RESTRICTED  
  
WT/TPR/S/418  
13 October  2021 
(21-7713) Page: 1/83 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
OMAN 
This report, prepared for the third Trade Policy Review of Oman, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World 
Trade Organization), sought clarification from Oman on its trade policies and practices.  
 
Any technical questions arising from this report m ay be addressed to Arne Klau (tel. 022 739 5706), 
and Xinyi Li (tel . 022 739 5579).  
 
Document WT/TPR/G/ 418 contains the policy statement submitted by Oman.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Oman. This report was drafted in 
English.  
  WT/TPR/S/418 • Oman  
 
- 2 - 
 
  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  10 
1.1   Main Features of the Economy  ................................ ................................ ....................  10 
1.2   Recent Economic Developments ................................ ................................ ..................  11 
1.3   Developments in Trade and Investment  ................................ ................................ ....... 17 
1.3.1   Trends and patterns in merchandise and services trade  ................................ ...............  17 
1.3.2   Trends and patterns in FDI  ................................ ................................ ......................  20 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  22 
2.1   General Framework  ................................ ................................ ................................ .. 22 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 24 
2.3   Trade Agreements and Arrangements  ................................ ................................ ..........  25 
2.3.1   WTO ................................ ................................ ................................ ....................  25 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 27 
2.3.2.1    Gulf Cooperation Council (GCC)  ................................ ................................ .............  27 
2.3.2.2    Pan-Arab Free Trade Area ( PAFTA ) ................................ ................................ ........  29 
2.3.2.3    Agreement with the United  States  ................................ ................................ .........  29 
2.3.2.4    Agreement with Singapore  ................................ ................................ ...................  29 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  30 
2.4   Investment Regime  ................................ ................................ ................................ .. 30 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  34 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  34 
3.1.1   Customs procedures, valuation, and requirements  ................................ ......................  34 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 35 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  36 
3.1.3.1    Applied MFN tariff  ................................ ................................ ...............................  36 
3.1.3.2    Tariff bindings  ................................ ................................ ................................ .... 38 
3.1.3.3    Tariff preferences  ................................ ................................ ................................  39 
3.1.3.4    Tariff exemptions and concessions  ................................ ................................ .........  39 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  39 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ...........................  40 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ...............  42 
3.1.7   Other measures affecting imports  ................................ ................................ ............  43 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............  43 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 43 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................  43 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  43 
3.2.4   Export support and promotion  ................................ ................................ .................  44 
3.2.5   Export finance, insurance, and guarantees  ................................ ................................  45 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 46 WT/TPR/S/418 • Oman  
 
- 3 - 
 
  3.3.1   Incentives  ................................ ................................ ................................ ............  46 
3.3.2   Standa rds and other technical requirements  ................................ ..............................  47 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .. 48 
3.3.4   Competition policy, consumer protection, and price controls  ................................ .........  49 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  50 
3.3.6   Government procurement  ................................ ................................ .......................  51 
3.3.7   Intellectual property rights  ................................ ................................ ......................  52 
3.3.7.1    Overview  ................................ ................................ ................................ ...........  52 
3.3.7.2    Patents  ................................ ................................ ................................ ..............  54 
3.3.7.3    Copyright and related rights  ................................ ................................ .................  55 
3.3.7.4    Trademarks  ................................ ................................ ................................ ........  55 
3.3.7.5    Industrial des ign and layout -designs of integrated circuits  ................................ .........  56 
3.3.7.6    Geographical indications  ................................ ................................ ......................  56 
3.3.7.7    Plant breeders' rights  ................................ ................................ ...........................  57 
3.3.7.8    Enforcement  ................................ ................................ ................................ ....... 57 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  58 
4.1   Agriculture and Fisheries  ................................ ................................ ...........................  58 
4.2   Mining and Energy  ................................ ................................ ................................ .... 61 
4.2.1   Mining and quarrying  ................................ ................................ ..............................  61 
4.2.2   Hydrocarbons  ................................ ................................ ................................ ........  62 
4.2.3   Electricity  ................................ ................................ ................................ .............  64 
4.3   Manufact uring ................................ ................................ ................................ ..........  66 
4.4   Services  ................................ ................................ ................................ ..................  67 
4.4.1   Financial services  ................................ ................................ ................................ ... 67 
4.4.1.1    Banking  ................................ ................................ ................................ .............  67 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  68 
4.4.1.3    Securities ................................ ................................ ................................ ..........  69 
4.4.2   Communications  ................................ ................................ ................................ .... 70 
4.4.2.1    Telecommunications  ................................ ................................ ............................  70 
4.4.2.2    Postal and courier services  ................................ ................................ ...................  73 
4.4.3   Transport  ................................ ................................ ................................ .............  73 
4.4.3.1    Maritime transport  ................................ ................................ ..............................  74 
4.4.3.2    Terrestrial transport  ................................ ................................ ............................  75 
4.4.3.2.1    Road transport  ................................ ................................ ................................ . 75 
4.4.3.2.2    Rail transport  ................................ ................................ ................................ ... 76 
4.4.3.3    Aviation transport  ................................ ................................ ...............................  76 
4.4.4   Tourism  ................................ ................................ ................................ ................  78 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 80 
 WT/TPR/S/418 • Oman  
 
- 4 - 
 
  CHARTS  
 
Chart 1.1 Expenditure component contributions to GDP growth, 2014 -19 12 
Chart 1.2 Oil prices, revenues, and fiscal and current account deficits, 2014 -20 14 
Chart 1.3 Interbank rates and CBO policy rates, 2014Q1 -2021Q1  15 
Chart 1.4 Product composition of merchandise trade by main HS sections, 2014 and 2020  18 
Chart 1.5 Direct ion of merchandise trade, 2014 and 2020  19 
Chart 3.1 Distribution of MFN tariff rates, 2021  37 
 
TABLES  
 
Table 1.1 GDP by economic activity, 2014 -20 10 
Table 1.2 Oman population, 2014 -20 11 
Table 1.3 Selected macroeconomic indicators, 2014 -20 11 
Table 1.4 Balance of payments, 2014 -20 16 
Table 1.5 Trade in services, 2014 -20 19 
Table 1.6 FDI stock, 2014 -19 20 
Table 2.1 List of ministries and their recent changes  23 
Table 2.2 Main trade -related laws, 2021  25 
Table 2.3 Selected notifications to the WTO, June 2021  26 
Table 3.1 Structure of Oman's MFN tariff, 2014 and 2021  36 
Table 3.2 Oman's applied MFN tariff summary, 2021  37 
Table 3.3 Customs revenue, 2014 -20 38 
Table 3.4 Tariff lines where applied rate exceeds bound tariff rate  38 
Table 3.5 Tariffs under prefer ential agreements, 2021  39 
Table 3.6 Import prohibitions  40 
Table 3.7 Import restrictions, June 2021  41 
Table 3.8 Selected state -owned enterprises, 2021  51 
Table 3.9 Overview of intellectual property rights  (IPRs) legislation, June 2021  53 
Table 3.10 Participation in international IPR agreements, 2021  53 
Table 3.11 Copyright applications, 2016 -20 55 
Table 3.12 Trademark applications, 2017 -20 56 
Table 4.1 Selected indicators of agriculture, 2014 -20 58 
Table 4.2 Domestic support, 2013 -19 59 
Table 4.3 Selected indicators of fisheries, 2014 -20 60 
Table 4.4 Selected mineral production, 2014 -20 61 
Table 4.5 Selected indicators for oil and gas, 2014 -20 63 
Table 4.6 Electricity retail prices, 2021  66 
Table 4.7 GDP of manufacturing sector, 2014 -20 66 
Table 4.8 Selected telecommunications indicators, 2014 -20 70 
Table 4.9 Selected indicators of maritime transport, 2014 -20 74 WT/TPR/S/418 • Oman  
 
- 5 - 
 
  Table 4.10 Selected indicators of aviation transport, 2014 -20 76 
Table 4.11 Selected indicators of tourism, 2014 -20 78 
 
APPEND IX TABLES  
 
Table A1.1 Merchandise exports (including re -exports) by HS section and major 
HS chapter/subheading, 2014 -20 80 
Table A1.2 Merchandise imports by major HS section, 2014 -20 81 
Table A1.3 Merchandise exports (including re -exports) by destination, 2014 -20 82 
Table A1.4 Merchandise imports by origin, 2014 -20 83 
 
 
  WT/TPR/S/418 • Oman  
 
- 6 - 
 
  SUMMARY  
1. Though Oman is relatively less hydrocarbon -rich than its neighbours, oil and gas still play a 
significant role in the economy. In 2020, the oil and gas sector accounted for 26.2% of GDP, 
represented about 60% of Oman's merchandise exports, and contributed three quarters of total 
governm ent revenues. Oman joined the OPEC+ Agreement in November 2017, and its average daily 
production was cut to 760,000 barrels as of July 2020. During the review period, Oman faced a 
double challenge from low oil prices and the COVID -19 pandemic; Oman's econo my grew to a peak 
in 2016 at a rate of 5.1% before it began a sharp slowdown in 2017. The economy contracted by 
0.8% in 2019, and by a further 6.4% in 2020, mainly due to the global pandemic. As vaccine rollout 
gradually restores domestic activity along wi th the recovery of external demand, the economy is 
expected to grow by 2.5% in 2021.  
2. As a result of low oil prices, government revenues have decreased by two thirds since 2014. 
New taxes such as the value added tax (VAT) and the excise tax were introduced during the review 
period. The contribution of customs duties to total government revenue is small, accounting for 
2.6% of total revenue on average. On the other hand, government expenditure remained rigid due 
to social security spending, commitments to inf rastructure investment, and COVID -19 relief 
measures (e.g. tax and charge waivers). Consequently, government gross debt was equivalent to 
81% of GDP in 2020, up from 60% in 2019 and 5.4% in 2014.  
3. Oman operates a pegged exchange rate regime with the US doll ar. However, the liquidity in 
the domestic money market is highly associated with oil prices. Therefore, oil price fluctuations can 
generate an undesired divergence in liquidities with the central bank's policy rates, and thus impede 
monetary policy object ives. During the review period, the spread between the policy rate and the 
market lending rate widened. In the case of persistent low oil prices, Oman's non -oil sector growth 
through monetary stimulus could be undermined.  
4. The value of merchandise imports d eclined by about 25% during the review period, and 
merchandise export value dropped by about 28%, mostly owing to low prices of hydrocarbon 
exports. Consequently, the current account has been in deficit since 2015, and is estimated to 
continue its widening  trend. As of end -2020, the current account deficit was equivalent to 10% of 
GDP. Reflecting stable foreign direct investment (FDI) inflows and a bond issuance, Oman's 
international reserves slightly declined. Asian economies are Oman's top oil export mark ets, while 
its Gulf Cooperation Council (GCC) neighbours are its major trading partners with regard to non -oil 
trade. The United Kingdom and the United  States are the major sources of FDI.  
5. The Ministry of Commerce, Industry, and Investment Promotion (MOCII P) has overall 
responsibility for the formulation of Oman's trade policies. The National Committee, created in 2001, 
deals with all WTO -related matters and meets several times a year. It acts under the chair of the 
MOCIIP and comprises representatives from  various ministries, the customs authority, and the 
private sector. Bills are prepared by the relevant ministries, and presented by the Cabinet to the 
Consultative and State Councils, and are then issued by the Sultan through a Royal or Sultani 
Decree.  
6. Oman's economic objectives are laid down in "Oman Vision 2040" and successive five -year 
plans. They are to achieve developed country status by 2040, diversify production and exports away 
from oil, and create employment opportunities for Omanis. In addition, O man seeks to achieve a 
balanced budget, attract foreign investment, and maintain low inflation rates. The 2016 -2020 
Five-Year Development Plan initiated the Tanfeedh initiative to support various sectors such as 
manufacturing, tourism, mining, fishery, tra nsportation, and logistics to diversify income sources.  
7. A WTO Member since November 2000, Oman grants at least MFN treatment to all of its trading 
partners. It has never been directly involved in any WTO dispute, but has reserved its third -party 
rights in a number of cases. Oman established a National Committee on Trade Facilitation in 2014 
and ratified the Trade Facilitation Agreement in 2017. Since 2020, Oman has officially implemented 
100% of its commitments under the Agreement. During the review period,  Oman submitted 
numerous notifications to the WTO.  
8. Oman is a member of the GCC, which also comprises the Kingdom of Bahrain, the State of 
Kuwait, Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates. A free trade area among WT/TPR/S/418 • Oman  
 
- 7 - 
 
  GCC members was esta blished in 1983, and a common market for services in January 2008. With 
the exception of a few products, the GCC applies a common external tariff. Common legislation has 
been adopted in a number of other areas, such as trade contingency measures, veterinar y 
quarantine, and plant quarantine. Oman is also a member of the Pan -Arab Free Trade Area (PAFTA) 
Treaty, under which most trade barriers among members were eliminated in 2005. Oman has a 
bilateral free trade agreement (FTA) with the United  States, and, th rough the GCC, FTAs with 
Singapore and the European Free Trade Association (EFTA). With the exception of the agreement 
with the EFTA, these agreements have been notified to the WTO.  
9. New legislation on investment was adopted in 2019 and 2020. The Commercial  Companies 
Law of 2019 allows both foreign and domestic investment in seven different legal forms.  Under t he 
New Foreign Capital Investment Law of 2020, foreign investors no longer need to partner with a 
local shareholder, as the former 30% Omani ownership  requirement was revoked. However, f oreign 
investment projects must comply with inspection and monitoring procedures.  A list issued by the 
MOCIIP defines activities that are reserved for Omani nationals. Since land ownership by foreigners 
is generally proh ibited, long -term and project -based lease of land is the preferred solution for most 
foreign investors. Investment incentives include various tax and fee exemptions. Omani -owned small 
and medium -sized enterprises (SMEs) are also eligible for soft loans pro vided by the state -owned 
Oman Development Bank.  
10. Oman's applied MFN tariff is based on the GCC's common external tariff, which consists of 
three  rates: zero (11.1% of all lines), 5% (87.1%), and mixed tariffs (0.3%). Except for 20 tariff 
lines on tobacco pr oducts, which carry a mixed tariff, all lines are ad valorem . Imports of alcoholic 
beverages and pork products are subject to a 100% tariff, a purely national tariff rate. Oman's 
overall average MFN applied tariff is 5.5%, the same as at the time of its la st Reviews, in 2008 and 
2014. Preferential tariffs apply to imports from other members of the GCC, the EFTA, PAFTA, 
Singapore, and the United  States. Average bound rates are 28% on agricultural products and 11.6% 
on non -agricultural goods. For 26 tariff li nes, applied rates are higher than bound rates.  
11. Average clearance time for imports has been reduced to seven hours. In the wake of the 
COVID -19 crisis, Oman approved the practice of "direct" imports from the country of origin, to speed 
up the clearance pro cess and reduce costs.  It also reinforced the transition to electronic submission 
of documents and virtual customs clearance.  
12. Following a GCC decision of 2015, Oman introduced a VAT of 5% in April 2021. The tax applies 
to all goods and services, except th ose related to healthcare, education, financial services, basic 
food items, and public transport. Excise taxes apply to alcoholic beverages (50%) and to pork meat, 
carbonated drinks, and cigarettes (100%).  
13. Import prohibitions and restrictions are in place mainly for health, security, and moral reasons. 
Import prohibitions cover narcotics, weapons, certain media products, and several country -specific 
animal products. In 2015, Oman ratified the GCC Amended Common Law on Anti -Dumping, 
Countervailing and Safegu ards. Various GCC institutions are in charge of implementing the Law. 
During the review period, five definitive anti -dumping measures and three safeguard measures were 
taken. Oman develops technical regulations and standards at the national level only if t here is a 
pressing need. It submitted numerous TBT and SPS notifications during the review period. No specific 
trade concerns were raised against Oman's TBT and SPS measures.  
14. Oman does not apply any export duties and taxes. Temporary export bans apply to s everal 
species of fresh and frozen fish. In the wake of the COVID -19 crisis, exports of masks and hand 
sanitizers were prohibited. No export subsidies are granted, but there are three free zones and two 
special economic zones aimed at promoting exports. Th e Unified Customs Laws of the GCC allows 
exporters to recover the duty paid on their imported products once the product is re -exported. The 
fully government -funded Credit Oman SAOC provides credit insurance to exporters regardless of 
their nationality.  
15. State ownership remains important in Oman's economy, although privatization has been a 
policy objective for many years. Since the last Review, partial privatization took place in 
telecommunications and electricity transmission. In 2020, the Oman Investment Au thority (OIA) 
was established to group together various state -owned entities. As at June 2021, there were 
29 companies in which the OIA holds more than 40% of shares.  WT/TPR/S/418 • Oman  
 
- 8 - 
 
  16. In December 2014, Oman adopted its first law on competition. The Anti -Monopoly and 
Competition Law prohibits any activity that would undermine competition. Companies abusing a 
dominant position can be sanctioned. The Competition Protection and Monopoly Pre vention Centre, 
established in 2018 and merged into the MOCIIP in 2020, reviews mergers and abuse cases. New 
legislation on consumer protection was also adopted in 2014; it reinforced the powers of the 
Consumer Protection Authority and increased potential penalties.  
17. Legislation on government procurement and intellectual property dates mainly from 2008. 
Public tender is the main method for procurement of goods and services. A price preference of 10% 
to the products of Omani SMEs and of 5% to products of othe r GCC  countries is applied. Oman is an 
observer to the Government Procurement Agreement. Intellectual property right (IPR) infringements 
and violations can be subject to fines and imprisonment. The Public Prosecution Office may initiate 
legal action ex officio with respect to IPR -related offences, without the need for a formal complaint 
by a private party or right holder. A National Strategy for Intellectual Property with the aim of 
building a knowledge -based economy is currently under formulation.  
18. Agricult ure and fisheries is considered as one of the key sectors for Oman's diversification 
strategy. The Government has the dual aim of reducing Oman's dependence on imported agricultural 
produce and increasing exports where possible. Oman does not maintain tari ff quotas or quantitative 
restrictions on agricultural products. All the support measures notified by Oman to the WTO belong 
to the Green Box. During the review period, the spending of domestic support for the agriculture 
sector continued to decrease. In 2 019, spending was OMR  8.2 million, down from OMR  24.5 million 
in 2013.  
19. Since the last Review, the institutions responsible for the mining and energy sector have been 
overhauled. The Ministry of Energy and Minerals became the umbrella entity overseeing sect oral 
policy development and regulating activities by licensees/concessionaires. In 2013, the In -Country 
Value strategy was first concepted in the energy sector, and subsequently rolled out nationwide as 
part of the country's diversification efforts.  
20. Manufa cturing accounted for about 10% of GDP during the review period. Considering Oman's 
endowment of mineral resources, the sector is dominated by activities related to oil and gas, such 
as petroleum refineries and petrochemicals. Most manufacturing establishm ents are located in the 
industrial estates, free zones, and special economic zones, where they are served by the airports or 
ports nearby.  
21. Transport and logistics have been identified as key priorities for economic diversification. The 
Government invested heavily to expand and improve capacity across air, land, and sea. While the 
Ministry of Transport, Communications and Information Technology remains the policy maker for 
the transport sector, the wholly state -owned Asyad Group was created in 2016 to repres ent the 
state ownership of infrastructure assets. Almost half of the bilateral air service agreements offered 
the fourth freedom without restriction on capacity, destinations, and pricing. Sea port operation 
efficiency, in particular for container handling , improved during the review period; however, the 
long-anticipated national railway network has not been materialized.  
22. The telecommunications infrastructure in Oman has significantly improved since the last 
Review. In addition to a mobile network operator being licensed in 2021, the national backbone fibre 
optic network began construction in April 2014, and now covers 54% of urban regions. The 
COVID -19 pandemic has increased the demand for certain telecom services (e.g. video conferencing 
and streaming serv ices). To mitigate the impact, Oman adopted several measures including the 
abolishment of the ban on VoIP calls.  
23. During the review period, the legal framework for financial services continued being improved 
and modernized. The authorities maintain the same  licensing procedures for local and foreign -owned 
banks. Ownership limitations for Islamic financial services (including banking and insurance) are 
similar to those applicable to conventional business.  WT/TPR/S/418 • Oman  
 
- 9 - 
 
  24. The tourism sector is also identified as key to the co untry's diversification programme, and 
considered as a source of significant employment. State involvement in the sector is quite large, 
while foreign investment restrictions remain in place. The COVID -19 pandemic had a huge impact. 
According to the author ities, the lost revenue due to travel restrictions and lockdown measures was 
estimated to reach OMR  2.6 billion in 2020. To mitigate the impact, the authorities exempted tourism 
establishments from tourism tax and municipality tax for two years (2020 -21). WT/TPR/S/418 • Oman  
 
- 10 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Oman is situated in the south -eastern corner of the Arabian Peninsula, sharing land borders in 
the west with the Kingdom of Saudi Arabia, the United  Arab Emirates, and Yemen. As the only 
member of the Gulf Cooperation Council (GCC) geographically outside the Gulf, Oman has 
3,126  km coastline, flanked by the Sea of Oman from the northeast, and the Arabian Sea  from the 
southeast1; the Gulf of Aden is not far from the southwest corner of the Sultanate. Oman is located 
near the main shipping lanes of the northern Indian Ocean, which sits strategically on the east -west 
trade routes, ensuring easy access to market s in the Middle East, South Asia, South  East Asia, Africa, 
and Europe.  
1.2.  Oman is classified by the World Bank as a high -income economy.2 The economy was 
traditionally based on agriculture, fisheries, and trade before the discovery and development of oil 
and gas reserves. Though the country is less hydrocarbon -rich than its GCC neighbours, oil and gas 
still play a significant role in the economy. In 2020, the oil and gas sector accounted for 26.2% of 
national GDP (Table 1.1), and it contributes about 60% of O man's merchandise exports ( Table A1. 1) 
and three quarters of total government revenues ( Table 4.5).  
Table 1.1 GDP by economic activity, 2014 -20 
 2014  2015  2016  2017  2018  2019  2020  
GDP (OMR billion)  31.0 26.3 25.2 27.1 30.7 29.3 24.3 
 (% of GDP at current prices)  
Petroleum activities  44.7 32.3 26.4 29.4 35.5 33.9 26.2 
Crude petroleum  41.6 28.0 21.6 24.7 30.3 28.6 21.0 
Natural gas  3.1 4.3 4.8 4.7 5.2 5.3 5.3 
Non-petroleum activities  57.3 70.2 76.5 73.4 67.0 68.8 76.6 
Agriculture and fishing  1.2 1.9 2.3 2.2 2.1 2.3 2.7 
Mining and quarrying  0.4 0.5 0.5 0.5 0.5 0.4 0.9 
Manufacturing  9.0 9.6 9.1 9.9 10.4 10.3 7.5 
Refined petroleum products  0.1 0.8 0.7 1.2 1.0 1.5 .. 
Chemicals and chemical products  5.0 4.3 3.8 4.4 5.3 4.8 2.8 
Other manufacturing  3.9 4.5 4.6 4.4 4.1 4.0 4.7 
Electricity and water supply  1.4 1.9 2.0 1.8 1.9 2.1 3.0 
Building and construction  5.9 7.6 9.0 7.6 6.3 6.2 9.1 
Services  39.4 48.7 53.6 51.3 45.9 47.4 53.4 
Wholesale and retail trade  6.9 8.4 8.6 8.2 7.2 6.9 8.4 
Transport, storage and communication  4.6 5.9 6.0 6.0 5.6 5.8 6.0 
Financial intermediation  4.4 5.5 6.4 6.4 6.3 6.8 6.8 
Real estate and business activities  3.7 4.6 5.1 4.8 4.4 4.7 7.4 
Public administration and defence  9.9 12.2 14.1 13.3 11.8 12.0 10.8 
Education  5.1 6.2 6.6 6.1 5.1 5.4 .. 
Other  4.8 6.1 6.7 6.4 5.5 5.8 .. 
Financial intermediation services indirectly 
measured  -1.9 -2.6 -2.9 -2.8 -2.5 -2.7 -2.8 
Real GDP growth  (%) 1.5 4.6 5.1 0.3 0.9 -0.8 -6.4 
Oil sector GDP  -1.6 4.4 3.8 -3.0 2.3 0.2 .. 
Non-oil sector GDP  3.8 4.8 6.1 2.8 0.0 -1.5 .. 
.. Not available.  
Source:  National Centre for Statistics and Information.  
1.3.  As at end -2020, Oman's population was 4.6 million, with about 40% non -Omani expatriates. 
Since 2018, the growth in the number of expatriates has slowed significantly3; in 2020, a net outflow 
of expatriates was observed. The population is very young. The age -dependency ratio4 is below 40% 
 
1 In the Musandam Governorate, Oman shares a maritime border with the Islamic Republic of Iran 
through the Strait of  Hormuz . 
2 World Bank, World Bank Country and Lending Groups . Viewed at: 
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519#High_income . 
3 The authorities note that growth of the non -Omani expatriate population is negat ively correlated to oil 
prices.  
4 The ratio is presented as a percentage , comparing  the number of  children and the elderly to the that 
of the working population . WT/TPR/S/418 • Oman  
 
- 11 - 
 
  (Table 1.2). Around half th e population is under 305; among Omanis, young people under 25 
accounted for 55% in 2020, while the elderly  (above 65)  accounted for 4%. Although this age 
structure implies pressures for the Government to create  jobs especially for the young, it facilitat es 
fiscal policy formulation, in terms of taxation and allocation of government spending, as it allays the 
concerns that are present in economies with ageing population.  
Table 1.2 Oman population, 2014 -20 
('000) 
Age group  2014  2015  2016  2017  2018  2019  2020  
Omanis  
0-14 793.9  837.7  877.4  921.8  961.5  1,004.9  1,036.4  
15-29 710.5  709.4  705.8  701.2  697.4  693.0  687.2  
30-64 661.6  697.1  740.6  775.5  812.5  849.1  876.9  
65+ 133.0  144.0  149.5  106.9  107.9  108.1  101.7  
Subtotal  2,260.7  2,344.6  2,427.8  2,505.4  2,579.2  2,655.1  2,702.2  
Non-Omanis  
0-14 90.8 91.0 89.5 85.9 85.8 90.6 141.1  
15-29 612.6  603.9  653.4  663.1  570.9  535.2  463.7  
30-64 1,022.4  1,111.8  1,235.2  1,296.7  1,354.2  1,324.4  1,279.0  
65+ 7.5 8.6 9.4 8.9 11.6 12.5 16.8 
Subtotal  1,732.2  1,814.2  1,986.2  2,054.6  2,022.5  1,962.8  1,900.6  
Total  3,992.9  4,159.1  4,414.1  4,560.0  4,601.7  4,617.9  4,602.8  
Natural growth rate (%)  3.5 4.0 5.9 3.3 0.9 0.4 -0.3 
Omani  4.0 3.7 3.5 3.1 2.9 2.9 1.8 
Age-dependency ratio  32.0 33.2 32.4 32.7 32.4 35.7 39.2 
Omani  64.8 66.7 67.9 69.7 70.8 72.2 72.8 
Source:  National Centre for Statistics and Information, Population . Viewed at: 
https://data.gov.om/OMPOP2016/population . 
1.2  Recent Economic Developments  
1.4.  During the review period (2014 -20), Oman's economy grew to a peak in 2016 at a rate of 5.1% 
before it began a sharp slowdown in 20 17. The economy contracted by 0.8% in 2019, and the 
contraction in 2020 was widened to 6.4%, according to preliminary data ( Table 1. 3). 
Table 1.3 Selected macroeconomic indicators, 2014 -20 
 2014  2015  2016  2017  2018  2019  2020  
GDP at current prices (OMR billion)  31.0 26.3 25.2 27.1 30.7 29.3 27.7 
GDP at current prices (USD billion)  80.7 68.4 65.4 70.6 79.8 76.3 72.1 
Real GDP percentage change (in constant prices, 
base year 2010)  1.5 4.6 5.1 0.3 0.9 -0.8 -6.4 
Oil sector GDP  -1.6 4.4 3.8 -3.0 2.3 0.2 -2.4 
Non-oil sector GDP  3.8 4.8 6.1 2.8 0.0 -1.5 -10.0 
GDP per capita ('000 USD)  20.2 16.5 14.8 15.5 17.3 16.5 14.2 
Unemployment rate  3.4 3.3 3.3 2.5 1.8 1.8 5.0 
Inflation (CPI, % change)  1.0 0.1 1.1 1.6 0.9 0.1 -0.9 
Central government finances (% of GDP)        
Total revenue  44.0 34.5 29.7 31.4 35.7 35.5 .. 
Net oil revenue  32.9 21.5 14.5 17.3 21.3 21.0 .. 
Gas revenue  4.8 5.6 6.1 5.6 6.7 6.0 .. 
Custom duties  0.7 0.9 1.2 1.0 0.9 0.7 .. 
Corporate income tax  1.4 1.7 1.5 1.4 1.5 2.1 .. 
Other  4.3 4.7 6.4 6.2 5.3 5.6 .. 
Total public expenditure  47.2 52.1 55.8 45.2 44.3 44.5 .. 
Current expenditure  26.4 34.8 36.3 32.9 31.9 28.8 .. 
Investment expenditure  9.7 12.6 11.1 9.8 9.4 8.0 .. 
Other  11.0 4.6 8.5 2.6 3.1 7.8 .. 
Surplus (+) or deficit ( -) -3.2 -17.6 -26.1 -13.9 -8.6 -9.0 .. 
Means of financing  1.3 5.3 23.1 18.4 11.9 8.5 .. 
Remaining surplus or deficit  -1.9 -12.3 -3.1 4.5 3.2 -0.6 .. 
Public debt         
Stock of debt (OMR billion)  1.5 3.4 8.0 11.2 14.5 16.4 .. 
 
5 Foreign Ministry of Oman, About Oman: Geography . Viewed at: https://fm.gov.om/about -
oman/state/geography/ . WT/TPR/S/418 • Oman  
 
- 12 - 
 
   2014  2015  2016  2017  2018  2019  2020  
General government gross debt  5.4 15.5 30.3 44.8 51.4 60.0 81.1 
Debt to GDP ratio (%)  4.9 13.1 31.7 41.1 47.5 55.9 .. 
Debt services ratio (%)  0.5 0.7 1.2 1.7 3.9 4.1 .. 
Money and interest rates         
Broad money (annual percentage change)  15.3 10.0 1.8 4.2 8.3 2.0 8.9 
Foreign assets (net), (annual percentage change)  -3.2 -29.6 -0.9 -5.4 18.9 -3.6 -28.3 
Domestic assets, (annual percentage change)  39.6 45.9 3.0 8.2 4.4 4.4 23.2 
Lending rate in OMR  5.2 4.9 4.9 5.2 5.2 5.4 5.5 
Lending rate in foreign currency  2.4 2.5 2.9 3.7 4.8 5.1 3.9 
Private sector time deposits, OMR  2.1 1.8 2.6 3.6 3.6 3.9 4.1 
Private sector time deposits, foreign currency  1.4 1.4 1.3 1.4 2.1 2.6 2.4 
Repos  1.0 1.0 1.0 1.6 2.5 2.7 0.8 
Overnight interbank lending rate, OMR  0.1 0.2 0.4 0.9 1.9 2.5 1.3 
External sector         
OMR/EUR  0.51 0.43 0.43 0.43 0.45 0.43 0.44 
OMR/USD  0.38 0.38 0.38 0.38 0.38 0.38 0.38 
Price of crude oil, average (USD/bbl)  96.2 50.8 42.8 52.8 68.3 61.4 41.3 
Nominal effective exchange rate  104 112 113 114 113 116 117 
Total reserves (USD billion)  16.3 17.5 20.3 16.1 17.4 16.7 15.0 
Total reserves in months of imports  4.5 5.3 7.1 4.9 5.0 5.0 6.5 
Total gross external debt (% of GDP)  28.2 50.9 71.6 84.9 85.6 97.7 126.9  
Current account (% of GDP)  5.2 -16.0 -19.2 -15.6 -5.4 -5.4 -12.0 
Trade in goods and services (% of GDP, BoP basis)  117.2  110.9  95.1 101.8  102.4  99.9 83.2 
Workers' remittance outflows (USD billion)  10.3 11.0 10.3 9.8 10.0 9.1 8.8 
FDI flows (USD billion)         
In Oman  1.3 -2.2 2.3 2.9 4.2 3.1 4.1 
Abroad  1.4 0.3 0.4 2.4 0.6 1.1 1.3 
.. Not available.  
Source:  National Centre for Statistics and Information, Data Portal. Viewed at: https://data.gov.om/ ; Central 
Bank of Oman (CBO), Annual Reports  2018 and 2019 and Quarterly Statistical Bulletin , December 
2020; World Bank, Commodity Markets . Viewed at: 
https://www.worldbank.org/en/research/commodity -markets ; IMF data. Viewed at : 
https://data.imf.org/ ; and UNCTAD Stat. Viewed at: https://unctadstat.unctad.org/EN/ . 
1.5.  Net exports of goods and services were the main driver for economic growth durin g the review 
period ( Chart 1.1 ). In the first half of the review period, the economic expansion can also be 
attributed to the non -oil sector, especially to infrastructure investment resulted from implementing 
the National Programme for Enhancing Economic D iversification ( Tanfeedh programme ). 
Chart 1.1 Expenditure component contributions to GDP growth, 2014 -19 
 
Source:  WTO Secretariat estimates, based on data from the National Centre for Statistics and Informat ion. 
-10-8-6-4-20246810
2014 2015 2016 2017 2018 2019Chart 1. [OMN] Contributions to percent change in real GDP, 2014 -19
(Percentage point)
WTO Secretariat estimates, based on National Centre For Statistics & Information, Data Portal. Viewed at: 
https://data.gov.om/Final consumption Gross fixed capital formation
Net exports of goods and services
Total GDP growth
Source: Changes in inventoriesWT/TPR/S/418 • Oman  
 
- 13 - 
 
  1.6.  Oman faces a double challenge from low oil prices and the COVID -19 pandemic. Since  onset 
of the oil price shock in 2014, the oil sector's GDP has contracted by 1.6% on a year -on-year basis 
(Table  1.1). The contraction was cushioned by the expansion of  crude oil production, with average 
daily output rising from 943,500 barrels per day (bpd) in 2014 to a peak at slightly over 1 million  bpd 
in 2016 (Table 4.5).  Since then, production has declined, as a result of the OPEC+ agreement that 
initially took eff ect in November 20176; as of July 2020, production was cut to 760,000 bpd.7 
1.7.  The outbreak of the COVID -19 pandemic in  early 2020 caused a sharp contraction in global 
activity and abrupt decline in travel and transportation, which resulted in an unprecedented decline 
in global oil demand, as lockdowns halted many petroleum -intensive economic activities. According 
to the International Energy Agency (IEA), global oil demand fell from 100 million bpd in the last 
quarter of 2019 to 83  million bpd in mid -2020. As lockdowns were eased and economic activity 
restarted, oil demand began to recover in the third quarter of 2020 and is expected to reach 
97 million bpd by end -2021 (still below the 2019 level).8 Consequently, despite the production cuts, 
spot and futures prices remained below the pre -pandemic level, and global oil demand remains 
susceptible to weaker economic activity that could result from the resurgence of infections.9 Real oil 
GDP contracted by 2.4% in 2020; the decline was shallower compared to those of its 
GCC neighbours, due to strong oil condensate production that is not covered by the OPEC+ 
agreement.  
1.8.  Oman will  benefit from the continued growth in demand for natural gas, which accounts for 
25% of hydrocarbon revenues.  
1.9.  The authorities responded rapidly to contain the spread of COVID -19 infections. Measures 
included a ban on non -essential businesses, social distan cing requirements, and border restrictions, 
while increasing health and medical support and social assistance to the population. The swift and 
well-coordinated response effectively limited the spread of COVID -19 in the latter part of 2020, but 
social dista ncing and other restrictions weighed heavily on economic activity, and the construction, 
hospitality, and wholesale and retail trade sectors were particularly hard -hit. According to 
preliminary data, non -hydrocarbon GDP in 2020 contracted by 10% (Table 1.3 ). 
1.10.  Since the oil price shock in 2014, Oman's revenues from oil shrank by 66%, from 
OMR 10.2 billion in 2014 to OMR  3.4 billion in 2020.  Thus, its fiscal and current accounts ran into 
deficit, which pushed government and external debt up and reduced externa l buffers (Chart 1.2). 
As a result, the authorities have implemented a series of fiscal reforms since 2015, aiming to shift 
the budget on to a more sustainable trajectory.  
1.11.  On the revenue front, new taxes and other collection enhancement measures were 
introduced. The corporate income tax was raised from 12% to 15% in 2017, and the exemption 
allowance of OMR  30,000 (USD  77,900) was abolished. Also, the authorities in 2017 broadened the 
scope of a 10% withholding tax, which applies to certain payments to forei gn individuals. Excise 
taxes were introduced in June 2019, with a rate of 50% on carbonated drinks, alcohol, and sugar -
sweetened drinks, and 100% on tobacco, energy drinks, and pork. The value added tax (VAT), with 
a standard rate of 5%, was introduced in April 2021; VAT exemptions may be applied to export 
products, oil, gas, and certain services, such as health, education, local transport, property sales, 
and financial services . 
 
