Latest news with #economicDiversification
Zawya
2 days ago
- Business
- Zawya
Oman's finance and leasing sector supports economic diversification under Vision 2040
Muscat: Sultanate of Oman financial services industry continues to play a central role in supporting the country's long-term development strategy. A new Growth Perspectives video produced by Oxford Business Group (OBG) in partnership with National Finance Company, the sultanate of Oman leading finance company, explores how the finance and leasing segment is fuelling economic diversification by addressing funding gaps and facilitating investment across key sectors. The video, titled Sultanate of Oman Finance and Leasing Sector Fuelling Economic Diversification, examines the ways in which financial solutions are enabling businesses to scale up operations, create employment opportunities and contribute to national growth. Particular emphasis is placed on the role of tailored financing mechanisms in supporting small and medium-sized enterprises (SMEs), which are recognised as vital to private sector development. Under Oman Vision 2040, economic diversification and private sector participation are top priorities. The finance and leasing sector is well positioned to contribute to these objectives through the provision of capital for logistics, construction, manufacturing and other industries. Leasing arrangements for industrial equipment, working capital loans and sale-and-leaseback options are among the solutions highlighted in the video as helping to bridge the financing gap for businesses of all sizes. The interview features insights from Tariq Sulaiman Al Farsi, Chief Executive Officer of National Finance Company, who outlines the company's approach to facilitating access to finance through inclusive, innovation-driven products and services. He also discusses how the company is aligning its strategy with the broader goals of Oman Vision 2040, including support for emerging sectors such as renewable energy and digital technology. 'Financial inclusion is fundamental to achieving economic diversification,' Al Farsi said. 'At National Finance, we are committed to supporting Sultanate of Oman growth by empowering entrepreneurs, enhancing access to credit and ensuring that our solutions are designed to meet the needs of a rapidly evolving economy.' Dana Carmen Agarbicean, OBG's Country Director in Sultanate of Oman, noted that the country's finance and leasing sector has become an essential enabler of long-term development. 'Sultanate of Oman progress towards a more diversified economy is underpinned by robust and adaptive financial mechanisms. The sector's contribution to national priorities—particularly the growth of SMEs and strategic industries—reflects its key role in shaping a resilient and competitive business environment,' she said. This Growth Perspectives video forms part of Oxford Business Group's wider research for The Report: Sultanate of Oman 2025, the Group's forthcoming publication on the country's investment opportunities and economic developments. An in-depth interview with Tariq bin Sulaiman Al Farsi will also appear in the report. To view the video, visit: About Oxford Business Group Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, spanning Africa, the Middle East, Asia, and the Americas. It is recognised internationally as a distinctive and respected provider of on-the-ground intelligence on world's fastest-growing markets, termed The Yellow Slice, in reference to OBG's corporate colour. Through its range of products – Economic News and Views; OBG CEO Surveys; OBG Events and Conferences; Global Platform, which hosts exclusive video interviews; and The Report publications – as well as its Advisory division, OBG offers comprehensive and accurate analysis of macroeconomic and sector-level developments for sound investment opportunities and business decisions. OBG provides business intelligence to its subscribers through multiple platforms, including its direct subscribers, Dow Jones Factiva subscribers, the Bloomberg Professional Services subscribers, Refinitiv's (previously Thomson Reuters) Eikon subscribers, and more. For more information, please contact: Marc-André de Blois Director of PR and Video Content, Oxford Business Group E-mail: mdeblois@ 802 Publishing Pavilion, Production City PO Box 502 659 Me'aisem First Dubai UAE 6th Floor 105 Victoria Street London SW1E 6DT Register to receive our Economic Updates:
Times of Oman
3 days ago
- Business
- Times of Oman
Invest in Oman platform receives over OMR 5 Billion in applications since launch
