Country Risk Assessment

Oman Risk Evaluation

Comprehensive risk analysis demonstrating Oman's stability and attractiveness as an investment destination across political, economic, financial, and operational dimensions.

Overall Risk Assessment

Comprehensive evaluation across all major risk categories

Low Risk
Investment Destination
81/100
Composite Score
Improving
Trend Direction
Investment Grade
Credit Rating

Oman demonstrates strong fundamentals across all risk categories, making it an attractive and stable destination for international investment.

Last Updated: December 2024

Risk Category Analysis

In-depth assessment of each major risk category with detailed factors and scoring methodology.

Political Risk

Very Low
85/100
Trend: Stable
Outlook: Positive

Political stability

Strong

Stable governance with peaceful succession established

Government effectiveness

Good

Vision 2040 demonstrates clear policy direction

Regulatory quality

Strong

Transparent regulations and investment laws

Regional diplomacy

Excellent

Neutral foreign policy and strong regional relations

Economic Risk

Low
78/100
Trend: Improving
Outlook: Positive

Economic diversification

Good

Successful reduction in oil dependency to 30% of GDP

Fiscal management

Strong

Budget surplus achieved in 2024

Current account balance

Good

Improved through manufacturing exports

Inflation control

Excellent

Low and stable inflation rates

Financial Risk

Low
82/100
Trend: Stable
Outlook: Stable

Banking sector stability

Strong

Well-capitalized banks with low NPL ratios

Currency stability

Excellent

Fixed peg to USD provides certainty

Capital controls

None

Full convertibility and free repatriation

Payment systems

Modern

Efficient digital payment infrastructure

Operational Risk

Low
80/100
Trend: Improving
Outlook: Positive

Infrastructure quality

Good

Modern airports, ports, and digital infrastructure

Skilled workforce

Good

97% literacy rate with growing STEM graduates

Business environment

Improving

Streamlined processes and reduced bureaucracy

Legal framework

Strong

English common law basis with arbitration support

International Rankings & Indices

Oman's performance across major international competitiveness and development indices.

Improving

UN Human Development Index

59th / 193 countries
Global Rank
0.813
Score
Very High Development

Strong performance in health, education, and living standards

Improving

World Bank Ease of Doing Business

68th / 190 countries
Global Rank
65.8/100
Score
Good

Significant improvements in starting business and trading

Major Improvement

Environmental Performance Index

54th / 180 countries
Global Rank
49.8/100
Score
Good

Fastest riser globally (149th→54th) through green initiatives

Target Growth

Global Innovation Index

78th / 132 countries
Global Rank
28.1/100
Score
Developing

Focus on innovation ecosystem development by 2040

Stable

Logistics Performance Index

43rd / 160 countries
Global Rank
3.2/5.0
Score
Good

Strong performance in infrastructure and international shipments

Improving

Global Competitiveness Index

47th / 141 countries
Global Rank
62.1/100
Score
Good

Balanced performance across competitiveness pillars

Credit Ratings & Sovereign Risk

Investment grade ratings from all major international rating agencies reflect Oman's strong creditworthiness.

Baa3

Moody's

Stable Outlook

First time achieving investment grade rating

Upgraded to Investment Grade
Updated: March 2024
BBB-

S&P Global

Stable Outlook

Strong fiscal management and diversification progress

Outlook Revised Positive
Updated: February 2024
BBB-

Fitch Ratings

Positive Outlook

Continued economic diversification and fiscal improvement

Positive Outlook
Updated: January 2024

Investment Grade Achievement

Oman achieved investment grade rating from Moody's in 2024, joining S&P and Fitch in recognizing the country's strong fiscal management, economic diversification, and commitment to transparency.

Baa3/BBB-
Investment Grade
2024
Achievement Year

Regional Risk Comparison

How Oman compares to other GCC countries across major risk categories.

Country
Political Risk
Economic Risk
Financial Risk
Operational Risk
Overall Score
Trend
Oman
85/100
78/100
82/100
80/100
81/100
Improving
UAE
88/100
85/100
87/100
89/100
87/100
Stable
Saudi Arabia
82/100
79/100
83/100
78/100
81/100
Improving
Qatar
86/100
81/100
85/100
84/100
84/100
Stable

* Oman shows competitive positioning across all risk categories with improving trends

Key Investment Strengths

Core strengths that make Oman an attractive and low-risk investment destination.

Political Stability

9/10

Decades of political continuity with peaceful transitions and strong institutions

Strategic Location

9/10

Gateway between Asia, Africa and Europe with world-class logistics infrastructure

Currency Stability

10/10

Fixed peg to USD eliminates exchange rate risk for international investors

Investment Grade Rating

8/10

Achieved investment grade from all major rating agencies in 2024

Business-Friendly Reforms

8/10

100% foreign ownership, streamlined processes, and comprehensive investor support

Economic Diversification

7/10

Successful reduction in oil dependency with growth in manufacturing and services

Risk Mitigation Strategies

How Oman actively manages and mitigates potential investment risks through policy and structural measures.

Oil Price Volatility

Potential Risk

Economic diversification reducing oil dependency to 30% of GDP

High Effectiveness

Regional Geopolitical Tensions

Potential Risk

Neutral foreign policy and strong diplomatic relationships across region

Very High Effectiveness

Currency Risk

Potential Risk

Fixed peg to USD provides complete exchange rate stability

Complete Effectiveness

Regulatory Changes

Potential Risk

Transparent policy-making process and extensive stakeholder consultation

High Effectiveness

Talent Shortage

Potential Risk

Comprehensive education and training programs plus flexible expat policies

Good Effectiveness

Invest with Confidence in Oman

Low-risk investment environment with strong fundamentals, transparent governance, and comprehensive investor protections. Start your investment journey today.