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Times of Oman
22-07-2025
- Business
- Times of Oman
Supervisory Committee of National Foresight Office reviews strategic objectives
Muscat: The Supervisory Committee of the National Foresight Office convened on Tuesday to review the proposed action plan, key milestones achieved during its establishment phase, and the strategic objectives guiding the Office's operations in the coming period. Chaired by Dr. Said Mohammed Al Saqri, Minister of Economy and Committee Chairman, the inaugural meeting examined proposed initiatives for the Office's 2026-2027 work program. Key discussion points included forthcoming foresight studies, national capacity-building programs to develop future-scoping methodologies, and the development of reference materials to standardize foresight activities across government entities. The committee approved several future-thinking initiatives central to the Office's mandate, including foresight workshops, public awareness campaigns on emerging global trends, and partnerships with key institutions to identify investment opportunities in future-oriented sectors. The establishment of the National Foresight Office responds to accelerating global transformations, creating a dedicated policy unit to monitor trends and develop adaptive development strategies. Among its core responsibilities are generating national and sector-specific future scenarios and providing strategic alternatives to strengthen Oman's sustainable development framework.
Arabian Business
25-06-2025
- Business
- Arabian Business
Oman announces 5% income tax: Everything you need to know
Oman will introduce the Gulf region's first personal income tax on high earners starting January 1, 2028, marking a historic shift in its fiscal strategy. The personal income tax (PIT) for high earners marks a major shift in Oman's fiscal policy as part of the broader Vision 2040 agenda to diversify national income and ensure long-term financial sustainability. The Personal Income Tax Law, issued by Royal Decree No. 56/2025, comprises 76 articles across 16 chapters. It imposes a 5 per cent tax on the taxable income of individuals whose gross annual income exceeds OR42,000 ($109,100), derived from income categories defined in the legislation. The law will officially come into force at the start of 2028. Everything you need to know about new Oman tax Effective Date: January 2028 Threshold: Income above OR42,000 ($109,100) annually Tax Rate: 5 per cent Exemptions: 99 per cent of citizens, plus deductions for key social needs Purpose: Fiscal sustainability, economic diversification, social equity Impact: Minimal GDP effect, no expected impact on foreign investment Dr. Said Mohammed Al Saqri, Minister of Economy, said: 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source. 'It will help maintain current levels of social and service spending while preserving Oman's achievements in financial and economic stability under 'Oman Vision 2040' and its first executive phase, the Tenth Five-Year Plan (2021-2025).' 99% of Omanis exempt from new tax According to Oman's Tax Authority, the exemption threshold was determined after a comprehensive economic and social impact study based on income data from multiple government bodies. As a result, approximately 99 per cent of Omani citizens will not be affected by the tax. To address social equity, the law includes deductions for education, healthcare, housing, zakat, donations, and inheritance, among others. Karima Mubarak Al Saadi, Director of the Personal Income Tax Project, confirmed that all necessary preparations and requirements for implementing the tax have been completed. The Tax Authority confirmed the development of a digital tax declaration system integrated with other government entities to promote voluntary compliance. The executive regulations of the law will be issued within one year of its publication in the Official Gazette. Currently, 68 per cent to 85 per cent of Oman's income is derived from oil and gas, depending on global prices. While prices have been favourable recently, the government warns of long-term volatility. The PIT law seeks to secure sustainable funding and mitigate reliance on hydrocarbons. Dr. Said Mohammed Al Saqri, explained that the (PIT) is a fiscal tool adopted by most countries worldwide as a key revenue source to fund state-provided services. More than 190 countries impose this tax, and in many, income taxes constitute the largest component of total tax revenues at federal and local levels, financing public goods and services. He noted that implementing the tax in Oman will yield significant economic benefits, supporting income diversification strategies and long-term fiscal stability as a pillar of economic growth. He added that the foreign investment is expected to remain unaffected, as the tax applies to individuals—not corporate entities—and Oman's rates remain competitive globally, the minister concluded. The 2025 national budget allocates more than OR5bn ($13bn) to essential services: Education: 39 per cent Healthcare: 24 per cent Social Protection: 28 per cent The Social Protection Fund currently supports over 2 million beneficiaries monthly, with PIT revenue expected to further strengthen the program.
Arabian Business
15-06-2025
- Business
- Arabian Business
UAE GDP hits $484bn in 2024 with strong non-oil growth as transport, construction and finance lead surge
The UAE's economy continues its upward trajectory, with real gross domestic product (GDP) reaching AED1.776tn ($483.5bn) in 2024. It represents a 4 per cent year-on-year increase, according to official data released by the Federal Competitiveness and Statistics Centre (FCSC). Notably, non-oil GDP surged by 5 per cent to AED1.342tn ($365.3bn), while oil-related activities contributed AED434bn ($118.2bn) to the total output. This performance underscores the UAE's accelerating shift towards a diversified, sustainable, and innovation-led economy. UAE GDP growth Non-oil activities now represent 75.5 per cent of the UAE's total GDP—an indicator of the country's growing economic resilience and diversification. Abdulla bin Touq Al Marri, Minister of Economy, said: 'We continue to strengthen our national efforts to achieve the objectives of 'We the UAE 2031' vision. With each milestone, we are moving closer to achieving the UAE's target of raising GDP to AED3tn ($817bn) by the next decade, while reinforcing its position as a global hub for the new economy, driven by sustainable development, international competitiveness, and forward-looking leadership.' The transport and storage sector recorded the highest annual growth among all economic activities, expanding by 9.6 per cent. This was fuelled by a surge in aviation activity, with UAE airports processing over 147.8m passengers in 2024—an increase of approximately 10 per cent year-on-year. The building and construction sector followed with a strong 8.4 per cent growth, reflecting the country's continued investment in urban development and infrastructure. Financial and insurance activities rose by 7 per cent, while hotels and restaurants (the hospitality sector) grew by 5.7 per cent. The real estate sector also performed solidly, with a 4.8 per cent expansion. Among the most impactful contributors to the non-oil economy in 2024: Trade: 16.8 per cent of non-oil GDP Manufacturing: 13.5 per cent Financial and insurance: 13.2 per cent Construction and building: 11.7 per cent Real estate: 7.8 per cent Hanan Mansour Ahli, Managing Director of the Federal Competitiveness and Statistics Centre, said the 4 per cent GDP growth in 2024 reflects the UAE's exceptional economic performance, supported by a forward‑looking vision focused on sustainable, non‑oil‑driven growth. Hanan Ahli further stated that the guidance and forward-looking vision of the UAE's leadership are focused on building an advanced and globally competitive economic model. Economic diversification is adopted not only as a strategic objective but also as a core operational approach, driving sustainable development and enhancing societal well-being.
