General Economic Situation

The general economic situation in Oman is very good. The country owes this to two factors: firstly, the very prudent leadership of the Sultan Qaboos and secondly, the oil and gas resources in the country. However, in recent years, the importance of other sectors of the economy has also been understood, and efforts have been made to promote them further. Thus, the tourism industry, industrial enterprises in general, and agriculture have also become important components of the domestic economy, even though the sale of oil and gas still accounts for around 80% of the government's revenue.

The development of the Omani economic situation over the past 50 years

It has been about 50 years since the first significant oil reserves were discovered in Oman and oil was extracted. The country has done many things right regarding oil extraction and marketing and has ensured early on that oil reserves are not exploited by other countries but can benefit the domestic economy. However, the great importance of oil in the Omani economy also poses a risk, as the fluctuating oil price often leads to declining government revenues and, consequently, a lack of security regarding income. To gain more security, efforts have been made in recent years to increase Oman's attractiveness to foreign investors in addition to the domestic economy. The aim is to significantly increase tax revenues through local business taxes without changing the tax burden for individuals. Additionally, the introduction of a value-added tax on the purchase of products is currently in progress – a type of tax that people in Oman are not previously familiar with. Nevertheless, it makes sense, as it is intended to bring further advantages for the economy. The new revenues provide the opportunity to initiate new investments from the government side.

More skilled workers for a stronger economy

The most important capital of a functioning economy is well-educated people who are employed in the various businesses of the domestic economy. To ensure that there are always enough skilled workers available, the education system in Oman has been completely revolutionized in recent decades. This has ensured that the young generation of Omanis is not only firmly rooted in the history of their country but is also well acquainted with the requirements of a modern economy. In addition to government initiatives to lure well-educated Omanis who have worked abroad back home with various offers, the number of upcoming skilled workers is also being further increased.