UK companies continue to dominate foreign direct investment (FDI) in Oman, with a significant portion directed towards the oil and gas sector. According to the latest data from Oman’s National Centre for Statistics and Information, UK investments amounted to approximately OR2.85 billion ($7.4 billion) last year. This sum accounts for over half of the total FDI in Oman.
The total FDI stock from UK companies increased from OR12.46 billion in 2023 to OR15.31 billion by December 31, 2024. The overall FDI stock in Oman reached OR30.04 billion. Notably, UK investments have been largely concentrated in the oil and gas industry, which remains a crucial sector for the country’s economy.
Following the UK, the United States and China are the second and third largest contributors to Oman’s FDI. US companies invested OR7.67 billion, while China’s investments reached OR1.293 billion. Despite these figures, the UK’s FDI inflows remain the largest, showcasing the strong economic ties between Oman and the UK.
The economic relationship between the UK and Oman has long been established. These two countries have maintained close ties for many years, dating back to the British Empire’s presence in the region. The UK also significantly supported Oman during a rebellion in the Dhofar region in the 1960s. These historical connections have fostered a steady flow of investment over the years.
Additionally, UK exports to Oman increased by 11 percent, reaching GBP1.2 billion ($1.55 billion) for the year ending July 31, 2024. Conversely, Oman’s exports to the UK also surged, with imports rising by a third to nearly GBP 400 million during the same period.
The UK remains the largest source of FDI in Oman, driven mainly by investments in oil and gas. The ongoing economic partnership between the two nations continues to foster growth in exports and investments, particularly in the energy sector.