6 OPEC, " Declaration of Cooperation", press release, 30 Nov ember  2017. Viewed at: 
https://www.opec.org/opec_we b/en/press_room/4696.htm ; and "T he 10th (Extraordinary) OPEC and Non -
OPEC Ministerial Meeting Concludes ", press release,  12 Apr il 2020. Viewed at: 
https://www.opec.org/opec_web/en/press_room/5891.htm . 
7 S&P Global Platts , Oman Reveals Oil Production Cut Plans under OPEC+ Deal, 27 Apr il 2020. Viewed 
at: https://www.spglobal.com/platts/en/market -insights/latest -news/oil/042720 -oman -reveals -oil-production -
cut-plans -under -opec-deal. 
8 IEA (2021), Oil 2021 . Viewed at: https://iea.blob.core.windows.net/assets/1fa45234 -bac5-4d89-a532-
768960f99d07/Oil_2021 -PDF.pdf . 
9 There appears to be a broad consensus that oil prices are likely to remain  low, at least in th e medium 
term. This expectation has been validated so far as the price has remained well below its pre -2014 level , 
despite some recovery from the initial plunge  of June 2014. IMF (2020), The Future of Oil and Fiscal 
Sustainability in the GCC Region . Viewed  at: https://www.imf.org/ -/media/Files/Publications/DP/2020/English/ 
FOFSGCCEA.ashx . WT/TPR/S/418 • Oman  
 
- 14 - 
 
  1.12.  The contribution from customs duties to total government revenue is small, acc ounting for 
2.6% of total revenue on average during the review period. Given the economic structure, the 
revenues from the VAT and excise tax are collected mostly from imports, although the authorities 
note that the VAT and excise tax are equally applied t o imports and domestically produced products. 
In 2020, Oman collected OMR  72 million in excise tax revenue.  
Chart 1.2 Oil prices, revenues, and fiscal and current account deficits, 2014 -20 
 
Source:  National C entre for Statistics and Information, Data Portal. Viewed at: https://data.gov.om/ ; and 
World Bank, Commodity Markets . Viewed at: https://www.world bank.org/en/research/commodity -
markets . 
1.13.  Although the authorities have made efforts to constrain expenditure, such as reducing 
subsidies on fuel in 2016 and on electricity for companies in 2017, government expenditure remained 
rigid during the review period . The Government maintained its commitments to infrastructure 
investment, as set forth in the Tanfeedh  programme; during the review period, investment 
expenditure accounted for 10% of GDP, on average, each year (Table 1.3). While phasing out 
subsidies, the  authorities simultaneously introduced schemes to support low -income households so 
that they are not unduly burdened by the cuts.  
1.14.  Facing the COVID -19 pandemic, the authorities implemented a series of measures to mitigate 
the impact of the shock. Fiscal mea sures to support the economy included interest -free emergency 
loans, waiving or reducing selected taxes and fees, flexibility to pay taxes in instalments, and 
establishing the Job Security Fund to support citizens who lost their jobs.10 It is estimated that the 
scale of these measures is equivalent to 5% of GDP (OMR  1.2 billion).11 
1.15.  Although the efforts of fiscal consolidations managed to stop the rising trend in current 
spending, they have yet to fully offset the decline in oil revenue. The sharp decline in nominal GDP 
implied a rise in the debt -to-GDP ratio: In 2020, government gross debt was equivalent to 81% of 
GDP, up from 60% in 2019 and 5.4% in 2014 (Table 1.3). The deficit was financed by external bond 
issuance, drawdown of central  bank and sovereign wealth fund assets, and privatization proceeds.  
1.16.  Oman operates a pegged exchange rate regime, fixing the exchange rate of OMR  0.38 per 
US dollar. The exchange rate peg delivered monetary policy credibility with low and stable inflation12 
(Table 1.3). Under the exchange rate pegging, the Central Bank of Oman (CBO) conducts its 
 
10 Ministry of Finance, Economic Stimulus Plan. Viewed at: 
https://mof.gov.om/Portals/1/documents/Tawazon/Economic%20Stimulus%20Plan.pdf . 
11 IMF (2020), Economic Prospects and Policy Challenge for the GCC Countries . Viewed a t: 
https://www.imf.org/ -/media/Files/Publications/PP/2020/English/PPEA2020065.ashx . 
12 Inflation in 2020 turned slightly negative owing to subdued demand.  
020406080100120
-8,000-6,000-4,000-2,00002,0004,0006,0008,00010,00012,000
2014 2015 2016 2017 2018 2019 2020Net oil revenue
Current account balance
Fiscal balance
Price of crude oil, average (USD/bbl, nominal)(OMR million) (USD/bbl)Chart 1. [OMN] [Please add Title]
Source: National Centre For Statistics & Information, Data Portal. Viewed at: https://data.gov.om/; and World Bank, Commodity 
Markets, Viewed at: https://www.worldbank.org/en/research/commodity -marketsNote: Crude oil, average spot price of Brent, Dubai and West Texas Intermediate, equally weighed. 
Oilrevenue data in 2020 refers to the period of January -November. No data for current acocunt balance in 2020. 
[PLease provide data]WT/TPR/S/418 • Oman  
 
- 15 - 
 
  monetary policy consistent with the policy by the United States Federal Reserve. The domestic policy 
rates evolve in line with the movement of US monetary policy tar get rates.13 Currently, the CBO's 
policy interest rate is 0.5%.14 
1.17.  However, the liquidity in the domestic monetary market is highly associated with oil prices: 
when oil prices are high, the liquidity increases, hence the interbank rate and lending rates dec line; 
when oil prices are low the reverse occurs. Therefore, oil price -driven liquidity fluctuations can 
generate an undesired divergence with policy rates and impede monetary policy transmission.15 
During the review period, the spread between the CBO's po licy rate and the market lending rate 
widened (Chart 1.3). Under the expectation of persistent low oil prices, Oman's diversification effort 
through non -oil sector growth may be further complicated by external monetary shocks.  
Chart 1.3 Interbank rates and CBO policy rates, 2014Q1 -2021Q1  
 
Source:  Information provided by the authorities.  
1.18.  Facing the difficulties caused by COVID -19, the CBO eased financial conditions through lower 
interest rates and liquidity injections, deferred loan instalment payments, and relaxed 
macro  prudential requirements on capital buffers and liquidity ratios.  
1.19.  To maintain fiscal sustainability and support the exchange rate peg over the medium - to long -
term, further gradual f iscal adjustment is needed.16 Further fiscal reform would also reduce 
borrowing costs and support higher growth. In this regard, the Fiscal Adjustment Plan (also known 
as Tawazun ) was announced in September 2019. Reflecting the challenges by COVID -19, the 
Medium -Term Fiscal Plan was issued in November 2020. Both plans aim to significantly reduce the 
fiscal deficit and national debt over the period of 2021 -25. In addition to the attempt to boost non -oil 
revenues, the plans set forth some key expenditure meas ures for a broader range of structural 
reforms, including civil service, energy subsidies, public investment, and expenditure efficiency. 
 
13 CBO, Monetary Policy: Liquidity Management . Viewed at: 
https://cbo.gov.om/Pages/LiquidityManagement.aspx . 
14 CBO, Monthly Statistical Bulletin , various volumes. Viewed at: 
https://cbo.gov.om/Pages/MonthlyBulletins.aspx . 
15 Adedeji et al. (2019), U.S. Monetary Policy Spillovers to GCC Countries: Do Oil Prices Matter?  IMF 
Working Paper WP/19/304 . Viewed at:  https://www.imf.org/ -
/media/Files/Publications/WP/2019/wpiea2019304 -print-pdf.ashx . 
16 Since the 2014 oil price shock, macroeconomic vulnerabilities continued to rise, with government and 
external debt increasing further, while some fiscal reforms were delayed.  Higher vulnerabilities have led to new 
sovereign credit downgrades and increases in sovereign risk premia.  
-1.5%-1.0%-0.5%0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%
Q1-2014
Q2-2014
Q3-2014
Q4-2014
Q1-2015
Q2-2015
Q3-2015
Q4-2015
Q1-2016
Q2-2016
Q3-2016
Q4-2016
Q1-2017
Q2-2017
Q3-2017
Q4-2017
Q1-2018
Q2-2018
Q3-2018
Q4-2018
Q1-2019
Q2-2019
Q3-2019
Q4-2019
Q1-2020
Q2-2020
Q3-2020
Q4-2020
Q1-2021Domestic inter-bank rate (%) Repo rate (%) SpreadChart 1. [OMN] Inter -Bank Vs. Policy Rate Spread
Source: Information provided by the authorities.WT/TPR/S/418 • Oman  
 
- 16 - 
 
  According to the IMF, these fiscal adjustments would be key to bringing the external position more 
in line with fundam entals, bolstering external sustainability, and supporting the currency peg.  
1.20.  Though the value of merchandise imports declined by about 25% during the review period, 
merchandise export value dropped by about 28% – mostly owing to low hydrocarbon exports 
(Table 1.4 and Chart 1.2).  Consequently, the current account has been in deficit since 2015, and is 
estimated to have widened from 5.4% of GDP in 2019 to 10% in 2020 (Table 1.3). International 
reserves declined slightly to around USD  15 billion (6.5 months of  imports), reflecting stable foreign 
direct investment (FDI) inflows and a bond issuance (Table  1.4). 
Table 1.4 Balance of payments, 2014 -20 
(USD million)  
  2014  2015  2016  2017  2018  2019  2020  
Current account  4,206.3  -10,939.0  -12,539.5  -10,980.0  -4,287.3  -4,140.3  -8,659.8  
 Goods  25,676.9  9,118.6  6,259.2  8,764.5  18,084.3  18,229.1  11,615.2  
Exports (f.o.b.)  53,566.0  35,682.3  27,545.7  32,885.8  41,730.1  38,685.9  30,506.3  
Oil 30,951.4  17,853.6  13,324.8  16,124.8  22,809.2  22,068.3  14,785.2  
Natural gas  4,228.1  3,328.4  2,634.4  3,032.5  4,464.4  4,447.7  3,420.6  
Other exports  10,729.5  7,812.5  6,238.5  8,260.1  9,693.2  8,402.0  7,880.9  
Re-export  7,657.0  6,687.9  5,348.0  5,467.9  4,763.2  3,768.0  4,419.5  
Imports (f.o.b.)  -27,889.1  -26,563.7  -21,286.6  -24,122.2  -23,645.8  -20,456.8  -18,891.0  
 Services  -6,883.3  -6,818.9  -6,420.1  -6,761.1  -7,138.0  -7,092.3  -6110.8  
Credit  3,130.4  3,394.6  3,503.1  4,010.4  4,591.3  5,000.8  2,222.7  
Debit  -10,013.7  -10,213.6  -9,923.1  -10,839.1  -11,729.3  -12,093.1  -8,333.4  
 Income  -4,286.5  -2,247.8  -2,066.5  -3,168.0  -5,276.0  -6,143.2  -5,392.0  
Credit  1,182.9  670.9  966.7  1,000.6  1,168.5  1,187.6  727.4  
Debit  -5,469.4  -2,918.7  -3,033.2  -4,168.6  -6,444.5  -7,330.8  -6,119.3  
 Current transfers  -10,300.8  -10,990.9  -10,312.1  -9,815.3  -9,957.7  -9,133.9  -8,772.2  
Capital and financial 
account  -2,151.9  12,008.2  4,198.0  8,860.0  7,766.0  3,499.9  6,996.9  
 Capital account  -130.6  543.0  515.0  258.8  102.0  113.9  235.9  
 Financial account  -2,021.3  11,465.1  3,683.0  8,601.2  7,664.1  3,386.0  6,761.0  
Direct investment  -70.0 -2,507.4  1,909.5  493.6  5,225.0  2,791.9  2,325.1  
Assets  -1,356.3  -335.0  -356.6  -2,423.7  -716.3  -627.8  -534.5  
Liabilities  1,286.3  -2,172.4  2,266.1  2,917.3  5,941.2  3,419.8  2,859.6  
Portfolio investment  -776.1  855.5  4,999.9  6,286.0  6,800.1  1,180.0  2,242.9  
Assets  -1,574.5  -1,152.6  371.5  -1,409.9  -1,775.3  -1,879.6  -1,031.7  
Liabilities  798.4  2,008.1  4,628.3  7,695.9  8,575.4  3,059.6  3,274.6  
Other investment  -1,175.3  13,117.1  -3,226.3  1,821.5  -4,361.0  -585.9  2,193.0  
Assets  -1,201.0  7,064.0  -2,122.6  -2,359.3  -2,968.9  -3,926.9  1,135.1  
Liabilities  25.7 6,053.1  -1,103.7  4,180.9  -1,392.1  3,341.0  841.9  
Net errors & omissions  -938.7  -457.4  -1,061.3  -652.7  -903.6  -764.6  -618.8  
Overall balance  1,115.7  611.8  -9,402.9  -2,772.7  2,575.0  -1,405.0  -2,281.7  
Source:  National Centre for Statistics and Information.  
1.21.  Diversification is an important component of Oman's Ninth Five-Year Development Plan 
(2016 -2020). The Plan identified manufacturing, transport and logistic services, tourism, fisheries, 
and mining as five priority sectors for the Sultanate's diversification efforts.17 The Plan was executed 
by the National Program me for Enhancing Economic Diversification ( Tanfeedh  programme) to track 
and coordinate reform efforts across priority sectors. The ongoing Tanfeedh  implementation is 
focused on economic diversification and job creation. Through the programme, a total of 
OMR 12.1 billion was planned to be invested in these sectors, of which 50% (OMR  6.1 billion) was 
destined for transport infrastructure; it was observed that Oman's re -export and logistics sector 
experienced a boost in the last few years.  
1.22.  Omanization is the j ob creation policy for Omanis. Under Oman Vision 2040, Oman's latest 
long-term strategy published in January 2019 (Section 2), Omanis are expected to account for over 
40% of the workforce in the private sector. Omanization quotas are assigned to various se ctors, 
including 60% for transport, storage, and communications; 45% for finance, insurance, and real 
estate; 35% for industry; 30% for hotels and restaurants; 20% for the wholesale and retail trades; 
and 15% for contracting. The quotas may be reviewed per iodically. The authorities have taken steps 
to ensure that the Omanization quotas are met, for instance, from January 2018 a total of 
 
17 Ministry of Economy, Ninth Five -Year Plan . WT/TPR/S/418 • Oman  
 
- 17 - 
 
  87 occupations are subject to a temporary ban on hiring foreign workers18; in May 2019, the 
coverage of the ban was expand ed to some positions at the executive levels.19 
1.23.  Oman Vision 2040 continues the focus on diversification, and aims to transform the economy 
to be more driven by the private sector20, especially to encourage more solid development of small 
and medium -sized e nterprises. In this regard, Oman in 2019 enacted several new laws to facilitate 
structural reform. The new laws are wide -ranging, covering foreign investment, privatization, public -
private partnerships, bankruptcy, and company laws. However, the final impa ct of the reforms will 
be decided by the executive regulations, implementation rules, and the day -to-day operation of the 
laws. 
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.24.  During the review period, Oman's merc handise trade, both exports and imports, declined by 
more than 25%; in terms of value, exports dropped slightly deeper than imports (Section 1.2).  
1.25.  Though its share in total exports dropped, crude oil remained the largest merchandise export 
earner. Exports from the oil and gas sector accounted for over 60% of total goods exports throughout 
the review period. Although the continued growth of demand for natural gas benefits Oman, the 
export of liquified natural gas remained stable, in terms of value, during th e review period. 
Manufacturing exports were mainly basic metals and petrochemical products, accounting for 8.1% 
and 5.7% of total exports in 2020, respectively (Chart 1.4).  
1.26.  With regard to merchandise imports, Oman spent the most on machinery and electrical  
equipment. During the review period, imports of machinery and electrical equipment were worth 
over USD  5 billion on average each year. The second largest group of products that Oman imported 
during the review period was transport equipment, including moto r vehicles, and their parts and 
components. Notably, transport equipment was the largest group of products in Oman's re -exports. 
During the review period, the value of transport equipment re -exports was equivalent to more than 
50% of the same of imports. M ineral products were another main group of Oman's imported goods, 
most of which were attributed to refined petroleum products (Table  A1.2).  
1.27.  Oman's top markets for oil exports are mainly Asian economies, including China ; India; Japan ; 
the Republic of Korea ; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese  Taipei) ; Thailand ; and Singapore. With regard to non -oil exports, the GCC  neighbours, 
especially the United Arab Emirates and the Kingdom of Saudi Arabia, were the largest market for 
Omani exports, followed by China and the United  States ( Table A1.3).  The United  Arab Emirates 
remained the largest source for Omani's imports, accounting for 43% of total imports in 2020 
(Chart  1.5). Oman also imported goods from the European  Union, China, India, Brazil, and the 
United  States (Table A1.4).  
1.28.  During the revie w period, Oman remained a net importer of services (Table 1.5).  
1.29.  Transport services accounted for the largest share in services trade, both regarding exports 
and imports. Personal travel was an important foreign exchange earner, accounting for about 30%  of 
total export of services. On the import side, around 30% of services imports were attributed to 
business services, for example, professional services (Table 1.5).  
 
18 PwC, Oman Announces Temporary Ban on "Work Visas" for Expats , February 2018. Viewed at: 
https://www.pwc.com/m1/en/services/tax/me -tax-legal-news/2018/oman -announces -temporary -ban-on-
work-visas-for-expats.html . 
19 The authorities indicate that flexibilities may be applied to the Omanization quotas, and further note 
that these practices are not against WTO provisions  as Oman strictly adheres to its commitments under its 
Schedule of Specific Commitments on Services.  
20 In the evaluation of the Ninth Five -Year Plan, the authorities indicate that the diversification 
objectives were not fully achieved, though the real growth of non -oil activiti es was almost triple that of the real 
growth of the oil sector. According to the authorities, this could be attributed to the fact that private 
investments did not match the stimulus provided by the public investment.  WT/TPR/S/418 • Oman  
 
- 18 - 
 
  Chart 1.4 Product composition of merchandise t rade by main HS sections, 2014 and 
2020  
 
Source:  WTO Secretariat calculations, based on information provided by the authorities.  
Chart 1.[OMN]
Production composition of merchandise trade by HS sections, 2014 and 2020
2014 2020
Exports (f.o.b.)
Crude oil 59.7%Base metals and 
articles thereof
8.1%Transport 
equipment
7.4% Other
15.0% 
Chemicals 
5.7%Machinery, 
electrical 
equipment
4.1%
Total:   USD 53.2 billion Total:  USD 30.5 billion
Imports (c.i.f.)
Chemicals 
8.8%Machinery, 
electrical 
equipment 
17.2%Live animals 4.2%
Prepared food, 
beverages and 
tobacco
3.7%
Plastics and 
rubber 
3.7%Live animals 6.4%
Vegetable 
products
7.4%
Mineral 
products
7.1%
Chemicals 
9.3%Base metals 
and articles 
thereof 
14.9%Machinery, 
electrical 
equipment 
22.5%Transport
equipment
7.9%Other 14.2%
Prepared 
food, 
beverages 
and tobacco
5.6%
Plastics and 
rubber 
4.7%
Total:   USD 29.3 billion Total:   USD 20.7 billion
WTO Secretariat calculations, based on National Centre for Statistics and Information. Viewed at: 
MANAFETH (ncsi.gov.om).Vegetable 
products 
3.6%Crude oil 65.5%
Mineral 
products 
11.5%Other 12.7%
Transport
equipment
22.8%
Base metals 
and articles 
thereof 
11.7%Base metals and 
articles thereof
3.9%Transport 
equipment
9.3% Other
14.5% 
Source: Machinery, electrical 
equipment
1.7%
Chemicals 5.2%WT/TPR/S/418 • Oman  
 
- 19 - 
 
  Chart 1.5 Direction of merchandise trade, 2014 and 2020  
 
Source:  WTO Secretari at calculations, based on information provided by the authorities.  
Table 1.5 Trade in services, 2014 -20 
(USD million)  
 2014  2015  2016  2017  2018  2019  2020  
Trade balance  -6,884  -6,819  -6,420  -6,761  -7,138  -7,214  -6,111  
Exports  3,130  3,395  3,503  4,079  4,591  4,898  2,223  
Transportation  1,160  1,257  1,313  1,742  2,170  2,372  1,097  
Sea transport  563 550 541 772 952 .. .. 
Air transport  596 707 772 970 1,217  .. .. 
Travel  1,375  1,540  1,618  1,747  1,758  1,811  441 
Business travel  406 424 356 437 440 453 .. 
Personal travel  970 1,117  1,261  1,310  1,319  1,358  .. 
Chart 1.[OMN]
Direction of merchandise trade, 2014 and 2020
2014 2020
Exports (f.o.b.)
China 
39.7% Other 7.4%
Americas
2.6%
Europe 2.3%
United Arab 
Emirates
9.8%Other GCC
12.7%Africa 
2.6%India  
6.0%Japan 
3.7%Korea, Republic of 
6.3%
GCC 
22.5%Asia 62.5%Other Asia 6.9%
Total:   USD 53.2 billion Total:  USD 30.5 billion
Imports (c.i.f.)
United Arab 
Emirates 
32.5%Asia 32.9%India  
4.3%
Other GCC
6.8%
Americas 8.8%
EU-27
10.9%GCC 
39.3%
United Arab 
Emirates 
43.0%China 8.0%
India  5.1 %
Other Asia  
7.5%
GCC 
53.5%Other GCC
10.5%
Asia 20.5%
EU-27
9.4%Americas 
7.7%Other 8.9%
Total:   USD 29.3 billion Total:   USD 20.7 billionChina 4.8%Americas 2.0%
Africa 3.2%
Source:Other 8.1%Other Asia 
23.7%United Arab 
Emirates
10.3%China 
43.0%
Europe 1.6%India  3.0 %
GCC 
15.8%Other Asia 16.3%
WTO Secretariat calculations, based on National Centre for Statistics and Information. Viewed at: 
MANAFETH (ncsi.gov.om).Japan 3.9 %
Korea, Republic of 
8.2%
Other GCC 
5.5%Asia 74.5%Other 3.0%WT/TPR/S/418 • Oman  
 
- 20 - 
 
   2014  2015  2016  2017  2018  2019  2020  
Health -related  0 0 0 0 0 0 .. 
Education -related  0 0 0 0 0 0 .. 
Other  970 1,117  1,261  1,310  1,319  1,358  .. 
Communications services  95 89 108 104 187 234 222 
Insurance services  48 41 40 38 39 42 40 
Other business services  452 468 425 447 437 460 423 
Imports  10,015  10,215  9,923  10,840  11,729  12,112  8,333  
Transportation  4,001  3,945  3,549  4,105  4,525  4,372  2,750  
Sea transport  3,561  3,470  3,044  3,525  3,857  3,601  .. 
Air transport  426 439 505 580 668 771 .. 
Travel  1,655  1,769  2,138  2,335  2,542  2,635  1,036  
Business travel  293 262 295 362 369 .. .. 
Personal travel  1,362  1,507  1,843  1,974  2,172  .. .. 
Health -related  376 410 459 491 560 .. .. 
Education -related  252 265 289 341 432 .. .. 
Other  733 832 1,095  1,142  1,180  .. .. 
Communications services  115 114 123 122 200 242 256 
Insurance services  917 1,006  938 1,024  1,064  1,077  1,060  
Other business services  3,326  3,382  3,176  3,254  3,399  3,787  3,232  
.. Not available.  
Source:  National Centre for Statistics and Information.  
1.3.2   Trends and patterns in FDI  
1.30.  During the review period, FDI stock in Oman nearly doubled, from USD  19.7 million in  2014 
to USD  37.9 million in 2019. In terms of capital sou rces, the United Kingdom was the largest 
investor, accounting for 52% of FDI stock, followed by the United  States (12%), the 
United  Arab Emirates (8%), and the State of Kuwait (6%) (Table 1.6).  
Table 1.6 FDI s tock, 2014 -19 
(USD million)  
  2014  2015  2016  2017  2018  2019  
Total  19.7 17.9 21.0 27.7 33.0 37.9 
By origin        
United Arab Emirates  2.2 2.2 2.6 2.7 2.7 3.1 
Qatar  0.7 1.0 1.0 1.0 0.9 0.9 
Kuwait, State of  0.9 1.0 1.1 1.1 1.0 2.2 
Bahrain, Kingdom of  0.7 0.8 0.9 0.9 0.9 1.0 
India 0.8 0.7 0.6 0.7 0.7 0.8 
China  .. .. .. .. .. 0.2 
United Kingdom  9.4 6.7 9.1 13.6 17.2 19.7 
Netherlands  0.5 0.7 0.6 0.6 0.7 0.8 
Switzerland  0.4 0.7 0.7 0.7 0.6 0.7 
United  States  0.7 0.7 0.6 2.4 4.0 4.7 
Other  3.5 3.5 3.7 4.1 4.3 3.7 
By sector        
Oil and gas exploration  10.6 7.8 10.3 16.4 22.2 25.3 
Financial intermediation  2.9 3.6 3.7 3.8 3.8 3.7 
Manufacturing  2.4 2.7 2.7 2.9 3.0 4.3 
Real estate – renting and business activities  1.3 1.4 1.6 1.7 1.6 2.0 
Other  2.4 2.5 2.6 2.9 2.4 2.6 
.. Not available.  
Source:  National Centre for Statistics and Information.  
1.31.  The majority of FDI (approximately 67% of FDI  stock) was destined for oil and gas exploration 
activity; this reflected the Ministry of Energy and Minerals holding a number of concession rounds 
during the review period and signing new Exploration and Production Sharing Agreements  
(Section  4.2.2), for instance, for the recently developed Khazzan natural gas field. Following oil and 
gas exploration, the manufacturing sector received the second largest share of FDI (about 11%). 
According to the authorities, the foreign capital was mainly inves ted in the petrochemical industry 
located in the Duqm Special Economic Zone.  WT/TPR/S/418 • Oman  
 
- 21 - 
 
  1.32.  The third destination for FDI in Oman is real estate (Table 1.6). This was attributed to the 
strength of the wholesale and retail trades, which accounted for 8% of non -oil GDP. Om an's retail 
sector was shaped by the construction of major shopping malls due to the high density of the urban 
population – more than 80% of the population live in urban areas, and 50% live in and around 
Muscat.21 
1.33.  As part of the diversification effort, FDI is expected to play an important role in structural 
reform, and contribute to achieving the objectives of diversification and a more private -sector -driven 
economy. In this regard, Oman modernized its foreign investment regime in  2020, with the New 
Foreign  Capital Investment Law entering into force, repealing the Foreign Capital Investment Law 
of 1994. Under the new Law, 100% foreign -owned companies are now allowed. Also, the Law 
abolished the minimum capital requirement and the local partner requirement fo r setting up a 
business in Oman (Section 2.4).  
 
 
21 Foreign Ministry of Oman, About Oman : Geography . Viewed at: https://fm.gov.om/about -oman/state 
/geography/ . WT/TPR/S/418 • Oman  
 
- 22 - 
 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  A new Constitution was promulgated by Sultan Haitham bin Tariq in January 2021, replacing 
the Constitution of 1996.1 Also referred to as the Ba sic Statute of the State, it decrees that the 
Sultan is the head of state and provides for a two -chamber Council named the Oman Council (or 
Council of Oman). The Oman Council is composed of the State Council (Majlis al -Dawla) and the 
Consultative Council ( Majlis al -Shura). Pursuant to Article  72, the Oman Council has the right to 
propose, approve, or amend bills, and to discuss development plans and the state budget.  
2.2.  The State Council acts as the upper house; its members are appointed by the Sultan for 
four-year terms. The last renewal of the State Council took place in November 2019, when 
85 members were appointed.2 The membership of the State Council cannot exceed that of the 
Consultative Council, which currently stands at 86 members, elected by the O mani people for 
four years. The last election was held in 2019.3 
2.3.  Legislative authority is vested in the Sultan, while executive authority is vested in the Sultan 
together with the Council of Ministers. The Sultan exercises his powers directly and through the 
Ministers. He also appoints the Prime Minister, Deputy Prime Minister, and Ministers. Moreover, the 
Sultan has the right to propose laws and is the ratification and promulgation authority.  
2.4.  Following the death of Sultan Qaboos on 10  January  2020, his co usin Haitham bin Tariq Al Said 
became the new Sultan. Sultan Qaboos had been Oman's ruler for almost 50 years. Prior to his 
accession to the throne, Sultan Haitham was Minister of Heritage and Culture, and head of the main 
committee of Oman Vision 2040, Om an's current long -term development plan. The Basic Statute of 
the State also introduced a mechanism for the designation of a Crown Prince, with a view to ensuring 
political stability.  
2.5.  The Sultan retains the post of Prime Minister and is also the supreme co mmander of the armed 
forces. In 2020, substantive changes were implemented in the structures of individual ministries and 
public authorities (Table 2.1). Notably, the Ministry of Commerce, Industry, and Investment 
Promotion (MOCIIP) replaced the Ministry o f Commerce and Industry. The Public Authority for 
Investment Promotion and Export Development and the Competition Protection and Monopoly 
Prevention Centre were merged into the new MOCIIP.4 Royal Decree No.  105/2020 created the Public 
Authority for Specia l Economic Zones and Free Zones.  
2.6.  Headed by the Prime Minister, the Council of Ministers assists the Sultan in formulating and 
implementing policies. Cabinet resolutions are passed when the majority of the Cabinet's members 
are present and with the approval  of the majority of those present. The Cabinet also submits 
recommendations to the Sultan on economic, political, social, environmental, executive, and 
administrative matters, and proposes draft laws and changes to existing laws.  
2.7.  Bills are prepared by the relevant ministries and presented by the Cabinet to the Consultative 
and State Councils. Alternatively, the Oman Council can propose draft laws to be submitted to the 
Government, which will resend the bill to the Councils after approval. They are then issu ed by the 
Sultan through a Royal Decree and must be published in the Official Gazette  within two weeks of 
issuance; they enter into effect on the date of publication unless otherwise prescribed.5 
2.8.  The Basic Statute of the State lays out the basic functioni ng of the judiciary, with the Islamic 
Law (Sharia) as the basis for national legislation. It also establishes that Islam is the state religion. 
Under Article  77, the judiciary is an independent and separate body. The system comprises primary, 
appeal, and s upreme courts. Within each level, Sharia or religious, criminal, administrative, or 
commercial courts adjudicate cases according to their specialization . The commercial courts have 
jurisdiction over commercial disputes between private sector parties, gover nment departments or 
authorities, and general establishments. Taxation and labour disputes, as well as government 
 
1 Royal Decree No.  6/2021.  
2 Oman News Agency , "Royal Decree Appoints State Council Members", 11 September 2019.  
3 Oman Daily Observer , "767 Candidates in Race for 86 Shura Seats", 7 July 2019.  
4 Royal Decree No.  97/2020.  
5 Basic Statute of the State, Article  91. WT/TPR/S/418 • Oman  
 
- 23 - 
 
  decisions, affecting international trade can be appealed to the Commercial Court.6 According to the 
authorities, in 2018, Oman established th e Oman Commercial Arbitration Centre, a 
non-governmental agency serving as an alternative to litigation in commercial disputes, which 
reports to the Oman Chamber of Commerce and Industry.  
Table 2.1 List of ministries and their recent changes  
Government agency  Institutional change  
Ministry of Culture, Sports 
and Youth  Established by Royal Decree No.  87/2020.  
Replaced the Ministry of Sports Affairs, the Ministry of Arts Af fairs, the 
National Youth Commission, and cultural affairs from the Ministry of 
Heritage and Culture.  
Diwan of Royal Court   
Ministry of Interior  Under Royal Decree No.  101/2020, the Ministry of Regional Municipalities 
and Water Resources was incorporated into the Ministry of Interior.  
Ministry of Foreign Affairs  None 
Ministry of Finance  None 
Ministry of Awqaf and 
Religious Affairs  None 
Ministry of Energy and 
Minerals  Established by Royal Decree No.  96/2020.  
Replaced the Ministry of Oil an d Gas and the Public Authority for Mining.  
Ministry of Health  Structured under Royal Decree No.  80/2020.  
Ministry of Education  Structured under Royal Decree No.  79/2020.  
Ministry of Justice and Legal 
Affairs  Established by Royal Decree No. 88/2020.  
Replaced the separate Ministries of Justice and of Legal Affairs.  
Ministry of Information  Established by Royal Decree No.  95/2020.  
Replaced the Public Authority for Radio and Television; the Oman 
Establishment for Press, Publication and Adver tising; the Media Training 
Centre; and the Directorate General of Communications.  
Ministry of Heritage and 
Tourism  Established by Royal Decree No.  91/2020.  
Replaced the Ministry of Heritage and Culture and the Ministry of Tourism.  
Ministry of Agriculture , 
Fisheries and Water 
Resources  Established by Royal Decree No.  92/2020.  
Replaced the Ministry of Agriculture and Fisheries, the Public Authority for 
Stores and Food Reserve, the divisions relating to water resources, and the 
Food Safety and Quality Centre  in the Ministry of Regional Municipalities and 
Water Resources.  
Ministry of Housing and 
Urban Planning  Established by Royal Decree No.  93/2020.  
Replaced the Ministry of Housing and the Secretariat General of the 
Supreme Council for Planning's urban plann ing assets and rights.  
Ministry of Higher Education, 
Research and Innovation  Established by Royal Decree No.  98/2020.  
Replaced the Ministry of Higher Education, the Research Council and its 
Secretariat General, the Directorate General of Vocational Traini ng, and the 
Directorate General of Occupational Standards and Curriculum Development 
in the Ministry of Manpower.  
Ministry of Transport, 
Communications and 
Information Technology  Established by Royal Decree No.  90/2020 in August 2020.  
Replaced the Ministry of Transport and the Ministry of Technology and 
Communications.  
Ministry of Economy  Established by Royal Decree No.  94/2020.  
Replaced the Secretariat General of the Supreme Council for Planning.  
Ministry of Commerce, 
Industry, and Investment 
Promotion  Established by Royal Decree No.  97/2020.  
Replaced the Ministry of Commerce, the Public Authority for Investment 
Promotion and Export Development, and the Competition Protection and 
Monopoly Prevention Centre.  
Ministry of Social 
Development  None 
Ministry of Labour  Established by Royal Decree No.  89/2020.  
Replaced the Civil Service Council, the Ministry of Manpower, the Ministry of 
Civil Service, the National Training Fund, and the National Centre for 
Employment.  
Source:  Compiled by the WTO Secretar iat, based on information provided by the authorities.  
2.9.  In order of decreasing importance, the Basic Statute of the State  is followed by Royal Decrees 
and laws, and secondary legislation such as ministerial decisions and resolutions and executive 
regulation s.7 The application of the Basic Statute of the State shall not prejudice treaties and 
agreements the Sultanate has entered into with other countries, or with international institutions or 
 
6 WTO document WT/ACC/OMN/26, 28 September 2000.  
7 WTO document WT/ACC/OMN/26, 28 September 2000.  WT/TPR/S/418 • Oman  
 
- 24 - 
 
  organizations. The authorities indicate that international agreeme nts and treaties, after their 
ratification, are considered domestic law and can be invoked before domestic courts.  
2.2  Trade Policy Formulation and Objectives  
2.10.  Oman's long -term economic goals are laid out in Oman Vision 2040, which was published in 
2019 and replaced the Long -term Development Strategy (1996 -2020). These goals are to achieve 
developed country status by 2040, diversify production and enhance the con tribution of non -oil 
sectors, and create employment opportunities for the country's skilled labour force. In particular, 
Oman Vision 2040 envisions the share of the non -oil sector growing to 90% of gross domestic 
product (GDP).  
2.11.  Diversifying production away  from oil and gas and reducing state ownership have been two 
of Oman's main economic goals for years.  However, success towards meeting these objectives was 
limited. Central Bank of Oman figures indicate that in 2018 the hydrocarbon sector still represented  
36% of nominal GDP and 78.2% of government revenues.8 
2.12.  On trade issues, Oman Vision 2040 has similar objectives to those of the Long-term 
Development Strategy (1996 -2020), that is, to : (i) improve the ease of doing business in Oman; 
(ii) attract foreign i nvestment; (iii)  create a more competitive and diversified economy; and 
(iv) position Oman as a commercial hub. To achieve diversification of traded products and trading 
partners, the Vision advocates for partnership building, especially for the exportatio n of high -tech 
and value -added components.9 In 2016, the Government established an Implementation Support 
and Follow -Up Unit to accelerate diversification efforts.10 
2.13.  Creating more employment opportunities remains an important objective. Through an 
"Omanization " process, native Omanis are encouraged to take part in the labour force, especially in 
the private sector. The recent Privatization Law (Royal Decree No.  51/2019) has the objective to 
stimulate private sector growth. In addition, the Public Authority for Privatization and Partnership, 
which was created in 2019 and merged into the Ministry of Finance in 2020, aims to attract both 
domestic and foreign private compan ies into infrastructure and public service projects.  
2.14.  Under the long -term strategies, successive five -year plans have been used since 1996 to 
guide economic policy. The 2016 -2020 Five -Year Development Plan initiated the 
Tanfeedh  programme to support various  sectors, such as manufacturing, tourism, mining, fishery, 
transportation, and logistics, to diversify income sources.  
2.15.  Formulation of trade policy is under the responsibility of the MOCIIP, in coordination with 
other ministries. The private sector provides  inputs to trade policy formulation through the Chamber 
of Commerce and Industry, which has 17 specialized committees covering a vast array of economic 
issues including tourism, industry, food security, and labour.11 
2.16.  The National Committee (NC), created in  2001, deals with all WTO -related matters. It acts 
under the chair of the MOCIIP. It comprises representatives from various ministries, the customs  
authority,  and the private  sector. It meets several times a year. Furthermore, a committee on Gulf 
Cooperati on Council (GCC)  issues, which meets four times a year, also deals with WTO issues, but 
at the regional level.  
2.17.  In 2014, Oman established the National Committee on Trade Facilitation to comply with 
Article  23.2 of the WTO Trade Facilitation Agreement. The C ommittee is composed of both 
governmental authorities and private sector representatives. Its main objective is to facilitate trade 
while modernizing border enforcement services.12 
 
