Oman will reduce income tax for small and medium businesses for 2020 and 2021 and will offer long-term residency permits for foreign investors.
The plans announced on state media are part of Oman’s Vision 2040 aimed at diversifying the economy away from oil, which makes up the bulk of state revenues.
Oman is one of the Gulf’s weakest economies and was hit hard by the coronavirus pandemic and low oil prices. The International Monetary Fund said last month its economy likely shrank 6.4% in 2020 and estimated it would make a modest recovery to 1.8% growth this year.
The measures also include income tax being reduced for companies in sectors aimed at economic diversification that will begin operating this year.
Similar to Saudi Arabia’s Vision 2030, this vision aims to diversify Oman’s economy and reduce its dependence on oil wealth. At present, Oman derives most of its financial resources from oil exports.
Oman has one of the weakest economies in the GCC member states. The Coronavirus epidemic over the past year and low oil prices on the world market has created more problems for it.
The International Monetary Fund said last month that Oman’s economy had shrunk to 6.4 per cent in 2020. It estimated that Oman’s economy would grow at 1.8 per cent this year.
According to state media, Oman’s Council of Ministers will consider granting long-term residency to foreign investors. However, the terms and conditions for issuing such residences will be announced later.
Apart from this, other market-related incentives will also be given.
Oman’s state TV quoted Sultan Haitham bin Tariq al-Said as saying that the cabinet had also approved a strategy for long-term urban development. This strategy is fundamental to achieving Oman’s Vision 2040 goals.