Muscat: Since its launch in February 2023 and up until June 2025, the Invest in Oman platform has received approximately 90 investment applications with a total value of OMR 5.38 billion. Of these, 43 projects have been localised, valued at OMR 2.25 billion, in strategic sectors such as industry, health, food security, and renewable energy, according to the Minister of Commerce, Industry and Investment Promotion. The Shura Council hosted His Excellency the Minister of Commerce, Industry and Investment Promotion at its 13th regular session of the second regular session of the 10th term to discuss the ministry's statement on several topics. Most notably, these included the contribution of the public and private sectors to the gross domestic product (GDP), the evaluation of free trade agreements, and the "Nazdar" programme. The Minister of Commerce, Industry and Investment Promotion stated that the manufacturing sector recorded the highest growth rate among economic diversification activities, at 8.6 per cent, reaching OMR 3.6 billion at constant prices by the end of 2024. This represents 10 per cent of the gross domestic product. "More than 260 initiatives are currently being implemented in cooperation with partners and relevant authorities as part of the implementation of the outcomes of the Industrial Strategy 2040." "The manufacturing sector has attracted foreign direct investment worth OMR 2.489 billion by 2024, confirming the attractiveness of the industrial environment in the Sultanate of Oman." "The volume of foreign direct investment in the Sultanate of Oman has increased cumulatively, reaching approximately OMR 30 billion by the end of 2024." His Excellency the Minister of Commerce, Industry and Investment Promotion noted that the trade sector's contribution to the gross domestic product (GDP) at constant prices for the year 2024 reached approximately 8.3 per cent, amounting to OMR 3.225 billion, with a cumulative growth of 6.6 per cent during the tenth five-year plan.
Zawya
4 days ago
- Business
- Zawya
World Bank report lauds Oman's strong economic performance
Muscat – The World Bank's 2024 Gulf Economic Update report highlighted that the Sultanate of Oman has achieved significant positive fiscal and economic results despite regional and global challenges. The report affirmed that Oman's economic performance reflects the success of its fiscal and economic policies amid global changes, aligning with the priorities of economic diversification and financial sustainability under 'Oman Vision 2040'. It noted that Oman has recorded fiscal surpluses in recent years due to government measures to improve financial performance, as well as a current account surplus driven by growth in non-oil exports and services exports, strengthening its external position. The report praised Oman's reduction of public debt from 68% to 35% of GDP, demonstrating its commitment to fiscal sustainability, along with its credit rating upgrade to an investment-grade level (BBB-) by S&P in 2024. Additionally, Oman maintained low inflation at 0.6% in 2024, compared to the GCC average of 2%. Looking ahead, the report projected continued current account surpluses and growth in non-oil exports, supported by fiscal discipline and economic diversification efforts. For the broader GCC, the report forecasted economic growth of 3.2% in 2025 and 4.5% in 2026, with the oil sector expected to grow by 5.7% and the non-oil sector by 4.9% in the medium term, while inflation remains low.
Zawya
4 days ago
- Business
- Zawya
Oman: Bausher Sands project to blend desert conservation with urban growth
Muscat – Following Royal Decree No 55/2025 issued last week, a major urban development project will take shape in the heart of Muscat. The decree designates the Bausher Sands Development Project as a public utility, giving authorities the mandate to acquire land for its implementation under the Law of Expropriation for Public Utility. Covering 362,000sqm, the project will convert the Bausher Sands area into a recreational hub featuring quad biking tracks, a bike rental and maintenance centre, family zones and multi-storey parking. Located within one of Muscat's distinctive desert landscapes, Bausher Sands is known for its ecological richness and scenic value. The development seeks to harness this potential by creating a sustainable urban destination that balances environmental protection with tourism and economic growth. Led by Ministry of Housing and Urban Planning (MHUP), in cooperation with Muscat Governor's Office, the project aligns with the broader Greater Muscat Structural Plan. At its centre is the proposed Bausher Sands Park – a multi-purpose space designed to protect sand dunes, prevent urban sprawl, conserve biodiversity and stop unregulated land encroachment. The project aims to encourage well-regulated investment and open opportunities for small and medium businesses, supporting Oman's economic diversification goals. It will provide inclusive recreational areas that promote an active lifestyle and connect Muscat's natural elements through sustainable green corridors linking the coast, mountains and desert. The Bausher Sands project supports the 'Vibrant Muscat' and 'Productive Muscat' pillars of the capital's structural plan, aiming to boost eco-tourism, attract investment and create jobs. Officials said it is designed to preserve the desert characteristics of Bausher, while ensuring managed growth and a coherent urban identity. MHUP described the project as an example of Oman's long-term vision for balanced land use and sustainable development, supporting a livable urban environment where people and nature can coexist. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