8 Central Bank of Oman, 2019 Annual Report . 
9 Oman Vision 2040, National Priorities.  
10 Royal Decree No.  50/2016.  
11 Oman Chamber of Commerce, Temporary Committees . Viewed at: 
https://chamberoman.om/committees -councils/temporary -committees/ . 
12 Royal Oman Police, Directorate General of Customs, National Committee on Trade Facilitation. Viewed 
at: http://www.wcoomd.org/ -/media/wco/public/global/pdf/topics/wto -atf/national -committees -on-trade -
facilitation/oman -case-study -on-national -committees -on-trade -facilitation.pdf?la=en . WT/TPR/S/418 • Oman  
 
- 25 - 
 
  2.18.  Table 2.2 shows Oman's main trade and trade -related laws. Since its last Re view in 2014, 
Oman has adopted new legislation on monopoly and consumer protection, a legal framework for 
commercial companies, and foreign investment. It has also ratified the Trade Facilitation Agreement 
and the Protocol Amending the TRIPS Agreement.  
Table 2.2 Main trade -related laws, 2021  
Legislation  Issue  
Royal Decree No.  39/1976, 20  October  1976 Establishment of Directorate General for 
Specification and Measurements  
Royal Decree No.  63/1998, 19 September  1998 Ratification of the Paris and Berne Conventions  
Royal Decree No.  109/2000, 15  November  2000 Hallmarking scheme for precious metals  
Royal Decree No.  112/2000, 15  November  2000 Ratification of WTO accession  
Royal Decree No.  56/2002, 22  May 2002 Export processing zones  
Royal Decree No.  67/2003, 28  September  2003 Implementation of GCC Common Customs Law, 
tariff, customs valuation and procedures, and import 
prohibitions and restrictions  
Royal Decrees No. 45/2004, 3  May 2004, and 
No. 47/2004, 5  May 2004 Implementation of GCC Common Laws on Veterinary 
Quarantine and Plant Quarantine  
Royal Decree No.  36/2008, 24  March  2008 Government procurement  
Royal Decrees No. 65/2008, 4  May 2008, and 
No. 132/2008, 16  August  2008 Copyright and r elated rights  
Royal Decree No.  67/2008, 12  May 2008 Industrial property rights  
Royal Decree No.  49/2009, 29  August  2009 Plant breeders' rights  
Royal Decree No.  34/2014  Amendment to the Commercial Agency Law  
Royal Decree No.  62/2014  Law Determining Port Shipping Fares for 
Hydrocarbons and Petroleum Products  
Royal Decree No.  66/2014, 30  November  2014 New Consumer Protection Law  
Royal Decree No.  67/2014  Competition and Anti -Monopoly Law  
Royal Decree No.  20/2015, 24  May 2015 GCC Amended C ommon Law on Anti -Dumping, 
Countervailing Measures and Safeguards  
Royal Decree No.  30/2016  Law for Combating Money Laundering and Terrorism 
Financing  
Royal Decree No.  5/2017, 15  January  2017 Accession to the Grain Trade Convention  
Royal Decree No.  35/20 17, 25  July 2017 Ratifying the Protocol Amending the TRIPS 
Agreement  
Royal Decree No.  36/2017, 25  July 2017 Ratifying the Trade Facilitation Agreement  
Royal Decree No.  26/2018, 17  October  2018 Establishing the Oman Commercial Arbitration 
Centre  
Royal Decree No.  27/2018, 29  October  2018 Approbation of the Accession to the Customs 
Convention on the International Transport of Goods 
Under Cover of TIR Carnets (TIR Convention), with 
reservations  
Royal Decree No.  18/2019, 13  February  2019 Promulgation  of the Commercial Companies Law  
Royal Decree No.  19/2019  Mineral Resources Law  
Royal Decree No.  23/2019  Excise Tax Law  
Royal Decree No.  27/2019  Regarding Scientific Zones and Other Specialist 
Zones  
Royal Decree No.  50/2019, 1  July 2019 New Foreign Capital Investment Law  
Royal Decree No.  51/2019  Privatization Law  
Royal Decree No.  95/2020, 18  August  2020 Creation of the Ministry of Commerce, Industry, and 
Investment Promotion  
Royal Decree No.  114/2020, 1  September  2020 Accession to the Conv ention on the Contract for the 
International Carriage of Goods by Road (CMR) and 
the Additional Protocol concerning the Electronic 
Consignment Note, with reservations  
Source:  Compiled by the WTO Secretariat, based on information provided by the authoritie s. 
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.19.  Oman has been a member of the WTO since 2000. It is a member of the Information 
Technology Agreement, and an observer to the Committee on Government Procurement and to the 
Committee on Trade in Civil Aircraft. In 20 17, Oman accepted both the Protocol Amending the TRIPS WT/TPR/S/418 • Oman  
 
- 26 - 
 
  Agreement and the Trade Facilitation Agreement.13 It is also a member of the Asian Group of 
Developing Members and the Article  XII members negotiation group. Oman's notifications to the 
WTO are present ed in Table 2.3.  
Table 2.3 Selected notifications to the WTO, June 2021  
WTO   
Agreement  Description 
of 
requirement  
Periodicity  
Most recent notification  Comment  
Agreement on Agriculture  
Article  18.2 
DS:1 and DS:2  Domestic 
support  Annual  G/AG/N/OMN/12 -13, 21 -25, 
20 June 2014 to 8  May 2019 List of domestic support 
measures for 2012 -18 
Articles 10 and 
18.2 Export 
subsidies  Annual  G/AG/N/OMN/14 -20, 31  March  2015 to 
31 July 2019 No export sub sidies for 
2012-18 
Committee on Trade and Development; Council for Trade in Services  
Enabling Clause 
– RTA; GATS 
Article V:7(a)  Economic 
integration  Ad hoc  WT/COMTD/N/45, S/C/N/807, 
6 July 2015, revised on 14  July 2015; 
WT/COMTD/N/45/Rev.1 – 
S/C/N/807/Rev.1  Agreement between the GCC 
and Singapore  
Agreement on Anti -Dumping  
Article  18.5 Laws and 
regulations  Once, 
ad hoc G/ADP/N/1/OMN/3, 28  September  2015 GCC common law on anti -
dumping, countervailing 
measures, and safeguards  
Article  16.4 Notification  Ad hoc  G/ADP/N/287, 23  June 2016 
G/ADP/N/301, 28  June 2017 
G/ADP/N/304, 20  September  2017 
G/ADP/N/321, 7  January  2019 
G/ADP/N/325, 1  May 2019 Reports under Article 16.4 of 
the Agreement  
Article  16.4 Notification  Semi-
annual  G/ADP/N/350/OMN, 5  February  2021 GCC Report for the period 
1 July-31 December  2020 
Agreement on Subsidies and Countervailing Measures  
Article  32.6 Laws and 
regulations  Once, 
ad hoc G/SCM/N/1/OMN/3, 28  September  2015 GCC common law on anti-
dumping, countervailing 
measures, and safeguards  
Article  25.1, and 
GATT 1994, 
Article  XVI:1  Notification of 
measures   
G/SCM/N/155/OMN, 
G/SCM/N/186/OMN, 
G/SCM/N/220/OMN, 
G/SCM/N/253/OMN, 29  July 2014; 
G/SCM/N/284/OMN, 
G/SCM/N/315/OMN, 26 June 2017 No subsidies as defined in the 
Agreement  
Committee on Subsidies and Countervailing Measures  
SCM Agreement, 
Article  25.11  Notification of 
measures  Semi-
annual  G/SCM/N/274/Add.1, 17  October  2014 
G/SCM/N/281/Add.1, 24  April 2015 
G/SCM /N/289/Add.1, 22  October  2015 
G/SCM/N/298/Add.1, 22  April 2016 
G/SCM/N/305/Add.1, 21  October  2016 
G/SCM/N/313/Add.1, 21  April 2017 
G/SCM/N/321/Add.1, 23  October  2017 
G/SCM/N/328/Add.1, 20  April 2018 
G/SCM/N/334/Add.1, 19  October  2018 
G/SCM/N/342/Add.1, 24  April 2019 
G/SCM/N/349/Add.1, 
15 November  2019 
G/SCM/N/356/Add.1, 4  May 2020 
G/SCM/N/363/Add.1, 14  October  2020 
G/SCM/N/371/Add.1, 15  April 2021 Notification that no 
countervailing duty action has 
been taken  
Agreement on Safeguards  
Article  12.6 Laws and 
regulations  Once, 
ad hoc G/SG/N/1/OMN/3, 28  September  2015 GCC common law on anti -
dumping, countervailing 
measures, and safeguards  
Committee on Safeguards  
Agreement on 
Safeguards, 
Article  12(1)(a)  Notification of 
measures  Ad hoc  G/SG/N/6/OMN/1, 10  June 2016 
G/SG/N/6/OMN/2, 10  October  2016 
G/SG/N/6/OMN/3, 24  October  2019 
G/SG/N/6/OMN/3/Suppl.1, 
20 January  2021 Initiation by the GCC of an 
investigation on flat -rolled 
products of iron and non -alloy 
steel; on ferro -silico-
manganese; o n certain steel 
products  
Agreement on 
Safeguards, 
Articles 9(1), 
12(1)(b), and 
12(1)(c)  Notification of 
measures  Ad hoc  G/SG/N/10/OMN/1, 15  June 2017 Final determination of serious 
injury to the GCC industry  
 
13 WTO documents WT/Let/1245, 1 4 March 2017, and WT/Let/1240, 24 February 2017.  WT/TPR/S/418 • Oman  
 
- 27 - 
 
  WTO   
Agreement  Description 
of 
requirement  
Periodicity  
Most recent notification  Comment  
Agreement on Import Licensing Procedures  
Article  7.3 Notification of 
measures  Annual  G/LIC/N/3/OMN/7, 26  May 2014 No import licence procedures  
Committee on Trade Facilitation  
Trade 
Facilitation 
Agreement  Commitments 
under the 
Agreement  Ad hoc  WT/PCTF/N/OMN/1, 14 August  2014 Notification of Category A 
commitments  
G/TFA/N/OMN/1, 22  March  2019 Notifications of Category B 
and additional Category A 
commitments  
G/TFA/N/OMN/2, 7  November  2019 Notifications based on Articles 
1.4, 10.4.3, 10.6.2, and 
12.2.2  
Agreement on Sanitary and Phytosanitary Measures  
Article  7, 
Annex  B  Sanitary and 
phytosanitary 
measures  Ad hoc  69 notifications: G/SPS/N/OMN/48, 
6 May 2014 to G/SPS/N/OMN/115, 
15 December 2020  57 draft technical regulations, 
1 revision, 6 administrative 
decisions, 1 addendum on 
administrative decision, 1 
ministerial decision  
Agreement on Technical Barriers to Trade  
Article  2.9.2-
Article  5.6 Technical 
regulations  Ad hoc  298 notifications since the last Review: 
G/TBT/N/OMN/143 to 440, 17 June 2013 
to 7 June 2021 Draft technical regulations, 
ministerial decrees, 
standards, labelling 
requirements  
Working Party on State Trading Enterprises  
GATT  1994 
XVII:4(a); 
Understanding – 
Article  XVII:01  Notification  Biennial  G/STR/N/10/OMN to G/STR/N/15/OMN, 
13 August  2014 Notification that the Public 
Authority for Stores and Food 
Reserves (PASFR) is not a 
state trading enterprise in 
terms of the definition in 
Article  XVII of GATT  1994 and 
Understanding on 
Interpretation of Ar ticle XVII 
Source:  WTO documents.  
2.20.  Oman grants at least most -favoured -nation (MFN) treatment to all of its trading partners. It 
is an active participant in the current round of multilateral trade negotiations and has particular 
interest in non-agricultural market access, services, and fishery subsidies.  
2.21.  Oman has never been either a complainant or a defendant in any WTO dispute. It has been a 
third party in 13 cases. No dispute under bilateral agreements has been reported.  
2.22.  In 2020, Oman imple mented all of its commitments under the Trade Facilitation Agreement, 
which it ratified in February 2017.14 
2.3.2   Regional and preferential agreements  
2.3.2.1   Gulf Cooperation Council (GCC)  
2.23.  The GCC was created in May 1981 and comprises the Kingdom of Bahrain, the State of Kuwait, 
Oman, Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates. Its main objectives are 
regional cooperation and integration in economic, social, and cultural affairs. The Gulf Common 
Market (GCM) was officially launched in January 2008.  
2.24.  In 2001, the GCC Supreme Council adopted the Economic Agreement between the 
GCC States, which contains the foundation of the GCC Customs Union.15 Launched in 2003, the 
GCC Customs Union was finalized in January 2015, replacing the 1983 free trade area.16 Following 
 
14 WTO Trade Facilitation Agreement Database, Oman: Status of Implementation Commitments . Viewed 
at: https://tfadatabase.org/members/oman . 
15 WTO document W T/COMTD/RTA/9/1, WT/REG/276/1, 21 March 2018.  
16 Secretariat General of the Gulf Cooperation Council, Achievements: The Free Trade Area . Viewed at: 
https://www.gcc -sg.org/en -us/CooperationAndAchievements/Achievements/EconomicCooperation/ 
TheCustomsUnion/Achievements/Pages/ITheFreeTradeAreaFTA.aspx . WT/TPR/S/418 • Oman  
 
- 28 - 
 
  its accession to the WTO in December 2005, the Kingdom of Saudi Arabia notified the Agreement 
under Article  XXIV of the GATT17, but subsequently changed the notification to come under the 
Enabling Clause.18 In October 2009, the Agreement was re -notified by the Kingdom of Saudi  Arabia 
under Article  XXIV:7(a) of the GATT  1994.19 
2.25.  The GCC has created several institutions impacting trade, including the Gulf Investment 
Corporation, the GCC Bureau of the Technical Secretariat for Anti -Dumping, th e GCC Standardization 
Organization, the Commercial Arbitration Centre, the Patents Office, the Technical Office for 
Telecommunications, the GCC ATM Network, the GCC Intellectual Property Training Centre, and the 
GCC Federation of Chambers of Commerce. Between June 2017 and January 2021, the GCC  suffered 
from an internal crisis, with three of its members (the Kingdom of Bahrain, the Kingdom of 
Saudi  Arabia, and the United  Arab Emirates) imposing certain restrictive measures on Qatar.  
2.26.  Since January 2003, the GCC member States have operated a common external tariff (CET) 
of 0% and 5% for most products ( Section 3. 1.3)20, and a common law on customs procedures and 
valuation. Since 2003, all applied rates except on tobacco have been ad valorem . With regards to 
tobacco products, Oman clarifies that it applies only the ad valorem  part of the tariff rate (100%).  
2.27.  While all GCC member States apply a CET on most imports, certain differences remain (e.g. 
on alcohol products). Oman applies customs duties of 100% on both po rk and alcohol products.21 In 
addition, border checks between GCC member States are maintained for sanitary and phytosanitary 
(SPS) measures and standards. Prohibited good s may not circulate between members' territories; 
restricted products may transit the  territory of members that restrict their import, with the 
appropriate documentation.  
2.28.  Allocation of customs revenues follows the principle of final destination, through a clearing 
mechanism agreed upon in 2003.22 
2.29.  Since its last Review, Oman has ratified the GCC Unified Anti -Dumping Law through Royal 
Decree No.  20/2015 and the GCC Trade Mark Law through Royal Decree No.  33/2017.  
2.30.  While two GCC member States (the Kingdom of Bahrain and Oman) have free trade 
agreements  (FTAs) on an individual basis with the United  States, the GCC announced in 
November  2011 that all future agreements would be negotiated as a group.23 The GCC has since 
concluded a regional trade agreement with Singapore, which entered into force in 2013 a nd was 
notified to the WTO in 2015 under the Enabling Clause and Article  V of the GATS.24 An agreement 
with the European Free Trade Association (EFTA) entered into force in 2014, but was not notified as 
at October 2020.25 The agreement covers trade in good s (including agricultural products), trade in 
services, trade remedies, government procurement, and competition policy. It also contains rules 
and procedures for dispute settlement. Intellectual property rights (IPRs) will be discussed at a later 
stage.26 
2.31.  Recent examples of further integration include a unified law for real estate owners, a cultural 
strategy for 2020 -30, and a common Environment Programme for 2020.27 In 2001, the GCC started 
 
17 WTO document WT/REG222/N/1, 20 November 20 06. 
18 WTO documents WT/REG222/N/1/Corr.1 and WT/COMTD/N/25, 31 March 2008.  
19 WTO document WT/REG276/N/1/Rev.1, 17 November 2009.  
20 The exceptions to the CET relate to tobacco, pork, and alcohol products, which are either prohibited 
(including domestic prod uction) or subject to high rates of duty.  
21 WTO document WT/COMTD/RTA/9/1, WT/REG276/1, 21 March 2018.  
22 WTO document WT/COMTD/RTA/9/1, WT/REG276/1, 21 March 2018.  
23 Secretariat General of the Gulf Cooperation Council,  Economic Agreement between the GCC States, 
31 December 2001, Article  2.  
24 WTO document WT/COMTD/N/45, 6  July 2015.  
25 WTO Regional Trade Agreements Database, EFTA -GCC. Viewed at: 
http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=462 . 
26 EFTA, EFTA and the Gulf Cooperation Council Hold their Third Joint Committee Meeting , 7 March 
2019.  
27 Secretariat General of the Gulf Cooperation Council, The Minister of Foreign Affai rs of the Kingdom of 
Saudi Arabia and the Secretary General of the Gulf Cooperation Council hold a Press Conference at the 
Conclusion of the 40th Summit of the GCC Supreme Council , 10 December 2019. Viewed at: http://www.gcc -
sg.org/en -us/MediaCenter/NewsCooperation/News/Pages/news2019 -12-10-5.aspx . WT/TPR/S/418 • Oman  
 
- 29 - 
 
  a process of implementing a common labour market, providing equal treatment of all GCC citizens 
in relation to freedom of movement and residence, work, investment, education, health, and social 
services.28 
2.3.2.2   Pan-Arab Free Trade Area ( PAFTA ) 
2.32.  Under the PAFTA Treaty29, in force since 1  January  1998, most trade barriers among its 
members were supposed to be eliminated in January 2005, with some products excluded from 
liberalization. The principal entity responsible for implementing the programme is the Economic and 
Social Council of the League of Arab States. The PAFTA was notified to the WTO by the Kingdom of 
Saudi Arabia in 2006 under Article  XXIV of the GATT.30 The authorities indicate that negotiations on 
various implementation issues, such as rules of origin, non -tariff barriers, IPR -related matters, and 
trade facilitation are ongoing.  
2.33.  On 1 February  2017, Oman was among the nine PAFTA countries31 that agreed on a schedule 
of commitment for trade in services under an initiative known as the Beirut Round of Negotiation s 
on the Liberalization of Trade in Services Among the Arab States.  
2.34.  In 2014, Oman ratified the amended Unified Agreement for the Investment of Arab Capital in 
the Arab States.32 
2.3.2.3   Agreement with the United  States  
2.35.  The free trade agreement between Oman and the  United  States, signed in January 2006, 
entered into force in January 2009.33 The agreement covers trade in goods and services; it also has 
provisions on investment, IPRs, e -commerce, labour, environment, and dispute settlement. It 
provides for tariff elim ination in agricultural and non -agricultural goods over a maximum of 10 years, 
although a large share of products was granted duty -free access immediately. In 2018, 100% of the 
United  States' tariff lines became duty -free.34 
2.3.2.4   Agreement with Singapore  
2.36.  A free  trade agreement between Singapore and the GCC member States entered into force in 
September 2013 and was notified in 2015.35 The agreement covers trade in goods and services, 
investment, rules of origin, standards, customs procedures, government procureme nt, electronic 
commerce, intellectual property, movement of natural persons, and economic cooperation.  
2.37.  With the agreement's entry into force, approximately 94% of all tariff lines of GCC member 
States qualified for immediate duty -free treatment, while an a dditional 2.7% of tariff lines qualified 
for duty -free treatment as of 2018. In services, both parties have committed to liberalize various 
sectors beyond their WTO commitments. The services sectors covered include professional services 
(legal, accounting,  and engineering) and business services (construction, distribution, and hospital).  
2.38.  The United Arab Emirates, the Kingdom of Bahrain, Qatar, and the Kingdom of Saudi Arabia 
have allowed up to 100% foreign equity for Singapore legal companies, while Oman ha s allowed up 
to 70%. The Kingdom of Bahrain, the State of Kuwait, Oman, Qatar, and the Kingdom of 
Saudi  Arabia have allowed up to 100% foreign equity for Singapore construction companies. Oman 
 
28 Secretariat General of the Gulf Cooperation Council, The GCC Common Market and Economic 
Nationality . View ed at: https://www.gcc -sg.org/en -us/CooperationAndAchievements/Achievements/Economic 
Cooperation/TheGCCCommonMarketandEconomicnationality/Pages/MechanismofAchievingtheCommonM.aspx . 
29 PAFTA members include the GCC members plus Algeria, Egypt, Iraq, Jordan, Lebanon , Libyan Arab 
Jamahiriya, Morocco, Palestine, Sudan, Syrian Arab Republic, Tunisia, and Yemen. Comoros, Djibouti, 
Mauritania, and Somalia are accession candidates. The agreement is sometimes referred to as GAFTA (General 
Arab Free Trade Agreement).  
30 WTO d ocument WT/REG223/N/1, 20 November 2006.  
31 Along with the United Arab Emirates, the Kingdom of Saudi Arabia, Qatar, Morocco, Lebanon, Egypt, 
Yemen, and Sudan. Economic and Social Commission for Western Asia (ESCWA) document 
E/ESCWA/EC.6/2019/6, 14 May 2019.  
32 Royal Decree No.  46/2014.  
33 WTO docume nt WT/REG259/N/1, S/C/N/472, 2 February 2009.  
34 WTO document WT/REG259/1, 2 February 2009.  
35 WTO document WT/COMTD/N/45, 6  July 2015.  WT/TPR/S/418 • Oman  
 
- 30 - 
 
  has allowed up to 70% foreign equity for Singapore companies su pplying education services, while 
the other GCC  member States have allowed up to 100%.36 
2.3.3   Other agreements and arrangements  
2.39.  Negotiations to enter into a preferential agreement with Japan and Australia were announced 
to the WTO in 2006 and 2007, respectively.37 The GCC is also negotiating FTAs with China, India, 
the Republic of Korea, MERCOSUR, New  Zealand, Pakistan, and Turkey. However, these negotiations 
were generally put on hold. Currently, all negotiations are suspended except for negotiation s 
with China.  
2.40.  Negotiations for an FTA with the European  Union were launched in 1990 but subsequently 
halted in 2008, replaced by a Dialogue on Trade and Investment Issues.38 The latest meeting of the 
Dialogue was held in Riyadh on 13  February  2020.  
2.41.  Oman ra tified the Trade Preferential System among the member States of the Organization 
of Islamic Cooperation , which, however, has not yet been implemented.  
2.42.  Oman does not participate in the Global System of Trade Preferences (GSTP) among 
developing countries.  
2.43.  Oman receives unilateral trade preferences under the Generalized System of Preferences 
(GSP) from Australia, Belarus, Kazakhstan, New  Zealand, the Russian  Federation, and Turkey.39 
2.4  Investment Regime  
2.44.  Since the last Review, several changes to legislation for b oth national and foreign companies 
have taken place. Mainly, the new Commercial Companies Law (CCL) repealed the previous 
1994 CCL, the New Foreign Capital Investment Law (NFCIL) replaced previous legislation from 1994, 
and several authorities for commerci al activities were reformed.  
2.45.  The new CCL40 allows both foreign and domestic investment in the six forms previously 
authorized (general partnership, limited partnership, joint venture, joint stock company, limited 
liability company, and holding company), an d adds the sole shareholder company. Professional 
companies and companies with foreign capital may be established, provided that the principal place 
of each of them shall be in the Sultanate in which it shall carry out its activity. Special regulations 
apply for activities established in the free zones.41 The new CCL also includes new regulations for 
joint stock companies and limited liability companies.  
2.46.  In January 2020, the NFCIL became effective, and Executive Regulations were issued in 
June 2020. Foreign ers no longer need to partner with a local shareholder, as the 30% Omani 
ownership requirement was revoked. Attracting foreign investment is one of the goals of Oman 
Vision 2040, and the NFCIL pursues this direction. However, registration fees for 100% for eign 
ownership increased to OMR  3,500.42 The minimum capital requirement for foreign investors to 
establish a commercial company, previously set at OMR  150,000, remains to be determined.  
2.47.  Under the NFCIL, an investment licence, issued by the Investment Services Centre, remains 
a requirement. Any interested foreign company has to submit a short economic feasibility study in 
 
36 Ministry of Trade and Industry Singapore, What You Need to Know About Singapore's Free Trade 
Agreements  (information as of October 2019). Viewed at: https://www.mti.gov.sg/ -
/media/MTI/Images/Improving -Trade/FTA_Booklet_Final.pd f. 
37 Australian Government, Department of Foreign Aff airs and Trade, Australia -Gulf Cooperation Council 
(GCC) FTA, updated June 2020. Viewed at: https://www.dfat.gov.au/trade/agre ements/negotiations/agccfta/ 
Pages/australia -gulf-cooperation -council -gcc-fta. 
38 European Commission, Gulf Region . Viewed at: https://ec.europa.eu/trade/policy/countries -and-
regions/regions/gulf -region/ . 
39 United Nations Conference on Trade and Development (UNCTAD), Generalized System of Pr eferences 
List of Beneficiaries.  
40 Royal Decree No.  18/2019, Article  3. 
41 Royal Decree No.  18/2019, Article  4. 
42 Pro Partner Group, How to Set Up a 100% Foreign Owned Company in Oman? , 24 February 2020.  WT/TPR/S/418 • Oman  
 
- 31 - 
 
  order to get such an investment licence.43 Projects related to strategic development (public facilities, 
infrastructure, energy, roads, transport, and ports) must be approved by  the Council of Ministers 
and meet further requirements, such as the use of Omani products in the project and partnership 
with local small and medium enterprises.44 Article  10 states that investment projects can be granted 
a single approval by the Council of Ministers for establishing, operating, and managing the project, 
including construction and manpower licences, without the need to undertake any other procedure 
if the investment project is deemed to be strategic and contributing to the development of p ublic 
utilities and infrastructures or renewable energy. The authorities indicate that the approval process 
usually takes about one month.  
2.48.  Foreign investment projects must comply with inspection and monitoring procedures. The 
performance of the project sho uld be evaluated every six months by the Investment Services Centre; 
officials must be granted access to the headquarters and to records, documents, and computer 
systems as needed. However, the authorities indicate that this provision is currently not enfo rced. 
2.49.  The MOCIIP issued through Ministerial Decision No.  209/2020 a list of 70 professions in which 
foreigners do not have the right to engage. In early 2021, further professions were added to the list, 
including fuel station managers; professions related to the activities and business of optics and the 
sale of glasses45; various positions in insurance companies, shops, and car dealerships, including 
finance, commerce, and administration; accounting jobs within car dealership companies; and 
drivers of all v ehicles.46 Oman also announced its goals of seeing more Omani nationals in teaching 
positions and replacing expat teachers.47 Since Ministerial Resolution No.  292/2020, non -citizens are 
also forbidden to own land in several locations, including in mountain s and islands of strategic 
importance except within an integrated tourism complex.48 Allocation of lands and real estate to 
foreigners will be by way of a long -term lease or by granting the right to use for 50 initial years, 
after approval from the compete nt authorities.49 
2.50.  To attract investment in Oman's less developed regions, Article  17 of the Executive 
Regulations on the NFCIL  sets out additional benefits that apply only to wholly foreign -owned 
companies. These include the exemption from paying the rental value or the return of the right to 
use the land needed for the investment project during a maximum of five years, exemption  from 
current Omanization policies (such as the requirement to hire a certain proportion of the workforce 
from Omani citizens), and exemptions from fees.50 However, as at June 2021, these regions had not 
been defined. Additional benefits may be granted by the Council of Ministers if projects meet certain 
requirements, such as exporting not less than 30% of the production and promoting the transfer of 
technology.51 Other incentives and tax exemptions are provided by Article  19, notably for the IT and 
logisti cs sectors.52 Finally, special investment incentives are also granted in Oman's three free zones 
and two special economic zones.  
2.51.  Royal Decree No.  61/2020 established the Oman Investment Authority (OIA). All 
competences and assets of the State General Reser ve Fund, the Oman Investment Fund, and the 
Directorate General of Investments in the Ministry of Finance were transferred to the OIA, which 
 
43 UNCTAD Investment Policy Hub, New Executive Regulat ions of the Foreign Capital Investment Law , 
14 June 2020.  
44 Oman Daily Observer , "Executive Regulations of Oman's Foreign Capital Investment Law Unveiled", 
21 June 2020.  
45 Gulf News , "Expats Barred from More Jobs in Oman", 10 January 2021.  
46 Aljazeera , "Oman Bars Expatriates from Certain Jobs as Pandemic Bites", 24 January 2021.  
47 Tawfiq Nasrallah, "Teaching Profession to be Omanised in Sultanate", Gulf News , 25 January 2021.  
48 These locations are Musandam, Buraimi, Dhahirah, Al Wusta, Dhofar (except Salalah), Liwa, Shinas, 
Masirah, Jebal Akhdar, and Jebal Shams. This also applies to properties situated near royal palaces, security 
and military bodies, and lands for agricultural use. Samuel Kutty, "Ban on Ownership of Land by Non -Omanis 
in Some  Places", Oman Daily Observer , 7 June  2020; and Helen Dean, "Ownership of Lands and Real Estate 
Properties by Non -Omani People", Cameron McKenna Nabarro Olswang LLP, 2 July  2020.  
49 Oman Daily Observer , "Executive Regulations of Oman's Foreign Capital Inves tment Law Unveiled", 
21 June 2020.  
50 Curtis, Mallet -Prevost, Colt & Mosle LLP, Oman Law Blog, Executive Regulations of the Foreign Capital 
Investment Law , 19 August 2020.  
51 Oman Daily Observer , "Executive Regulations of Oman's Foreign Capital Investment La w Unveiled", 
21 June 2020.  
52 Dentons,  Oman I ssues Executive Regulations on New Foreign Capital Investment Law , 20 July 2020.  WT/TPR/S/418 • Oman  
 
- 32 - 
 
  disposes of around USD  18 billion in assets. The goals of the OIA are to stimulate foreign investment 
in Oman, diver sify the economy, and create more employment opportunities for Omanis.53 
2.52.  As mentioned in Section 2.5, the MOCIIP replaced the Ministry of Commerce and Industry. 
The Public Authority for Investment Promotion and Export Development and the Competition 
Protec tion and Monopoly Prevention Centre were abolished and merged into the new MOCIIP.54 
In 2015, Royal Decree No.  32/2015 promulgated the law of the Public Establishment for Industrial 
Estates (PEIE), in which PEIE -affiliated estates could be exempt from prov isions of the Foreign 
Capital Investment Law and the CCL and receive additional incentives. PEIE exemptions and 
incentives are still relevant under the NFCIL and the CCL.  
2.53.  Applications for the establishment of companies and branches of foreign companies car rying 
out business in the field of securities must be submitted to the Capital Market Authority for 
approval.55 The bank guarantee for the branch of a foreign company shall be OMR 50,000. Branches 
of foreign companies wishing to obtain a licence are limite d to the following activities: investment 
advice and research, marketing non -Omani securities, issue management, and portfolio 
management. According to the authorities, foreign investments represent more than 25% of 
investments companies listed at the Musc at Securities Market. A new law on Securities is under 
preparation and is waiting for final approval.  
2.54.  Oman also issued a law on bankruptcy procedures. Royal Decree No.  53/2019 aims to 
enhance predictability and transparency by laying out a new framework fo r companies' bankruptcy, 
while offering alternatives before termination of the activity. The law provides for three  possibilities: 
restructuring, preventative composition, and judicial composition. Directors and managers could be 
held personally liable and  face penalties for their actions.56 
2.55.  In 2020, Oman ranked 68th of 190 economies in the World Bank's Ease of Doing Business 
Index, 32nd on ease of starting a business, but 144th on ease of getting credit.57 Oman ranked 56th 
of 198 economies in the Transpare ncy International Corruption Index58, improving from 64th in 2014, 
the year of the last Review.  
2.56.  In 2016, Oman ratified the Convention on Combating Bribery of Foreign Public Officials in 
International Business Transactions. The Convention on Mutual Administrative Assistance in Tax 
Matters was ratified by Royal Decree No.  34/2020.  
2.57.  Royal Decree No.  69/2008 established a legal framework for online transactions. As 
e-commerce becomes increasingly important in international trade, Oma n sees opportunities in this 
field, notably using its port facilities as a potential hub for e -commerce.59 
2.58.  Oman has signed 35 bilateral investment treaties60, and 35 double taxation agreements 
(some not in force).61 Since the last Review, Oman has conclude d a new bilateral investment treaty 
 
53 CMS, Establishment of the Oman Investment Authority , 29 June 2020; and Oman News Agency , 
"Investment Authority Continues Restruct uring its Investments to Enhance Governance, Performance", 28 July 
2020.  
54 Royal Decree No.  97/2020.  
55 Capital Market Authority, Legislation Regulating the Companies Operating in the Field of Securities 
and Listed Companies, Article  115. 
56 Thomas Wigley, " Oman's New Insolvency Regime Comes into Force", MEED , 1 July 2020.  
57 World Bank Group, Doing Business Oman 2020 . 
58 Transparency International, Corruption Perception Index Results 2019 . 
59 Conrad Prabhu, "Oman Tipped to Become Regional Hub for Ecommerce", Oman Daily Observer , 
8 September 2020.  
60 With Algeria, Austria, Belarus, Belgium -Luxembourg Economic Union, Brunei  Darussalam , Bulgaria, 
China, Croatia, Egypt, Finland, France, Germany, India, Islamic Republic of Iran, Italy, Japan, Jordan, Republic 
of Korea, Lebanon, Morocco, Netherlands, Pakistan, Singapore, Sudan, Sweden, Switzerland, Syria, Tanzania, 
Tunisia, Turkey, Ukraine, United  Kingdom, Uzbekistan, Viet  Nam, and Yemen.  
61 With Algeria, Belarus, Brunei  Darussalam, Canada, China, Croatia, France, Hungary, India, the 
Islamic Republic of Iran, Italy, Japan, Republic of Korea, Lebanon, Mauritius, the Republic of Moldova, Morocco , 
Netherlands, Pakistan, Portugal, Seychelles, Singapore, South  Africa, Spain, Sri Lanka, Sudan, Switzerland, 
Syria, Thailand, Tunisia, Turkey, the United Kingdom, Uzbekistan, Viet  Nam, and Yemen. Agreements with 
Belgium, Egypt, Germany, and the Russian  Federation are not in force.  WT/TPR/S/418 • Oman  
 
- 33 - 
 
  with Japan, and double taxation agreements with Hungary, Japan, Portugal, Spain, Sri Lanka, and 
Switzerland. There are no restrictions on investment abroad by Omani nationals.  
2.59.  Oman is a member of the Multilateral Investm ent Guarantee Agency and a party to the 
Convention of the International Centre for the Settlement of Investment Disputes.  
 WT/TPR/S/418 • Oman  
 
- 34 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  Since 2003, Oman has been applying the Gulf Cooperation Council (GCC) Common Customs 
Law and its Rules of Implementation and Explanatory Notes, through Royal Decree No.  67/2003. 
Under the "single port of entry" principle, items imported into O man, or any other GCC member 
State, and destined for another GCC market, are subject to customs duty only at the first point of 
entry into the GCC. In 2015, the GCC published the Unified Guide for Customs Procedures.  
3.2.  According to Oman's Customs Service, al l imports above OMR  1,000 must be accompanied by: 
(i) a copy of the invoice; (ii)  a packing list; (iii)  a bill of lading if applicable; (iv)  a document 
containing a detailed description of the cargo; and (v)  an import declaration and form for clearing 
and classification. In addition, restricted goods need approval from the relevant authority 
(Section  3.1.5).  
3.3.  Customs officials check the documents submitted and ensure that the content is free from any 
banned or dangerous material before clearance. The use of pre-clearance has been increasing, with 
22% of goods entering Oman having already been approved by the authorities.1 Oman has a total 
of 33 customs offices (10 at land borders, 9 at seaports, 4 at airports, and 10 within the country 
(e.g. in the free zone s)). Seven customs offices are GCC entry points.  
3.4.  In June 2015, Oman launched Bayan, an import and export reporting and management 
electronic system, to improve the efficiency of its customs procedures. The Royal Oman Police lists 
30 objectives of the Bayan  system, notably to reinforce controls over security, health, and 
environment issues; connect all entities via a single electronic window; decrease trade costs; and 
encourage investment.2 An importer, an exporter, or their agent can authorize and clear go ods 
through the Bayan system. According to the state -owned logistics conglomerate Asyad, this has 
reduced average clearance time for imports to 7 hours3 (compared to 47 hours for the GCC).4 
Clearance time is normally less than 2 hours at seaports, less t han 4 hours at airports, and less than 
10 hours at land borders.  
3.5.  In the wake of the COVID -19 pandemic, Oman implemented new import measures. Specifically, 
Asyad approved the practice of "direct" imports5 from the country of origin, with fewer clearance 
procedures to speed up the process and reduce costs.6 It also reinforced the transition to electronic 
submission of documents and virtual customs clearance.  
3.6.  Importers in Oman are not required to use a commercial agent. In 2004, Oman notified the 
WTO that it  had no laws or regulations on pre -shipment inspection7, and in 2014 the Sultanate 
committed not to introduce any under the Trade Facilitation Agreement.8 Goods are randomly 
selected for inspection on the basis of a risk management system (e.g. type, des cription, and value 
of goods). On average, about 5% of all imports are subject to physical inspection.  According to 
Bayan's statistics, 90% of goods were cleared within the first hour of arrival in 2019.  
 
