Doing business in Oman
Given Oman's historical dependency on foreign labour, and the fact that nearly a quarter of its population is still made up of expatriates, it is highly likely that expats doing business in Oman will primarily deal with other expats, in a familiar and westernised business context. However, this guide will provide information on Arabic business culture, to help prepare western expats for that eventuality.
Oman is ranked 49th (out of 183 countries) in the World Bank's Ease of Doing Business rankings; faring best in the criteria of 'paying taxes' (where it is ranked 9th), and 'registering property' (21st).
Business Culture in Oman
Firstly, it is important to understand that Oman, though more liberal than its neighbours, remains an Islamic country – and so you should always remain sensitive and respectful of the large influence that these religious beliefs have on ordinary social life. Whatever you do, don't denigrate the faith of Islam or their chief prophet Mohammed – not even if you think you're doing it in a funny or charming way.
The business culture of Oman could be termed typically Arabic in that a great emphasis is placed on personal relationships between business associates. Omani businessmen will always choose to do business with people they are familiar with and
who they feel they can trust. Remain patient during your first meetings with your new Omani business partners – a great deal of time will be devoted to 'getting to know each other' before any 'actual business' is discussed. Don't get impatient: long-term, personal business relationships in Oman are certainly worth the investment of your time and energy.
who they feel they can trust. Remain patient during your first meetings with your new Omani business partners – a great deal of time will be devoted to 'getting to know each other' before any 'actual business' is discussed. Don't get impatient: long-term, personal business relationships in Oman are certainly worth the investment of your time and energy. The management style that predominates in Oman is hierarchical, though perhaps slightly less 'top-down' than in some of its neighbouring countries. For the most part, however, decisions are made at the top level, and clear, direct instructions are given to staff to follow.
Business etiquette in Oman reflects a close relationship between personal and professional life. Hand-shakes are the accepted greeting between men – shake the hand of the most senior person present first. Be sure to maintain strong eye contact (this is considered a sign of trustworthiness and strength), and use Arabic titles (such as Haji and Sheikh) where appropriate to indicate your respect for your associates.
Be prepared to engage in long, personal discussions with your new associates: especially in the beginning, your new business partners will be far more interested in you, as a person they are looking to befriend, than your corporate expertise or qualifications. Make sure that when discussing business, you can deliver everything you promise to – verbal commitments are treated very solemnly in Arabic business culture – and be sensitive to the fact that in Oman, it is considered very rude to cause another public shame or humiliation. If you have an issue to raise with a colleague, or even just a suggestion to make for better business practice, always discuss it privately.
Be prepared to engage in long, personal discussions with your new associates: especially in the beginning, your new business partners will be far more interested in you, as a person they are looking to befriend, than your corporate expertise or qualifications. Make sure that when discussing business, you can deliver everything you promise to – verbal commitments are treated very solemnly in Arabic business culture – and be sensitive to the fact that in Oman, it is considered very rude to cause another public shame or humiliation. If you have an issue to raise with a colleague, or even just a suggestion to make for better business practice, always discuss it privately.
In Oman, business meetings will most likely be lengthy and subject to numerous personal digressions and perhaps even unexpected visitors. Punctuality will be expected of you, but don't necessarily expect your Arabic business partners to follow suit. If you want to follow an agenda (they aren't that popular in Oman), be sure to have it typed out in English and Arabic and forwarded to the concerned parties at least two days before the meeting is due to take place. Dress conservatively for business meetings (especially women) and remain patient, even if the meeting's agenda becomes abandoned. Do not resort to hard-sell tactics, as they will be interpreted as aggression on your part. Again, do not publicly criticise or undermine any associates – if you feel the need to say something, do it in private. Always bear in mind the intimate relationship between people's professional and private lives that characterises the Omani business world.
It is common to exchange business cards when meeting new associates for the first time. Make sure your details are printed in Arabic on one side of your card, and always present cards with two hands. Always spend a little time regarding someone else's card before putting it away in your holder. Business dress is smart, formal and conservative – especially for women, who must take care not to wear anything too revealing (elbows and knees must be covered, and tops should fasten at the neck). Although nearly every building in Oman is air-conditioned, you'll still want to make sure your clothes are lightweight and made from natural fibres.
►A helpful tip: learning some basic Arabic, even just a few words and phrases, will go a long way toward endearing you to your new business associates.
►A helpful tip: learning some basic Arabic, even just a few words and phrases, will go a long way toward endearing you to your new business associates.
Attitude to foreigners in Oman
Oman is by far and away the most open-minded and tolerant nation in the Gulf region, and the general attitude towards foreigners is one of respectful curiosity. However, to earn this treatment, it is essential that you – in turn – behave at all times with respect for Islamic culture and traditions.
Starting a Business in Oman
Starting a business in Oman is neither that hard nor that easy to accomplish – according to the World Bank, it is the 68th easiest country in the world in which to start a business. The five procedures that must be followed are:
- Deposit the legally-required initial capital investment into an Omani bank account
- Register as the Commercial Registry at the Ministry of Commerce and Industry (MOCI). This costs OMR 40 for business registration (good for a period of 5 years), plus OMR 128 that must be paid to the Chamber of Commerce, plus OMR 12.50 for registration with the Municipality of Muscat
- Notify the Department of Taxation at the Ministry of Finance. You will be required to fill in a Form of Declaration of Business Particulars
- Register employees with the Public Authority for Social Insurance (provide copies of employment contracts)
- The registered authorised signatory of the company can then apply for a company seal (costing OMR 50)
Doing business in Oman: Fast facts
Business language: The official language of Oman is Arabic, but English is widely spoken and widely understood in the business world
Hours of business: Generally from 8am to 1pm and then 3.30pm to 6.30pm, from Saturday to Wednesday; and from 8am to 1pm on Thursday. Friday is a day of rest.
Dress: Smart and conservative – especially for women (elbows covered, knees covered, tops should fasten at the neck)
Gifts: If invited to an Omani colleague's home, take a gift along (a house plant or a trinket from your home country will be appreciated). Whatever you do, don't give alcohol or anything made of pigskin.
Gender equality: While Oman remains an Islamic nation, it is certainly the most progressive of the Gulf countries when it comes to attitudes toward women in the workplace. Foreign women, especially, should find themselves respected and valued in Oman – although they might need to dress and behave more conservatively than they are used to doing back home.
Do's and Don'ts of Doing Business in Oman
DO - look to establish personal and heartfelt relationships with your Omani business associates
DO - remain respectful and observant of Islamic culture and traditions
DO - make an effort to immerse yourself in the culture – learn some Arabic words, and educate yourself about the religion
DON'T - forget that in Oman, the line between professional and private life often blurs – expect family-related interruptions during business meetings
DON'T - embarrass, undermine or humiliate anyone during business meetings – while in the western world this might further your reputation, in the Arab world it will scupper your chances of forging good business relationships.


