Business In Oman

OMAN & ITS ECONOMY

Culture, custom and etiquette when doing business in Oman

Oman has experienced extraordinary development in the last few decades primarily due to the exploitation of its oil reserves. The country does have a relatively healthy economy and financial situation. Foreign companies around the world have come and collaborated with the local business due to the excellent investment opportunities provided by the government.

The Sultanate recognizes the significance of trade and investment in the country and has been making efforts to attract and promote investment in infrastructure, oil and gas, financial services, and other sectors. Over the past few years, the government has encouraged foreign trade and investment and introduced industrial regulations and labor laws. Overall, there is a vast scope for international companies that are interested to

The total population of Oman is estimated to be 5.1 million in the year 2020. More than half of the country’s population is Arab. However, there is a large number of ethnic Baloch that have migrated from Pakistan and Iran to Oman over the centuries. Oman has a young population, where half of the people are under age 30.

In Oman, Arabic is the official language, which is spoken by the majority of the population and is also taught in schools. Moreover, around 88 percent of the entire population in the country practices Islam. While oil trading is the main economy of the country, a large percentage of the population is involved in agriculture and fishing trading overseas

Viewed both geographically and economically as the gateway to the Middle East, Oman is the 2nd largest state in Arabian Peninsula and ranked 68th in the World Bank’s Ease of Doing Business survey for 2020.

Geography

The Sultanate’s ease of access to the rest of the Middle East stems from its geographical location. It is bordered by Saudi Arabia and the United Arab Emirates on the West; the Republic of Yemen on the North and the Arabian Sea on the East.

Currency

The Omani Rial is the official currency One Rial is divided into 1000 Baizas. One Rial (RO 1) equals US $2.60 and €2.19. Currency notes are available in denominations of RO 50, 20, 10, 5 and 1. Lesser currency notes are available in 100 and 200 baizas, quarter and half Rial denominations.

Dress

Although the dress codes of the many international cultures in Oman are widely visible, Arab Islamic culture is the dominant lifestyle in the Sultanate and adherents dress accordingly. Both men and women follow a conservative public dress code, regardless of culture.

Ramadan

The fasting month for Muslims starts 10 days earlier each year, according to the Gregorian calendar. Being a Muslim country, this affects the entire population as eating, drinking, and smoking in public are forbidden during daylight hours. Office hours are also modified to shorter workdays which could also affect business meetings.

Strengths

Oman is one of the most business-friendly states in the Middle East, as evidenced by its ranking from the World Bank. With robust government investments in infrastructure, oil, gas, banking, healthcare, and education, it’s become an attractive proposition for both domestic and foreign investments, buoyed by strong international connectivity, respected industrial regulations, and labor laws.

Economy

Traditional Omani economies include agriculture (dates) and fishing. However, by far the most prominent and profitable industry for the last fifty years has been oil and gas and this is unlikely to change. With the fluctuations in the oil market in mind and growing global investment in green energy sources, the Omani government has been actively encouraging investment and growth in other industries, a vision and directive encapsulated in a document entitled “Oman 2040”, the Sultanate’s road map for growth over the next two decades.

Population

As of 2020, Oman’s population was estimated to be 5.1 million people, with over half the residents being Arab. There are also a large number of ethnic Baloch that have emigrated from Pakistan and Iran over the centuries. Crucially, for growth, Oman’s populous skews young with over half being under the age of 30.

The majority of the population speaks Arabic which is also taught in schools and 88% of the population practices Islam.

Local Transport

( Now known as Mwasalat – https://mwasalat.om/en-us/) is the State-owned bus company operating public services throughout the Sultanate and currently operates 28 routes over 20 million km per year with the fleet regularly updated with modern replacements. It also charters out vehicles for tourism and private trips. Conversely, taxi services are run by the private sector, with a robust network of minibusses also operating as ‘service’ taxis operating between major towns and cities.

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PO BOX 878, PC 116, Mina Al Fahl Muscat ,Sultanate of Oman

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AFLAG Group provides opportunities for international companies by giving them and their customers in Oman business solutions working alongside its partners.