1 Asyad, The Logistics of Performance , 23 January 2020.  
2 Royal Oman Police, Bayan System . Viewed at: https://www.customs.gov.om/dgcportal/bayan -system . 
3 The W orld Bank Doing Business database also indicates that the average time to import and export for 
documentary compliance is seven hours. However, time to import for border compliance is 39 hours.  
4 Asyad, The Logistics of Performance , 23 January 2020.  
5 These imports come directly from one of 86 commercial ports in more than 40 countries, which are 
directly connected to Oman, without any intermediate stop.  
6 Ministry of Commerce and Industry, "Direct Import of Goods and Commodities Helped in Revitalization 
of the Commercial Activity in Oman "; Times of Oman , "Direct import has revitalised commercial activity in 
Oman", 16 May 2020.  
7 WTO document G/PSI/N/1/Add.10, 19 July 2004.  
8 WTO document WT/PCTF/N/OMN/1, 14  August  2014.  WT/TPR/S/418 • Oman  
 
- 35 - 
 
  3.7.  Oman established a National Committee on Trade Facil itation in 2014. Since 2020, Oman has 
officially implemented 100% of its commitments under the Trade Facilitation Agreement, which it 
ratified in February 2017.9 
3.8.  Oman has notified that it was implementing the WTO Customs Valuation Agreement (CVA) on 
the basis of the GCC Common Customs Law and its Rules of Implementation and Explanatory 
Notes.10 The first basis for determining the value for customs purposes is the transaction value. If 
the transaction value cannot be determined, the customs value is to  be calculated by proceeding 
through the basic methods set by the CVA. Oman has reserved its rights under Annex III, 
paragraph  3 (concerning reversal of sequential order of Articles 5 and 6) and paragraph 4 (to apply 
Article  5.2 whether or not the importer  so requests).11 Tariffs are levied on the c.i.f. value of imports.  
3.9.  In 2018, Switzerland informed the Committee on Customs Valuation that it had doubts about 
Oman's respect of its commitment to use the declared transaction value as the basis for assessing 
the value of cigarettes imports. Switzerland and Oman informed the Committee in 2019 that they 
had resolved their disagreement.12 13 
3.10.  In mid -2019, the Royal Oman Police introduced a new advance rulings programme, in 
accordance with Oman's Logistics Strategy  2040.14 Advance rulings can be requested with regard to 
tariff classification, customs valuation, or rules of origin. Advance rulings are binding throughout the 
customs territory at all customs offices and valid for a specific period.15 
3.11.  Oman replied to th e Checklist of Issues in the Committee on Customs Valuation in 2008.16 
3.12.  In 2014, Oman ratified the Revised Kyoto Convention, on the simplification and harmonization 
of customs procedures.17 The International Convention on the Harmonized Commodity Description 
and Coding System was approved in 2016.  
3.13.  To settle customs valuation and classification disputes, an operator may appeal to the 
Directorate General of Customs, next to the Inspector Gener al of Police and Customs, then to the 
Minister of Finance, and lastly to the Omani Court of Arbitration. In 2020, the Directorate adjudicated 
111 complaints, all of which related to valuation.  
3.1.2   Rules of origin  
3.14.  Oman has notified the WTO that it does not have  rules of origin for non -preferential 
transactions.18 
3.15.  Under the GCC Customs Union, products are generally considered as originating from the 
country where they are wholly obtained or where they underwent substantial transformation 
(defined as change in tar iff classification, or based on value -added criteria). Imported goods in the 
GCC are subject to the rules of origin of its international agreements.19 Products of the Pan -Arab 
Free Trade Area (PAFTA), to which the GCC member States belong, qualify for pref erential treatment 
when at least 40% of value is added locally.20 
3.16.  Under the trade agreement with the United  States, local value added of at least 35% is 
necessary for a good to be originating from one of the parties. The GCC -Singapore sets the same 
35% thr eshold for treating a good as originating from a party. Article  6.6 of this agreement warns 
 
9 Trade Facilitation  Agreement Database. Viewed at: https://tfadatabase.org/members/oman . 
10 WTO document G/VAL/N/1/OMN/2, 8 September 2008.  
11 WTO document WT/Let/368, 22 December 2000.  
12 WTO document G/VAL/M/66, 13 June 201 8. 
13 WTO document G/VAL/M/67, 2 April 2019.  
14 Oman Daily Observer , "Oman Introduces New Advance Rulings Programme for Customs", 24 July 
2019.  
15 Royal Oman Police, Advance Rulings, Directorate General of Customs.  
16 WTO document G/VAL/N/1/OMN/1, 8 September 2008.  
17 Royal Decree No.  60/2014.  
18 WTO document G/RO/N/32, 30  April 2001.  
19 GCC Common Customs law, Article  25, 2003.  
20 Arab Rules of Origin for the Purpose of Implementing the Agreement to Facilitate and Develop Trade 
among Arab States, Rule 2: Standard of Origin.  WT/TPR/S/418 • Oman  
 
- 36 - 
 
  that normal rules of origin provision do not apply for goods or services imported or supplied for the 
purpose of government procurement. The GCC -European Free Trade  Association (EFTA) free trade 
agreement (FTA) lays out a specific list of products that are considered as wholly obtained in the 
territory of a Party, such as vegetable products harvested there or products obtained by hunting, 
trapping, or fishing there.21 Products that are not included in this list can be considered to be 
sufficiently worked or processed with specific conditions applying for each category in order to be 
eligible for preferential tariff treatment.  
3.1.3   Tariffs  
3.1.3.1   Applied MFN tariff  
3.17.  Oman's MFN tari ff comprises 7,561 lines, up from 7,301 in 2014 (Table 3.1). Except for 
20 tariff lines on tobacco products, which carry a mixed tariff, all lines are ad valorem . There are no 
tariff quotas. Oman's tariff is based on the GCC's common external tariff, which  consists of 
three  rates: zero (11.1% of all lines), 5% (87.1%), and mixed tariffs (0.3%). However, Oman also 
applies a 100% tariff (0.8% of the lines) on imports of alcoholic beverages and pork and pork 
products (Chart 3.1).22 Duty-free items include agri cultural raw materials and basic food products, 
medical and pharmaceutical products, and other products such as certain newspapers, books, and 
magazines; unwrought precious metals; vessels; and airplanes.  
Table 3.1 Structure of Oman's MFN tariff, 2014 and 2021  
(%, unless otherwise indicated)   
MFN applied  Final bounda   2014  2021  
Bound tariff lines (% of all tariff lines)  n.a. n.a. 100.0  
Simple average rate  5.5 5.5 13.6 
   WTO agricultural products  10.1 10.2 27.7 
   WTO non -agricultural products  4.6 4.6 11.4 
Duty-free tariff lines (% of all tariff lines)  11.1 11.1 5.8 
Simple average rate of dutiable lines only  6.2 6.2 14.5 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)b 0.3 0.8 0.0 
Domestic tariff "peaks" (% of all tariff lines)c 1.1 1.2 1.6 
International tariff "peaks" (% of all tariff lines)d 1.1 1.2 5.8 
Standard deviation  10.1 10.1 18.2 
Coefficient of variation  1.8 1.8 1.3 
Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.1 
n.a. Not applicable.  
a Final bound rates are based on the Consolidated Tariff Schedule (CTS) in HS12 nomenclature.  
b Including 42 prohibited tariff lines (0.6% of total lines) in case of the 2021 tariff analysis.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greate r than zero, but less than or equal to 2%.  
Note:  The 2021 tariff is based on HS17 nomenclature. In case of non -ad valorem  tariffs, the ad valorem  
part is used for mixed duties.  
Source:  WTO Secretariat calculations, based on data provided by the authorities  and WTO CTS database.  
3.18.  Oman's overall average MFN applied tariff is 5.5%, the same as at the time of its last Reviews, 
in 2008 and 2014. The modal rate is 5%. On the basis of the WTO definition, tariffs average 10.2% 
in agriculture, and 4.6% on non -agricul tural products. Using the ISIC (Revision 2) definition, the 
least tariff -protected sector is agriculture with 3.6%, followed by mining and quarrying (4.9%), and 
manufacturing (5.7%) (Table 3.2).  
 
21 The list is provided in Article  IV of the FTA between the EFTA States and the Member States of the 
Cooperat ion Council for the Arab States of the Gulf.  
22 Alcoholic beverages and pork products are "special products" under the GCC Agreement; GCC 
member States are allowed to prohibit the importation of these items or apply tariffs set at the national level.  WT/TPR/S/418 • Oman  
 
- 37 - 
 
  Chart 3.1 Distribution of MFN tariff rates, 2021  
 
Note:  Figures in parentheses denote the share of total lines. The 2021 tariff schedule consists of 7,561 
tariff lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.2 Oman's applied MFN tariff summary, 2021  
 
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  7,561  5.5 0-100 10.1 11.1 0.8 
HS 01 -24 1,469  9.0 0-100 22.0 23.9 2.7 
HS 25 -97 6,092  4.7 0-100 2.8 8.1 0.4 
By WTO category        
WTO agricultural products  1,252  10.2 0-100 23.8 21.0 3.1 
Animals and products thereof  157 14.7 0-100 32.1 40.1 1.9 
Dairy products  44 5.0 5 0.0 0.0 0.0 
Fruit, vegetables, and plants  365 7.0 0-100 16.9 23.8 2.5 
Coffee, tea, and cocoa and cocoa 
preparations  38 8.7 0-100 21.6 26.3 0.0 
Cereals and preparations  191 3.6 0-5 2.3 28.8 0.0 
Oils seeds, fats, oil and their 
products  101 10.6 0-100 22.8 4.0 3.0 
Sugars and confectionery  40 5.8 0-100 15.3 32.5 0.0 
Beverages, spirits and tobacco  118 35.8 0-100 44.5 0.8 17.8 
Cotton  5 5.0 5 0.0 0.0 0.0 
Other agricultural products, n.e.s.  193 5.7 0-100 12.1 15.5 1.6 
WTO non -agricultural products  6,309  4.6 0-100 2.5 9.2 0.4 
Fish and fishery products  303 3.5 0-5 2.3 29.0 0.0 
Minerals and metals  1,219  4.9 0-5 0.7 2.1 0.9 
Chemicals and photographic 
supplies  1,323  4.5 0-5 1.5 9.8 0.1 
Wood, pulp, paper and furniture  469 4.6 0-5 1.4 8.7 0.0 
Textiles  724 5.0 0-5 0.4 0.6 0.0 
Clothing  254 5.0 5 0.0 0.0 0.0 
Leather, rubber, footwear and 
travel goods  207 6.4 5-100 11.5 0.0 2.4 
Non-electric machinery  652 4.2 0-5 1.8 16.3 0.0 
Electric machinery  330 3.3 0-5 2.4 33.9 0.9 
Transport equipment  248 4.5 0-5 1.5 10.5 0.0 
Non-agricultural products, n.e.s.  545 4.6 0-5 1.4 8.6 0.2 
Petroleum  35 5.0 5 0.0 0.0 5.7 
05001,0001,5002,0002,500
Duty free 5% 20% 25% 100% Mixed duty ProhibitedChart 3.[OMN]  Distribution of MFN tariff rates, 2021
Number of tariff lines
Note:   Figures in parentheses denote the share of total lines.  The 2021 tariff schedule consists of 7,561 tariff lines.
Source:   WTO Secretariat calculations, based on data provided by the authorities.7,000
6,500
(11.1%)(87.1%)
(0.03%) (0.8%) (0.6%) (0.04%) (0.3%)WT/TPR/S/418 • Oman  
 
- 38 - 
 
   
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing  540 3.6 0-100 10.8 51.5 3.7 
ISIC 2 - Mining and quarrying  127 4.9 0-5 0.8 2.4 4.7 
ISIC 3 - Manufacturing  6,893  5.7 0-100 10.1 8.1 0.5 
By stage of processing        
First stage of processing  985 4.3 0-100 8.6 28.8 2.8 
Semi-processed products  2,250  4.9 0-100 3.6 4.6 0.0 
Fully processed products  4,326  6.1 0-100 12.4 10.5 0.8 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas, and water are excluded 
(1 tariff line).  
Note:  Calculations for averages are based on the national tariff line level (8 -digit). Tariff schedule is based 
on HS17. In case of non -ad valorem  rates, the ad valorem  part is used for mixed rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.19.  Fiscal income generated by customs increased continuously between 2014 and 2019 
(Table  3.3). 
Table 3.3 Customs revenue, 2014 -20 
('000 OMR)  
Year  Tariff revenue  
2014 1,082,875.7  
2015 1,099,098.2  
2016 1,141,046.7  
2017 1,141,997.3  
2018 1,263,875.8  
2019 1,442,749.7  
2020 .. 
.. Not available.  
Source:  Ministry of Finance.  
3.1.3.2   Tariff bindings  
3.20.  Upon its accession to the WTO, Oman bound 100% of its tariffs at rates averaging 13.8% and 
ranging up to 200% (on animal products, and beverages and tobacco). Average bound rates are 
28% on agricultural products and 11.6% on non -agricultural goods.  
3.21.  For 26 tariff lines, applied rates are higher than bound rates (Table 3.4). All of these lines 
carry higher tariffs in 2021 than  at the time of the previous Review.  
Table 3.4 Tariff lines where applied rate exceeds bound tariff rate  
No. HS code  Product description  2021 
applied 
tariff  Bound 
tariff  
1. 02050090  Meat of horses, asses, mules or hinnies, fresh, chilled or 
frozen, excluding meat of horses  100 15 
2. 05021000  Pigs', hogs' or boars' bristles and hair and waste thereof  100 15 
3. 08055020  Lemons and limes, dried  100 15, 30, 80  
4. 15180011  Animal or vegetable fats and oils and their fractions of pig  100 15 
5. 16029030  Preparations of animal blood  100 15 
6. 17049080  White chocolate containing alcohol  100 15 
7. 18063110  Chocolate and other preparations containing cocoa, in blocks, 
slabs or bars, filled, containing alcohol  100 15 
8. 18063210  Chocolate and other preparations containing cocoa, in blocks, 
slabs or bars (excl. filled), containing alcohol  100 15 
  2008 Fruits, nuts and other edible parts of plants, prepared or preserved:   
9. 20082010  Pineapples, containing added spirit  100 15 WT/TPR/S/418 • Oman  
 
- 39 - 
 
  No. HS code  Product description  2021 
applied 
tariff  Bound 
tariff  
10. 20083010  Citrus fruit, containing added spirit  100 15 
11. 20084010  Pears , containing added spirit  100 15 
12. 20085010  Apricots, containing added spirit  100 15 
13. 20086010  Cherries, containing added spirit 100 15 
14. 20087010  Peaches, containing added spirit  100 15 
15. 20088010  Strawberries, containing added spirit  100 15 
16. 20089310  Cranberries, containing added spirit  100 15 
17. 20089710  Mixtures, containing added spirit  100 15 
18. 20089910  Other, containing added spirit  100 15 
19. 22072090  Inactive ethyl alcohol  100 15 
20. 23070010  Wine lees  100 15 
21. 41033000  Other raw hides and skins of swine  100 15 
22. 41063100  Tanned or crust hides and skins of swine in the wet state  100 15 
23. 41063200  Tanned or crust hides and skins of swine in the dry state  100 15 
24. 41132000  Leather further prepared after tanning or crusting of swine  100 15 
25. 84797100  Passenger boarding bridges: of a kind used in airports  5 0 
26. 85489000  Electrical parts of machinery or apparatus, not specified or 
included elsewhere in Chapter 85  5 0, 15 
Source:  WTO Secretariat calculations, based on data provided by the authorities and the CTS database.  
3.1.3.3   Tariff preferences  
3.22.  Products from GCC member States circulate free of duty across the customs union. With the 
exception of tobacco and alcohol products, imports originating from the other members of PAFTA 
enter Oman duty -free. Products from EFTA members, Singapore, and the Un ited States receive 
preferential treatment (Table 3.5).  
Table 3.5 Tariffs under preferential agreements, 2021  
Tariff regime  Simple average (%)  
Overall  WTO Agriculture  WTO Non -agriculture  
MFN 5.5 10.2 4.6 
United  States  0.0 0.0 0.0 
EFTA 1.1 6.6 0.1 
Singapore  1.2 6.5 0.2 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.4   Tariff exemptions and concessions  
3.23.  Section VIII of the Common Customs Law of GCC States specifies tariff exemptions and 
concessions. Duty -free imports are allowed for the armed forces, the police, and charity institutions. 
Additional exemptions and concessions are specific to each GCC member State and may therefore 
differ from one State to another. Eff orts to harmonize the exemptions and concessions regimes at 
the GCC  level are ongoing.  
3.24.  Oman grants tariff exemptions on raw materials, machinery, and equipment imported for local 
production under the Local and GCC Industries Laws. In addition, duty concess ions may be granted 
to certain industries or companies on imports necessary for their operational use. No information 
was available on the value of duties forgone on private sector imports resulting from these 
exemptions.  
3.1.4   Other charges affecting imports  
3.25.  In December 2015, GCC member States decided to implement a value added tax (VAT) of 
5%, levied on the import and supply of goods and services at each stage of production and 
distribution.23 Royal Decree No.  121/2020 published in October 2020 promulgated Oman 's VAT law. 
It applies to all goods and services, except those related to healthcare; education; financial services; 
basic food items; public transport; sale of real estate; crude oil, petroleum derivatives, and natural 
gas; supplies for charities; vacant lands; supply of investment in gold, silver, and platinum; and 
 
23 Unified VAT Agreement for the Cooperation Council of the Arab States of the Gulf.  WT/TPR/S/418 • Oman  
 
- 40 - 
 
  rescue aircraft s and vessels. In January 2021, Oman specified 94 custom tariff items to be exempt 
from the VAT.24 Enforcement of the law started in April 2021. Registration is mandatory for 
companies with a monthly turnover of over OMR  38,500.  
3.26.  Oman levies an excise tax on alcoholic beverages (50%) and on pork meat, carbonated drinks, 
and cigarettes (100%).25 
3.1.5   Import prohibitions, restrictions, and licensing  
3.27.  Under the GCC Common Customs Law, each GCC member State determines its own list of 
prohibited or restricted products, although members are developing a common list. Imports that are 
prohibited in some GCC member States and permitted in others can only be imported from the latter 
and must not tr ansit through the States in which they are prohibited.  
3.28.  Oman has yet to provide a list of import prohibitions and restrictions according to the 
2012 Decision on Notification Procedures for Quantitative Restrictions.26 
3.29.  Oman operates import prohibitions for r easons of human, plant, and animal health; public 
morals; environment; and security. They cover, inter alia , narcotics, weapons, certain media 
products, and several country -specific animal products (Table 3.6). Oman is a participant in the 
Basel Convention  on Hazardous Wastes, the Rotterdam Convention on Trade in Hazardous 
Chemicals, the Stockholm Convention on Persistent Organic Pollutants, the Montreal Protocol, and 
CITES, among others.27 
Table 3.6 Import pro hibitions  
HS Code  Institution  Products  
01061310  Ministry of Agriculture, Fisheries and Water 
Resources  Pure-bred animals for breeding  
01061320  Ministry of Agriculture, Fisheries and Water 
Resources  For domestic competitions and racing  
01061390  Ministry of Agriculture, Fisheries and Water 
Resources  Other camels and other camelids  
13019060  Ministry of Agriculture, Fisheries and Water 
Resources  Olibanum  
13019070  Ministry of Agriculture, Fisheries and Water 
Resources  Frankincense  
13019080  Ministr y of Agriculture, Fisheries and Water 
Resources  Storax  
28445000  Environment Authority  Spent (irradiated) fuel elements (cartridges) of 
nuclear reactors  
3303 MOCIIP  Perfume in the form of bombs  
36041010  Royal Oman Police  Fireworks for children  
39199000  Royal Oman Police  Blackout materials and chips used to insulate 
vehicle glass from heat exceeding 30%  
39232990  MOCIIP  Plastic bags  
4012 MOCIIP  Tires bearing the word "Majesty" (God)  
56081100  Ministry of Agriculture, Fisheries and Water 
Resources  Scorpio -type fishing nets (from nylon containing 
three layers with openings of different sizes) and 
manchol  
Chapter 64  MOCIIP  Shoes of Chinese origin bearing the Egyptian logo 
(Eagle)  
82119190  MOCIIP  Pencil knives  
90132010  MOCIIP  .. 
95030020  MOCIIP  Toys and dolls in any form that contain flammable 
liquids  
95030090  MOCIIP  .. 
96084000  MOCIIP  .. 
96091000  MOCIIP  .. 
96138000  MOCIIP  .. 
8703 MOCIIP  Special personal vehicles older than 7 years  
8701, 8702, 
8704, 8705  MOCIIP  Trucks and buses older than 10 years  
 
24 Times of Oman , "New Executive Decisions on VAT Implementation Issued by Oman Tax Authority", 
6 January 2021.  
25 Information provided by the authorities.  
26 WTO document G/MA /QR/10, 15  December 2020.  
27 Omanuna, Oman eGovernment Services Portal, Strategies and Policies . WT/TPR/S/418 • Oman  
 
- 41 - 
 
  HS Code  Institution  Products  
Chapter 84  
Multiple items  MOCIIP  .. 
Chapter 95  MOCIIP  .. 
Multiple items  MOCIIP  Right-hand drive vehicles or vehicles transferred 
from right -hand drive to the left  
9608 Central Bank of Oman  Magic ink pens  
Multiple items  MOCIIP  Foreign goods and products that are not recorded 
with the country of manufacture  
Multiple items  MOCIIP  Goods with advertisement promoting cigarettes and 
alcoholic beverages  
Multiple items  MOCIIP  Clothes that have pictures of suspicious 
personalities and celebrities and also clothes that 
have phrases and words  
Multiple items  MOCIIP  Goods and products bearing the dagger and crown 
logo 
Multiple items  MOCIIP  Kinds that have international club logos  
Multiple items  MOCIIP  Charcoal if from Somalia, Nigeria, Côte  d'Ivoire, 
Ghana, Comoros, Djibouti, and the Islamic Republic 
of Iran  
.. Not available.  
Source:  Information provided by the authorities.  
3.30.  Since its last Review in 2014, Oman has added several items to its list of prohibited impor ts: 
palm trees and coconut trees, asbestos goods and products, private vehicles older than seven years, 
pirated decoders, some dog breeds, and e -cigarettes and e -shishas.  
3.31.  In recent years, Oman has lifted bans on imports of livestock from South  Africa28; poultry 
products from Austria, Cambodia, Croatia, Cyprus, Denmark, Finland, Ghana, Greece, several Indian 
States, Italy, Côte  d'Ivoire, Lao People's Democratic Republic, Republic of North  Macedonia, 
Malaysia, the Netherlands, Poland, Slovakia, Sweden, Togo, and Zimbabwe29; live birds from the 
Czech  Republic, Hungary, Kenya, Poland, Romania, the Kingdom of Saudi Arabia, Slovakia, the state 
of South Carolina (United  States), Ukraine, Viet  Nam, the state of Virginia (United  States)30; animal 
products and feed  from Belgium31; and tilapia fish from Mexico.32 
3.32.  Oman's import restrictions cover, inter alia , live animals, food products, and tobacco chemical 
products; they are a pplied for safety, moral , and health reasons (Table  3.7). Goods subject to these 
restrictions must be accompanied by certificates from the relevant authorities.  
Table 3.7 Import restrictions, June 2021  
HS Code  Institution  Products  
01-15, 23, 
31, 44  Ministry of Agriculture, 
Fisheries and Water 
Resources  • Live animals, fish, and all products of animal origin such as meat, milk 
and dairy products, bird eggs, animal fats and o ils, food prepared for 
animals such as fodder, vitamins and veterinary medicines, hides, furs, 
wool and dander, and circus animals  
• Natural honey and plant products such as palm plantations, cuttings, 
vegetables, fresh and cooled fruits, trees, plants, bulbs, roots, cut 
flowers and branches for decoration, coffee, unroasted tea, spices 
uncrushed or powdered, wheat grains, barley, corn, rice, seeds, gum, 
resins and plant extracts, and plant materials  
• Vegetable wax, bee wax, insects, bran, cake and  seed residues, raw 
tobacco, timber, mats and rugs, raw silk, raw flax  
• Fertilizers, insecticides and fungicides  
24-25, 
32-34, 64, 
71, 87, 95  MOCIIP  • Tobacco products, cement, motor oils, emulsified paints, cosmetics 
and mouthwashes, deodorants, aromatic preparations in jet 
containers, preparations for washing powder, hand washing and 
utensils, new tires, protective shoes, pearls, precious stones and their 
articles, and armatures, household electrical appliances, buggies, cars, 
trucks,  trailers, new bikes, and children's toys  
• Banknotes, wagons, cars, trucks, trailers, used bikes  
 
28 Ministerial Decision No.  2/2019.  
29 Ministerial Decision No.  362/2019; Muscat Daily, Oman bans imports of poultry products from 
four countries, lifts bans for five, 18 April 2018.  
30 Ministerial Decisions No.  146/2020 and No. 221/2020 .  
31 Ministerial Decision No.  68/2020.  
32 Ministerial Decision No.  176/2020.  WT/TPR/S/418 • Oman  
 
- 42 - 
 
  HS Code  Institution  Products  
8443, 
8517, 8528  Ministry of Transport, 
Communications and 
Information 
Technology  • Copiers, printing machines, screens, devices connected to self-
processing devices for data and the network, telephones and 
telecommunications, audio, image or data transmitting and receiving 
devices, GPS positioning devices  
26, 28 -29, 
38 Environment Authority  • Organic and inorganic chemical products, organic and inorganic 
compounds of metals, nitrates, phosphates and their fertilizers, 
sulphates, organic solvents and thinners, chemical reaction 
preparations, varnish and glue additives, products and preparations of 
the chemical industry, epoxide resins, urea and th iourea resins  
• Uranium and thorium ores and their concentrates, slag, ash and 
residues of radioactive materials, natural uranium and its compounds, 
radioactive elements, isotopes and compounds, nuclear reactor fuel 
elements, devices containing X-rays, alpha, beta and gamma rays  
• Gases, refrigeration and air conditioning equipment  
• Wild animals, caviar, bags and shoes of genuine leather, articles of 
ivory and tortoiseshell bones, horns, coral and shells  
• Waste chemicals, waste polymers and plastics, waste rubber, scrap 
and waste iron, copper, nickel, lead, zinc and tin, and waste metals  
18, 20, 22, 
31, 93  Royal Oman Police  • Chocolate containing alcohol, juices containing alcohol, whiskey, beer, 
alcoholic beverages, and binoculars mounted on weapons, weapons 
and ammunition and their parts and accessories for persons and shops  
• Military hats and clothing, armoured vehicles, binoculars mounted on 
weapons, weapons and ammunition and their parts and supplies for 
military entities, remote control aircraft  
• Sodium nitrate, ammonium nitrate, explosives, wicks for safety and 
detonation, fireworks, and technical pyrotechnics  
25, 27  Ministry of Energy and 
Minerals  • Liquefied natural gas, liquefied propane gas, liquefied butane gas, 
liquefied petroleum gases and gases in a gaseous state  
• Sand, gravel, stones, dolomite, gypsum, lime, meteorites, ores and 
concentrates of minerals  
49 Ministry of Information  • Dictionaries and encyclopaedias, the Noble Qur'an, books, brochures, 
pamphlets, newspapers and magazines, drawing and colouring 
collections for children, catalogues  
• Cultural, scientific, agricultural, health and educational films, and 
magnetic and optical carriers that contain a substance  
3301, 
4901, 
9307, 97  Ministry of Heritage 
and Tourism  • Over 100 years old handwritten books and manuscripts  
• Metals and artifacts dated more than 100 years old, daggers and 
ancient swords  
• Frankincense oil, rose oil, palm fronds, wooden door, censers and 
pottery vases, shields, doors and copper plates, and Omani daggers  
30 Ministry of Health  • All medicines and pharmaceutical products  
Source:  Information provided by the authorities.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.33.  Oman notified the WTO in 2015 that it had ratified the GCC Amended Common Law on 
Anti-Dumping, Countervailing and Safeguards through Royal Decree No.  20/2015.33 Article  8 of the 
2001 Economic Agreement between the GCC States already called upon GCC member State s to unify 
their legislation related to anti -dumping. Oman adopted the GCC Treaty provisions on contingency 
trade remedies through Royal Decree No.  20/2015 and its Implementing Regulations through 
Ministerial Decision No.  315/2015.34 
3.34.  The GCC Industrial Coo peration Committee, the Committee on Anti -Injurious Practices in 
International Trade and the Bureau of Technical Secretariat of Anti-injurious Practice in International 
Trade (GCC -TSAIP)  are responsible for implementing the GCC Common Law on Antidumping, 
Countervailing Measures and Safeguard Measures, as amended in 2010.35 
3.35.  While no anti -dumping, countervailing, or safeguard measure was reported under the 
2014 Review, the GCC started to impose anti -dumping measures in June 2017 by first targeting 
electric le ad-acid accumulators of capacity between 35 and 115 Amp -hours from the Republic of 
 
33 WTO document G/ADP/N/1/OMN/3, 28  September  2015.  
34 Information provided by the authorities.  
35 GCC Common Law on Antidumping, Countervailing Measures and Safeguard Measures, 2011, 
Article  7. WT/TPR/S/418 • Oman  
 
- 43 - 
 
  Korea.36 The last notification made to the WTO, covering the period July -December 2020, lists 
anti-dumping duties imposed on China,  India,  the Republic of Korea, Poland and Spain.37 
3.36.  The GCC imposed a provisional safeguard measure on 1  November  2016 on imports of ferro -
silico-manganese for a duration of 200 days.38 It also imposed in May 2018 safeguard duties on 
imports of flat -rolled products of iron or non -alloy steel for th ree years39 and on chemical plasticizers 
for three years starting in June 2019.40 
3.1.7   Other measures affecting imports  
3.37.  Oman does not apply any sanctions other than those adopted by the United Nations Security 
Council. No agreement has been concluded with forei gn governments or foreign firms to restrict 
exports to Oman. Oman does not maintain any compulsory reserve stocks and has never taken 
measures for balance -of-payment purposes. Oman has not notified any trade -related investment 
measures (TRIMs) to the WTO.  
3.38.  In 2014, Oman established the Omani Authority for Partnership for Development (OAPFD), 
which applies international offset contracts.41 Offset obligations are applied to all large civilian and 
military procurement contracts with foreign companies and Omani companies where foreign content 
is involved.42 The OAPFD was merged into the Public Authority for Privatization and Partnership 
in 201943, which was then cancelled and transferred to the Ministry of Finance in August 2020.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.39.  Exports need to be accompanied by the following documentation: (i)  a copy of the export 
invoice; (ii)  a packing list; (iii)  the application letter for the export of used or personal belongings 
issued by  the employer (for foreigners only); (iv)  the import declaration; and (v)  the form for 
clearing and classifying goods according to the Customs procedure. In addition, companies exporting 
restricted goods need to be registered to the Ministry of Commerce, I ndustry and Investment 
Promotion (MOCIIP) and provide an approval from the relevant authority.44 Specific requirements 
apply for re -exportation.45 
3.2.2   Taxes, charges, and levies  
3.40.  According to the authorities, Oman does not apply any export duty or tax. No provision on 
the use of export duty, charges, or other restrictions is contained in the 2001 Economic Agreement 
between the GCC States.46 
3.2.3   Export prohibitions, restrictions, and licensing  
3.41.  Oman prohibits exports  of antiques, ancient manuscripts, and Maria Theresa thalers (historic 
rials). Export restrictions apply to date palms and seedlings47, and to specific species of fish and 
molluscs in cases of over -exploitation, notably during breeding seasons.48 Ministeri al Decisions 
No. 395/2019 and No.  134/2020 also prohibited the export of raw marble and Omani goat and sheep 
 
36 WTO document G/ADP/N/300/OMN, 29 August 2017.  
37 WTO document G/ADP/N/350/OMN, 5  February  2021.  
38 WTO document G/SG /N/11/OMN/1, 21  October  2016.  
39 WTO document G/SG/N/11/OMN/2/Suppl.2, 30  April 2018.  
40 WTO document G/SG/N/11/OMN/3/Suppl.1, 14 June 2019.  
41 International Chamber of Commerce, ICC -ECCO Guide to International Offset Contracts, 2019.  
42 Curtis, Mallet -Prevos t, Colt & Mosle LLP, Oman Law Blog, Offset Obligations Under the Oman 
Authority of Partnership for Development , 26 January 2016.  
43 Royal Decree No.  54/2019.  
44 Dubai Exports, Exporting to Oman Economic Overview & Trade & Analysis , August 2019.  
45 Royal Oman Police, Customs Services, Directorate General of Customs.  
46 WTO document WT/COMTD/RTA/9/1, WT/REG276/1, 21 March 2018.  
47 Importation and exportation of date palms and seedlings are subject to risk analysis.  
48 The latest ban on abalone fishing, which lasted for two years, was removed through Ministerial 
Decision No.  246/2019. To regulate stocks, a ban on lobster fishing applies from June to February, and shrimp 
fishing is allowed only from September to November . WT/TPR/S/418 • Oman  
 
- 44 - 
 
  breeds  respectively. In the wake of the COVID -19 cris is, the Directorate General of Pharmacy and 
Drug Control banned the export of masks and hand sanitizers.49 In addition, export permits are 
needed for locally mined or quarried products.  
3.42.  The Ministry of Agriculture, Fisheries and Water Resources announced i n April 2020 that 
exporters of livestock should get a permit from the Ministry and enclose a copy of the import permit 
for livestock from the importing country.50 
3.2.4   Export support and promotion  
3.43.  Oman notified the WTO in June 2017 that it does not grant or mai ntain any export subsidy 
within the meaning of the Agreement on Subsidies and Countervailing Measures.51 
3.44.  Oman's law on partial or full refund of custom duties for re -exportation follows the Unified 
Customs Laws of the GCC.52 Duty refunds are allowed under Article  16 of the Executive 
Supplementary Notes to the GCC Customs Law. It permits exporters to recover the duty paid on 
their imported products once the product is re -exported from Oman. The qualifying conditions 
include that: (i)  the exporter is also the  original importer of the product; (ii)  the value of the 
re-exported goods is not less than USD  5,000; (iii)  the goods are re -exported within one year of 
payment of the import duty and the claim for drawback made within six months from the date of 
re-expor tation in the same condition as when they were imported; and (iv)  the exports are not 
restricted under Omani law, unless prior permission is obtained from the relevant authority. Proof is 
required that the goods being exported are identical to the goods th at were imported.53 
3.45.  Under Oman's re -export or transit regimes, goods that can be re -exported and for which duty 
concessions can apply are: (i)  imports not withdrawn from customs warehouses (at air and sea 
customs offices only); (ii)  imports to be exported that have been granted a temporary release, for 
up to six months, against a bank or cash guarantee; (iii)  imports under the temporary entry scheme 
to be re -exported; and (iv)  suspended goods put in stores. If the goods are sold in Oman instead of 
being re -exported, the appropriate duties are levied.54 
3.46.  The Public Authority for Investment Promotion and Export Development was abolished and 
merged into the new MOCIIP in August 2020 ( Section 2.1 ).55 Royal Decree No.  105/2020 created 
the Public Authority for Special Economic Zones and Free Zones.  
3.47.  Oman has three free zones: Al Mazunah Free Zone (AMFZ), inaugurated on 
24 November  1999; Salalah Free Zone (SFZ), established under Royal Decree No.  62/2006;  and 
Sohar Port and Free Zone, established by Royal Decree No.  123/2010. Oman also possesses 
two special economic zones (SEZs): the Duqm SEZ and the Knowledge Oasis Muscat SEZ. The New 
Foreign Capital Investment Law (NFCIL) permits 100%  foreign ownership, which has been one of 
the main incentives of the free zones for years. Additionally, companies in the free zones can benefit 
from custom duties exemptions on imports and re -export to non -GCC countries and from no 
minimum capital requirements. The SFZ and t he AMFZ offer a reduced 10% rate of Omani nationals 
employment requirement compared to the standard 30%, as well as a 30 -year corporate tax 
holiday.56 Yemeni nationals have additional benefits in the AMFZ. The Sohar Free Zone offers 
Omanization requirement s reduced to 15% for 10 years and a 25 -year tax holiday. Each free zone 
also has its own customs office and a dedicated one -stop shop to help with the required permits and 
approvals.  
 
