery services, mobile app grocery stores, taxi services, fitness products, e-commerce platforms, and more can yield significant returns in the Omani market.
2. Event Management or Celebrity Management Company
Oman is renowned for its extravagant parties, celebrity events, grand weddings, and sports events, making it an ideal location for individuals with a flair for creativity and strong connections in the entertainment industry. Establishing an event planning or talent management agency in Oman can lead to lucrative opportunities with high profit margins.
3. Travel and Tourism Business
With the Omani government actively promoting the growth of the tourism sector, starting a travel and tourism business in Oman can be a lucrative venture. The initial investment required includes renting an office, obtaining a tourism conductor license, setting up office interiors, and covering employee salaries. The travel and tourism industry in Oman offers substantial potential for long-term expansion.
4. Restaurant Business
Opting for a tried-and-tested option, setting up a restaurant business in Oman can be a profitable endeavor. Individuals passionate about infusing local flavors and cuisine with their unique touch can attract repeat customers to their restaurant. Additionally, incorporating a bar within the restaurant can further enhance profitability.
5. Facility Maintenance Company
A company specializing in facility maintenance offers services such as cleaning, electrical repairs, plumbing fixes, and power plant maintenance for businesses. With the increasing number of companies and business opportunities, starting a facility maintenance business can be a lucrative venture.
6. Commodity Store
Establishing a commodity store in Oman presents a promising business opportunity due to the country's reliance on exports and imports with various trading partners. By importing commodities at competitive prices and stocking them in the store, one can expect significant returns. Offering a variety of brands and products will attract a larger customer base and contribute to the growth of the business.
Some More New Business Ideas in Oman
Additionally, the country of Oman offers promising business prospects in industries such as fisheries, manufacturing, mining, medical consultancy, healthcare, and education. There are numerous compelling reasons to consider investing in these sectors within Oman.
1. Construction
In Oman, there are over 2000 ongoing projects in the oil and gas sector, urban development, and industrial areas, totaling an estimated $190+ billion. The Sultan of Oman has placed a strong emphasis on construction and tourism to support the economy, with construction expected to grow by 11% annually.
2. Manufacturing
The manufacturing sector's expansion is in line with the objectives set out in Vision 2020, and substantial investments are being made in this industry. The manufacturing sector is experiencing a steady growth rate of 2.6% annually, making a significant contribution to Oman's GDP.
3. Oil & Gas
The country's wealth and economy have been predominantly driven by the production of oil and gas. Various techniques have been implemented to enhance production, and this sector continues to play a significant role. Additionally, Oman has successfully implemented a program to meet the growing domestic demand, which has attracted substantial foreign investments.
4. Education
The Omani government has allocated over $7 billion towards education as part of its initiative to equip individuals with the necessary skills and qualifications to thrive in a contemporary economy. Collaborating with the private sector, the government aims to ensure the provision of a high-quality education that aligns with the fast-paced and highly competitive nature of the economy.
5. Food Processing and Logistics
Oman's population has been rapidly increasing, accompanied by a rise in tourism and income levels across all sectors. The consumption of food and beverages has been steadily increasing not only in Oman but also throughout the GCC region.
To keep up with the growing demand, Oman's food processing, packaging, and agricultural industries have been experiencing significant growth. The country's strategic location on the map makes manufacturing in Oman appealing, with products being exported through well-invested seaports. With a shift towards a sustainable economy due to the depletion of oil and natural gas reserves, Oman has been heavily investing in these industries, particularly in tourism and construction.
What Should You Do Next?
Should you be considering investment opportunities in Oman, Innovative Digital is available to assist you in setting up your business ventures in the country. To learn more, please reach out to us and one of our specialized consultants will contact you promptly.
FAQs
What is the expected economic growth of Oman by the year 2040?
- 10% economic growth.
What are the Omani government initiatives for businesses?
- The initiatives are as follows:
- Oman Business Forum (OBF)
- Vision 2040
- Export of non-oil products.
What are the objectives of the Oman Business Forum?
- The prominent objectives are knowledge sharing, business opportunities, collaborative partnerships, and value-added networking.
What are some of the tech-based startup ideas in Oman?
- Investing in a technology-driven transportation startup in the country can include options such as food delivery services, mobile app grocery stores, taxi services, fitness products, e-commerce platforms, and various other opportunities.
What are some of the new business ideas to start in Oman?
- Among the promising business opportunities in the country are fisheries, manufacturing, mining, medical consultancy, the health care sector, and education.
