Why the world is investing in Oman’s future

In the latest Q1 data released by Oman's National Centre for Statistics and Information, Foreign Direct Investment (FDI) saw an 8.7% increase year on year to $83.7 billion (Dh307.3 billion). This demonstrates ongoing international interest in Oman's prospects. However, less attention was given to the fact that the combined capital of investment and real estate funds regulated in Oman nearly doubled to about $3.1 billion in 2025, with investment fund capital increasing by over 125% in a single year.

While foreign investment brings capital, technology, expertise, and connections to international markets, a resilient economy also requires strong domestic institutions capable of mobilizing savings, allocating capital professionally, and directing it towards growing businesses and projects. Oman's figures suggest that its financial infrastructure is becoming stronger, indicating that more capital is being managed through institutions based and regulated in the country, providing an alternative route for financing its ambitions.

The growth of domestic investment capital also brings a unique perspective, as these institutions are closer to local businesses and economic priorities, and often more willing to commit early, serving as an anchor for international capital. However, this does not necessarily make local capital inherently superior, as it still requires strong governance and sound investment decisions.

An economy with a diversified financing base is stronger, as international capital responds to forces beyond any single country's control, while domestic institutions can provide stability during different economic cycles. Oman's Future Fund Oman recently announced 105 projects and investments worth $1.74 billion, with $585 million coming from its own capital and $458 million from local investors.

This collaboration between local and international capital, as seen in the $1.6 billion United Solar polysilicon plant in Sohar, highlights how the two forms of capital can work together to create jobs and drive economic growth.