Muscat – Oman has improved its position in the 2026 World Competitiveness Report, rising three places to rank 25th globally out of 70 economies, compared to 28th in 2025. The progress reflects continued gains in the competitiveness of the national economy and a further strengthening of the business and investment environment.

This achievement builds on sustained national efforts to enhance Oman’s competitiveness and improve the investment climate, supported by the implementation of Oman Vision 2040, economic diversification initiatives, and wide-ranging legislative and regulatory reforms undertaken in recent years.

The 2026 edition marks Oman’s second participation in the World Competitiveness Report, following its initial inclusion in 2025 through a partnership between the National Competitiveness Office and the World Competitiveness Center of the International Institute for Management Development (IMD).

According to the report, Oman recorded strong performance across several key areas, ranking 15th globally in government efficiency and 18th in business efficiency. These results reflect the effectiveness of government policies and ongoing investment in infrastructure and services that support economic activity.

The findings also highlight several structural advantages underpinning Oman’s investment appeal. The country ranked 1st globally for the absence of personal income tax, 2nd for tax revenue collection, 4th for investment incentives and consumption tax rate, and 7th for inward foreign direct investment inflows as a percentage of GDP, underscoring investor confidence and the attractiveness of the business environment.

Oman also achieved strong rankings in policy and regulatory indicators, including 5th globally for investment incentives, 7th for the legal and regulatory framework, 7th for government policy adaptability, and 6th for public finance and social cohesion.

In the economic performance pillar, Oman posted solid results, ranking 4th globally for low risk of business relocation abroad, 9th for inflation, 10th for economic resilience, and 14th for real growth in gross fixed capital formation, reflecting macroeconomic stability and investment capacity.

In business efficiency and entrepreneurship, Oman ranked 1st globally for corporate awareness of potential bias in AI applications, 3rd for entrepreneurial acceptance of failure as part of the business journey, 7th for venture capital, and 10th for entrepreneurial spirit.

The sultanate also recorded notable progress in infrastructure and digital transformation, ranking 1st globally for mobile broadband subscriptions, 4th for AI skills, 4th for corporate commitment to AI-related regulation, 5th for environmental legislation, and 7th for telecommunications investment. These results underline Oman’s readiness for the digital economy.

The CEO survey, a key component of the index, showed that government policy stability was the leading factor attracting investment to Oman, cited by 50.7% of respondents. This was followed by a business-friendly environment (42%), government efficiency (39.1%), and economic dynamism (37.7%), reflecting strong private sector confidence.