Muscat: The Oxford Business Group’s comprehensive report affirms that Oman is making confident progress toward reshaping its economy under Vision 2040, a national strategy focused on diversifying revenue sources, promoting sustainability, and creating a globally competitive business environment.
At the heart of this transformation is the Sultanate’s drive to modernize its business landscape, attract investments, and foster innovation. His Excellency Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, underscored the government’s strategic push across emerging sectors like logistics, manufacturing, mining, tourism, agriculture, and renewable energy—calling it the foundation of “Renaissance 2.0”.
Oman’s geographic location is being leveraged as a strategic trade corridor linking Asia and Africa, reinforced by advanced infrastructure in ports, expressways, and industrial zones. The country now leads GCC peers in trade facilitation, with shipping times cut by 40%, and the World Bank ranking Oman among the fastest in import-export compliance.
Green energy, particularly hydrogen, is a major pillar of this shift. The country aims to produce up to 8.5 million tons of green hydrogen by 2050, exceeding current European demand. Meanwhile, projects like the Amana Green Hydrogen partnership with Denmark and over RO 1.4 billion in Chinese investments underscore global confidence in Oman’s green future.
The Sultanate of Oman possesses exceptional natural resources, including abundant solar and wind resources and a vast area of approximately 50,000 square kilometers that is slated for development. This positions it ideally to become a global producer of green hydrogen at a competitive cost.
As part of its ambitious plans, the Sultanate of Oman aims to produce one million tons of green hydrogen annually by 2030, increasing to 3.8 million tons in 2040 and then 8.5 million tons in 2050. This figure exceeds current European demand and is equivalent to approximately 80 percent of Oman’s LNG exports in terms of energy. This initiative is being overseen by Hydro, a wholly-owned subsidiary of Oman Energy Development Company, in cooperation with the Hy-Fly consortium, under a public-private partnership model.
Her Excellency Ibtisam Al Farooji, Undersecretary for Investment Promotion, emphasized Oman’s attractiveness to foreign investors, with a 19.3% growth in FDI and a fourth-place global ranking in investor appeal in 2023. Targeted partnerships with India, Japan, South Korea, China, and Europe further amplify Oman’s global economic integration.
The manufacturing sector saw exports worth RO 7.5 billion to 140 countries in 2022, while industrial zones and free zones have become magnets for FDI and employment. The logistics sector alone is projected to contribute RO 13.8 billion to GDP by 2040, generating 300,000 jobs.
Tourism, too, is thriving. A 12% year-on-year increase in Q1 2024 brings Oman closer to its 2040 goal of 11 million annual visitors. The government is boosting visa access, ecotourism initiatives, and heritage investments, with 25 heritage sites set to open for investment by 2025.
Digital transformation and AI adoption are reshaping Oman’s tech landscape. The government is ramping up 5G, cloud, and data infrastructure, with the digital economy now central to Vision 2040. Cybersecurity, fintech, and even the space sector are gaining traction as key enablers of Oman’s knowledge economy.
The mining and agriculture sectors are also rising. Oman exported RO 71.5 million in mineral products in 2023 and is targeting full food self-sufficiency by 2040, already reaching 162% in fish and 97% in fresh milk.
The Oxford Business Group emphasized that the Sultanate of Oman is moving forward toward building a sustainable, competitive economy driven by innovation, based on a strategic location, a flexible investment environment, and a clear vision based on measurable plans. This makes it a promising destination for investors across various sectors in the coming years.