49 Oman Daily Observer , "No Export, Bulk Sale of Face Masks", 26 February 2020.  
50 Oman Daily Observer , "No Export of Livestock without Approval: MoAF", 20 April 2020.  
51 WTO document G/SCM/N/315/OMN, 26  June 2017.  
52 Royal Oman Police, Oman Government Porta l, Refunding Customs Taxes (Duties).  
53 Gulf Cooperation Council Secretariat General, Common Customs Law, Interpretative Annex, 
Article  16. 
54 Royal Oman Police, Oman Government Portal, Customs Services.  
55 Royal Decree No.  97/2020.  
56 CMS Law, CMS Guide to Oman's Economic and Free Zones , 14 October 2019.  WT/TPR/S/418 • Oman  
 
- 45 - 
 
  3.48.  The two SEZs57 offer a reduced Omanization rate of 25%. Duqm SEZ does not  apply custom 
duties or a minimum capital requirement (contrary to Knowledge Oasis Muscat, where it stands at 
OMR 20,000) and provides an income tax exemption for 30 years.58 The Government established, 
through Royal Decree No.  119/2011, the Duqm SEZ in 20 11 in a bid to attract private investments 
in diverse sectors, including industrial petrochemical and mineral processing, transit trade and 
logistics services, tourism resorts, and commercial and residential complexes. This comes as part of 
an overall nati onal strategy to diversify the economy, maximize the contribution of the private sector 
to GDP growth, reach equitable development among Oman's different regions, and provide 
Omani  nationals with opportunities to invest, work, and reside in Duqm.  
3.49.  According  to the authorities, no distinction is made between locally and foreign -owned 
companies with respect to access to the free zones or bonded warehouses. Custom duties of 5% of 
the value of goods apply to goods imported into a free zone and then exiting the f ree zone towards 
Oman or another GCC country.59 60 
3.50.  Free zones issue four types of licences: (i)  general trading licences allow holders to import, 
export, distribute, and store all items as provided for by the free -zone rules and regulations; 
(ii) trading licences permit holders to import, export, distribute, and store items specified on the 
licence; (iii)  industrial licences allow holders to import raw materials, carry out the manufacture of 
specified products, and export the finished product (subjected to clearance); and (iv)  service licences 
permit holders to carry out the services specified in the licence, within the free zone.61 
3.51.  Free zones and SEZs are important elements of Oman Vision 2040 and Logistics Strategy 
2040, which aim at position ing the Sultanate as a major trade hub.62 A project to establish a new 
SEZ in Musandam is in progress.63 
3.2.5   Export finance, insurance, and guarantees  
3.52.  The fully government -funded Credit Oman SAOC, formerly Export Credit Guarantee Agency 
of Oman (ECGA), promote s Oman's exporters and manufacturers regardless of their ownership. 
Credit Oman provides credit insurance through the following programmes: export and domestic 
credit insurance, small and medium -sized enterprise (SME) credit insurance, multi -buyer credit 
insurance, and documentary credit insurance policy (DCIP). Credit Oman also advises exporters on 
the credit worthiness of overseas buyers and guides exporters on their credit collection and recovery 
of bad debts.64 It has notably been supporting Oman's expo rters through the COVID -19 crisis.65 Its 
services are available to Oman -based exporters of any size, operating in any industrial or services 
sector.  
3.53.  Credit Oman's Export and Domestic Credit Insurance Policy provides protection of up to 
80% against commerci al risk and up to 85% against non -commercial risk. The SME policy is aimed 
to protect SMEs against losses. The Multi -Buyer Insurance provides protection to large companies 
of up to 10% of annual turnover. DCIP is an instrument available to commercial banks  in which 
Credit Oman protects them against the risk of non -payment of an import letter of credit.  
 
57 SEZs are integrated regional development projects, allowing all kinds of economic activities, while 
free zones are fenced -in pieces of land, with their own customs office, with predefined economic activiti es and 
no housing allowed.  
58 CMS Law, CMS Guide to Oman's Economic and Free Zones, 14 October 2019.  
59 Sohar Port and Freezone, SOHAR Freezone Investor Guide, 2017.  
60 Healy Consultants Group PLC, Oman: Free Zones . Viewed at: 
https://www.healyconsultants.com/oman -company -registration/free -zones/ . 
61 Salalah Free Zone, Licenses . Viewed at: https://www.sfzco.com/serv ices_overview.html . 
62 Oman Daily Observer , "Investments in Sohar, Salalah Free Zones Total RO 3.7 bn", 30 June 2020.  
63 Oman Daily Observer , "Proposal to Establish Special Economic Zone in Musandam ", 29 August 2019.  
64 Credit Oman, Services . Viewed at: http://arabic.creditoman.om/services.aspx . 
65 Oman News Agency , "Credit Oman Provides Services to Omani Manufacturers, Exporters", 6 April 
2020.  WT/TPR/S/418 • Oman  
 
- 46 - 
 
  3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.54.  Incentives available for domestic and foreign investors in Oman comprise, inter alia: tax 
exemptions; no i ncome tax for individuals (although its introduction is being studied); freedom of 
capital transfers; one -stop shop service66; tariff exemptions on raw materials, machinery, and 
equipment imported for local production; and full foreign property rights (und er certain conditions).67 
Incentives for foreign investment promulgated under the NFCIL are presented in Section 2.4.  
3.55.  The 100% state -owned Oman Development Bank (ODB) is Oman's main financial 
development institution, providing support to micro, SME, and ma jor ventures with the goal of 
diversifying the sources of national revenue.68 Term loans, working capital, and seasonal agricultural 
loans are also provided through commercial rates of interest. The maximum loan is OMR  1 million, 
and the repayment period c an go up to 10 years, with a grace period of a maximum of 5 years. The 
ODB charges a minimum interest rate of 3% per year, with flexible grace periods. The ODB also 
manages the Agriculture and Fisheries Development Fund. In 2020, the ODB provided more than  
11,800 development and emergency loans, with a total loan value of some OMR  68.8 million.  
3.56.  The Public Authority for the Development of Small and Medium Enterprises (Riyada) was  
established through Royal Decree No.  36/2013 in June 2013 and is headquartered in the Muscat 
Governorate. Its objectives are to develop SMEs by enabling them to: (i)  access funding; (ii)  instil 
a culture of entrepreneurship; (iii)  promote employment opportunities, especially to young Omanis; 
(iv) assist entrepreneurs in implementatio n and leadership tasks; (v)  enhance competitiveness; and 
(vi) support innovation and economic diversification.69 To this end, Riyada provides training, 
support, and consulting services.  
3.57.  Another entity responsible for SMEs' development is the Al Raffd Fund, which is dedicated to 
support young Omanis who establish their own projects. The Fund was created by Royal Decree 
No. 6/2013 and financed OMR  99 million in projects from 20 13 to April 2 020. The Fund has provided 
more than 4,000 direct job opportunities, among which 35.3% for women.70 
3.58.  Several changes to the tax regime were introduced in 2017. Notably, the standard corporate 
income tax rate increased from 12% to 15%, while a new rate of 3%  now applies for small businesses 
that meet certain conditions. The tax exemption threshold of OMR  30,000 was removed, electronic 
filling of tax document was introduced, certain tax exemptions were revoked, and stricter penalties 
were introduced.71 
3.59.  More re cently, Royal Decree No.  23/2019 promulgated the Excise Tax Law, in accordance with 
the GCC Excise Tax Agreement of 2016, which applies to both locally produced and imported goods.72 
Finally, Royal Decree No.  118/2020 amended some provisions of the Income Tax Law, notably 
introducing the concept of tax residency.73 On 1  November  2020, Oman's Minister of Finance 
announced that a personal income tax on wealthy individuals would be introduced in 2022, which 
would make the Sultanate the first GCC country to apply an income tax on individuals.74 The 
authorities indicate that this plan is still being studied.  
 
66 The investment services centre shall undertake the commer cial registration of the foreign investor 
and facilitate and simplify the procedures for obtaining all approvals, permits and licences needed to the 
investment project.  
67 Omanuna, Oman eGovernment Services Portal, Investment in Oman . 
68 Oman Development Bank, Overview Oman Development Bank . Viewed at: 
https://www.oman.om/wps/wcm/connect/en/site/home/gov/gov1/gov5governmentorganiz ations/odb/odb . 
69 Authority of Small and Medium Enterprises Development, Riyada Mandates . 
70 Zainab Al Nasseri, "Al Raffd Funds RO 99m among 2,563 SMEs", Oman Daily Observer , 14 June 2020.  
71 Arif Manawy, Changes to the Tax Regime in Oman , Al Tamimi & Co., A pril 2017.  
72 Following Ministerial Decision No.  112/2019, the rate of excise tax on carbonated drinks is 50% and 
100% for alcohol, energy drinks, pork products, and tobacco products. KPMG, Oman Excise Tax Update – 
Mandatory Excise Tax Compliances , 30 June 2019.  
73 EY Global, Oman Amends Income Tax Law , 22 September 2020.  
74 Turki Al Balushim Abeer Abu Omar and Zainab Fattah, "Oman to Break Gulf's Income Tax Taboo to 
Curb Deficit", Bloomberg , 2 November 2020.  WT/TPR/S/418 • Oman  
 
- 47 - 
 
  3.3.2   Standards and other technical requirements  
3.60.  The National Enquiry Point and Information Centre, under the MOCIIP, is Oman's national 
enquiry point established for implementation of the TBT  Agreement.75 The Directorate G eneral for 
Standards and Metrology (DGSM) is responsible for standardization, metrology, testing, quality 
control and quality assurance, conformity assessment and certification, and accreditation activities.76 
Oman accepted the TBT Code of Good Practice on  18 December  2000.77 Between August 2013 and 
June 2021, Oman made 298 notifications to the WTO's TBT Committee. No specific trade concerns 
have been raised about Oman's TBT measures.  
3.61.  Oman is harmonizing its technical regulations and standards at the GCC le vel through the 
Gulf Standards Organization (GSO), which is based in Riyadh. GSO standards and technical 
regulations are developed by first being proposed as a draft to the Secretary of the GSO Committee 
by a working group or the member State in charge of the project, and then presented to the member 
States and tested through a study by the members. International standards go through a fast -track 
mechanism.78 Once approved, GSO standards are circulated to all GCC member States for adoption. 
Members must wit hdraw any existing national standard that conflicts with the new GSO  standard. 
In general, GCC and Omani standards are based on international standards.  
3.62.  According to the authorities, Oman develops technical regulations and standards at the 
national level o nly if there is a pressing need. All standards and most technical regulations are 
processed by the DGSM; any proposed technical regulation or standard is examined by one of the 
seven technical committees under the DGSM79, which has nine months to approve, finalize, and 
adopt it. All draft standards and technical regulations are made available for public comments for at 
least 60 days80 before they are adopted. A Ministerial Decision is required for a standard to become 
compulsory. Technical regulations are p ublished in the Official Gazette. Technical regulations and 
standards normally enter into effect six months after their publication, unless an emergency situation 
requires this period to be reduced.  
3.63.  As of January 2021, Oman had 23,508 standards in place, 2 2,262 of which were based on 
GCC standards as formulated by the GSO, and 1,264 technical regulations. Sixteen are purely 
national technical regulations, covering products such as gas cylinders, fluorescent induction lamps, 
and safety footwear.81 
3.64.  All mandat ory standards in Oman apply equally to locally produced and imported products. 
Mandatory standards apply mainly on food products, construction material, toys, cosmetics, and 
motor vehicles. Compliance of imported goods is verified by the customs authoritie s. Non -food 
products are allowed automatic entry on the basis of a Manufacturer's Declaration of Conformity 
Assessment Certificate, supported by a test report verified by the DGSM; in parallel, some samples 
are collected unless a mutual recognition agreeme nt is in place. Imported products that are not 
covered by certificates are released temporarily and their samples tested. Oman has concluded 
mutual recognition agreements with the Kingdom of Bahrain, Egypt, the Islamic Republic of Iran, 
Iraq, Jordan, Qatar , Syria, Tunisia, Turkey, the United Arab Emirates, and Yemen.  
3.65.  Oman is a member of the Arab Centre for Standardization and Metrology in the Arab Industrial 
Development & Mining Organization, the International Organization for Standardization (ISO), and 
the International Organization of Legal Metrology (OIML).  
 
75 International Organization for Standardization, DGSM: Oman . Viewed at: 
https://www.iso.org/member/2007.html . 
76 The DGSM was established under Royal Decree No.  39/1976; its duties and functions were defi ned by 
Royal Decree No.  1/1978.  
77 WTO document G/TBT/CS/2/Rev.12, 17 February 2006.  
78 GCC Standardization Organization, Standards Development . Viewed at: 
https://www.gso.o rg.sa/en/standards/method -of-standards -development/ . 
79 The committees are the Omani Codex Committee for Food, the Technical Committee for Building 
Materials and Construction, the Technical Committee for Oil and Gas, the Technical Committee for Mechanical 
and Metallic Products, the Technical Committee for Electrical and Electronic Products, the Technical Committee 
for Chemical Products and Textiles, and the Technical Committee for Metrology.  
80 In case of urgency, this period may be reduced.  
81 DGSM Standards Store, Search Standards . WT/TPR/S/418 • Oman  
 
- 48 - 
 
  3.66.  Labels must be in Arabic or Arabic and English, although during the pandemic the MOCIIP 
temporarily waived the Arabic requirement in April 2020.82 Food labels must contain product names, 
production and  expiry dates, country of origin, name and address of the manufacturer, net contents 
in metric units, list of ingredients and additives in descending order of importance, lot identification, 
and instructions for storage and use (where applicable). Products  shipped in bulk should conform to 
GSO labelling requirements.83 
3.67.  For meat and poultry products, Oman requires slaughtering according to Islamic halal 
procedures.84 Packaged fresh or frozen meat and poultry must also carry the following information 
in Arabi c: country of origin, production (slaughtering or freezing) and expiry dates, shelf life of the 
product, metric net weight, and product identification. Pre -packaged processed meat and poultry 
must be accompanied by production and expiry dates, as well as t he net weight of the product.  
3.68.  The Telecommunications Regulatory Authority (TRA) issued labelling guidelines for 
telecommunication equipment in June 2010. Dealers of such equipment must register with the TRA. 
The label must contain the approval number and t he dealer number. Imported goods may be labelled 
after customs clearance, but before entering the Omani market. Under Royal Decree No.  59/2015 
issuing the Regulation for Dealing in Telecommunications Devices, failure to affix required labels can 
be sentenc ed to a fine of OMR  500. 
3.69.  All precious metals, jewellery, and gemstones, whether imported or locally produced, must 
be hallmarked under Royal Decree No.  109/2000. The DGSM is responsible for assaying of precious 
metals and testing of gemstones, as well as p roviding quality controls, certification, and hallmarking 
of gold jewellery.85 
3.70.  In August 2011, the GSO adopted labelling requirements for tobacco products, introducing 
mandatory warnings on cigarette packages. Labels using terms such as "light" or "low" on  packages 
are deemed misleading and thus prohibited. These rules were taken up by Oman through Ministerial 
Decree No.  12/2012.86 GSO standard No.  223/2013 establishes that breast milk substitutes bear 
labels indicating the sources of the protein, and a sta tement expressing the superiority of breast 
feeding. Oman adopted the GSO standard on energy labelling requirements for air conditioners 
through Ministerial Decision No.  107/2018.87 
3.71.  Cosmetic products should not have labels that are inconsistent with Islami c traditions and 
social values, and parts of the labels must be translated into Arabic.88 The relevant norm for 
cosmetics is GSO standard No.  1943/2021 . For simple fertilizers, complex compounds, and soil 
improvers, the relevant legislation on labelling is the GCC Law of Fertilizers and Agricultural Soil 
Improvers.  
3.3.3   Sanitary and phytosanitary requirements  
3.72.  The National Enquiry Point and Information Centre is the national enquiry point under the 
WTO SPS  Agreement.89 The Directorate General of Anima l Wealth (DGAW) and the Directorate 
General of Agricultural Development (DGAD), under the Ministry of Agriculture, Fisheries and Water 
Resources, are the authorities on SPS matters including food safety and plant and animal health. No 
specific trade concer n has been raised about Oman's SPS measures. In 2017, the GCC countries 
 
82 Oman Daily Observer , "MOCI Waives Mandatory Arabic Labeling on Products", 3 April 2020.  
83 Curtis, Mallet -Prevost, Colt & Mosle LLP, Oman Law Blog, Importation of Food Into Oman – What You 
Need to Know , 14 December 2015.  
84 Samuel Kutty, "Ensuring Food Safety", 5 May 2018, Oman Daily Observer . 
85 International Standards Organization, DGSM: Oman . Viewed at: 
https://www.iso.org/member/2007.html . 
86 Tobacco Control Laws, Legislation by Country: Oman . Viewed at: 
https://www.tobaccocontrollaws.org/legislation/country/oman/sum mary. 
87 UL, Sultanate of Oman – Energy Efficiency and Labeling Requirements for Air Conditioners , 19 June 
2019.  
88 Samuel Kutty, "Standards Set for Cosmetic Products", Oman Daily Observer , 28 July 2019.  
89 WTO document G/SPS/ENQ/26, 11 March 2011.  WT/TPR/S/418 • Oman  
 
- 49 - 
 
  started to apply the GCC Guide for Control of Imported Foods to ensure that all imported food 
complies with the GCC regulations and requirements.90 
3.73.  Since 2004, Oman has been applying t he GCC Laws on Veterinary Quarantine and Plant 
Quarantine.91 Imports, exports, and domestic production of plants and animals are subject to 
inspection by the quarantine section of the Ministry of Agriculture , Fisheries and Water Resources, 
which also exami nes and issues SPS certificates for all agricultural products prior to their export. 
Prior permission from the DGAD is required for imports of agricultural seeds, plants, and plant parts 
and products, which generally takes a week.92 
3.74.  A health certificate and prior permission from the Department of Veterinary Licenses of the 
Ministry of Agriculture , Fisheries and Water Resources  are required to import live animals from all 
countries, including GCC countries.  
3.75.  Imports of foodstuffs of liv e animals and plants, animal feed, red meats, poultry meat, 
agricultural materials, timber, grains and other unprocessed agricultural products are inspected by 
the DGAW at any point of entry. They must be free from contaminants, and milk products must be 
accompanied by a certificate declaring them free of radiation and dioxin. The Health Quarantine 
Department is responsible for the inspection of imported semi - and fully processed food products, 
while municipalities have an additional role of inspection in t he ports and markets. All consignments 
that are imported must be accompanied by a health certificate issued by the relevant authority in 
the country of origin to ensure that the items are fit for human consumption and that animal feed is 
fit for animals. Unfit foodstuff and animal feed are rejected at the port of entry; they are either 
destroyed at the supplier's expense or returned to the country of origin.  
3.76.  For plant and animal imports, the Ministry of Agriculture, Fisheries and Water Resources' 
quarantine  section imposes additional inspections. In 2017, the Ministry imposed new verifications 
of imported vegetables and fruits regarding maximum levels of pesticides allowed.  
3.77.  Between August 2012 and October 2020, Oman made 65 SPS notifications to the WTO.  
3.78.  Oman  is a member of the World Organization for Animal Health (OIE), the International Plant 
Protection Convention (IPPC), and Codex Alimentarius.93 
3.3.4   Competition policy, consumer protection, and price controls  
3.79.  Since the last Review, Oman has introduced its first  law on competition. The Anti -Monopoly 
and Competition Protection Law was issued in December 2014.94 Under the Law, any production, 
trading, or services activity located in Oman or that has an influence on the Omani market is 
prohibited from engaging in pr actices that would undermine competition. Provisions of the Law do 
not apply to fully owned government entities. A business can be subjected to sanctions if it is abusing 
a dominant position (established at more than 35% of the relevant market) by engaging  in certain 
practices without approval from the Consumer Protection Authority. If conducted by dominant 
market players, the following practices are considered to be abuse of dominant position: predatory 
pricing, imposing import restrictions, creating high barriers to entry, refusing to deal, price reselling 
creating shortages, and creating product surplus.95 An approval may not be granted if the market 
share exceeds 50%. Royal Decree No.  2/2018 established and promulgated the Competition 
Protection and Mono poly Prevention Centre, an independent government institution, to review 
mergers and abuse cases. The Centre was incorporated into the MOCIIP in August 2020.  
 
90 Dr Band ar M. Alodiani, GCC Guide for Control on Imported Foods , Secretariat General of the Gulf 
Cooperation Council, April 2018.  
91 Royal Decrees No. 45/2004 and No.  47/2004. The Regulations of the Plant Quarantine Law were 
issued through Ministerial Decision No.  32/2006; the Regulations of the Veterinary Quarantine Law were issued 
through Ministerial Decision No.  107/2008.  
92 Oman Government Portal, Ministry of Agriculture and Fisheries, Permit to Import Plant/Plant Products.  
93 WTO document G/SPS/GEN/49/Rev.8, 9 Oc tober 2007.  
94 Royal Decree No.  67/2014. Executive Regulations came into force in January 2021 through Ministerial 
Decision No.  18/2021.  
95 Ahmed Al Barwani, Market Forces in Oman: The New Competition Law , Al Tamimi & Co., May 2015.  WT/TPR/S/418 • Oman  
 
- 50 - 
 
  3.80.  Under the Law, complaints from competitors and the general public can be addressed to the 
MOCIIP. Articles 19 through 27 explain the procedures and the penalties applied in case of a violation 
of the Law. Both imprisonment and financial penalties can apply.96 
3.81.  Royal Decree No.  66/2014 repealed Royal Decree No.  81/2002 on the Consumer Protection 
Law. It reinforced the powers of the Consumer Protection Authority (formerly the Public Authority 
for Consumer Protection97), increased the potential penalties incurred, and overall strengthened 
transparency, consumer rights, and the legal framework for combating monopolistic behaviours.98 
3.82.  Certain products, such as gas, petroleum, electricity, and water, as well as some services 
(e.g. telecommunications), may be subject to price controls when sold for household use. In general, 
the Government sets maximum prices fo r these goods and services, and the companies adjust their 
prices accordingly. On petroleum products, however, Oman moved in 2016 from a fixed price to a 
monthly adjusted price based on international prices, resulting in a significant increase. In 
December  2020, Oman announced that electricity subsidies for big non -residential consumers, 
including industrial and government entities, would be removed by January 2021. Support will 
continue to be granted to eligible low -income consumers under a new subsidy pla n targeted to 
poorer households.99 Personal and housing loans are subject to an interest rate ceiling set by the 
Central Bank of Oman (CBO).  
3.3.5   State trading, state -owned enterprises, and privatization  
3.83.  Oman notified the WTO Working Party on State Trading Ente rprises in 2014 that the Public 
Authority for Stores and Food Reserves (PASFR), the Petroleum Development Oman (PDO), and 
Oman Refineries and Petroleum Industries Company (Orpic, now integrated within the global energy 
company OQ) are not state trading ent erprises within the meaning of Article  XVII:4(a) of the 
GATT  1994 and paragraph 1 of the Understanding on the Interpretation of Article  XVII, as they have 
not been granted any exclusive right or privilege in their purchases or sales involving either import s 
or exports.100 
3.84.  State -owned enterprises remain important in Oman's economy (Table 3.8). However, Oman 
has initiated several measures in recent years to speed up privatization. This stems from the dual 
objective of leveraging additional government revenues and increasing the contribution of the 
private sector in the economy. In 20 17, the Implementation Support and Follow -up Unit of the 
Tanfeedh programme ( paragraph 2.14 ) declared that there were around 70 state -owned enterprises 
in Oman and that between 2017 and 2021, the objective was to sell OMR  700 million of SOE assets 
to the p rivate sector.101 SOEs holding companies were asked to present a privatization plan to the 
Ministry of Finance.  
3.85.  To advance Oman's privatization objectives, various regulations were introduced in 2019 
(Section 2.2).  Royal Decrees No. 50/2019, No.  51/2019, an d No.  54/2019 enacted the Privatization 
Law, the Public Private Partnership Law, and the Establishment of the Public Authority for 
Privatization and Partnership , respectively . Their aim is to facilitate domestic and foreign investment 
and sustain private s ector growth. The new laws allow for 100% foreign ownership of the privatized 
entities.102 In 2020, the Oman Investment Authority (OIA) was established to group together various 
state-owned entities.103 As at June 2021, there are 29 companies in which OIA ho lds more than  40%.  
 
96 Royal Decree No.  67/201 4, 30 November  2014; Curtis, Mallet -Prevost, Colt & Mosle LLP, Oman Law 
Blog, Anti-Monopoly and Competition Law in Oman , 18 September 2017.  
97 Royal Decree No.  77/2020.  
98 Curtis, Mallet -Prevost, Colt & Mosle LLP, Oman Law Blog, Sultanate of Oman: The Consumer 
Protection Law , 12 January 2015; STA Law  Firm, Consumer Protection Law - Country Focus: Oman , 
5 November 2018.  
99 Turki Al Balushi and Zainab Fattah, "Oman to Start Removing Utility Subsidies January Next Year", 
Bloomberg , 20 December 2020.  
100 WTO document G/STR/N/15/OMN, 13  August  2014.  
101 Impleme ntation Support and Follow -up Unit, Annual Report 2017 . Viewed at: 
https://isfu.gov.om/Annual_Report_2017_EN.pdf . 
102 Richard Baxter, Oman Refines Its Legislative Framework to Incentivise Enhanced Private Sector 
Investment , Al Tamimi & Company, 31 January 2020.  
103 Royal Decree No.  61/2020.  WT/TPR/S/418 • Oman  
 
- 51 - 
 
  Table 3.8 Selected state -owned enterprises, 2021  
Company name  Sector/Field of activity  OIA 
share 
(%) 
OQ Oil, refining, and gas  100 
Qalhat LNG  Natural gas  46.84  
Petroleum Development Oman  Petroleum and natural gas production, refining  60 
Mineral Development Oman  Mining  100 
Oman Global Logistics Group (Asyad)  Transportation & logistics  100 
Oman Information & communication 
Technology Group (OICT)  Information, communication & technology  100 
Electricity Holding Company (NAMA)  Electricity generation, transmission, and distribution  100 
Omantel  Telecommunications  51 
Oman Airport Management  Aviation  100 
Oman Air  Aviation  100 
Oman Fisheries Company  Fisheries  24 
National Pharmaceutical Industries  Drug industries  70 
Oman LNG  Natural gas  51 
TANMIA  Investments  42.44  
Oman Infrastructure Investment 
Management (RAKIZA)  Infrastructure projects  100 
Sohar Aluminium Company  Manufacturing  40 
Oman Cement Company  Manufacturing  53.51  
Oman Flour Mills Company  Manufacturing  51 
Majan Glass  Industrial  75.25  
Oman Development Bank  Financial services  100 
Oman Housing Bank  Housing financing  61 
Majis Industrial Services  Industrial  100 
Tageer  Finance  Financial services  33.63  
Oman Food Investment Holding Company  Food products  100 
OMRAN  Tourism  100 
Fisheries Development Oman  Fisheries  100 
Oman Environmental Services Holding 
Company (Haya)  Utility  100 
Al Hosn Investments  Investments  50 
Blue City Project  Tourism  100 
Source:  WTO Secretariat, based on information provided by the authorities.  
3.86.  In 2019, Oman created the fully state -owned energy conglomerate OQ, which integrated 
nine companies of the oil and gas industry.104 Ownership was transferred from the Ministry of 
Finance to the OIA.  
3.87.  Since the last Review, the Government sold some of its shares to private investors (which, 
for example, reduced the state share in Omantel from 70% to 51%). In 2019, the Oman El ectricity 
Transmission Company was sold at 49% to the China National Electricity Grid Corporation for around 
USD 1 billion.105 
3.3.6   Government procurement  
3.88.  The main legal instruments relating to government procurement are the Tender Law (Royal 
Decree No.  36/2008,  amended by Royal Decrees No. 120/2011 and No.  60/2013) and the 
1986 Unified Rules for Giving Priority in Government Purchases to National Products and Products 
of GCC Origin. Tendering is required for all units of the administrative apparatus of the State , and 
public organizations and establishments.106 After the 2013 amendment, wholly state -owned 
companies became subject to the Tender Law, with their internal committees managing the tenders. 
 
104 Oman Oil Company, Orpic, Oman Oil Company Exploration and Production, Oman Gas Company, 
Duqm Refinery, Salalah Methanol Company, Oman Tradin g International, OXEA, and Salalah Liquified 
Petroleum Gas. Several mergers between oil and gas companies had already been initiated in the previous 
years. OQ, Our Journey . Viewed at: https: //oq.com/en/about -oq/company/our -journey . 
105 The Arab Weekly , "Oman Strikes $1 Billion Privatisation Deal with China", 22 December 2019.  
106 James Dallas, "The New Oman Tender Law – Fundamental Issues", Dentons , 3 February 2009.  WT/TPR/S/418 • Oman  
 
- 52 - 
 
  According to the 2019 Privatization Law, privatization projects a nd company transformation projects 
are not subject to the Tender Law.107 
3.89.  The Tender Board was created in 1972; its members are appointed by the Government. 
Projects above OMR  3 million must be floated and awarded through the Tender Board, while projects 
below this threshold can be processed through the Government's Internal Procurement Committees.  
3.90.  According to the General Secretariat of the Tender Board, tenders can be general (open 
tender) or limited for qualified companies, and both can be either local, fo r companies registered in 
Oman, or international. The Tender Board's mission is to register companies to participate in a 
tender, review the tender documents, float the tender and selling documents to qualified companies, 
publish the tender, check the eval uation report from the ministries, send the recommendation report 
for awarding the tender, and check variation orders for the awarded projects . 
3.91.  Under the Tender Law, public tender is the main method for procurement of goods and 
services. For specific circu mstances, four other methods apply: (i)  restricted tender to specific 
suppliers, contractors, or consultants within or outside the Sultanate; (ii)  direct assignment; 
(iii) negotiation under specific conditions with the bidder of the lowest bid; and (iv)  competition for 
the purpose of conducting studies or preparing designs, layouts, models, or other technical works 
required for a specific project. Restricted tendering applies to tenders of a special nature with 
pre-qualified bidders. Direct assignments are allowed in four situations: (i)  special cases (not 
specified); (ii)  when a contract is awarded to another government office, organization, or company; 
(iii) assignment with a supplier, contractor, or consultancy, if the value of the contract does not 
excee d OMR  10,000; or (iv)  in the case of urgency, with a supplier, contractor, or consultancy, if 
the value of the contract does not exceed OMR  25,000.108 
3.92.  Under Article  18 of the Law, tender notices should be published early in time in a "widely 
circulated Arab ic and English language newspaper", and possibly online. Purchases of at least 
OMR 500,000 must be published in the Official Gazette. Non -Omani companies and establishments 
can participate in international tenders if they registered under the relevant proc edures. Successful 
candidates should submit a guarantee within 10 days that is equivalent to 5% of the total awarded 
value or submit a professional insurance policy. Successful international bidders are required to enrol 
in the Commercial Registration Depa rtment of the MOCIIP and become members of the 
Oman  Chamber of Commerce and Industry within 30 days of award of the contract.109 Pursuant to 
Article  59 of the Executive Regulations of the Tender Law, unsuccessful bidders may appeal to the 
Tender Board, and ultimately to the administrative courts. The authorities note that several cases 
of complaints have been filed over the last years.  
3.93.  Article  36 of the Tender Law provides that priority must be given to national products of small 
and medium industries that m eet required conditions and that a price preference of 10% should be 
granted to the products of Omani SMEs. An extension of this preference to SMEs from other 
GCC countries is currently under consideration. The authorities indicate that, in practice, a 
5% preference is already applied.  
3.94.  The total amount of tenders awarded was OMR  381 million in 2020, OMR  688 million in 2019, 
and OMR  129 million in 2018. According to the Electronic Tendering Services, 8,372 tenders were 
published as of October 2020. Most of t he tenders related to the construction of roads and dams 
and to the provision of medical care.  
3.95.  Oman is an observer to the WTO  Agreement on Government Procurement.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.96.  The MOCIIP, through its National Office of Intellectual  Property, is responsible for policy 
formulation and implementation on intellectual property (IP) -related matters. The MOCIIP 
 
107 Curtis, Mallet -Prevost, Colt  & Mosle LLP, Oman Law Blog, Oman Drives Privatization and PPP 
Initiatives , 5 November 2019.  
108 Royal Decree No.  36/2008.  
109 Royal Decree No.  36/2008.  WT/TPR/S/418 • Oman  
 
- 53 - 
 
  cooperates with other relevant ministries in implementing IP legislation. Other institutions 
responsible for IP matters are the Di rectorate General of Customs for issues related to border 
measures, courts of law for enforcement issues, the GCC Patent Office (based in Riyadh, Kingdom  of 
Saudi  Arabia), and the GCC Training Centre on IP, based in the State of Kuwait.  
3.97.  The MOCIIP has been  working closely with the World Intellectual Property Organization 
(WIPO) to formulate its future National Strategy for Intellectual Property. The aim of the Strategy is 
to build a knowledge -based economy and to promote innovation and competitiveness in ac cordance 
with Oman Vision 2040.110 
3.98.  The majority of Oman's IP rights were established under Royal Decrees No.  65/2008 and 
No. 67/2008 (Table 3.9).  
Table 3.9 Overview of intellectual property rights (IPRs) legislation, June 2021  
IPR  Main legislation  Duration of 
protection  Minimum duration 
of protection under 
the TRIPS  
Agreement  
Copyright  Royal Decree No.  65/2008 on 
Copyright and Neighbouring Rights, 
amended by Royal Decree 
No. 132/2008  Life of author plus 
70 years (general rule)a Life of author plus 
50 years  
Patents  Royal Decree No.  67/2008 on 
Industrial Property Rights and Their 
Enforcement  20 years from the date 
of filing for patents  20 years from date of 
filing  
Trademarks  Royal Decree No.  67/2008 on 
Industrial Property Rights and Their 
Enforcement  Trademarks: 10 years, 
renewable indefinitely 
for periods of 10 years  Trademarks: at least 
7 years; renewable 
indefinitely  
Geographical 
indications  Royal Decree No.  67/2008 on 
Industrial Property Rights and Their 
Enforcement  Unlimited  Unlimited  
Integrated 
circuits  Royal Decree No.  67/2008 on 
Industrial Property Rights and Their 
Enforcement  10 years  10 years from first 
commercial 
exploitation  
Industrial 
designs  Royal Decree No.  67/2008 on 
Industrial Property Rights and Their 
Enforcement  5 years, renewable for 
2 periods of 5 years  At least 10 years  
Plant breeders' 
rights  Royal Decree No.  49/2009 on the 
Protection of Breeders' Rights in New 
Varieties of Plants  20 years from the date 
of granting (25 years 
for trees and vines)  20 years from the 
date of filing  
a Co-authored, collective, and anonymous works and works published 25 years after their creation 
may follow longer protection lengths. UNESCO World Anti -Piracy Observatory, Oman.  
Source:  WTO Secretariat, based on information provided by the authorities.  
3.99.  Oman is a party to various international IP treaties and conventions (Table  3.10). Since its 
last Review in 2014, Oman has accepted the Protocol Amend ing the WTO TRIPS Agreement for 
better access to affordable medicines and the Geneva Act of the Lisbon Agr eement on Appellations 
of Origin and Geographical Indications.  
Table 3.10 Participation in international IPR agreements, 2021  
Treaty or convention  Entry into force  
Berne Convention  9 September  1886  
Washingto n Treaty on Intellectual Property in Respect of Integrated Circuit  26 May 1989  
TRIPS Agreement  1 January  1995  
WIPO  Convention  19 February  1997  
Berne Convention for the Protection of Literary and Artistic Work  14 July 1997  
Patent Cooperation Treaty  14 July 1997  
Paris Convention for the Protection of Intellectual Property  14 July 1999  
WIPO Performances and Phonograms Treaty  20 September  2005  
WIPO Copyright Treaty  20 September  2005  
 
110 Oman Daily News , "Oman Formulating National Strategies for Intellectual Property", 15 December 
2019.  WT/TPR/S/418 • Oman  
 