The National
5 days ago
- Business
- The National
Oman to impose Gulf's first income tax on high earners to 'help economic goals'
Oman's move to introduce personal income tax from 2028 is a significant milestone in the sultanate's push to achieve its economic diversification goals, although the tax ratio remains low to reduce burden on the population, analysts have said. On Sunday, Oman issued the Personal Income Tax Law through royal decree, which imposes a 5 per cent tax on annual income exceeding 42,000 Omani rials ($109,236), Oman News Agency said, citing the country's tax authority. The law, which will come into effect at the beginning of 2028, will levy tax on income derived from 'specific income types as defined by the law', the news agency said. The Tax Authority said that the new law was in line with Oman's economic and social conditions and contributes to the objectives of Oman Vision 2040 to cut reliance on revenue generated from the sale of hydrocarbons. 'The introduction of income tax is another signal that a country has achieved a mature economic position,' David Daly, partner at Gulf Tax Accounting Group, told The National. 'That the rate is competitive internationally will ensure that Oman remains a country of choice for international professionals.' Careful study Oman, which has been in the process of drafting the personal income tax framework since 2022, said the move to finally implement the tax law follows an in-depth study that assessed the economic and social impact, based on income data from a number of government entities. The study has established a 'carefully considered exemption threshold', which means 99 per cent of Oman's population will not be taxed. 'The law is a precedent, setting Oman as the first GCC country to impose income taxes on its citizens,' EFG Hermes analyst Mohamed Abu Basha said in a research note on Monday. 'In that sense, while partially symbolic in nature – given the limited base of citizens to be impacted by the law (only 1 per cent of the population as per official estimates) – the move is still significant, considering the precedent it sets.' The law not only sets a higher personal income threshold and a low tax ratio, it also includes deductions and exemptions accounting for social considerations in the sultanate, such as education, health care, inheritance, zakat, donations, primary housing and other factors, according to the ONA report. Oman's plans to levy income tax on high earners was first mentioned in a bond prospectus published by the Finance Ministry in 2020 when the sultanate raised $2 billion in external financing. At the drafting stage, the expected reported tax rates ranged between 5 per cent and 9 per cent for foreign nationals, with a flat rate of 5 per cent for Omanis. ONA on Sunday did not disclose details on whether there are separate tax brackets for expatriates and Omani nationals. Oman, like its peers in the Gulf, is trying to diversify its economy away from oil. Tourism and agriculture are among sources of economic activity outside of the oil and gas sector, which accounts for about 70 per cent of the government revenue. Under its economic and social reforms programme, the sultanate aims to reduce its dependence on oil income by 15 per of its gross domestic product by 2030 and further reduce it by 18 per cent by 2040. Oman's economy is set to expand at a faster pace over the medium term, with overall GDP growth projected at 2.4 per cent in 2025 and 3.7 per cent in 2026, according to the International Monetary Fund. The country's real GDP strengthened to 1.7 per cent in 2024, an increase from 1.2 per cent in 2023, boosted by robust non-hydrocarbon activity, notably in manufacturing and services sectors of the sultanate, the IMF said earlier this month. Systems in place Oman on Sunday said the new tax not only aims to promote wealth redistribution among societal segments, it will also support 'the state budget, and specifically, financing part of the social protection system'. 'Given the tax-free allowance and structure of the Omani economy, I don't see any material economic impact in the near to medium term. Indeed, it should allow for government investment in their society to the benefit of all,' Mr Daly said. When implemented, personal income tax will be a first in the Gulf region and is likely impact only the high-earning foreign workers and wealthy Omani citizens. All necessary preparations and requirements for implementing the tax have been completed, said Karima Al Saadi, director of the Personal Income Tax Project at the Tax Authority. 'The executive regulations of the law will be issued within one year of its publication in the Official Gazette,' she added. An electronic system has been developed by the Tax Authority to promote voluntary compliance and has been linked with the departments concerned to ensure accurate income calculation and verification of tax declarations, she told the news agency. 'Guidance manuals for natural and legal persons will be published according to a predetermined schedule,' she said.
