Oman Adopts Forum Outcomes To Resolve Key Business Challenges

The Ministry of Commerce, Industry and Investment Promotion in Oman has confirmed the adoption of the outcomes from the "Resolving Business Challenges in Oman" forum. This marks a major step forward as the discussions now move into real implementation. The forum highlighted financing difficulties faced by businesses and stressed the importance of finding effective solutions to support the country’s economic diversification goals.

Building on Earlier Workshop

This move follows detailed discussions among ministers, undersecretaries, experts, and representatives from both government and private sectors. The forum built upon ideas from a national workshop held earlier this year, from January 26 to February 2, 2025. The workshop was organized to identify and resolve the most pressing business challenges in the Sultanate.

Ministry’s Commitment to Reform

Ibtisam Ahmed Al Furooji, Undersecretary for Investment Promotion, explained that adopting the outcomes signals the Ministry’s commitment to go beyond discussions. She emphasized that Oman's economic environment requires close cooperation among all sectors. According to her, reforms will be carefully monitored using performance indicators, ensuring real and measurable progress in line with Oman Vision 2040.

Five Key Pillars of the Forum

The workshop and forum focused on five main areas: Commercial and Investment Companies and Free Zones, Employment, Legislation and Judiciary, Tenders, and Finance and Taxes. Each pillar came with drivers for change, responsible entities, and a clear roadmap to connect reforms with national development plans.

Improving Investment Journey

Tahra Sultan Al Amri, Director of the Business Environment Facilitation and Development Department, spoke about challenges faced by investors. These included unclear legal texts, multiple licensing bodies, and a lack of integration between electronic systems. Simplifying these processes is expected to make Oman more attractive to international and local investors.

Aligning Employment with Market Needs

Employment was another critical area discussed. Ammar Salim Al Saadi, Director General of Labour, highlighted efforts to match labour laws with market demands. Initiatives include easing permit and visa systems, strengthening Omanisation, and providing accurate labour data through the "Tawteen" platform. These changes aim to strike a balance between hiring foreign expertise and developing Omani talent.

Legal and Judicial Reforms

Judge Saif Abdullah Al Hosni from the Supreme Judiciary Council underlined the importance of developing a specialized commercial judiciary. He also stressed the use of arbitration and mediation to resolve disputes faster. Additionally, projects like visual electronic trials and stronger enforcement systems were presented as ways to improve investor confidence.

Challenges in Tender Processes

Eng. Said Hamad Al Amri, Director General of Tenders, identified issues related to tenders such as extended timelines, bid bond requirements, and performance guarantees. Streamlining these processes is seen as essential to making Oman’s project bidding environment more efficient and transparent.

Finance and Tax Solutions

Financing remains one of the biggest obstacles for businesses. Rashad Ali Al Mosafir, founder of Al Afaq Financial, presented a study showing that high bank interest rates and strict collateral requirements prevent SMEs from growing. The study recommended introducing credit guarantee programs and better access to long-term financing for productive sectors.

The Role of Banking in Growth

Economic expert Dr. Yousuf Hamad Al Balushi suggested creating a national loan guarantee institution and expanding financing alternatives. He called for attracting international investment banks and using digital solutions to address financing gaps. These measures could strengthen Oman’s financial system and support new projects.

Government’s Financing Efforts

The Ministry of Finance is also playing a role by diversifying financial instruments. According to Eng. Said Khalifa Al Hatmi, initiatives such as sukuk, bonds, and investment funds are being developed to give businesses more financing options and reduce reliance on traditional loans.

Governance and Monitoring Progress

Sayyid Waqas Al-Arqam Al Busaidi, representing Oman Vision 2040 Follow-up Unit, stressed the importance of governance and tracking results. He highlighted the need for clear performance indicators and the formation of joint follow-up teams to ensure that the plans are implemented effectively.

Public and Private Partnership Needed

The forum concluded with participants agreeing that successful economic diversification requires collaboration among the government, private sector, and banking institutions. Special focus will be given to small and medium enterprises, which are considered vital for Oman's future growth.

Moving Towards Vision 2040

By adopting these forum outcomes, Oman is signaling its determination to strengthen its economy. With reforms focusing on financing, legislation, employment, and governance, the Sultanate is laying down a practical roadmap to become a stronger investment destination and achieve the ambitions of Oman Vision 2040.