Oman Vision 2040: Foreign investment inflows to reach 10% of GDP

Oman aims to increase net foreign direct investment inflows to 10 per cent of GDP by 2040 and give private businesses a leading role in economic development through improved financing, simpler procedures and wider international partnerships.

The priorities form part of Oman Vision 2040’s plans to diversify the economy, expand exports and strengthen the Sultanate’s position in global production and service supply chains.

The strategy draws on Oman’s political and economic stability, international relationships and location along major trade routes to attract investment and develop its role as a trade and logistics hub.

Business conditions and private sector growth

The vision calls for regulations that support competition, equal opportunities and transparent market practices.

Government institutions would regulate and facilitate business activity through efficient administration, clear policies and simplified procedures. A stable investment environment is intended to attract domestic and international capital while helping companies respond to regional and global market changes.

Private enterprises would take a larger role in creating jobs, increasing productivity and developing new products and services.

Their growth would be guided by social responsibility and environmental sustainability so that commercial activity contributes to wider development goals.

Cooperation between small and medium-sized enterprises and large companies would support knowledge exchange, market access and domestic production. These relationships are intended to strengthen connections across the business sector and expand its economic contribution.

Financing and public-private partnerships

Oman seeks financing models that adapt to changing investment trends and meet businesses’ needs.

Stronger financial markets and wider funding options would support productive enterprises, particularly SMEs. Access to capital would help entrepreneurs establish businesses, invest in innovation and expand operations across different sectors.

Public-private partnerships would support infrastructure development, production efficiency and the delivery of public services.

The strategy calls for legislation governing privatisation, with oversight to monitor projects and ensure transparency and accountability.

Private participation would help improve operations, make effective use of technology and deliver quality services at competitive costs. Partnerships would also support investment in modern infrastructure and sustainable development.

Trade diversification and supply chains

The vision seeks closer cooperation between Omani businesses and international companies through investment that brings technology, expertise and productive activity.

Imports and exports would be diversified across products and geographical markets, reducing dependence on a small number of industries or trading partners.

Wider international relationships would help businesses enter new markets and strengthen local production capabilities.

The strategy also seeks a distinctive economic identity for Oman within global production and service networks. A broader production base, stronger trade infrastructure and investment partnerships would support exports and help companies respond to changing international demand.

Investment and competitiveness benchmarks

The original strategy sets goals for 2030 and 2040 against historical baselines. These figures do not represent current rankings or investment levels.

Net foreign direct investment inflows accounted for 4.12 per cent of GDP in 2017, placing Oman 68th among 231 economies. The intended contribution is 7 per cent by 2030 and 10 per cent by 2040.

Gross private investment represented 22.8 per cent of GDP in 2017. The original plan specifies 25 per cent by 2030 and 22 per cent by 2040.

For the Ease of Doing Business Index, Oman’s 2018 baseline was 67.2 out of 100, ranking 78th among 190 countries. The stated goals are above 79.58 or a top-20 position by 2030, followed by above 81.55 or the top 10 by 2040.

These are historical benchmarks from the Doing Business report, which was subsequently discontinued.

In the Economic Freedom of the World measure, Oman recorded 6.76 out of 10 in 2019, ranking 89th among 162 countries. The vision seeks a score above 7.36 or a top-50 position by 2030, rising to above 7.52 or the top 40 by 2040.

The Export Product Concentration Index baseline was 0.506 in 2016, placing Oman 168th among 217 countries. The goals are a value below 0.123 or a top-30 position by 2030, followed by below 0.087 or the top 10 by 2040. A lower value indicates a wider range of export products.

For the HH Market Concentration Index, Oman recorded 0.26 in 2016, ranking 105th among 120 countries. The intended values are below 0.07 or the top 30 by 2030, and below 0.06 or the top 20 by 2040. Lower values reflect exports distributed across a broader range of markets.

Two further indicators were under development in the supplied material: the private sector’s contribution to GDP and the availability and effectiveness of infrastructure supporting public-private partnerships. Neither has a numerical baseline or specified goals.

The wider objective is an economy in which entrepreneurship and responsible private investment support lasting growth while expanding Oman’s participation in international trade.