Oman is actively pursuing economic diversification and attracting foreign investment. Positioned at the crossroads of the Arabian Peninsula, East Africa, and South Asia, and in proximity to larger regional markets, the country’s strategic location is appealing to potential foreign investors, including investors from United States. Oman has been enhancing its ports and free zones, particularly in Duqm, where the government envisions a 2,000 square-kilometer free trade zone and logistics hub.
The United States and Oman maintain a robust bilateral relationship grounded in a shared commitment to the security, stability, and prosperity of the region. The 2009 U.S.-Oman Free Trade Agreement (FTA) solidified this partnership by eliminating most customs duties, enabling citizens to establish businesses without a local sponsor, and granting businesses and investors the right to 100 percent ownership of companies in Oman. In 2022, the United States emerged as Oman’s largest non-oil export destination, with a recorded value of $2.73 billion, marking a 47-percent increase from 2021.
Oman’s 2040 development plan is geared towards diversifying income sources and fostering growth in sectors such as logistics, manufacturing, technology, gas, food, and tourism. The manufacturing sector is expected to assume a crucial role in driving economic growth over the next two decades, with plans for the establishment of 16 industrial cities and related manufacturing zones by 2040. This signifies a shift towards a more substantial role for the non-oil economy in fueling economic growth over the next 20 years.