Oman aims to launch new international financial centre by 2027

Oman is set to launch a new international financial centre by 2027, with plans to begin registering companies later this year. The IFC Oman, as the financial centre is known, is currently working on its legal framework, rule book, and registry system, according to a statement released on Monday. These components will provide the necessary legal basis for the financial centre's operations.

The statement, issued by the IFC Oman Authority Board chairman Mahmood Al Aweini, highlights the acceleration of the centre's progress, as its legal, regulatory, and digital infrastructure is coming together. IFC Oman aims to offer global businesses and investors a stable and competitive environment for conducting business. The financial centre is set to join other existing centers in the Gulf, such as Abu Dhabi's ADGM, Dubai's International Financial Centre, and Riyadh's King Abdullah Financial District.

Oman is actively diversifying its economy away from oil, investing in sectors like logistics, manufacturing, and property. With a goal to reduce its dependence on oil income from 30% to 16% by 2030 and 8.4% by 2040, the sultanate has also introduced personal income tax from 2028, with a 5% rate for incomes exceeding 42,000 Omani rials ($109,134).

Oman's economic and social reforms program includes plans to build a new economic area focused on developing artificial intelligence capabilities, aiming to strengthen the technology sector and bolster its economy. Recently, S&P Global Ratings increased Oman's economic growth forecast to 3.5% due to favorable trade logistics in the context of the Iran war, surpassing the previous 1.6% estimate and outperforming Oman's 2.3% growth last year.