Saturday 09 / May / 2026
Muscat: The Sultanate of Oman continues its efforts to establish a competitive and transparent business environment in line with the objectives of Oman Vision 2040 aimed at diversifying income sources and building a sustainable economy led by the private sector.
Competition and anti-monopoly legislation has emerged as a key pillar in regulating the market and ensuring equal opportunities among economic players, thereby enhancing the efficiency and competitiveness of the national economy amid global economic changes.
The Protection of Competition and Prevention of Monopoly Law issued in 2014 marked a major turning point in market regulation. This framework was further strengthened with the establishment of the Competition Protection and Monopoly Prevention Center under Royal Decree No. 2/2018, which was tasked with overseeing the implementation of competition laws and monitoring anti-competitive practices.
The law aims to guarantee freedom of economic activity according to market principles and prohibits monopolistic agreements and practices that restrict competition, including abuse of dominant market position, market division, and price manipulation.
The Center has been equipped with advanced supervisory and legislative tools enabling it to carry out its responsibilities effectively. These include granting judicial powers to employees, allowing inspections of establishments and records, and imposing administrative fines of up to OMR5,000, which may double in cases of repeated violations, in addition to referring violations to public prosecution authorities.
These measures contribute to strengthening market discipline, limiting unlawful practices, and enhancing investor confidence while ensuring balance within the business environment.
Economic indicators showed gradual improvement in competitiveness levels, with Oman’s competition performance index rising from around 59 percent between 2015 and 2017 to approximately 65 percent in recent years, supported by stronger institutional frameworks and enhanced regulatory oversight.
Non-competitive practices also declined to around 14 recorded cases in 2024, reflecting higher compliance levels and stronger transparency across the market.
On the international level, Oman improved its global standing by ranking 74th in the Global Innovation Index 2024 among 133 economies.
The Sultanate also ranked 70th globally in the Ease of Doing Business Index and achieved 11th place worldwide in the tax payment indicator, highlighting the development of the regulatory environment and its role in supporting economic activity and attracting investments.
The improvements in the competition framework have also been reflected in foreign direct investment (FDI) inflows, which reached around OMR5.2 billion during the recent period compared to OMR4.1 billion during the same period last year, indicating growing investor confidence in the Omani market.
Dr. Yousef bin Hamad Al-Balushi, economist and founder of Smart Gate for Consulting and Investment, said rapid global changes and increasing competition among countries to provide transparent and attractive business environments have heightened the importance of economic legislation and competitiveness policies.
Speaking to Oman News Agency, he said: "Oman Vision 2040 made improving the business environment a strategic priority since its launch in 2021, with results beginning to emerge through continued growth in FDI, although much of it remains concentrated in the oil and gas sectors."
He added that non-oil sectors have also witnessed notable growth, supporting economic diversification efforts and benefiting from the resources and economic potential available across Oman’s governorates.
Al-Balushi stressed that the next phase requires further development of the business environment despite the progress achieved, due to evolving economic requirements and changing growth dynamics.
He highlighted the importance of clarity and transparency in investment frameworks as a fundamental element in economic development and called for prioritising these aspects during the next phase of economic reforms.
Oman also continues to strengthen intellectual property rights protection as a driver of innovation, while ensuring such protections do not become tools for monopolistic practices that hinder market entry for new competitors. The legislation subjects abuses of intellectual property rights to competition law provisions in order to balance innovation protection with market freedom.
Small and medium-sized enterprises (SMEs) remain central to these efforts, with competition policies helping reduce the dominance of large entities and creating greater opportunities for SMEs to enter markets and participate in supply chains, thereby increasing their contribution to the national economy.
These policies also support local content initiatives aimed at empowering national talent, encouraging innovation, and maximising added value within the economy.
Experts believe the next phase will require greater focus on improving the efficiency of legislative implementation, raising awareness within the business community, and expanding public-private partnerships to ensure laws become effective tools for sustainable economic growth and a more efficient business environment.
