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This chapter contains an outline of the tax framework within which local and international firms operate within Oman, including a look at the various models of business open to foreign investors and a breakdown of the new rules set out for Islamic financial transactions. This chapter contains an interview with Omar Al Sharif, Country Senior Partner Oman, PwC.

In the four decades after Sultan Qaboos bin Said Al Said assumed leadership in 1970, Oman made such strides in health care provision that the UN, in its “Human Development Report 2010”, declared it the most improved nation out of 135 countries. The sultanate is looking to breathe fresh momentum into the coming decades under its current long-term development plan, Health Vision 2050. Published in May 2014, just one month before the price of oil began to fall, the document laid out a roadmap for modernisation on an unprecedented scale, from building new specialised hospitals to digitising patient information systems. Perhaps most striking was its call for a major increase in the role of the private sector, which at the time made up a 10th of all health care provision.

Oman’s education sector has expanded rapidly since the 1970s, with the total number of schools in the sultanate rising from three in 1970 to 1725 in 2016. The sector is overseen by the Education Council, which was founded in 2012 to streamline all matters pertaining to education development in the country, and is composed of the country’s key education bodies, including the Ministry of Education and the Ministry of Higher Education. Although the Omani government has continued its rationalisation initiatives started in 2014, the education sector has remained largely insulated from major cutbacks. The reductions that have occurred are expected to open the way for greater private sector participation, with international interest fuelled by both Oman’s sizeable youth population, as well as the government’s continued focus on achieving a knowledge-based and diversified economy.

While the focus on preserving Oman’s natural surroundings and cultural traditions has allowed the sultanate to retain much of the spirit of historic Arabia, the arrival of modern infrastructure and an emphasis on new sectors like activity-based tourism and ecotourism suggest the country is also adapting to the needs of the modern global travel market. Oman has some of the most diverse offerings in the Gulf region, including several UNESCO World Heritage sites, contemporary urban centres, and natural and coastal areas, yet it continues to rely on a few specific destinations and times of the year. While the country welcomed a record number of visitors in 2015 and 2016, the ultimate goal of transforming it into a year-round destination that appeals to a broader set of travellers continues apace. With the addition of the Oman Convention and Exhibition Centre, infrastructure initiatives, new hotels and other flagship developments, the country is well on track. This chapter contains an interview with Ahmed bin Nasser Al Mahrizi, Minister of Tourism.

Developments in Oman’s telecoms sector in 2017 were centred on the announcement of a third mobile network operator licence and an increase in royalty rates from January 1, which led to a 35-40% drop in net profits that year for the two existing operators, Omantel and Ooredoo. With market penetration in the mobile sector at close to 150%, the sultanate’s third licence is expected to significantly tighten market competition. Meanwhile operators in Oman’s IT sector have recently made big strides forward, moving beyond infrastructure to develop applications and applied business solutions for increasingly sophisticated customers. The government has made it clear that ICT is a key priority in improving the standing of Omani businesses in the international arena, and in 2017 the Information Technology Authority was developing a 2030 Digital Oman Strategy (eOman) focused on developing IT skills, digital literacy and new technologies.

Targeted investment has seen Oman’s agriculture and fisheries sector make advances as the government seeks ways to sustain a growing population and foster a more diverse economy. According to the Ministry of Agriculture and Fisheries, in 2016 production rose by 4.3% for agriculture and 8.7% for fisheries to 1.87m and 280,000 tonnes, respectively. Production is estimated to increase further given ongoing state support in areas ranging from dairy and aquaculture, to livestock and produce. Although Oman is in a strategic location between the vast markets of Europe and Asia, it is constrained in the types of products it can easily make commercially viable due to its arid climate, soil salinity and water scarcity. Still, the sultanate forges ahead with development plans by leveraging technology to open up new pathways to growth and self-sufficiency. This chapter contains an interview with Fuad bin Jaafar bin Mohammed Al Sajwani, Minister of Agriculture and Fisheries Wealth.