Exporting to Oman
Strategic location
Oman is located in the south eastern quarter of the Arabian Peninsula. As the only GCC member state outside the Straits of Hormuz, Oman offers assured Gulf access and shorter shipping times along major maritime routes. Its deep seawater ports and airports provide a gateway to Indian, Asian and African markets.
Political stability
Dubbed the ‘Switzerland of the Middle East’, Oman provides a politically neutral voice in a region prone to diplomatic tension. With significant investments in social as well as hard infrastructure over the past 50 years, the ‘Omani Renaissance’ has brought political stability internally as well as to its international relations.
Strong UK links
The UK-Omani bilateral relationship is underpinned by strong and growing military cooperation and very close diplomatic ties. The UK is a significant investor in Oman. Many Omanis choose to study overseas in the UK, and English is widely spoken and accepted as a business language.
Ease of doing business
68th
out of 190 countries (World Bank, 2019)
Currency
Rial
Business language
Arabic, English
GDP per capita
$19,300
UK is $42,558 (IMF, 2018)
Economic growth
2.1%
(IMF, 2018)
Time zone
GMT +4
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Oman have identified particular opportunities for UK businesses in the following sectors.
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Tourism
Oman has a unique and diverse natural beauty. The potential this brings for tourism is unrivalled by other parts of the Gulf. It is hoped that the sector will bring additional economic prosperity, benefit the people of Oman and enhance its culture.
Hotels and attractions
Recent years have seen the development of hotels and visitor attractions in and around Muscat, Nizwa and surrounding mountainous areas, and also in Salalah.
Business tourism
Business tourism is developing around the new Oman Conference and Exhibition Centre, which is an ideal place to hold exhibitions, conferences and events.
Knowledge sharing
Oman has a lot to offer in terms of history, culture, landscape, and infrastructure. However, as Oman is a growing market with a young population, it needs guidance and expertise to support tourist sector development. UK companies could meet this demand.
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Manufacturing
The manufacturing sector is driving the diversification of Oman’s economy. Non-oil exports are following a strong pattern of growth, and the petrochemical sector is set to expand considerably.
Pharmaceuticals
Oman is keen to expand the manufacture of pharmaceuticals within the country and become a hub for the region. Oman imports much of its medications and medical equipment, making the sector a key target for development.
Construction and real estate
There are manufacturing opportunities in the construction and real estate sector, including around marble, granite mining and processing, glass production, limestone, tiles, blocks and cement. Businesses are keen on using advanced manufacturing technology and solar-powered equipment.
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Mining
Oman’s emerging mining sector has high growth potential, particularly in the production of gypsum and high-quality limestone. Extensive, largely untapped resources are ripe for exploration and large scale projects are already underway. The sector is a priority under the Sultanate’s economic diversity programme.
New mining licences
Oman has recently started to grant mining licences to companies, allowing them to explore prospective mineral resources.
Mineral development
Oman’s government launched Minerals Development Oman and gave it the mandate to develop the country’s prolific mineral potential in the Dhofar region. An initial study has uncovered an abundance of limestone, gypsum, and potentially deposits of dolomite and attapulgite.
Infrastructure upgrades
There are plans for infrastructure upgrades to help Oman unlock its mineral export potential. These include plans for cross-country rail links. The government is also making reforms to facilitate investment.
Doing business in Oman
Preparing to export
Tax
The UK and Oman have signed a double taxation agreement, meaning the same income is not taxed twice.
The tax regime is generally seen as favourable with no personal income tax and one of the lowest rates of corporate income tax globally (15%).
Oman’s Ministry of Finance (website in Arabic) oversees taxation.
VAT
There is currently no value-added tax (VAT) regime in Oman, although this is expected to be introduced in 2019/2020.
Standards
British standards are widely used in Oman. Responsibility for standards sits with the Directorate General of Standards and Specifications at the Ministry of Commerce and Industry.
Agents, importers or cargo companies can provide guidance and advice about labelling and packaging regulations.
Trade barriers
Check for any reported barriers to trading with Oman.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Oman
Challenges
A long-term approach and focus on building relationships are essential for successful market penetration and sustaining market share in Oman. Local partnerships or agents often play a crucial role in product promotion and marketing. In many cases, a product’s success in this market will depend on the local agent.
UK businesses operating in Oman may face challenges relating to:
- the amount of time it takes to set up a local operation (if outside free trade zones) and to obtain the required government licenses
- local ownership requirements (if outside free trade zones)
- the requirement to employ Omani nationals
Businesses operating in or exporting to Oman may face delays in payment.
Intellectual property
As a first step, we advise you to speak to an intellectual property (IP) lawyer if you think you need patent protection when exporting.
The Patents and Trademarks Directorate oversees IP matters. Enforcement of IP rights can be poor. However, challenges can often be successful.
Commercial agents
Omani agents supply goods or services on behalf of foreign businesses without a registered entity in Oman. Agency agreements:
- must be registered with the Ministry of Commerce and Industry
- can be difficult to terminate, even if it is a fixed term agreement
- are often weighted in favour of the agent
Next steps
DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.
