Oman sharpens pitch for global capital

Oman is moving to convert fiscal repair and regulatory reform into a stronger claim on international capital, positioning the International Financial Centre of Oman as the centrepiece of a drive to attract financial institutions, fund managers and professional services firms.

The push comes as Muscat benefits from a restored investment-grade profile after several years of debt reduction, spending restraint and higher policy credibility under Oman Vision 2040. The country has moved from pressure on its sovereign ratings to a more stable footing, with major rating agencies placing it at the lower end of investment grade and maintaining stable outlooks as debt metrics improve.

The International Financial Centre of Oman was established by Royal Decree 8/2026 on January 12, giving it legal personality as well as financial and administrative independence. It reports to the Deputy Prime Minister for Economic Affairs, a structure intended to give the centre a direct link to national economic policy while separating its operations from ordinary administrative channels.

Its purpose is to offer investors a jurisdictional framework that can support cross-border finance, asset management, family offices, fintech, insurance, capital markets activity and advisory services. The model is designed to mirror practices used in leading financial centres, with specialised supervision and legal certainty for firms dealing with international counterparties.

The initiative places Oman in a competitive Gulf landscape shaped by Dubai International Financial Centre, Abu Dhabi Global Market and Qatar Financial Centre. Those centres have used common-law-style structures, independent regulators and specialist courts to attract banks, funds, law firms and wealth managers. Oman’s challenge is to differentiate itself through cost, access to growth sectors, regulatory efficiency and its position between Gulf, Asian and East African trade routes.

Economic conditions have become more supportive. Growth accelerated during 2025, helped by non-hydrocarbon activity in construction, tourism, logistics, agriculture and fisheries, while inflation stayed subdued. Fiscal performance also improved, with the overall balance remaining in surplus despite softer oil prices and government debt falling to about 36 per cent of gross domestic product by September 2025.

The improvement has strengthened investor confidence, but it has not removed structural vulnerabilities. Oman remains exposed to oil and gas cycles, and external balances can weaken when energy prices fall. The current account moved into deficit in 2025, underlining why policymakers are pressing ahead with diversification, capital-market deepening and private-sector investment.

IFC Oman is therefore being framed as more than a financial free zone. It is part of a broader effort to create high-value services around the country’s investment pipeline, including logistics hubs, green hydrogen, renewable energy, manufacturing, mining, tourism and special economic zones. Duqm remains a central pillar of that strategy, with new agreements worth billions of dollars adding momentum to industrial and clean-energy projects.

The financial centre could help Oman retain more of the advisory, legal, fund-structuring and treasury work linked to those projects. Large regional transactions are often structured through established financial centres elsewhere in the Gulf or through offshore jurisdictions. A credible domestic platform could allow Oman to capture more professional-services revenue while giving investors clearer channels to deploy capital.

Regulatory credibility will be decisive. Investors will judge IFC Oman by the quality of licensing, dispute resolution, insolvency rules, anti-money-laundering controls, tax clarity and the independence of its supervisory architecture. The centre’s ability to attract anchor tenants will also matter, particularly banks, asset managers, insurers, legal firms and corporate service providers with international client bases.

Muscat has been strengthening its financial framework through banking, securities, tax and fiscal reforms. The banking system is well capitalised, liquid and profitable, providing a stable base for deeper capital markets. Authorities have also been urged to advance macroprudential policy, improve crisis management and broaden financing options for small and medium-sized enterprises.