- 54 - 
 
  Treaty or convention  Entry into force  
Budapest Treaty on the International Recognition of the Deposit of Microorganisms 
for the Purposes of Patent Procedure and Regulations  16 October  2007  
Protocol relating to the Madrid Agreement concerning the International Registration 
of Marks (Madrid Protocol)  16 October  2007  
Patent Law Treaty  16 October  2007 
Trademark Law Treaty  16 October  2007  
Brussels Convention relating to the Distribution of Programme -Carrying Signals 
Transmitted by Satellite  18 March  2008  
Hague Agreement Concerning the International Registration of Industrial Designs  4 March  2009  
Union for the Protection of Plant Varieties (UPOV)  22 September  2009  
Amendment to the WTO Trade Related Aspects of Intellectual Property Rights 
(TRIPS) Agreement for Better Access to Affordable Medicines  1 March  2017 
Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical 
Indications  30 June 2021 
Source:  WTO Secretariat, based on information provided by the authorities.  
3.3.7.2   Patents  
3.100.   Under Royal Decree No.  67/2008, an invention is patentable if it is new, involves an inventive  
step, and is industrially applicable. Excluded from patentability are discoveries, scientific theories, 
mathematical methods, and pure mental activities. Patent protection on pharmaceutical products, 
agricultural chemicals, and other inventions is also pr ovided under the  Decree . 
3.101.   Patents are valid for at least 20 years from the date of filing. If there is a delay of several 
years between the date of filing and the deliver y of the patent, an extension can be granted.111 
Under GCC rules, a patent needs to be exploited on a sufficient industrial scale in a GCC member 
State within three years from the date of grant.112 
3.102.   Decisions taken on patents by Oman are subject to administrative review and to right of 
appeal within provisions already established for the commercial courts. To settle disputes relating to 
patents, the judiciary considers the provisions of the GCC Patent Regulation, as well as Omani 
national regulations.113 
3.103.   Requests for a compulsory licence for an unworke d patented invention are granted by the 
MOCIIP, provided the applicant proves its ability to use the invention industrially, and against fair 
compensation to be paid for the patent. The Government may also authorize one of its agencies, in 
the public inter est and against payment of fair compensation, to exploit a patent without the consent 
of the patent owner, based on the same criteria. The compulsory licence shall always be 
non-exclusive. Such a decision may be appealed. The patent owner may only assign o r transfer a 
patent right to a third party in conjunction with all the elements of the business.114 No compulsory 
licences were granted during the review period.  
3.104.   Fees for filing a patent application are OMR  200 for individuals and OMR  300 for firms, but 
students and researchers can benefit from a 90% reduction and SMEs from a 50% reduction. The 
patent certificate is OMR  500 for individuals and OMR  1,000 for firms, followed by annual fees 
growing from OMR  100 for individuals (OMR  200 for firms) in the second year to OMR  1,000 for 
individuals in the 20th year (OMR  2,000 for firms).  
3.105.   On 10  September  2014, the Oman Patent Office and its Egyptian counterpart announced 
that they had signed a cooperation agreement to technically examine Omani patent applications and 
enhance the quality of the Omani patents procedure.115 
 
111 Royal Decree No.  67/2008, Articles  12(1)(B) and 13.  
112 GCC Patent Office, Patent Regulation of the Gulf Cooperation Council for the Arab States of the Gulf 
and its Implementing Bylaws, Article  13. 
113 Tima Hachem and Lea Feghali, Patent Litigation in the Gulf Cooperation Council  (GCC) : Overview , 
Thomson Reuters Practical Law, 1 August 2020.  
114 Royal Decree No.  67/2008, Article  13. 
115 AGIP, Oman and Egypt Sign Cooperation Agreement on Patent Technical Examination , 9 September 
2014. WT/TPR/S/418 • Oman  
 
- 55 - 
 
  3.106.   From 2006 to 2019, there were 182 national patent applications and 4,073 applications 
under the Paris Convention and the Patent Cooperation Treaty. According to the authorities, as of 
December 2019, 283  patents had been granted.  
3.3.7.3   Copyright and related rights  
3.107.   Under Royal Decree No.  65/2008, amended by Royal Decree No.  132/2008, the term of 
copyright protection is the author's lifetime plus 70 years.116 The Decree covers books, articles, 
computer programs, a nd other writings; oral works, such as lectures, speeches, and sermons; 
dramatic works; musical works; choreographic works; audiovisual works; drawings, paintings, 
engraving, works of architecture, and ornamental works; works of applied art; illustrations,  maps, 
plans, sketches, and three -dimensional works; folklore; and title of the work, provided it is creative 
and is not a common term identifying the subject of the work. The related rights covered are 
performers, producers of sound recordings, and broadc asting organizations.  
3.108.   The Decree gives authors and their successors economic rights, such as the right to authorize 
or prohibit the commercial rental to the public of originals or copies of their copyright works within 
the limits allowed under Article  11 of the TRIPS Agreement. It also provides for moral rights, and 
regulates acts permitted without the authorization of the right holder, such that those acts, whenever 
allowed, are within the limits stipulated under the Berne Convention and the TRIPS Agreemen t. 
Moral rights include the right to claim authorship and to forbid use of their work if deemed prejudicial 
to their reputation.117 
3.109.   Oman's law protects both copyrights of Omanis and foreigners residing in the Sultanate, 
including programmes belonging to bro adcasting stations in the Sultanate or broadcasted from 
headquarters located inside the Sultanate. Provisions apply in accordance with any multilateral and 
bilateral international treaties and conventions to which the Sultanate is a party or may become a 
party later.118 
3.110.   Table 3.11 shows the evolution of copyright applications since 2016. The authorities indicate 
that applications now are generally submitted electronically.  
Table 3.11 Copyright applications, 2016 -20 
 2016  2017  2018  2019  2020  
Number of applications  106 216 186 233 146 
Source:  Information provided by the authorities.  
3.3.7.4   Trademarks  
3.111.   In 2017, Oman ratified the GCC Trademark Law119, thus marking its commitment to a 
regional harmonization of IP legislation. However, as of 2020, Oman has yet to publish the executive 
regulations putting this law into practice. Therefore, previous Omani legislation on trademarks 
continues to apply, although in case of conflict GCC law prevails.120 
3.112.   Currently, Royal De cree No.  67/2008 regulates the procedures for application, publication, 
registration, and protection of trademarks. Registration is sufficient to notify potential infringers of 
the owner's exclusive right; it is also required for the protection of well -known marks in Oman. 
Registration may be cancelled for trademarks not used for five consecutive years, unless the 
trademark owner submits a justification, such as reasons beyond their control, for non -use. The 
owner of a registered trademark has the sole righ t to produce, import, or distribute the trademarked 
goods and the right to prevent any other person from using the trademark without permission. The 
holder has the right to assign or license a trademark; assignment must be recorded. According to 
 
116 Co-authored, collecti ve, and anonymous works and works published 25 years after their creation 
may follow longer protection lengths. UNESCO World Anti -Piracy Observatory, Oman.  
117 UNESCO World Anti -Piracy Observatory, Oman.  
118 Royal Decree No.  65/2008, Article  57. 
119 Royal Decree  No. 33/2017.  
120 BSA, How to Register a Trademark in the Sultanate of Oman , April 2020.  WT/TPR/S/418 • Oman  
 
- 56 - 
 
  the author ities, since July  2020, the application fee for trademarks has been OMR  220 and can be 
done through the Invest Easy portal.  
3.113.   Under the GCC Trademarks Law, the processing period for trademark applications is 90  days 
from the date of filing. The opposition period against published trademarks applications will be 
reduced from Oman's current 90 days to 60. Trademarks fees will still be set at the discretion of 
individual GCC countries.  
3.114.   In July 2020, the National Office of Intellectual Property annou nced that a new electronic 
procedure for trademark application will be implemented in order to improve and facilitate the 
process.121 
3.115.   Table 3.12 shows the evolution of trademark applications from 2017 to 2020.  
Table 3.12 Trademark applications, 2017 -20 
 2017  2018  2019  2020  
National and international applications  13,296  11,134  14,391  9,951  
Source:  Information provided by the authorities.  
3.3.7.5   Industrial design and layout -designs of integrated circuits  
3.116.   Article  1 of Royal Decree No.  67/2008 defines industrial designs as "any composition of lines 
or colors or any three -dimensional form, whether or not associated with lines or colors, provided 
that such composition or form gives a special appearance to a pr oduct of industry or handicraft and 
can serve as a pattern for a product of industry or handicraft, and appeals to and is judged by the 
eye". Under Article  20, registration of industrial designs contrary to public morals or order is not 
permitted.  
3.117.   Protecti on of industrial designs is for five years, renewable for two consecutive 
five-year periods; layout -design s of integrated circuits are protected for 10 years.122 The application 
fee for industrial designs and layout -designs of integrated circuits is OMR  1,000; the registration 
certificate is OMR  500, and publication is an additional OMR  100. Students and researchers can 
benefit from a 90% reduction, and SMEs from a 50% reduction.  
3.118.   Protection of layout -designs of integrated circuits is for 10 years. Registration applies if they 
are original and have not yet been commercially exploited for a period exceeding two years in any 
part of the world.123 
3.119.   From 2016 to 2020, the re were 95 national industrial design applications, all of which were  
granted. In 2019, 22 applications were filed for industrial designs and models, compared to 16 
in 2018.  
3.3.7.6   Geographical indications  
3.120.   Under Royal Decree No.  67/2008, a geographical indication  identifies a good as to its origin 
and geographical environment in any country where a given quality, reputation, or other 
characteristic of the good is essentially attributable to its geographical origin. Protection is not 
available for geographical indi cations that are contrary to public order or morality, that are not or 
cease to be protected in their country of origin, or that have fallen into disuse in that country. The 
time frame for protection is unlimited. Applications should be filed only by legal  experts or competent 
authorities engaged as producers in the specified geographical area.124 The application fee for 
geographical indications is OMR  200; the registration certificate is OMR  200, and publication is 
OMR 100. Between 2014 and 2020, nine natio nal applications were registered.  
 
121 Baianat Intellectual Property, Oman Announces a New Electronic Procedure for Trademarks 
Registration , 10 September 2020.  
122 Royal Decree No.  67/2008, Article  24. 
123 Royal Decree No.  67/2008, Article  27. 
124 Times of Oman , "Oman Seeks to Protect Country Specific Products", 15 December 2018.  WT/TPR/S/418 • Oman  
 
- 57 - 
 
  3.3.7.7   Plant breeders' rights  
3.121.   Royal Decree No.  49/2009 and Ministerial Decision No.  103/2015 on the Executive 
Regulations of the Law for Protecting the Right of the New Plant Varieties lay out the conditions for 
the protection of  plant breeders' rights. The Directorate General of Agriculture and Livestock 
Research in the Ministry of Agriculture, Fisheries and Water Resources is the relevant authority. A 
breeder's right shall be granted where a plant variety is new, distinct, unifo rm, and stable.  
3.3.7.8   Enforcement  
3.122.   Intellectual property right (IPR) infringements and violations can be subject to fines and 
imprisonment. Anyone who intentionally infringes, on a commercial scale, one of the industrial 
property rights can be sentenced to impris onment from a minimum of three months up to a 
maximum of three years or to monetary fines from a minimum of OMR  2,000 up to a maximum of 
OMR 10,000.125 Penalties of up to OMR  10,000, as well as imprisonment from one month to 
three  years , are presented in the GCC Trademark Law. Civil remedies are available in all cases of 
infringement. The Public Prosecution Office may initiate legal action ex officio  with respect to 
IPR-related offences, without the need for a formal complaint by a private  party or right holder.126 
3.123.   Articles 66 to 100 of Royal Decree No.  67/2008 detail the enforcement measures that can 
be initiated for the protection of patents, trademarks, industrial designs, geographical indications, 
and layout -designs. Proc eedings must be initiated within five years from the date of discovery of the 
infringement. No time limit applies in cases of unfair competition. For the protection of breeders' 
rights, the relevant law also refers to Royal Decree No.  67/2008. The Copyrigh t Law defines its own 
measures and remedies.127 The Law on Patents stipulates that it is the responsibility of each 
GCC member State to settle patent disputes (Article  26).
 
125 Royal Decree No.  67/2008, Article  93. 
126 Royal Decree No.  67/2008, Article  94. 
127 Royal Decree No.  49/2009, Article  25(2).  WT/TPR/S/418 • Oman  
 
- 58 - 
 
  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture and Fisheries  
4.1.  Agriculture and fisheries togethe r contributed around 2% of GDP during the review period. 
There were 61,040 people working in the sector in 2019, declining by about one third compared to 
the figure in 2016; this was attributed to the same scale decline of foreign workers employed in the 
sector.  
4.2.  The agriculture sector faces various environmental challenges, such as the scarcity of irrigation 
water, the poor and declining quality of the soil due to increasing salinization, overgrazing, and 
adverse climatic conditions. Given its limited culti vable area and unfavourable climate, Oman is likely 
to remain heavily dependent on imports to meet its domestic demand for most agricultural products.  
4.3.  Oman Vision 2020 sets the target of raising agriculture's contribution to GDP to 3.1% by 2020, 
with annua l growth topping 4.5%. It also intends to boost the fishing sector to around 2% of GDP 
by 2020, with growth of 5.6% per annum. The Government has the dual aim of reducing Oman's 
dependence on imported agricultural produce and increasing exports where possi ble. The Ministry 
of Agriculture and Fisheries (MoAF) is responsible for formulating policies for the sector; it is also 
responsible for sponsoring research, providing technical assistance to farmers, regulating water use 
in agriculture, and enforcing sani tary and phytosanitary (SPS) measures.  
4.4.  Enhancing food security/self -sufficiency has been a major focus for Oman's agricultural policy. 
In this regard, the state -owned Oman Food Investment Holding Company (OFIC) was established in 
2012 with a mandate to inv est in food security, economic diversification, and job creation for Omanis. 
For example, the OFIC, partnered with other state entities (e.g. the Oman Investment Fund (OIF), 
the sovereign wealth fund) and the private sector, purchased four agri -food compan ies and set up 
a few companies of animal products; these projects enhanced the capacity of domestic agricultural 
production.  
4.5.  The size of cultivated land enlarged by 60% during the review period, reaching 
110,399  hectares in 2019, up from 68,863 in 2014. Mo st of enlarged cultivated land is used for 
vegetables, and perennial fodder crops, while the land size for fruit remained stable and for field 
crops shrank remarkably. Total agricultural production, including vegetables, fruit, field crops, and 
perennial f odder crops, doubled. The largest contribution to production was made by perennial 
fodder crops with 1,698.7 tonnes in 2019, up from 753.6  tonnes in 2014, followed by vegetables at 
825.3  tonnes in 2019, from 334.6  tonnes in 2014; production of fruit and fi eld crops remained stable 
(Table 4.1).  
4.6.  Of livestock, the total number of animals gradually increased; livestock animals in Oman 
usually include cows, sheep, goats, and camels. With regard to animal products, the production also 
increased continuously durin g the review period; notably, the production of eggs and poultry meat 
experienced a significant growth (Table 4.1). As a result, it was reported that the self -sufficient rates 
for dairy, fruit, and vegetables in 2019 reached 25%, 70%, and 80%, respectively .1 
Table 4.1 Selected indicators of agriculture, 2014 -20 
 
2014  2015  2016  2017  2018  2019  2020  
Cultivated land 
(ha) 68,862.8  91,277.3  94,399.2  100,917.2  108,887.9  110,399.1  107,922.8  
Vegetables  13,106.1  20,950.9  22,046.2  22,241.5  22,451.9  23,150.8  29,095.9  
Fruit 30,846.1  31,011.5  31,012.0  31,115.7  32,231.6  32,554.2  33,268.2  
Field crops  4,842.6  3,919.9  4,258.0  4,263.4  4,268.5  4,311.3  10,161.5  
Perennial fodder 
crops  20,068.0  35,395.5  37,082.6  42,799.3  49,935.9  50,382.8  35,397.2  
Livestock 
('000)  3,301  3,366  3,434  3,502  3,572  3,278.5  3,717  
Crop production ('000 tonnes)       
Vegetables  334.6  769.4  830.9  814.6  817.9  825.3  1,159.5  
Fruit 404.4  434.3  444.7  450.8  459.7  468.7  464.9  
Field crops  22.2 31.1 18.9 18.9 25.0 25.5 162.5  
 
1 Alpen Capital (2019), GCC Food Industry . Viewed at: 
http://www.alpencapital.com/downloads/reports/2019/GCC -Food-Industry -Report -September -2019.p df. WT/TPR/S/418 • Oman  
 
- 59 - 
 
   
2014  2015  2016  2017  2018  2019  2020  
Perennial fodder 
crops  753.6  1,126.9  1,332.9  1,338.2  1,648.5  1,698.7  1,247.1  
Total  1,514.8  2,361.5  2,627.3  2,622.5  2,951.1  3,018.1  3,034.1  
Animal products ('000 tonnes)       
Poultry  43 92 94 111 129 129 130 
Red meat  42 43 44 45 46 47 48 
Dairy  91 83 87 97 99 101 215 
Eggs  285 342 364 397 427 427 476 
Source:  National Centre for Statistics and Information, Agriculture and Livestock . Viewed at: 
https://data.gov.om/OMAGLS2016/agriculture -livestock . 
4.7.  During the review period, the spending of domestic support for the agriculture sector continued 
to decrease, except for 2015. The autho rities note that the spending increase in 2015 was related 
to adjusting the irrigation system and the electrical voltage of the Najd project, where some 
problems arose; also, there were added expenses for the development of quarantine and veterinary 
quaran tine capacity. All the support measures notified to the WTO belong to the Green Box. In  2019, 
spending was OMR  8.2 million, down from OMR  24.5 million in 2013  (Table 4.2).  
Table 4.2 Domestic support, 2013 -19 
('000 OMR)  
 2013  2014  2015  2016  2017  2018  2019  
Agricultural research  1,634.9  1,792.6  2,715.0  1,879.5  1,427.8  1,053.8  936.3  
Pest and disease control  647.4  1,796.7  3,791.6  1,942.7  2,458.0  2,745.7  1,928.7  
Extension and advisory services  5,069.6  2,533.8  4,160.0  2,061.5  1,075.5  599.4  359.7  
Infrastructure  3,063.8  1,074.8  2,607.3  1,488.1  961.8  968.3  353.2  
General services  10,599.8  7,510.7  13,514.9  7,761.6  5,996.6  5,488.0  3,779.7  
Development programmes  3,636.5  4,458.9  2,673.0  2,438.0  2,240.1  1,309.1  890.2  
Source:  WTO documents G/AG/N/OMN/12 , 20 June 2014,  to G/AG/N/OMN/ 25, 31  July 2019; and information 
provided by the authorities.  
4.8.  Businesses in agriculture, livestock, and fisheries may apply for a soft loan from the Oman 
Development Bank (ODB ) for their projects, up to OMR  1 million per project ( Section  3.3.1). 
According to the authorities, the deployment of soft loans decreased from OMR  1.98 million in 2013 
to 0.88 million in 2018. In October  2017, Oman introduced its first ever agriculture i nsurance; the 
insurance not only covers farmers against the loss or damage to agriculture crops and greenhouses, 
but also extends to livestock and fishermen. The insurance line is provided by four domestic insurers, 
and is reinsured by Oman Reinsurance Com pany.  
4.9.  Agricultural land ownership is exclusively for Omanis.2 
4.10.  Oman does not maintain tariff quotas or quantitative restrictions measures on agricultural 
products; the average MFN tariff rate for WTO -defined agricultural products is 10.2% in 2021, while 
the tariff is bound at 27.7% (Table 3.1). Oman also notified that it does not provide export subsidies 
to agricultural products.3 
4.11.  Fisheries, as one of the five priority sectors identified in the National Programme for Enhancing 
Economic Diversificat ion (also known as the Tanfeedh programme), began to grow during the review 
period. The sector policy is defined in the National Fisheries Development Strategy (2013 -2020), 
with an aim of enhancing production, increasing the sector's efficiency, and protec ting natural 
resources. Priorities in the Strategy include ensuring fish supply for local demand, improving the 
usage of fish reserves, and encouraging private investment in maritime and aquaculture industries.  
4.12.  Oman's fish stock includes, inter alia, large  pelagic, small pelagic, and demersal. During the 
review period, the fisheries sector grew strongly – the fish catches increased almost three -fold. In 
2020, Oman landed 840,378 tonnes of fish, up from 211,314  tonnes in 2013. Oman's fish harvest 
has been do minated by artisanal fishing using small crafts. More than 90% of production was from 
 
2 Ministry of Justice and Legal Affairs, Royal Decree 29/2018 Promulgating the Law on the Prohibition of 
the Ownership of Land and Real Estate by Non -Omanis in Certain Places , 11 November 2018. Viewed at: 
https://mjla.gov.om/eng/legislation/decrees/details.aspx?Id=513&type=L . 
3 WTO document G/AG/N/OMN/20, 31  July 2019.  WT/TPR/S/418 • Oman  
 
- 60 - 
 
  traditional fishermen and coastal fishing; commercial fishing did not account for a significant share 
until 2019 (Table 4.3).  
Table 4.3 Selected indicators of fisheries, 2014 -20 
(tonnes)  
 2014  2015  2016  2017  2018  2019  2020  
Fish landed  
Commercial fishing  590 210 163 398 413 20,055  41,363  
Traditional fishermen  207,824  254,767  277,014  343,926  548,672  555,210  793,419  
Coastal fishing  2,618  2,024  2,330  3,140  3,909  3,921  4,289  
Aquaculture  282 170 103 77 451 1,054  1,307  
Total  211,314  257,171  279,610  347,541  553,445  580,240  840,378  
Fish export  
Fresh fish  20,001  38,559.1  .. .. .. .. 73,289  
Frozen fish  48,928  65,591.5  .. .. .. .. 214,114  
Crustaceans & molluscs  2,611  4,963.6  .. .. .. .. 12,344  
Total  77,645  110,579  .. .. .. .. 299,747  
Export value ('000 OMR)  52,494.6  48.9 .. .. .. .. 114,584  
.. Not available.  
Source:  National Centre for Statistics and Information, Fisheries . Viewed at: 
https://data.gov.om/OMFSRS2016/fisheries ; and information provided by the authorities.  
4.13.  In 2019, Al Wusta Fisheries, a fishing com pany owned by the Fisheries Development Oman, 
began its two -year trial fishing using modern industrial fishing methods (e.g. mid -water trawler 
fishing) to capture unexploited fishing stock. Al Wusta currently operates one vessel fishing at a 
sustainable ra te of 80,000 tonnes per year. Also, the Government is making efforts to encourage 
artisanal fishermen to replace their traditional dhow  boats with more modern vessels4, and employ 
more effective techniques. In this regard, Omani fishermen can get soft loa ns from the ODB and 
may apply for grants from the Government to cover up to 40% of the cost of fishing boats 
(Section  3.3.1). 
4.14.  Aquaculture is a fledgling industry in Oman. Current production efforts focus on white shrimp, 
abalone, bream, and grouper. The Om an Aquaculture Development Company (OADC), owned by the 
OIF, is the major player in the field. The OADC has two subsidiaries: Oceanic Shrimp Aquaculture 
and Blue Water. In May 2018, Blue Water harvested its first fish catch at its 3,000 -tonne -capacity 
sea bream farm; the production level reached more than 1,600 tonnes by end -2020.  
4.15.  In the Duqm Special Economic Zone (SEZ), a port and processing centre for fish are under 
construction. Once completed, as many as 60 fish manufacturing facilities are envisaged at  the 
harbour, including facilities for cooling, freezing, and fish farming.  
4.16.  Foreign investors in the fisheries sector may enjoy a five -year exemption on corporate tax 
and customs duty; the exemption is renewable once for another five -year period ( Section  3.3.1). In 
addition to soft loans from the ODB, Omani fishermen (including Omani companies) may apply for 
grants from the Government to cover up to 80% of the cost of fish feed, finger lings (young fish), 
and equipment, including fish tanks.  
4.17.  Oman is a net ex porter of fish.  Frozen fish, mainly supplying the US market, accounted for 
more than half of Oman's fish exports.  Fresh fish is usually destined for other GCC countries and the 
European market. In 2020, a total of 2 99,747 tonnes of fish were exported, valu ed at 
OMR 114.6 million (Table 4.3).  
4.18.  According to the authorities, measures taken to conserve the marine ecosystem and combat 
illegal, unreported, and unregulated (IUU) fishing include: (i)  licensing requirements for all 
fishermen and their vessels and veh icles, for fish processing plants, and for fish exports; and 
(ii) export restrictions on certain species such as lobster and abalone.  
 
4 The authorities encourage fishermen to replace old bo ats by applying FAO, ILO, and IMO standards 
and regulations in the specifications of the new and improved boats, such as better storage, improved fish 
quality, more safety assurance, modern equipment, and better accommodation on board.  WT/TPR/S/418 • Oman  
 
- 61 - 
 
  4.2  Mining and Energy  
4.19.  The institutions responsible for the mining and energy sector have been overhauled since the 
last Review. On 18  August  2020, the Ministry of Oil and Gas (MOG) was renamed as the Ministry of 
Energy and Minerals (MEM); in the meantime, the Public Authority f or Mining  (PAM) was disbanded 
and its functions were transferred to the MEM.5 
4.2.1   Mining and quarrying  
4.20.  The contribution from the mining and quarrying sector to Oman's economy gradually 
increased, from 0.4% in 2014 to 0.9% in 2020  (Table 1.1) . The Government i dentified the sector as 
one of the key sectors to diversify the economy. Oman has large deposits of metals and industrial 
minerals, with promising reserves of copper, chromite, gypsum, limestone, and marble. In terms of 
production, building materials, gyps um, and marble  are the leading products (Table 4.4).  
Table 4.4 Selected mineral production, 2014 -20 
  2014  2015  2016  2017  2018  2019  2020  
Building materials  Production  
(million cubic meters)  62.5 49.4 45.8 43.4 44.9 57.7 48.3 
 Value  
(million OMR)  53.8 68.6 67.7 65.5 62.4 43.3 34.4 
Limestone  Production  
(million tonnes)  8.7 12.2 12.5 18.1 14.0 10.0 6.4 
 Value  
(million OMR)  9.9 11.9 15.5 14.8 15.8 9.7 12.9 
Gypsum  Production  
(million tonnes)  3.4 6.3 7.9 8.4 9.4 11.0 10.2 
 Value  
(million OMR)  5.1 9.2 10.1 18.1 23.3 21.4 21.1 
Marble  Production  
(million tonnes)  1.6 1.6 1.4 1.3 1.3 1.1 1.1 
 Value  
(million OMR)  21.8 17.9 14.4 13.0 11.0 9.6 9.5 
Chromite  Production  
(million tonnes)  0.8 0.4 0.6 0.5 0.9 0.7 0.4 
 Value  
(million OMR)  22.9 16.0 18.1 22.1 30.1 19.6 8.9 
Copper  metric tonnes  0.1 0.0 0.0 0.0 0.0 0.0 0.0 
 Value  
(million OMR)  22.6 11.3 0.0 0.0 0.0 0.0 0.0 
Sectoral GDP (million OMR)  120.0  122.8  128.1  148.1  140.3  125.5  129.5  
Source:  National Centre for Statistics and Information, Oil and Gas . Viewed at: 
https://data.gov.om/OMOLGS2016/oil -and-gas; and information provided by the authorities.  
4.21.  Since the last Review in 2013, the l egal and institutional framework has been restructured 
with an aim to further streamline administrative operation and enhance the efficiency of the sector. 
The PAM, created in 2014, was dissolved in August 2020; its regulatory functions were transferred 
to the MEM. The main legislation concerning the sector is the Mineral Resources Law, which entered 
in force on 14  March  2019 and repealed the Mining Law and its amendments.6 The Law strengthens 
the powers of the sectoral regulating authority, whose exclusiv e responsibilities include issuing 
mining licences, negotiating concession agreements, conducting inspections of mining activities, and 
ensuring compliance by the licensees. According to the authorities, the new framework may provide 
investors with more in centives, guarantees, transparency, and certainty.  
4.22.  The Mineral Resources Law reaffirms state ownership of the natural underground resources 
in Oman's territory (including in the territorial waters, in the exclusive economic zone, and on the 
continental she lf); any mining activity must acquire a permit or a licence from the authorities.  
 
5 Ministry of Justic e and Legal Affairs, Royal Decree 96/2020 Amending the Name of the Ministry of Oil 
and Gas to the Ministry of Energy and Minerals, Determining Its Competences, and Adopting Its Organisational 
Structure , 18 August  2020. Viewed at: 
https://mjla.gov.om/eng/legislation/decrees/details.aspx?Id=1246&type=L . 
6 Ministry of Justice and Legal Affairs, Royal Decree 19/2019 Promulgating the Mineral Resources Law , 
13 February  2019. Viewed at: https://mjla.gov.om/eng/legislation/decrees/details.aspx?Id=549&type=L . WT/TPR/S/418 • Oman  
 
- 62 - 
 
  4.23.  For mining activities, there are three types of licences. It is also possible to obtain a whole 
life licence that combines all three licences.  
• Prospection Licence:  for activi ties that test the surface or the subsurface of the earth, 
using geological and geophysical methods to identify different minerals;  
• Exploration Licence:  for activities of extraction operations to locate or prove mineral 
deposits; and  
• Exploitation Licence:  for activities of extracting mineral resources with the aim of 
producing them on large scale.  
4.24.  Licence applicants must obtain pre -approval from various ministries. In addition to halving 
the number of ministerial approvals to four, the Mineral Resources Law  also puts a strict timeline 
(60 days) for governmental agencies to respond to a mining licence application. Under the Law, 
licences for prospection and exploration are valid for one year, renewable for a period up to 
three  years; a licence for exploitatio n is valid for five years, renewable for three  years. Licences are 
not transferable, unless approved by the authorities.  
4.25.  The Law draws a distinction between licences and concession agreements – the mining rights 
for any perimeter exceeding 5 km2 should be granted solely on a concession agreement. Concession 
agreements for large deposits shall be granted for a period between 20 and 30  years, upon approval 
from the authorities and being authorized by virtue of a Royal Decree. Concessionaires are not 
allowed t o sub -let their perimeters granted by the agreement. According to the authorities, mining 
concessions are considered as major means for developing the mining sectors, while extraction of 
building materials and marble continues to be managed mainly through the licensing process.  
4.26.  Licensees are requested to submit a financial guarantee of 1% of the project cost, and to pay 
an annual rent and royalties. Compared to the fixed 10% set in the previous law, the new law 
provides flexibility on royalty payment: at le ast 5% on the annual value of the extracted minerals, 
dependent on world market conditions. In addition, a licence holder is required to pay a minimum 
of 1% of annual production towards a corporate social responsibility fund managed by the 
authorities.  
4.27.  The main metallic minerals are produced by the state -owned Oman Mining Company (OMC), 
and the privately owned Mawarid Mining. In addition, chromite is being mined by Oman Chromite 
Company (OCC), which is partially state -owned. Another important player in Oman 's mining industry 
is Minerals Development Oman (MDO), a state -owned conglomeration of three  Omani sovereign 
wealth funds and government investment entities7; the MDO's role is to facilitate investment through 
joint ventures with private firms. The MDO ha s received multiple mining licences and is investing 
heavily in prospective mineral resources, as the Government's preferred partner for mineral 
concessions.  
4.28.  Although foreign firms can acquire mining permits, most foreign investors participate in this 
sector as service contractors or as joint venture partners with Omani firms. The improvement of 
transport infrastructure, especially the railway link under construction, is expected to boost the 
production and trade of mining minerals, attracting foreign inves tment and creating jobs.  
4.29.  In 2020, there were 4,691 people employed in the mining and quarrying sector, of which 
1,006  were Omani. As with many of Oman's key development sectors, there is a minimum 
Omanization target of 35% for all private companies. The mi ning sector reached approximately 21% 
in 2020.  
4.2.2   Hydrocarbons  
4.30.  Hydrocarbons play a major role in Oman's economy, though their share in GDP decreased 
from 46.6% in 2014 to 33% in 2019; they contributed a large part of government revenues, 
accounting 75.5% in 2 019, down from 84.3% in 2014. Oman is not an OPEC member. Its oil 
 
7 Minerals Development Oman (MDO) is owned by the State General Reserve Fund (50%), the  Oman 
Investment Fund (25%), and the Oman National Investments Development Company (25%).  WT/TPR/S/418 • Oman  
 
- 63 - 
 
  production generally expanded during the review period: the average daily crude oil production 
reached its peak at 1 million barrels in 2016, then fell to 950,700 in 2020 (Table 4.5).  
Table 4.5 Selected indicators for oil and gas, 2014 -20 
 2014  2015  2016  2017  2018  2019  2020  
GDP (million OMR)  32,978.2  27,803.8  26,103.3  28,259.8  31,822.2  30,586.3  24,366.2  
% from oil & gas  46.6 33.3 26.7 29.7 36.2 33.0 30.1 
Government revenues 
(million OMR)  14,107.0  9,064.5  7,608.1  8,514.1  10,949.6  10,588.7  5,902.0  
% from oil & gas  84.3 78.7 68.2 72.9 78.2 75.5 .. 
Average daily crude 
oil production ('000 
barrels)  943.5  981.1  1,004.3  970.6  978.4  970.9  950.7  
Total production of 
gas (billion standard 
cubic feet)  1,332.8  1,408.5  1,445.4  1,447.4  1,617.7  1,647.2  1,646.5  
Associated gas  239.5  247.7  250.2  243.3  284.4  294.6  271.1  
Non-associated gas  1,092.6  1,160.8  1,195.2  1,204.2  1,333.4  1,352.6  1,307.4  
Refinery production 
('000  barrels)  81.7 86.0 84.5 91.7 113.2  111.6  93.6 
LNG export  
(metric tonne)  7,887.7  7,916.5  8,522.4  8,585.7  10,384.8  10,635.4  10,197.0  
.. Not available.  
Source:  National Centre for Statistics and Information, various datasets.  
4.31.  The legal and institutional framework for the sector remained largely unchanged. The main 
legislation is the Oil and Gas Law, which entered into force in 2011. The oil and gas sector is overseen 
by the MEM.8 The Ministry's responsibilities include providing overall policy guidance for the sector, 
supervising exploration and production, negotiating Exploration and Production Sharing Agreements 
(EPSAs) with international oil and gas concessionaires, and marketi ng Omani crude oil and natural 
gas. 
4.32.  As at end -2018, Oman had 5 billion barrels of proved oil reserves, and 700 billion cubic meters 
of proved natural gas reserves.9 In the upstream, Petroleum Development Oman (PDO), the national 
oil company, is a dominant  player; 60% of PDO's equity is owned by the Government, while the 
remaining shares are held by Shell (34%), Total (4%), and Partex (2%). On 3  December  2020, 
Energy Development Oman (EDO), a joint stock company between PDO and a number of 
investments, was created by a Royal Decree.10 The Government transferred its interest, rights, and 
obligations under Block 6 to EDO, which has a mandate to invest in conventional as well as renewable 
and alternative energy resources.  
4.33.  Pursuant to the Oil and Gas Law, intern ational oil companies usually sign EPSAs, as a 
concessionaire, with the MEM.11 Under the EPSAs, oil and condensate may be sold on the open 
market, but all gas production must be sold to the Government. As part of the national strategy, the 
MEM tries to div ersify bidders for concession licences from the traditional sources. The MEM held 
licences bidding rounds in 2016 and 2019. As of end -2020, a total of 32 companies were operating 
in concession blocks throughout the Sultanate; alongside PDO and Occidental O man, international 
oil companies from Asia and Europe are present in Oman. Concessionaires are subject to 55% of 
income tax and 15% of corporate tax .12 
4.34.  The key markets for Omani oil are Asian economies including China; India; Japan; the 
Republic of Korea; Singapore; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
8 Matters related to environmental factors for oil and gas projects are within the purview of the Ministry 
of Environment and Climate Affairs.  
9 BP (2020), BP Statist ical Review of World Energy 2020 , 69th edition. Viewed at: 
https://www.bp.com/content/dam/bp/ business -sites/en/global/corporate/pdfs/energy -economics/statistical -
review/bp -stats-review -2020-full-report.pdf . 
10 Ministry of Justice and Legal Affairs, Royal Decree 128/2020 Establishing a Closed Omani Joint Stock 
Company Named Energy Development Oman S AOC, 3 December  2020. Viewed at: 
https://mola.gov.om/Download.aspx?Path=royal/2020 -00128%20Formatted.pdf .  
11 PDO, which considered as a block operator rather than a con cessionary, is not required to sign EPSAs 
with the MEM.  
12 The standard rate for corporate tax was raised from 12% to 15% in February 2017.  WT/TPR/S/418 • Oman  
 
- 64 - 
 
  (Chinese Taipei) ; and Thailand. In addition to exporting, Oman processes oil in its domestic refinery 
facilities. The majority of gas production goes to industrial use and power generation – all of Oman's 
power generation is now provided by domestic natural gas. Oman also increased its exports of 
liquefied natural gas (LNG) during the review period (Table 4.5).  
4.35.  In contrast to those of other GCC countries, hydrocarbon resources in Oman are contained in 
challenging or depleting formations. Oman in recent years has become a global leader of using the 
enhanced oil recovery techniques and new seismic technologies commercially, allowing the country 
to maintain high production rates and e nsure oil retains its role as a primary economic contributor.  
4.36.  In 2013, the authorities introduced the In -Country Value (ICV) Blueprint Strategy. According 
to the authorities, the Strategy aims to retain the total sectoral spending in -country that benefits 
business development, contributes to human capability development, and stimulates productivity in 
the economy. The Strategy covers seven specific elements: (i) investment in fixed assets; 
(ii) Omanization; (iii)  training of Omanis; (iv) local sourcing of g oods; (v) local sourcing of 
sub-contracted services; (vi) the development of national suppliers; and (vii) the development of 
national training, education, and research and development institutions.  
4.37.  Companies involved in the oil and gas sector must conduct  an evaluation that details the 
percentage of local spending in all of these areas. In the case of Omanization, the figures also must 
include a percentage of total headcount and the number of man hours used, while training is 
considered as a percentage of local training in total national man hours. As of end -2020, total direct 
and indirect employment in the sector reached 19,766 posts, of which 16,898 were taken by Omanis. 
Direct employment in the sector adds up to an Omanization rate of approximately 85%.  
4.38.  The Strategy also benefits the development of local suppliers13, in particular for small and 
medium -sized enterprises (SMEs) servicing the needs of the oil and gas sector, such as health, safety 
and environment advisory services, engineering and engineerin g management services, drill bit 
manufacturing, and oil well maintenance.  
4.39.  Oman's downstream is dominated by the state -owned refinery company, Oman Oil and Orpic 
Group (OQ). OQ is a merger between the Oman Oil Refineries and Petrochemicals Company (Orpic) 
and the Oman Oil Company (OOC) that occurred in November 2018. Orpic operates two  refineries, 
a polypropylene plant, and an aromatics plant. The daily refinery capacity from these facilities stood 
at 220,000 barrels in 2019.  
4.40.  Expanding the capacity of refini ng and petrochemicals production plays an important role in 
Oman's economic diversification strategy of growing manufacturing and increasing value addition in 
the hydrocarbons sector. New investment projects are ongoing in Duqm, Sohar, and Salalah.  
4.41.  With re gard to the retail market, the fixed -price policy for fuels was abolished in 
January  2016; now prices for fuels are set and adjusted monthly by a government committee 
reflecting the changes in international prices. The profit margins of retailers are still  fixed by the 
Government. The major retailers are Al Maha Petroleum Products Marketing Company, Oman Oil 
Marketing Company, and Shell Oman Marketing Company.  
4.2.3   Electricity  
4.42.  The legal and institutional framework for the power sector has remained largely unchan ged, 
except that the sectoral regulator was branded as the  Authority for Public Utilities Regulation (APUR , 
also known the Authority for Public Services Regulation ) in August 2020.14 The main legislation is 
the Law on the Regulation and Privati zation of th e Electricity and Related Water Sector (also known 
as the Sector Law).  
 
