Oman has reported a significant increase in foreign direct investment (FDI) by the end of the first quarter of 2023. The volume of FDI surged by 23.3%, reaching RO21.27bn ($55.2bn), a sizeable increase from RO17.250bn recorded during the same period in 2022. The estimated financial flow was RO4.022bn, indicative of a positive investment climate. 

According to preliminary data issued by the National Centre for Statistics and Information (NCSI), the oil and gas extraction attracted the highest volume of foreign investments, with an FDI inflow of RO15.835bn. This marked a notable increase from RO11.697bn recorded in 2022. This is reflective of the global energy market dynamics and Oman’s strategic position in the oil and gas sector.

The manufacturing sector secured RO1.571bn, a slight dip from the previous year’s RO1.671bn. Despite this, the sector continues to be a significant recipient of FDI. Meanwhile, financial intermediation activities attracted RO1.514bn compared to RO1.460bn in 2022, reflecting a vibrant financial market.

FDI in real estate receded to RO1.44bn from RO1.48bn in Q1 2022. Other activities also experienced a decline to RO1.308bn, compared to RO1.373bn in the previous year.

The United Kingdom emerged as the most significant source of FDI, contributing RO10.352bn. The United States followed with an investment of RO3.508bn, with China investing RO1.231bn.

Other contributors include the United Arab Emirates (RO934.9mn), Kuwait (RO778.3mn), Qatar (RO431.2mn), Bahrain (RO375.100mn), India (RO296.4mn), Netherlands (RO291.5mn) and Switzerland (RO181.9mn). The combined value of direct foreign investments from other countries reached RO2.893bn, contributing to the overall FDI increase.