Oman announces new measures to attract investment

Oman announces new measures to attract investment

MUSCAT – The Omani government approved new incentives to stimulate the business climate, reducing income tax for small and medium businesses for 2020 and 2021 and offering long-term residency permits for foreign investors, Omani state TV said on Tuesday.

The move comes as Muscat shifts its focus towards diversifying its sources of income away from oil. Since last year, Oman's decision to cut reliance on energy sources has gained further momentum following the outbreak of the coronavirus pandemic, which contributed to large fluctuations in the prices for all refined petroleum products during the first half of 2020.

The official Omani TV said on Tuesday the new incentives are part of Oman's Vision 2040 aimed at diversifying the economy away from oil, which makes up the bulk of state revenue.

Oman, one of the weakest economies in the Gulf region, was hit hard by the coronavirus pandemic and low oil prices. The International Monetary Fund (IMF) said last month that Oman's economy likely shrank 6.4% in 2020 and estimated it would make a modest recovery to 1.8% this year.

The new Omani measures included a cut in rent at the Duqm Special Economic Zone and industrial areas, and this until the end of 2022.

Omani media