13 There are two types of suppliers: (i)  local community contractors (LCCs) are companies owned by the 
tribal communities or individuals who live in concession area; and (ii)  super -local community contractors are 
the ones registered as closed Omani shareholding companies on the Muscat Securities Exchange.  
14 Ministry of Justice and Legal Affairs, Royal Decree 78/20 20 Amending the Name of the Electricity and 
Related Water Sector Regulation Authority to the Authority for Public Utilities Regulation and Assigning Some 
Competences to It,  12 August 2020. Viewed at: 
https://mjla.gov.om/eng/legislation/decrees/details.aspx?Id=1228&type=L . WT/TPR/S/418 • Oman  
 
- 65 - 
 
  4.43.  The sector comprises three separate grids: the Main Interconnected System (MIS), serving 
the north of Oman; the Dhofar Power System (DPS), serving the southern Dhofar region and the 
nearby rural areas; and the Rural System of the Rural Areas Electricity Company (RAEC), serving 
the rural areas that are not covered by  the other two grids.  
4.44.  Under the Sector Law, the subsector of power generation is fully liberalized; all new electricity 
projects must be carried out by independent power providers (IPPs). The state ownership of an IPP 
may not exceed 15%, and 40% of the share must be traded on the Muscat Securities Exchange 
(MSX). As of end -2020, there were 14 IPPs licensed to operate, 12 of whi ch are 100% privately 
owned15; 12 IPPs operate on the MIS, and 2 on the DPS.  
4.45.  All capacity generated from IPPs is sold to the single wholesale buyer, the Oman Power and 
Water Procurement Company (OPWP), through l ong-term power purchase agreements . The OPWP 
is responsible for the country's capacity planning through forecasting electricity demand in the next 
seven -year interval; the planning is presented each year in the 7 Year Statement.16 According to the 
latest Statement, the demand for electricity by 2025 will fall short by 1 ,750 MW; therefore, 
1,600 MW of new capacity from IPPs is planned. Under the Economic Purchase Obligation, the 
OPWP  must procure new capacity, usually through a competitive tender; it planned to purchase an 
extra 600  MW in the 2022  powe r procurement process, and 700 MW in 2024.17 
4.46.  In 2015, the authorities published the National Energy Strategy (NES) 2040. In 2017, Oman 
adopted a target of having at least 10% of electricity output from renewable energy sources by 
2025, primarily onshore wi nd and solar; in 2020, the target changed to 30% by 2030. As at 
end-2020, there was only a total capacity of 150  MW from wind sources in operation. There are 
13 projects planned for the future: 4 photovoltaic (PV) solar projects with a total capacity of 
1,600 MW, 2  wind projects with 250  MW of combined capacity, 2 waste -to-energy/biogas projects 
with 250  MW total capacity, and 5 small -scale solar PV schemes with a combined capacity of 
160 MW. Additionally, the authorities also launched a solar rooftop initi ative, allowing private 
customers to sell their extra electricity generated from rooftop solar PV back to the OPWP.  
4.47.  The Oman Electricity Transmission Company SAOC (OETC) is the monopolistic transmitter; it 
manages the grids of M IS and DPS. Distributors in each grid purchase electricity from the OPWP and 
distribute it to final customers; distributors on each grid enjoy statutory monopolies in their 
respective service areas, though the APUR has the competence to maintain competition in the 
markets.18 There are three distributors on the IMS network, and one on the DPS. All four  distributors, 
together with the OETC, are state -owned under the umbrella of the Electricity Holding Company.19 
4.48.  The RAEC is a vertically integrated entity, serving the vast rural  areas. On the RAEC, there 
are two generation plants: one is diesel -fired and the other is solar -powered.  
4.49.  Electricity retail tariffs are subject to approval by APUR, and adjusted each year (Table 4.6). 
When the economic cost of supplying electricity is hig her than the revenue from retailed tariff, the 
difference (i.e. the loss of income) will be matched by the Ministry of Finance. The electricity subsidy 
is calculated annually.  
4.50.  Oman's national grid has been connected with the GCC Interconnection Grid throug h a 
220 kV connection with the United Arab Emirates since July 2018. The OPWP is the state trading 
entity for electricity on the GCC Grid. The current capacity for electricity trading is up to 400  MW 
(800 MW in the case of emergencies). The MFN tariff on i mporting electricity is 5%.  
 
15 Authority for Public Services Regulation, Generation and Desalination . Viewed at: 
https://apsr.om/en/node/ 35. 
16 Oman Power and Water Procurement Company, 7 Year Statement . Viewed at: 
https://omanpwp.om/new/Documents.aspx?Pid=46 . 
17 Oman Power and Water Procurement Company (2019), 7 Year Statement: Iss ue 13 (2019 -2025) . 
Viewed at: https://omanpwp.om/PDF/7%20Year%20Statement%202019 -2025%20New.pdf . 
18 Authority for Public Services Regulation, Economic Regulation . Viewed at: 
https://apsr.om/en/node/39 . 
19 Oman has started the process of selling the sector companies: 49% of OETC shares were sold to a 
private investor in 2019.  WT/TPR/S/418 • Oman  
 
- 66 - 
 
  Table 4.6 Electricity retail prices, 2021  
Tariff category  Range (kWh/month)  Tariff (OMR/kw)  
Residential    
Citizen's account  0-2,000  0.015  
2,001 -4,000  0.02 
More than 4,000  0.03 
Residential and additional account  0-500 0.02 
500-1,500  0.025  
More than 1,500  0.03 
Commercial    
Large customers   CRT 
Industrial  Winter Tariff (from 1 January to 30  April, and 
1 October to 31 December)  0.021  
Summer Tariff (from 1 May to 30 September)  0.029  
Agriculture and fisheries  0-3,000  0.012  
3,001 -6,000  0.016  
More than 6,000  0.024  
CRT Cost reflective tariff , applied to commercial and industrial customers whose consumption exceeds 
150 MWh per year, which includes the four-stage cost for electricity supply (i.e. the price of bulk 
supply, transmission charge, distribution charge, and the administrative charge). The CRT was 
introduced on 1  January  2017.  
Source:  Authority for Public Services Regulation, Permitted Tariffs . Viewed at: https://apsr.om/en/tariffs . 
4.3  Manufacturing  
4.51.  Manufacturing steadily accounted for about 10% of GDP during the review period. Considering 
Oman's endowment of mineral resources, the manufacturing sector is d ominated by activities related 
to oil and gas, such as petroleum refineries and petrochemicals (Table 4.7). Main products of the 
chemical industries include fertilizers, paints, detergents, and pharmaceuticals. Other manufacturing 
activities include metal production, plastics, and light industry such as food and beverage.  
Table 4.7 GDP of manufacturing sector, 2014 -20 
(million OMR)  
Manufacturing activities  2014  2015  2016  2017  2018  2019  2020  
Refined petroleum 
products  43.3 208.4  168.9  328.5  302.1  455.7  797.8  
Chemicals and chemical 
products  1,607.6  1,176.8  976.2  1,199.6  1,638.5  1,433.0  .. 
Other manufacturing  1,259.0  1,221.2  1,170.6  1,204.7  1,277.8  1,183.1  .. 
Manufacturing (Total)  2,909.9  2,606.4  2,315.6  2,732.8  3,218.4  3,071.8  2120.7  
GDP 32,978.2  27,803.8  26,103.3  28,259.8  31,822.2  30,586.3  27,705.2  
.. Not available.  
Source:  Information provided by the authorities . 
4.52.  In 2021, Oman's Manufacturing Strategy 2040 began to be implemented. The Strategy aims 
to transform the manufacturing sector from resource -based to capital -intensive and knowledge -
driven.20 The Ministry of Commerce, Industry and Investment Promotion (MOCIIP)21 oversees the 
development of the sector. Other stake holders include the Public Establishment for Industrial Estates 
(known as Madayn) and the Oman Chamber of Commerce and Industry, which represents a vast 
number of SMEs operating, in particular, in light manufacturing.  
4.53.  As part of the economic diversificatio n effort, Oman aims to be a top 10 global transport hub; 
meanwhile, manufacturing was selected by the authorities as one of the five key sectors in the 
National Programme for Enhancing Economic Diversification (Tanfeedh programme), as well as in 
Oman Visio n 2040. Most manufacturing establishments (including the ones for refineries and 
 
20 UNIDO Open Data Platform, Oman Manufacturing Strategy. Viewe d at: https://open.unido.org/ 
api/documents/15202854/download/Oman%20Manufacturing%20Strategy -%20En%20 -%20for%20web.pdf . 
21 The Ministry of Commerce, Industry and Investment Promotion was restructured in August 2020, and 
now incorporates the functions of the Competition Protection and Monopoly Prevention Centre and the Public 
Authority for Investment Promotion and Export Develop ment, both of which have been dissolved.  WT/TPR/S/418 • Oman  
 
- 67 - 
 
  petrochemicals) are located in the industrial estates, free zones, and SEZs where they are served 
by the airports or ports nearby (Section 3.2). 
4.54.  There are four free zones and one SEZ in the country, where investors enjoy 100%  foreign 
ownership, and exemptions on minimum capital requirement, and on tax and customs duty. These 
zones are regulated by the Public Authority for Special Economic Zones and Free Zones; each zone 
is managed by a dedicated operator. Different zones may have different specialization of the 
industries inside. For example, the Salalah Free Zone is focused on chemicals and materials 
processing, manufacturing and assembly, and logistics and distribution, wh ile the Sohar Free Zone 
is focused on metals, petrochemicals, logistics, and food processing.  
4.55.  There are other nine industrial estates scattered across the country, all of which are managed 
by Madayn. These industrial estates offer incentives similar to the  ones in the free zones.  
4.56.  Specific incentives accorded for manufacturing include a non -renewable five years of income 
tax holiday for companies' net profit; a five -year exemption on custom duties and withholding taxes 
on plant, machinery, and raw material i mports; and withholding tax exemption on dividends and 
interest ( Section 3.3.1 ). To be eligible for the incentives, foreign -owned companies must have 
invested a minimum of OMR  1 million on fixed assets in the locations specified by the MOCIIP, and 
meet the  Omanization target for the sector, currently set at 35% ( Section 2.4).  
4.4  Services  
4.4.1   Financial services  
4.4.1.1   Banking  
4.57.  The Central Bank of Oman (CBO) is Oman's banking sector supervisor and regulator, in 
accordance with the Banking Law (Royal Decree No.  114/2000, as amended), which has remained 
largely unchanged since the last Review. There are 18 commercial banks operating in Oman (9 local 
banks and 9 branches of foreign banks). Among the nine local banks, two are Islamic banks and 
five conventional banks have establ ished dedicated Islamic banking windows. Islamic banking is 
regulated under the Islamic Banking Regulatory Framework22, which remained largely unchanged 
during the review period.  Also, there are two state -owned specialized banks, i.e. the O DB and the 
Oman Housing Bank (OHB). The ODB provides soft loans to SMEs in key activities, such as 
agriculture, fisheries, livestock, health, IT, manufacturing, tourism, and traditional industrial 
craftsmanship ( Section 3. 3.1). The OHB provides finance, mainly through sof t housing loans.  
4.58.  The Government keeps a 23.6%  minority participation in Bank Muscat, 14.57% in Sohar 
International Bank, and 5.09% in Bank Nizwa, while all other commercial banks are privately owned. 
During the review period, there were some unsuccessful a ttempts to consolidate commercial banks; 
however, some progress was made within the Islamic banking segment in 2020 – the Islamic window 
of a local conventional bank was merged with an Islamic bank, and the Islamic bank became a fully 
owned subsidiary of t he conventional Bank.23 The sector is dominated by local commercial banks, 
and Bank Muscat is the largest institution, holding around 35% of the sector assets. As for the 
Islamic banking segment, it has rapidly grown since 2013 and now accounts for 15.7% a s at 
end-March 2021. In 2020, Government deposits constituted 23.1% of total deposits (down from 
28.1% in 2019), while government entities24 and public sector enterprises (PSEs) accounted 
for 6.6%. Also in 2020, total deposits increased by 2.9% (from OMR  23.7 billion in 2019 to 
OMR 24.3 billion  in 2020). As such, the decrease in Government deposits was offset by an increase 
in deposits from the private sector.  
4.59.  Licensing procedures are the same for local and foreign -owned banks. The authorities note 
that lim itations to foreign (or local) ownership for Islamic banking entities are similar to those 
applicable to conventional banks. The minimum paid -up capital requirement is OMR  100 million for 
local commercial banks, OMR  20 million for foreign banks, and OMR  10 million for Islamic windows. 
 
22 Royal Decree No.  69/2012.  
23 The Al Yusr Islamic Window of Oman Arab Bank (OAB) was merged with Alizz Islamic Bank (AIB). In 
the process, the AIB became a subsidiary of the OAB.  
24 Government entities include the pu blic organizations of the Government such as ministries, 
municipalities, public sector councils, and authorities.  WT/TPR/S/418 • Oman  
 
- 68 - 
 
  In addition, licensed banks are required to keep a paid -up capital deposit with the CBO equivalent 
to one tenth of 1% of their global banking resources, with a minimum of OMR  50,000 and a 
maximum of OMR  500,000. Investors must  apply to the CBO for a licence, and the aggregate foreign 
ownership in local banks is limited to a maximum equity share of 70%. Requests for authorization 
of a branch office are approved by the CBO's Board of Governors. An application fee of OMR  600 is 
charged for each branch office. Any licensed bank may establish and operate branch offices within 
or outside Oman. During the review period, 13 applications for establishing branches of conventional 
foreign banks, and 4 for establishing Islamic banking entit ies were rejected by the CBO.  
4.60.  The authorities note that Basel III standards have been implemented, especially with regard 
to liquidity coverage ratio (LCR) (minimum requirement of 100%), net stable funding ratio (NSFR) 
(minimum requirement of 100%), levera ge ratio, domestic systemically important banks (D -SIBs), 
and the Resolution Framework; the authorities further indicated that the Basel III Reforms (also 
known as Basel IV) would be gradually rolled out once the COVID -19 situation stabilizes. In addition,  
the International Financial Report Standard 9 (IFRS -9) was implemented in the banking sector from 
1 January  2018, which requires the bifurcation of loans portfolio into three  stages (Stages 1, 2, 
and 3), with Stage 3 representing impaired loans or non -performing loans (NPLs). At end -2020, the 
banking system's Basel III regulatory capital adequacy ratio (CAR) was 18.5% (up from 16% 
in 2012), which is higher than the minimum of 13.5% prescribed by the CBO.25 As of 
December  2020, NPLs amounted for 4.2% of the total gross loans . The authorities note that NPL 
coverage ratio was 63.4% . 
4.61.  Based on principles and criteria established by the Basel Committee on Banking Supervision, 
Oman developed a D -SIBs Framework to enhance the regulatory and supervisory regime of  
important banks to contain any harm they might cause to the domestic economy. The D -SIBs 
Framework includes, inter alia , capital surcharges, stress testing exercises, and risk assessment 
measures. In April 2019, the CBO rolled out the Bank Resolution Fram ework in line with the Financial 
Stability Board's Key Attributes of Effective Resolution Regimes for Financial Institutions; under this 
framework, the CBO acts as the Resolution Authority for all the entities it licenses.  
4.62.  Recognizing the potentials of fin ancial technology (fintech) services, the CBO published its 
fintech strategy in October 2020, and launched a Fintech Regulatory Sandbox Framework. The 
Sandbox is open to both local and foreign innovators, fintech companies, and start -ups, regardless 
of whe ther or not they are licensed to operate in Oman.26 
4.63.  In June 2016, a revised Law on Combating Money Laundering and Terrorism Financing 
(ML/TF) established the National Committee for Combating Money Laundering and Terrorism 
Financing chaired by the CBO, and created the National Centre for Financial Information.27 The 
revised Law also requires financial institutions to apply appropriate due diligence measures, and 
promotes cooperation with international counterparts. In 2019, Oman adopted the National Risk 
Assessment (NRA) of ML/TF, based on a methodology developed by the IMF.  
4.64.  The interest rate on personal and housing loans has been capped at 6% since October 201328, 
while other lending and deposit rates are market -driven.  
4.4.1.2   Insurance  
4.65.  There are 19 direct insuranc e companies (10 of which are local insurers), 31 licensed 
insurance brokers, and 1 reinsurance company operating in Oman. Between 2014 and 2020, the 
value of written premiums rose from about OMR  435 million to some OMR  465 million. Meanwhile, 
the number of  issued insurance policies increased from around 1.45 million in 2014 to about 
1.64 million in 2020. The main segment in the market is health insurance (33% of market 
premiums), while motor, property, and life insurance account for 24%, 15%, and 12%, respe ctively, 
of the market share. Health insurance was the fastest growing segment, with a compound annual 
growth rate of 10% during the review period, which outpaced the 2% growth rate of the sector. 
 
25 Central Bank of Oman, Circular BM 1114, 17 November 2013. Facing the challenge posed by 
COVID -19, the CBO temporarily reduced the CAR minimum to 12.25%.  
26 CBO, Fintech Regulatory Sandbox Framework . Viewed at: 
https://cbo.gov.om/sites/assets/Documents/English/Fintech/FRSProposalFramework.pdf . 
27 Royal Decree No.  30/2016, 2 June 2016.  
28 Central Bank of Oman, Circular BM 1112, 2 October 2013.  WT/TPR/S/418 • Oman  
 
- 69 - 
 
  Given the low penetration (1.87%) of insurance products, th ere is still an important margin for 
growth in the sector.  
4.66.  The Capital Market Authority (CMA) supervises and regulates the sector in line with Royal 
Decree No.  90/2004. Royal Decree No.  12/1979, as amended, lays out the regulatory regime for 
insurance acti vities. To operate in Oman, an insurer must be a joint stock company, commercially 
registered in Oman, and licensed by the CMA. Since 2017, all insurance companies must have a 
minimum capital of OMR  10 million and be listed on the MSX, following the requir ements set out by 
Royal Decree No.  39/2014. Companies must deposit requisite guarantees and maintain a required 
margin of solvency. Tariffs and premiums are determined by market competition, which has led a 
significant reduction in services prices in motor  and health insurance. The CMA is currently 
conducting a review of insurers of costs and profit margins in these two  segments. Cross -border 
supply of reinsurance services is free of restrictions.  
4.67.  Under the Investment Regulation, an insurer must not have mo re than 30% of its total 
investment invested outside Oman; for reinsurance companies, the ceiling is 50% of total 
investment. Furthermore, not less than 50% of the overseas investment must be invested in either 
bank deposits /investment agencies,  or governm ental/Islamic  bonds  (sukuk); no more than half of 
total overseas bank deposits are allowed to be with a single bank or financial institution.  
4.68.  Two local insurers provide Islamic insurance (takaful). Though the segment is growing rapidly, 
it represents only a small share (14%) of the insurance market. Royal Decree No.  11/2016 
prescribes the framework for the development of takaful in Oman. Minimum capital requirements 
and the listing obligation on the MSX are the same as for conventional insurers. Only dedica ted 
takaful providers can offer Sharia -compliant insurance products, and insurers cannot simultaneously 
offer conventional and Islamic products.  
4.69.  There are no restrictions regarding ownership of insurance companies. An insurance company 
in Oman may transact  general, life, or medical insurance or all of them, depending on the licence 
applied for and granted. Foreign insurance companies may supply insurance services as a locally 
incorporated company or as a branch of the parent company. For foreign insurance c ompanies, 
Decree No.  90/2004 stipulates: (i)  all policies covering risks situated in Oman must be issued in 
Oman; (ii)  a record of all policies issued with respect to Oman must be maintained in a local office; 
(iii) the parent company must be established i n accordance with laws of the country of origin; 
(iv) OMR 500,000 must be deposited with the CMA for doing business in any class of insurance and 
not less than OMR  1,000,000 for more than one class; and (v) an amount not exceeding 25% of 
each insurance pol icy issued in Oman must be reinsured with a national insurance company.  
4.70.  Oman's insurance regulatory framework also includes a Code for Corporate Governance and 
a Code of Practice for Conduct of Insurance Business. The regulatory framework is reviewed 
periodically, and some recent updates include regulations on investment for life insurers, increased 
minimum capital requirements for insurance brokers, and licence requirement for insurance agents.  
4.71.  The authorities indicate that a draft regulation  on risk -based solvency and a capital adequacy 
framework for insurance services is being reviewed. The CMA informed that amended regulations to 
relax overseas investment for insurers are under consideration.  
4.4.1.3   Securities  
4.72.  The MSX is a private closed joint sto ck company  providing operational facilities and 
mechanisms for licensing trading, settlement, and registration of securities.29 The CMA is in charge 
of the monitoring and regulation of the capital market activity on the MSX .30 A centralized system 
for regi stering and transferring ownership of securities and safekeeping records is managed by the 
Muscat Clearing and Depository Company, a closed Omani shareholding company.  
 
29 The Muscat Securit ies Exchange (MSX) was formerly known as the Muscat Securities Market (MSM), 
which was created by Royal Decree No.  53/1998 on 21 June 1998. On 5 January 2021, Royal Decree 
No. 5/2021 created the MSX. As per the Decree, all MSM assets, liabilities, activiti es, rights, and functions were 
transferred to the MSX. MSX, History . Viewed at: https://www.msx.om/page.aspx?b1=Our -
Profile&b2=History&p=HistoryEvents&ti=Hist ory. 
30 Royal Decree No.  80/1998, 9 November 1998.  WT/TPR/S/418 • Oman  
 
- 70 - 
 
  4.73.  By end -2019, 111 companies and 43 bonds (21 corporate, 22 government31) were listed on 
the MSX. In comparison to 2013, the number of listed companies decreased, while the number of 
government and corporate bonds doubled. The authorities are of a view that the decrease in listed 
entities on the MSX is not substantial and is part of market fluc tuation; meanwhile, some companies 
chose to delist themselves  by transforming their organizational structure from an SAOG to an SAOC . 
Market capitalization of listed securities amounted to OMR  18.8 billion in 2019, up from 
OMR 14.2 billion in 2013. The aut horities indicate that the value of traded shares in 2019 
represented only 30% of the value of traded shares in 2013. The MSX30, the index of the MSX, 
witnessed a sharp decline ( -46.6% in June 2021) since its peak in September 2014. The authorities 
attribu te the sharp decline to two possible factors: (i)  the plunge of oil prices; and (ii)  the lower 
rating of Oman by international rating agencies. The MSX is open to foreign investors, and the share 
of foreign investors in Oman's total securities market inves tment slightly fell from 28% in 2013 to 
25.4% in 2019. The largest share of foreign investment originates from GCC countries.  
4.74.  In line with related developments in other financial subsectors, Oman enacted a framework 
for the issuance of Islamic bonds throug h Royal Decree No.  59/2014, and related regulations entered 
into force on 11  April 2016. This development explains in part the increase in the issuance of bonds, 
which kept the traded value in these instruments relatively stable. The listing requirements f or 
insurance companies contributed to counter the decrease of listed companies on the MSX.  
4.4.2   Communications  
4.4.2.1   Telecommunications  
4.75.  During the review period, Oman's telecom munications  sector, like in other places of the world, 
has become more and more mobile - and Internet -oriented.  While the p enetration (subscriptions per 
100 inhabitants) of fixed telephony stayed stable over the past five years, mobile phone p enetration  
stood at 140.4 % in 2020. In 2020, 95% of the population had access to the Internet. During the 
review period , Internet penetration witnessed a remarkable improvement: the fixed broadband 
penetration rate increased more than double, from 4.4% in 2014 to 11.4% in 2020; th e wireless 
broadband penetration reached 120.5% in 2020, up from 76% in 2014 (Table 4.8).  
4.76.  Oman considers information and communications technology (ICT) central to the Sultanate's 
long-term economic diversification, as a fundamental support for growth in a  range of sectors and 
as a driver of GDP growth in itself. In this regard, a National Broadband Strategy was developed 
in 2013. With the objective of driving up social and economic benefits through providing broadband 
access to all Omanis and businesses, t he Strategy was built on three pillars:  
• Pillar 1: Review the telecom regulatory framework;  
• Pillar 2: Stimulate the demand for broadband; and  
• Pillar 3: Enhance the broadband infrastructure.32 
Table 4.8 Selected  telecommunications indicators, 2014 -20 
  2014  2015  2016  2017  2018  2019  2020  
Fixed telephone subscriptions ('000)  375.2  434.9  422.5  509.8  560.3  592.2  594.6  
Fixed telephone subscriptions per 
100 inhabitants  9.3 10.2 9.4 10.9 12.2 12.8 13.3 
Mobile -cellular telephone 
subscriptions ('000)  6,194.2  6,646.7  6,866.3  6,943.9  6,440.9  6,383.5  6,276.5  
Mobile -cellular telephone per 
100 inhabitants  153.8  155.8  153.3  148.8  140.0  138.2  140.4  
Internet users (%)  70.2 73.5 76.8 80.2 85.5  90.3 95.2 
Fixed broadband subscriptions ('000)  177.1  233.2  284.6  348.9  422.0  473.1  510.8  
Fixed broadband subscriptions per 
100 inhabitants  4.4 5.5 6.4 7.5 9.2 10.2 11.4 
 
31 Three government bonds and five corporate bonds are listed as Islamic bonds ( sukuk ). 
32 Yahya Al Hajri (2017), Oman National Broadband Strategy , presentation on ITU Regional Workshop 
on Organizational and Technical Aspect of Broadband Development.  WT/TPR/S/418 • Oman  
 
- 71 - 
 
    2014  2015  2016  2017  2018  2019  2020  
Mobile broadband subscriptions 
('000)  3,059.7  3,550.2  4,047.0  4,351.6  4,113.3  5,038.8  5,385.6  
Mobile broadband subscriptions per 
100 inhabitants  76.0 83.2 90.4 93.3 89.4 109.1  120.5  
Source:  ITU, Statistics . Viewed at: www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx ; and the 
Telecommunications Regulatory Authority, Monthly Telecom Indicators Statistics . Viewed at: 
https://www.tra.gov.om/En/ManageReports.jsp?menu=114 . 
4.77.  The telecommunications infrastructure in Oman has significantly improved since the last 
Review. A mobile operator was licensed in 2021. The national backbon e fibre -optic network began 
construction in April 2014, and has covered 54% of urban regions33; the project is implemented by 
the Oman Broadband Company (OBC), a 100% state -owned company, and Oman ICT Group (owned 
by the Oman Investment Authority). Also, a s part of the implementation of the National Broadband 
Strategy, the 100% state -owned Space Communication Technology LLC (OmanSat) was established 
in 2018 to focus on the national satellite project; in the same year, Oman Tower Company (OTC), 
which is 68% owned by the Government, was established to provide infrastructure (including tower 
co-location service) to mobile telecommunications service operators and government entities in an 
open access manner. In the United Nations eGovernment Survey 2020, Oman's Telecom 
Infrastructure Index scored 0.69 and ranked 63 of 193.34 
4.78.  The Ministry of Transport, Communications and Information Technology (MTCIT) formulates 
policies for the subsector. The Telecommunications Regulatory Authority (TRA) remains the sectoral 
regulator. Its regulatory powers cover telecommunications, broadcasting, radio, and online 
communications.35 The main legislation governing the telecommunications sector includes the 
Telecommunications Regulatory Act, the TRA Executive Regulations, and their amendments. The 
Executive Regulations were amended in 2014 and 2016. According to the authorities, most o f the 
amendments to the Regulations were related to access and interconnection agreements and their 
terms and conditions.  
4.79.  Any person or company  that wishes to establish or operate a telecommunications system, or 
provide telecommunications services, must ob tain a licence. Licence applicants must be registered 
in Oman, in the case of companies. The authorities indicate there are no restrictions on foreign 
ownership for telecommunications service providers. Pursuant to the Telecommunications 
Regulatory Act, th ree types of telecommunications licences are issued to operators in Oman: Class  I, 
Class II, and Class III.  
• Class I licences are for telecommunications operators that own or operate a public 
telecommunications network or international telecommunications in frastructure, offering 
public telecommunication services to the general public or leasing out their capacity to 
other operators that provide public services. A Class I licence is issued by a Royal Decree.  
• Class II licences are granted to operators providin g telecommunications services that 
depend on using the capacity of a Class I licensee's network. A Class II licence is issued 
by a ministerial decision . 
• Class III licences are granted to operators that own or operate a private 
telecommunications network, p roviding private services; their network is not connected 
to the public network, and does not exploit the capacity of a public network. A 
Class III licence is issued through a TRA decision.  
4.80.  Based on the public interest, the TRA may limit the number of Clas s I and Class  III licences.36 
In the case of limiting telecommunications licences, the TRA may invite bids for licences. As at 
end-May 2021, there were 10 Class  I licensed operators in Oman, among which 3 were issued for 
 
33 The national backbone network aims to cover 95% of urban regions by 2030. Oman Broadband 
Company, Coverage Map . Viewed at: https: //www.omanbroadband.om/Coverage -Map.html . 
34 United Nations (2020), UN E-Government Survey 2020 . Viewed at: 
https://publicadministration.un.org/egovkb/en -us/Reports/UN -E-Government -Survey -2020. 
35 Telecommunications Regulatory Authority, Who We Are . Viewed at: 
https://www.tra.gov.om/En/WhoWeAre.jsp?menu=7 . 
36 Telecommunications Regulatory Act, Articl e 21. WT/TPR/S/418 • Oman  
 
- 72 - 
 
  fixed telecom services, 3 for mobile services, and 2 for international traffic37; there were 4 Class  II 
licensed operators, 2 of which provide public mobile services.  
4.81.  Each Class I operator must treat all other licensed operators connecting to its network on a 
fair, reasonable, and non -discriminatory basis.38 This obligation is also applied to the branches or 
subsidiaries of a dominant licensed operator.39 A dominant licensee is the licensed operator with 
significant financial strength that can prevent effective competition in the sector . The TRA  conducts 
periodic market reviews, and the review results are presented in the TRA Market Definition and 
Dominance Report. The TRA is currently in the process of preparing its second market review; the 
previous one was published in 2013. In the 20 13 Report, Omantel and Nawaras were identified as 
single or joint dominant operators in the market.40 
4.82.  Interconnection agreements are negotiated between operators, subject to approval by 
the TRA; if no agreement is reached, the TRA may intervene and the int ervention is binding on all 
parties.41 Under the Access and Interconnection Regulations, the dominant operator is required to 
submit, within 30 days after being classified as dominant, its reference access and interconnection 
offer (RAIO) to the TRA for ap proval.  
4.83.  As stipulated in the Telecommunications Regulatory Act, telephone numbers, radio frequency, 
and domain names are considered to be national resources. Numbers are portable across operators. 
Regarding radio frequency allocation for telecommunications  services, the TRA assigns radio 
frequencies or frequency bands to Class I operators under a Radio License. The authorities note that 
the frequency allocation is in line with the National Spectrum Allocations Plan; dependent on the 
availability of the requ ired frequency, the allocation aims to enable the operator to exercise its rights 
and to perform its obligations as specified in the Licence.  
4.84.  The TRA also has the competence of maintaining competition in the sector and protecting 
consumers' welfare. Operat ors must submit their tariff plans, including their revisions, to the TRA 
for approval before marketing such products.  
4.85.  According to the ITU, the retail market in Oman is competitive. For instance, in the mobile 
segment, Omantel was the leader with a 42.5% market share as of the end -2020, closely followed 
by Ooredoo (40.3%). The mobile virtual network operators (MVNOs) also gained market share 
during the review period, with a 17.2% market share in 2020, up from 12% in 2014. Reflecting the 
competitive nature of the market, the average revenue per user for total mobile services declined 
to OMR  3.96 in June 2020, down from OMR  7.42 in 2014.42 
4.86.  Class I licensed operators are charged royalty at 7% of their gross revenue for fixed operators, 
and 12% for mobile opera tors. Effective from 2022, the royalty for fixed operators will increase 
to 10%.  
4.87.  Universal service is mandatory, and is provided by existing licensed operators. Universal 
service is financed by the Omani Treasury.  
4.88.  The COVID -19 pandemic has increased the de mand for telecom services, such as video 
conferencing and streaming services. The TRA took several emergency regulatory measures aimed 
at ensuring the continuity of telecommunications services and avoiding network congestion. These 
procedures included abol ishing the ban on VoIP calls, and suspending the pre -approval requirements 
for retail tariff offers.  
4.89.  As stated in the Digital Oman Strategy, multinational technology companies are encouraged 
to establish branches and operations in Oman, setting up centres of excellence to support 
 
37 TRA, Class I: Company Licensed . Viewed at: 
https://www.tra.gov.om/En/Class1.jsp?pageNo=1&menu=30&classType=1 . 
38 TRA Executive Regulations, Articles 92 and 93.  
39 Telecommunications Regulatory Act, Article  25bis 1. 
40 TRA (2013), Market Definition and Dominance Report 2013 . Viewed at: 
https://www.tra.gov.om/pdf/8 -mdd-Report.pdf . 
41 Telecommunications Regulat ory Act, Article  46. 
42 TRA, Quarterly Report on Telcom Sector Indicators , various issues. Viewed at: 
https://www.tra.gov.om/En/ManageReports.jsp?menu=114 . WT/TPR/S/418 • Oman  
 
- 73 - 
 
  development. The Oman Data Park (ODP), established in 2012, is a joint venture between the 
state-owned Omantel and a private company, 4Trust LLC. The ODP is the first cloud and data service 
in Oman, and also the first cloud service  online in the region.  
4.90.  The MTCIT has run the Sas programme since 2013.43 The programme aims to provide the 
basis for new domestic SMEs to develop and promote the Sultanate's ICT sector. In this regard, the 
Sas for Entrepreneurship Centre was established to  provide technical and business training to 
start-up companies in order to better prepare them for the market, and to help them win their 
first contracts, as well as strengthening synergies and partnerships between SMEs in order to 
promote the formation of  an ICT cluster.44 The Oman Technology Fund (OTF) has invested in local 
companies that developed online auction, marketplace, and teaching platforms.  
4.91.  It appears that there is no requirement for data localization, nor any restrictions on 
international data traffic.  
4.4.2.2   Postal and courier services  
4.92.  During the review period, the institutional framework for postal and courier services remained 
unchanged. The main legislation is the Postal Services Regulatory Law and its Executive Regulations; 
the TRA continues being  the regulator for the sector.  
4.93.  The Oman Post Company (OPC), a state -owned enterprise, is the sole provider of universal 
postal services; it is also engaged in the delivery service of goods and packages throughout the 
Sultanate.  
4.94.  A licensed individual postal  service (including courier) provider must be an Omani national45; 
however, the authorities note that 100% foreign ownership is allowed in the case that the licensed 
service provider is a company. As at end -May 2021, there were 20 licensed service provider s 
(including the OPC). Many of the Licensees are international companies with local incorporations, 
including large courier operators with an international presence (e.g. DHL, FedEx, Aramex, and UPS). 
According to the authorities, all licensees provide cou rier services and deliver both express letters 
and parcels on both domestic and international routes, competing with the OPC in express/courier 
services.  
4.4.3   Transport  
4.95.  Transport and logistics have been identified by the Omani authorities as key priorities for 
economic diversification . To capitalize on that promise, public authorities are in the midst of a 
multi-billion -rial investment programme designed to expand and improve capacity across air, land, 
and sea.46 The Government issued the Sultanate Oman Logistics Strategy (SOLS) in July 2015, which 
aims to transform Oman into a top 10 global logistic players by 2040; the implementation of the 
SOLS falls under the responsibility of the MTCIT. In this regard, accord ing to the authorities, the 
MTCIT together with other government agencies took actions to implement certain trade facilitation 
agreements, such as the WTO  Agreement on Trade Facilitation, and the Customs Convention on the 
International Transport of Goods u nder Cover of TIR Carnets. In 2016, the wholly state -owned Asyad 
Group was created to represent the state ownership of infrastructure assets, such as three deep -
water ports, the dry dock, and three free zones, as well as the ownership of some transport ser vices 
providers, such as bus and ferry services (e.g. Mwasalat and Sinyar Oman ). 
 
