Oman ranked most affordable GCC country

Observer

5 hours ago

Muscat: Oman has emerged as a standout destination for affordability and balanced living. According to the latest 2025 report by Numbeo, one of the world's largest crowd-sourced databases for cost of living indicators, Oman has been ranked as the most affordable country in the Gulf Cooperation Council (GCC) region, with a Cost of Living Index of 39.3 — lower than Kuwait (40.4), Saudi Arabia (41.5), and other GCC peers.
The report takes into account key factors such as housing prices, food costs, transportation and basic services, comparing them to income levels and consumer spending habits. The index is widely used by expatriates, investors and analysts to assess livability across global cities and countries.
Oman's leading position in affordability is attributed to a combination of factors including relatively stable rental prices, particularly in major cities such as Muscat, Suhar and Salalah, as well as the availability of locally produced goods that help buffer global inflation on essential commodities.
Abdullah bin Hamoud, an economic analyst, explained: 'Oman has achieved a rare economic balance in the region by keeping the cost of living reasonable without compromising on service quality. Fuel and electricity subsidies, coupled with a steady labour market, have significantly helped reduce financial pressures on residents.'
The Numbeo ranking is not just a statistical achievement — it resonates with the lived experiences of both citizens and expatriates across the country.
Salim al Rashdi, a public sector employee, stated: 'Life in Oman is comfortable in terms of cost. Monthly household expenses are manageable, especially for families living in owned or subsidised homes. Basic food items like rice, oil and bread remain affordable.'
Meanwhile, Laila Khan, a Pakistani national working as an accountant in Al Khuwair, said: 'Rents in Oman are considerably lower than in other GCC countries where I previously worked, such as Qatar and the UAE. Public healthcare and education services are either free or offered at minimal cost, which makes a huge difference to our family budget.'
For Yaser al Hamdani, a young Omani entrepreneur, the ranking reflects a strategic advantage: 'The low cost of living is a competitive edge for Oman in attracting skilled professionals and investors. When people can live comfortably and affordably, they're more likely to stay and invest in the local economy.'
Observers believe this favourable ranking can serve as a catalyst for attracting foreign investment and expanding economic opportunities in Oman. With modern infrastructure and relatively low operating costs, the Sultanate of Oman offers a compelling proposition for businesses in sectors such as tourism, education, healthcare and technology.
Mohamed al Shabibi, a real estate development consultant, commented: 'Construction and operating costs are lower compared to other regional markets, and land availability is a strong incentive. The government's efforts to streamline procedures and offer investment incentives are also beginning to show results.' In addition, Oman's growing tourism sector stands to benefit from the global perception of affordability.
Oman's status as the most affordable GCC country in 2025 is more than a number — it's a lived reality appreciated by residents and backed by data. As Oman continues its steady progress, guided by visionary leadership and practical reforms, it is well-positioned to not only maintain this distinction but also become a model of balanced living and inclusive prosperity in the region.