Oman’s Shifting Business Climate: From Open Investment to Uncertainty!

A few years ago, Oman made headlines by opening up to 100% foreign business ownership , instead of requiring a local partner, you could theoretically register a business on your own in many sectors. This was a big deal for expats and small business owners looking for opportunities in the region. But lately, the reality on the ground feels different. For starters, most sectors are still open to full foreign ownership, but there’s a short list (about 95 activities) where you still need an Omani partner. Also, the government now requires all companies, including 100% foreign-owned ones, to hire at least one Omani national within the first year and register them with the Social Protection Fund. If you don’t, you can face penalties.

This “Omanization” rule isn’t new, but it’s getting enforced. For small, foreign-run businesses—like my Canadian friend’s, who recently shut down—it’s a real burden. Margins are already tight, and finding and paying local staff isn’t always straightforward, especially for niche or service-based companies.

What’s the impact? Official stats say foreign investment in Oman is up overall, but anecdotal stories (like my friend’s) suggest that for small and new businesses, these changes can be a dealbreaker.

The big picture: Oman still wants foreign investment, but it also wants more jobs for Omanis so expect more rules aimed at “localising” the workforce over time.

I am interested to know how has others experience been so far based on the recent developments!