43 The Sas programme was original ly run by the Information Technology Authority (ITA). In 2020, the 
functions of the ITA merged with the functions of the  Ministry of Transport, Communications and Information 
Technology (MTCIT) . 
44 Sas for Entrepreneurship Centre, About us.  Viewed at: 
https://www.sas.om/SASEN/Pages/about.aspx . 
45 Executive Regulations for the Postal Services Law, Article  9. 
46 Despite the falling oil price, the Government has already signalled its commitment to these 
programmes through deficit funding, and short of a further collapse in oil price, or a sustained slump, spending 
seems likely to be maintained.  WT/TPR/S/418 • Oman  
 
- 74 - 
 
  4.4.3.1   Maritime transport  
4.96.  During the review period, the legal and institutional framework for maritime transport 
remained unchanged. The Directorate General for Maritime Affairs, und er the MTCIT, is the sectoral 
regulator. Its regulatory power covers ship and seafarer registration, licensing, marine navigation, 
and safety. The Maritime Law47 remains the main legislation concerning maritime transport.  
4.97.  Maritime transport accounts for mo re than 80% of freight in the Sultanate. Oman's flag 
merchant fleet remains relatively small: 53 ships with 18,000 dead weight tonn age (DWT).48 The 
Oman Shipping Company (OSC) is a state -owned maritime transport service provider49, with a fleet 
of 52 vesse ls for a total carrying capacity of over 8 million DWT. Vessels flying the Omani flag must 
be registered under Omani companies; there is no Omani nationality requirement for the captain 
and crews.  
4.98.  Maritime transport services may be provided by the private sector (national and foreign). 
There is no requirement that goods directly or indirectly imported into Oman by government 
agencies or public enterprises must be transported by Omani -flagged vessels on designated shipping 
routes where such vessels are avail able. Freight and passenger transport charges are market -
determined. Cabotage is not allowed.  
4.99.  Oman's strategic location makes it a major transhipment hub on the East -West trade route. 
In 2020, there were 5,407 ships calling at ports in Oman, among which 1, 781 were container ships, 
1,153 were liquid bulk carriers, and 990 were dry bulk carriers.50 Despite the shipping industry 
consolidation i n recent years, container transport has gradually increased – container port 
throughput reached 5.1 million twenty -foot equivalent units (TEUs) in 2020, up from 3.3 million 
TEUs in 2014 (Table 4.9).  
Table 4.9 Selected indicators of maritime transport, 2014 -20 
 
2014  2015  2016  2017  2018  2019  2020  
Container port throughput  
(million TEUs)  3.33 3.14 3.94 4.78 4.22 4.84 5.14 
No. of port calls  8,440  7,409  9,768  8,227  5,256  5,425  5,407  
Container ships  1,873  1,786  1,997  2,054  1,570  1,709  1,781  
Liquid bulk ships  .. .. .. .. 1,267  1,191  1,153  
Dry bulk ships  .. .. .. .. 918 990 990 
Median time in port (day)  .. .. .. .. 1.24 1.11 1.13 
Container ships  .. .. .. .. 0.76 0.73 0.73 
Liquid bulk ships  .. .. .. .. 1.71 1.49 1.45 
Dry bulk ships  .. .. .. .. 2.95 2.77 2.74 
.. Not available.  
Source:  UNCTAD, Statistics: Maritime Transport . Viewed at: https://unctadstat.unctad.org/wds/Report 
Folders/reportFolders.aspx?sCS_ChosenLang=en ; and information provid ed by the authorities.  
4.100.   All seven commercial ports in Oman are state -owned, among which three are deep -water 
ports: Sohar in the north, Duqm in the centre of the country's coastline, and Salalah in the south. 
During the review period, all three ports receiv ed a massive investment in infrastructure to boost 
their capacity: new container terminals were commissioned in Ports of Sohar and Duqm, and a 
general cargo and bulk liquids terminal was added to the Port of Salalah.51 Sohar and Salalah Ports 
are linked wi th the free zones nearby (Section 3.2). Port Sultan Qaboos is the designated port for 
passenger traffic.  
 
47 Royal Decree No.  35/1981. Viewed at: https://w ww.transport.gov.om/files/SD.35.81 -E.pdf. 
48 In terms of ownership, the Omani fleet is 7,883,000 DWT. UNCTAD (2020), Maritime Profile: Oman . 
Viewed at: https://unctadstat.unctad.org/countryprofile/maritimeprofile/en -gb/512/MaritimeProfile512.pdf . 
49 The Oman Shipping Company was incorporated in 2003, owned by the Government through the 
Ministry of Finance (80%) and Oman Oil Company (20%).  
50 UNCTAD (20 20), Maritime Profile: Oman . Viewed at: 
https://unctadstat.unctad.org/countryprofile/maritimeprofile/en -gb/512/MaritimeProfile512.pdf . 
51 The new container terminals will boost the capacity at Sohar to 6 million TEUs per annum, and to 
3.5 million TEUs at Duqm. The new bulk terminal will boost Salalah's capacity to 60 million tonnes.  WT/TPR/S/418 • Oman  
 
- 75 - 
 
  4.101.   All three deep -water ports are managed under concessions by joint ventures between the 
Government and foreign private companies.52 Wholly f oreign -owned companies are allowed to 
operate terminals in Sohar on a landlord -tenant basis. Port Sultan Qaboos and the ports of Khasab 
and Shanas are managed and operated by the recently established Asyad Group.53 The Directorate 
General for Ports under the MTCIT does not manage/operate any port in the Sultanate, but oversees 
their management under concession agreements signed with the MTCIT.  
4.102.   Port operation efficiency, in particular for container handling, improved during the review 
period. For example, the median time in port for a container ship was 0.73 days in 2020, down from 
0.76 days in 2018 (Table 4.9).54 
4.103.   With regard to ship repairing, the Oman Drydock Company (ODC), a state -owned enterprise, 
provides ship mai ntenance and conversion facilities for all types of vessels. The ODC is located in 
the port of Duqm.  
4.104.   According to the authorities, no special incentives are granted to the subsector.  
4.4.3.2   Terrestrial transport  
4.105.   In terms of land transport, the Government continue s to invest in infrastructure projects to 
improve connectivity. These projects include construction of expressways, upgrading existing dual 
carriageways, and the first segment of 2,135  km national railways network. Also, the Government 
published in 2015 it s first ever master plan for public transport, focusing on Muscat; the master plan 
is expected to create a multi -modal mass -transit system.  
4.106.   The MTCIT is responsible for land transport in the Sultanate, including construction, 
maintenance, and licence manag ement. The legal framework for the subsector was modernized – a 
new Land Transport Law entered into force in March 2017, and the Executive Regulation of Land 
Transport became effective in January 2018. With the new legislation, the authorities intend to 
streamline the subsector and bring the provision and regulation of land transport under the umbrella 
of the MTCIT.  
4.4.3.2.1   Road transport  
4.107.   According to the authorities, as of end -2020, Oman had a total of 16,013  km of asphalted 
roads and 17,069  km of unpaved roads, a nd works are under way on two major road projects.55 The 
expressway system connects all the major urban areas, ports, and neighbouring GCC countries. 
Expressways are not tolled.  
4.108.   Oman's private car ownership is among the highest in the world, at 215 cars pe r 
1,000  people.56 Public transport in Muscat consists of several bus lines, an informal network of 
mini­buses, and taxis; outside of the capital, public transport is less developed.  
4.109.   Passenger transport services may be provided by the private sector, with a  foreign capital 
not exceeding 70%. Anyone who wishes to provide bus services must obtain a licence from the 
MTCIT. The leading bus services provider is Mwasalat, formerly known as the Oman National 
Transport Company (ONTC) before November 2015. Mwasalat i s a state -owned enterprise under the 
Asyad Group. Mwasalat enlarged its bus fleet to 123 buses, up from 73 buses before 2016; among 
the 50 new acquired buses, 40 are used as urban buses within Muscat, while 10 are used on long -
distance routes. Consequently , the bus lines in Muscat increased from 2 to 18, and the domestic 
 
52 Port Sohar is managed by a 50:50 joint venture with Port  of Rotterdam; the Port of Duqm is managed 
by a 50:50 joint venture with Consortium Antwerp Port; and the Port of Salalah is managed by APM Terminals.  
53 These ports were originally managed by the Port Services Corporation (PSC), which was dissolved 
in 2016. 
54 UNCTAD (2020), Statistics: Maritime Transport . Viewed at: 
https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sCS_ChosenLang=en . 
55 MTCIT , Roads Projects . Viewed at: 
https://mtcit.gov.om/ITAPortal/Pages/Page.aspx?NID=292386&PID=199505 . 
56 Oxford Business Group (2016), The Report: Oman 2016 . WT/TPR/S/418 • Oman  
 
- 76 - 
 
  long-distance routes reached 15. Also, more services have been added to the international routes.  
According to the authorities, there are also some private bus operators.  
4.110.   Only Omani nationa ls are allowed to operate taxis.  
4.111.   Freight transporters must complete their commercial registration with the M OCIIP , and 
obtain a transport licence from the MTCIT. It appears that foreign firms are allowed to provide freight 
transport services. In January  2018, a new regulation entered into force. On the ground of protecting 
the Sultanate's highways, the new regulation restricts the gross weight of any tandem axle vehicle 
to 21 tonnes, single axle loads to 13 tonnes, and the total gross weight for the vehicle  must not 
exceed 46 tonnes. Some observers indicate these restrictions may increase freight costs for heavy 
industry, in particular.57 
4.112.   Cabotage is not permitted.  The authorities note that prices of road transport services are 
market -determined.  
4.4.3.2.2   Rail transp ort 
4.113.   As part of the diversification effort, the national railway network aims to create an integrated 
multi-modal transport system in the Sultanate, linking the major ports, airports, regions with high 
population density, and industrial zones; the network i s also planned to connect with the railways of 
its GCC neighbours. Once completed, it will have huge potential to improve transport efficiency, 
bypassing some bottlenecks in the maritime routes.  
4.114.   Oman Rail, the public entity under the auspices of the MTCIT,  was founded in June 2014. 
Oman Rail is responsible for development, operation, and maintenance of the rail network. The 
authorities note that the preliminary design of the national railway network project58 is complete; 
however, construction has not yet s tarted.  
4.115.   According to the public transport master plan, a light rail transit (LRT) system will be built 
in Muscat. The authorities indicate that the LRT project is halted.  
4.4.3.3   Aviation transport  
4.116.   During the review period, the aviation industry in Oman experienced buoyant growth. 
Passenger numbers reached 17.4 million in 2019, up from 9.6 million in 2014. Also, aircraft 
movements increased by almost 50% between 2014 and 2019; more than 80% of flights are 
international. The COVID -19 pandemic posed a big c hallenge to the industry, which witnessed a 
sharp decline in air transport in 2020 (Table 4.10).  
4.117.   The main legislation concerning this subsector is the Civil Aviation Law (which entered into 
force in 2004, and was amended in 2012 and 2019), the Executive Re gulation of the Civil Aviation 
Law, and Civil Aviation Regulations.  
Table 4.10 Selected indicators of aviation transport, 2014 -20 
 
2014  2015  2016  2017  2018  2019  2020  
Passengers ('000)  9,551.5  11,342.9  13,230.1  15,581.2  16,779.0  17,404.7  2,943  
   Passengers in  4,770.9  5,711.7  6,659.0  7,762.8  8,385.5  8,658.5  2,208  
   Passengers out  4,746.5  5,601.0  6,543.5  7,786.8  8,374.6  8,721.8  727 
   Transit  34.2 30.3 27.6 31.7 18.9 24.4 8 
Freight ('000  kg) .. 3,015  2,604  2,081  1,658  2,486  408 
No. of flights  92,347  118,934  113,475  128,701  133,611  131,649  40,181  
   International  74,948  87,871  98,296  107,445  111,804  112,106  32,897  
.. Not available.  
Source:  National Centre for Statistics and Information, Transport . Viewed at: 
https://data.gov.om/yawrtcg/transport ; and information provided by the authorities.  
 
57 Oxford Business  Group (2016), The Report: Oman 2016 . 
58 The railway network is designed to be a standard -gauge double track, non -electrified, and to serve 
mixed freight and passenger traffic, with the maximum speed of 120 km/h for freight and 220 km/h for 
passenger trains . WT/TPR/S/418 • Oman  
 
- 77 - 
 
  4.118.   The Public Authority for Civil Aviation ( PACA), also known as  the Civil Aviation Authority 
(CAA), was established in May  2012 as an independent sectoral regulator, responsible for 
formulating policies related to civil aviation and performing regulatory oversight functions.59 The 
PACA also provide s air navigation and air traffic management services.60 
4.119.   Oman maintains 111 bilateral air services agreements (ASAs) with its trading partners,  51 of 
which offer the fourth freedom without restriction on capacity, destinations, and pricing . There are 
restrictions on designate, ownership, and effective control , but the restrictions vary across the ASAs. 
The authorities indicate that Oman pursues an "open sky" policy, offering the fifth freedom in 
negotiation . Cabotage is not allowed . 
4.120.   Anyone who wishes to prov ide air transport services in Oman must obtain an Air Operator 
Certificate (for safety compliance) as a prerequisite, and then acquire an Economic Operating Licence 
(for business authorization) from the PACA.61 While the principal place of business must be  within 
the territory of Oman, the service provider must be at least 50% owned and effectively controlled 
by Omani persons. The fare and cargo rates are subject to approval by the PACA.  
4.121.   When an Economic Operating Licence holder (i.e. a carrier) wishes to p rovide services on 
routes for which traffic rights are limited, the carrier must apply to the PACA for a Scarce Capacity 
Allocation Certificate (SCAC) prior to its operation on such routes. When there is more than 
one carrier applying for a SCAC62, the PAC A allocates the scarce capacity based on the grounds of 
maximizing economic efficiency, enhancing competition, and improving consumer welfare. Though 
the SCAC may be revoked, the authorities indicate that completely replacing an incumbent airline 
on a rout e occurs only when in an exceptional case.  
4.122.   As of end -2020, the PACA had granted three Economic Operating Licences, two of which are 
Type A licences for legacy carriers, while the other is a Type B licence for general aviation. All 
three  licensees are 100% Omani -owned. The two legacy carriers are Oman Air and Salam Air. 
Oman  Air, the Sultanate's flag carrier, is 99% state -owned. Oman Air serves 49 destinations, 
focusing on South -east Asia, the Middle East, Africa, and Europe; its 70 -plane fleet consists of 2  or 
3 aircraft types. Salam Air, partially public -owned, is a low -cost airline licensed in January 2017. 
Salam Air serves international routes within the region with its six -aircraft fleet.  
4.123.   Slot management is carried out by the airports. Airport Coordinati on Limited, a UK -based 
company, was appointed in February 2020 as the facilitator for slot coordination. According to the 
authorities, slot allocation follows International Air Transport Association (IATA) guidelines.63 
4.124.   There are four airports for commercial use in Oman64, all of which are state -owned. Muscat 
International Airport is the main airport; it is classified as an IATA Level  II airport in terms of 
congestion.65 Salalah, Sohar, and Duqm Airports are regional airports, classified as IATA Lev el I 
airports. Salalah Airport also receives some international traffic.  
4.125.   Oman Airports (formerly known as Oman Airports Management Company (OAMC)) is a state -
owned company that manages all the airports in the Sultanate. Oman Airports is responsible for the  
operation, maintenance, and infrastructure management of the airports it manages. According to 
the authorities, Oman Airport does not have statutory exclusive rights to managing all airports in 
 
59 Civil Aviation Law, Chapters II, III, and VII.  
60 CAA, Directorate General of Air Navigation . Viewed at: 
https://www.caa.gov.om/caa/directorates/directorate -general -of-air-navigation . 
61 For details, see the PACA, Economic Regulation of Licensing and Consumer Protection  in Civil Aviation , 
December 2015. Viewed at: https://www.caa.gov.om/upload/files/Economic -regulation -of-licensing -and-
consum er-protection -in-Civil-Aviation.pdf . 
62 Including the situation that a latecomer may apply for granting a SCAC (or variation of its SCAC) in 
order to operate all or some of the services on a capacity -constrained route already operated by an incumbent.  
63 Oman Airports (2020), Terms of Service s. Viewed at: 
https://www.omanairports.co.om/pdf/TermsOfService2020.pdf . 
64 There are other four regional airports for private use by domestic oil c ompanies. Three of them are for 
PDO; they are located in the oil concession areas of Fahud, Marmul, and Qarn Alam. The last one is located in 
Mukhaizna, for use  by Occidental Oman . 
65 An IATA Level II airport is an airport where there is potential for congestion during some periods of 
the day, week, or season, which can be resolved by schedule adjustments mutually agreed between the 
airlines and the slot facilitator.  WT/TPR/S/418 • Oman  
 
- 78 - 
 
  Oman. Under concession agreements with Oman Airports, third -party service providers operate the 
airports in areas such as ground handling, catering (in -flight catering and airport lounge), and cargo 
handling.  Concessionaires include TRANSOM (formerly known as Oman Aviation Service, a subsidiary 
of Oman Air) and Swis sport. Fuel services are provided by Shell Oman Marketing Company, Oman 
Oil Marketing Company, and Al Maha Petroleum Products Marketing Company. Airports charges are 
subject to approval by the PACA. There are no foreign ownership restrictions for airport o peration 
service providers.  
4.126.   During the review period, the capacity of Muscat International Airport and Salalah Airport 
was expanded. Foreign capital was involved in these expansion projects.  
4.4.4   Tourism  
4.127.   Oman has one of the most diverse environments in the Midd le East, and the tourism sector 
has developed a niche market for luxury travellers. The tourism sector contributed 2.3% of GDP 
in 2020. As laid out in Oman's development strategy, Oman Vision 2040 , the sector aims to 
contribute over 6% of GDP by 2040. The authorities also identified tourism as a sector that could be 
a source of significant employment – in 2020, there were 147,247 workers directly employed in the 
sector, about 11% of which were Omanis.66 
4.128.   The tourism sector experienced remarkable growth durin g the review period. The total 
number of visitors increased by 60%, standing at 3.5 million in 2019, up from 2.22 million in 2014. 
In terms of the countries of origin, while visitors from Europe continued to be a major source of 
customers (about 21% of tot al visitors in 2019), the number of visitors from Asia overtook the 
number from Europe starting in 2015, becoming the biggest source of inbound tourists, accounting 
for about 25% of total visitors in 2019.  In 2020, the visitor number declined sharply to 0. 8 million, 
reflecting the disruption caused by COVID -19 (Table 4.11) . 
4.129.   The legal and institutional framework for the tourism sector remained unchanged during the 
review period. The main laws governing this sector are the Tourism Law and the Foreign Capital 
Investment Law. The Ministry of Heritage and Tourism remains the regulator for the sector, 
responsible for formulating the sectoral policies and development plans, licensing operators, and 
quality management, such as hotel classification. Licensing require ments apply to numerous 
activities, which cover, inter alia , entertainment and leisure activities, tourist transportation, water 
sports, travel agencies, hotel management, and tour guides. The Ministry of Heritage and Tourism 
is also responsible for promot ing tourism.  
4.130.   State involvement is quite heavy in the sector. The Oman Tourism Development Company 
(OMRAN Group) is a state -owned enterprise whose business involves tourism -related investment‚ 
development, and management. In its asset portfolio, OMRAN owns various hotels (including Oman's 
first home -grown hotel chain, Atana), resorts, and site development projects.67 OMRAN has 
three  subsidiaries: (i)  the Oman Heritage Development Company (OHDC), which focuses on 
managing culture and heritage sites; (ii) the Oman Project Management & Development Company 
(OPMDC), which specializes in developing and executing tourism projects; and (iii)  the National 
Omani Hospitality Company (NOHC), which is the hotel management wing.  
Table 4.11 Selected indicators of tourism, 2014 -20 
 2014  2015  2016  2017  2018  2019  2020  
Total visitors ('000)  2,225  2,634  3,207  3,178  3,242  3,506  869 
From:  Asia ('000)  478.3  577.7  650.9  631.7  690.0  870.1  .. 
 Africa  25,281  26,891  .. .. .. .. .. 
 America  86,236  93,566  .. .. .. .. .. 
 Europe ('000)  508.1  515.0  584.3  604.6  616.2  726.5  .. 
 Oceania  17,229  17,752  .. .. .. .. .. 
For: Business ('000)  403.7  483.8  560.2  547.2  349.6  411.3  .. 
 Leisure and recreation ('000)  803.7  895.6  1,069.0  1,080.3  1,489.8  1,626.6  .. 
Total expenditure ('000 OMR)  306.5  364.8  427.3  532.3  679.2  684.7  244.6  
Food & beverages  46.6 55.4 64.7 80.2 100.0  92.3 34.2 
Accommodation  115.0  134.0  153.1  183.8  212.5  205.8  .. 
 
66 The authorities note that in 2020 the Omanis working in hotel activities accounted 30%, which were 
jobs indirectly created by the tourism sector.  
67 OMRAN, Portfolio: Our Assets . Viewed at: https://www.omran.om/po rtfolio/hospitality/ . WT/TPR/S/418 • Oman  
 
- 79 - 
 
   2014  2015  2016  2017  2018  2019  2020  
Total rooms  .. 16,691  18,420  19,520  22,182  25,139  .. 
Room occupancy ratio (%)  60.7 60.3 57.2 58.2 61.5 54.4 .. 
Value added ('000 OMR)  690.2  733.3  682.6  738.4  689.5  717.9  .. 
Sectoral share in GDP (%)  2.2 2.8 2.7 2.7 2.6 2.5 .. 
Total employees  10,763  11,054  12,380  14,050  18,627  20,056  12,432  
Omanis  3,381  3,244  3,621  3,999  5,754  6,364  4,206  
Non-Omanis  7,382  7,809  8,759  10,051  12,873  13,692  8,226  
.. Not available.  
Source:  National Centre for Statistics and Information, Tourism . Viewed at: 
https://data.gov.om/dedblxg/tourism ; and Statistical Year Book 2021 . 
4.131.   Foreign investment restrictions remain in place. Foreign nationals (individuals and 
companies) are not allowed to own real estate unless the property falls under Integrated Tourism 
Complexes (ITCs) regulations. The ITCs are specially designated areas within which non -Omani 
nationals may buy property; in the ITCs, villas and apartments are for sale freehold for up to 
50 years, with 2 -year re sidence permits offered to the buyer and their dependants . As of end -2020, 
there were five ITCs in the Sultanate.  
4.132.   Foreign capital participation in the tourism sector is capped at 70% of total equity. Foreign 
capital is mainly seen in operators such as tour ism organizers, travel agencies, recreation site/facility 
management, and restaurants and catering services. It appears that eligible tourism operators may 
apply for the tourism loan offered by the ODB, which is a policy loan with preferential conditions.68 
4.133.   Licences of tourist guides are usually reserved for Omani nationals; however, temporary 
licences may be granted to non -Omanis in high seasons, subject to passing an exam, if they provide 
services in languages other than Arabic and English.  
4.134.   Due to the COVID -19 pandemic, the tourism sector was hit hard. According the authorities, 
the lost revenue in the sector was estimated to reach OMR  2.6 billion in 2020. To mitigate the impact, 
the authorities exempted tourism establishments  from tourism tax and municipality tax for 
two years  (2020 -21).
 
68 ODB, Tourism Loan . Viewed at: https://www.oman.om/wps/wcm/connect/en/site/home/gov/gov1 
/gov5governmentorganiz ations/odb/tourismloans . WT/TPR/S/418 • Oman  
 
- 80 - 
 
  5  APPENDIX TABLES  
Table A1.1 Merchandise exports (including re -exports) by HS section and major 
HS chapter/subheading, 2014 -20 
HS section/chapter/subheading  2014  2015  2016  2017  2018  2019  2020  
Total exports (USD billion)  53.2 34.9 27.5 32.9 41.7 38.7 30.5 
 (% of total)  
01 Live animals and products  1.1 1.8 2.2 1.4 1.7 1.5 2.3 
02 Vegetable products  0.3 0.5 0.7 0.6 0.5 0.6 0.8 
03 Fats and oils  0.4 0.6 0.7 0.6 0.4 0.4 0.6 
04 Prepared food, beverages and tobacco  0.9 1.5 1.5 2.3 1.9 2.5 2.2 
05 Mineral products  74.1 66.9 68.7 70.5 72.3 71.5 63.6 
HS 27 Mineral fuels  72.4 65.2 67.5 66.8 69.4 69.3 60.3 
HS 2709 Petroleum oils, crude  65.5 58.4 57.9 58.3 65.4 68.5 59.7 
06 Chemicals and products thereof  5.2 5.8 5.7 6.9 5.7 6.1 5.7 
HS 31 Fertilisers  1.2 2.0 1.8 1.8 1.7 1.9 2.7 
HS 29 Organic chemicals  3.5 3.2 3.2 3.9 3.1 3.3 1.9 
07 Plastics and rubber  1.8 2.2 1.5 1.8 1.8 1.5 1.8 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
09 Wood, cork, straw  0.0 0.0 0.0 0.1 0.1 0.1 0.1 
10 Pulp of wood; paper and paperboard  0.1 0.1 0.2 0.3 0.2 0.2 0.4 
11 Textiles and textile articles  0.1 0.1 0.1 0.3 0.3 0.3 0.3 
12 Footwear, headgear, etc.  0.0 0.0 0.0 0.1 0.1 0.1 0.1 
13 Articles of stone, plaster, cement  0.5 0.8 0.8 0.7 0.6 0.5 0.7 
14 Precious stones and metals, pearls  0.1 0.0 0.3 0.4 0.2 0.6 0.8 
15 Base metals and articles thereof  3.9 5.1 5.1 5.3 6.6 6.1 8.1 
HS 72 Iron and steel  1.1 1.5 1.6 2.5 3.1 2.6 3.5 
HS 76 Aluminium and articles thereof  1.8 2.5 2.2 1.7 2.3 2.5 2.9 
16 Machinery, electrical equipment  1.7 1.9 2.7 3.1 3.0 3.0 4.1 
HS 84 Machinery and mechanical appliances; parts 
thereof  0.7 0.5 1.2 1.6 1.4 1.5 2.3 
17 Transport equipment  9.3 12.2 9.4 4.7 3.8 4.3 7.4 
HS 89 Ships, boats and floating structures  0.3 0.1 0.3 0.1 0.9 1.5 4.1 
HS 87 Vehicles  8.9 12.0 8.8 4.2 2.4 2.3 2.8 
18 Precision instruments  0.1 0.2 0.1 0.3 0.4 0.4 0.5 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  0.2 0.2 0.2 0.3 0.3 0.3 0.3 
21 Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.1 0.1 0.1 0.1 0.1 0.1 
Source:  Information provided by the authorities.  
  WT/TPR/S/418 • Oman  
 
- 81 - 
 
  Table A1. 2 Merchandise imports by major HS section, 2014 -20 
 HS section/chapter/subheading  2014  2015  2016  2017  2018  2019  2020  
Total imports (USD billion)  29.3 29.0 23.1 25.8 25.2 22.1 20.7 
 (% of total)  
01 Live animals and products  4.2 4.0 4.9 4.5 5.2 6.0 6.4 
HS 04 Dairy produce  2.3 2.1 2.5 2.4 2.9 3.3 3.6 
02 Vegetable products  3.6 3.6 3.6 3.7 4.2 5.1 7.4 
HS 10 Cereals  2.0 1.6 1.7 1.6 1.8 2.3 3.4 
03 Fats and oils  0.9 0.8 2.1 0.9 0.9 1.0 1.1 
04 Prepared food, beverages and tobacco  3.7 4.0 5.1 4.8 5.0 6.4 5.6 
05 Mineral products  11.5 15.1 12.4 10.7 9.3 6.5 7.1 
HS 26 Ores, slag and ash  3.6 1.7 1.5 3.3 2.2 4.0 4.8 
06 Chemicals and products thereof  8.8 8.6 7.6 7.6 8.0 8.9 9.3 
HS 30 Pharmaceutical products  1.4 1.5 1.6 1.8 1.9 2.3 2.6 
07 Plastics and rubber  3.7 4.0 4.1 3.9 4.3 4.7 4.7 
HS 39 Plastics and articles thereof  2.6 2.9 3.1 2.8 3.3 3.5 3.6 
08 Raw hides and skins; leather, furskins  
and articles thereof  0.1 0.2 0.1 0.1 0.2 0.2 0.1 
09 Wood, cork, straw  1.0 1.0 0.9 1.0 0.8 0.9 0.9 
10 Pulp of wood; paper and paperboard  0.8 1.0 0.8 0.9 1.0 1.3 1.6 
11 Textiles and textile articles  1.3 1.5 1.5 1.7 1.9 2.2 2.0 
12 Footwear, headgear, etc.  0.3 0.4 0.4 0.4 0.5 0.5 0.4 
13 Articles of stone, plaster, cement  2.3 1.5 1.9 1.7 1.6 1.7 1.7 
14 Precious stones and metals, pearls  1.5 2.9 4.1 5.3 3.0 2.3 1.1 
15 Base metals and articles thereof  11.7 11.3 13.0 13.7 17.1 14.8 14.9 
HS 73 Articles of iron or steel  3.8 4.5 5.1 5.2 5.5 5.3 5.4 
HS 72 Iron and steel  4.3 3.4 4.1 4.2 7.0 5.3 4.3 
16 Machinery, electrical equipment  17.2 20.1 21.0 23.7 25.7 23.8 22.5 
HS 84 Machinery and mechanical 
appliances; parts thereof  11.2 13.2 13.5 15.7 16.2 15.7 13.2 
HS 85 Electrical machinery and 
equipment and parts thereof  6.0 6.9 7.5 8.0 9.5 8.1 9.2 
17 Transport equipment  22.8 15.9 12.4 11.1 6.7 8.1 7.9 
18 Precision instruments  1.8 1.7 1.9 1.9 2.4 2.5 2.8 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  2.6 2.6 2.0 2.1 2.3 3.0 2.3 
21 Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.0 0.0 0.1 0.0 0.1 0.3 
Source:  Information provided by the authorities.  
  WT/TPR/S/418 • Oman  
 
- 82 - 
 
  Table A1. 3 Merchandise exports (including re -exports) by destination, 2014 -20 
  2014  2015  2016  2017  2018  2019  2020  
Total exports (USD billion)  53.2 34.9 27.5 32.9 41.7 38.7 30.5  
(% of total)  
Americas  2.0 2.2 3.7 2.7 2.2 1.9 2.6 
United  States  1.4 1.5 2.9 1.8 1.5 1.7 2.0 
Other America  0.6 0.7 0.8 0.9 0.7 0.3 0.6 
Europe  1.6 1.8 2.1 1.7 1.9 2.2 2.3 
EU-27 1.1 1.4 1.7 1.1 1.2 1.3 1.2 
EFTA 0.0 0.1 0.0 0.1 0.1 0.0 0.1 
Other Europe  0.5 0.3 0.4 0.6 0.6 0.9 1.1 
United Kingdom  0.2 0.2 0.1 0.3 0.5 0.5 0.7 
CISa 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Africa  3.2 3.0 3.3 3.5 2.2 1.9 2.6 
  Somalia  0.4 0.5 0.6 0.9 0.5 0.6 0.8 
  Egypt  0.4 0.3 0.2 0.3 0.3 0.3 0.5 
Middle East  17.2 22.8 24.1 24.8 20.2 18.4 24.5 
  United Arab Emirates  10.3 11.9 11.2 10.8 7.4 7.1 9.8 
  Qatar  0.6 0.8 0.9 4.2 4.3 3.6 6.6 
  Saudi Arabia, Kingdom of  3.9 5.1 3.9 4.0 4.0 4.1 4.7 
  Kuwait, State of  0.8 0.6 1.6 1.3 0.9 0.7 1.0 
  Iran, Islamic Republic of  0.7 0.8 1.0 1.8 1.0 1.5 0.8 
  Yemen  0.3 1.7 2.2 1.5 1.4 0.4 0.7 
Asia 74.5 68.8 65.0 64.1 67.0 69.3 62.5 
China  43.0 42.2 40.7 34.7 42.5 41.8 39.7 
Japan  3.9 3.3 5.1 4.8 5.8 6.7 3.7 
Other Asia  27.5 23.4 19.2 24.6 18.6 20.8 19.2 
Korea, Republic of  8.2 7.4 7.1 6.7 5.9 7.9 6.3 
India 3.0 3.1 3.6 7.4 6.1 4.9 6.0 
Malaysia  0.5 0.9 1.0 1.8 0.8 1.1 2.1 
Singapore  1.0 2.1 1.1 0.6 1.6 2.6 1.7 
Hong Kong, China  0.2 0.2 0.4 0.4 0.3 0.2 0.5 
Other  1.5 1.4 1.8 3.2 6.5 6.2 5.4 
Memo:         
EU-28 1.3 1.5 1.9 1.4 1.7 1.9 1.9 
GCC 15.8 18.7 17.9 20.7 16.9 16.0 22.5 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  Information provided by the authorities.  
  WT/TPR/S/418 • Oman  
 
- 83 - 
 
  Table A1. 4 Merchandise imports by origin, 2014 -20 
  2014  2015  2016  2017  2018  2019  2020  
Total imports (USD billion)  29.3 29.0 23.1 25.8 25.2 22.1 20.7  
(% of total)  
Americas  8.8 7.8 6.9 7.8 6.2 8.4 7.7 
United  States  4.3 5.0 4.7 4.1 3.3 3.0 2.9 
Other America  4.5 2.8 2.2 3.7 2.9 5.4 4.8 
Brazil  3.9 2.1 1.6 2.8 2.4 4.5 3.8 
Europe  14.6 15.8 10.7 13.0 13.7 14.6 13.1 
EU-27 10.9 12.3 7.8 9.8 10.8 10.8 9.4 
Germany  2.9 3.0 2.2 2.4 2.5 2.4 2.1 
Luxembourg  0.0 0.1 0.0 0.0 1.1 1.9 1.6 
Netherlands  1.5 2.3 0.6 1.7 1.1 1.3 1.4 
Belgium  1.2 1.1 1.6 0.9 1.2 1.0 1.1 
EFTA 0.6 0.6 0.5 0.8 0.5 0.7 0.4 
Other Europe  3.0 2.8 2.4 2.4 2.5 3.1 3.2 
Turkey  1.1 0.9 0.5 0.4 0.5 0.9 1.9 
United Kingdom  1.8 1.9 1.7 2.0 1.8 1.9 1.1 
CISa 1.2 0.9 0.5 0.3 0.5 0.6 1.0 
Africa  1.3 1.3 1.4 1.2 1.5 1.6 1.8 
Middle East  41.2 47.7 58.9 54.6 59.7 53.9 55.9 
   United Arab Emirates  32.5 38.3 48.8 42.8 46.8 42.9 43.0 
   Saudi Arabia, Kingdom of  4.1 4.1 3.6 3.6 3.3 4.2 5.2 
   Qatar  1.5 1.9 1.0 1.3 3.6 2.9 3.2 
   Bahrain, Kingdom of  0.7 0.9 0.7 1.2 1.8 1.9 1.9 
   Iran, Islamic Republic of  1.2 1.0 2.8 1.9 2.3 1.2 1.0 
Asia 32.9 26.5 21.6 23.1 18.4 20.9 20.5 
China  4.8 5.2 5.1 6.2 6.0 7.1 8.0 
Japan  12.2 5.9 4.5 3.7 1.1 1.5 0.9 
Other Asia  15.8 15.3 11.9 13.2 11.3 12.3 11.7 
India 4.3 5.6 5.0 5.4 4.5 5.2 5.1 
Australia  1.1 0.9 0.8 1.0 1.0 1.2 1.1 
Korea, Republic of  3.7 3.3 1.5 2.3 1.8 1.4 1.1 
Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Memo:         
EU-28 12.7 14.2 9.5 11.8 12.5 12.7 10.5 
GCC 39.3 45.8 54.3 48.9 55.6 52.0 53.5 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  Information provided by the authorities.  
__________