Oman Country Summary

FATF Status

Oman is not identified by FATF as having substantial money laundering and terrorist financing (ML/TF) risks or having strategic AML/CFT deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Oman was undertaken in 2024. According to that Evaluation, Oman was deemed Compliant for 23 and Largely Compliant for 16 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness ratings.

Corruption is not a primary concern for U.S. businesses operating in Oman, which has established laws to combat corruption in both public and private sectors, including the Anti-Corruption Law and minimum sentencing guidelines for public officials. Despite these measures, the lack of whistleblower protection and potential conflicts of interest due to government officials' private business interests pose challenges. Additionally, Oman faces significant issues with human trafficking, drug trafficking, and financial crimes, while its judicial system, although generally impartial, struggles with transparency and accountability.

Oman's economy is strategically positioned at the crossroads of major regional markets, making it attractive for foreign investment, particularly in its developing ports and free zones like Duqm. While Oman is currently dependent on oil and gas revenues, it has made significant strides towards economic diversification under its Vision 2040 plan, aiming to enhance sectors such as logistics, manufacturing, and tourism. The country has seen improved fiscal balances due to high oil prices, resulting in a budget surplus, but ongoing challenges such as labor policies and the impact of recent boycotts against U.S. products may affect future economic growth.

Oman's investment climate is bolstered by its strategic location and a stable political environment, making it an attractive destination for foreign investors. The government actively seeks foreign direct investment, offering 100% ownership in most sectors and removing minimum capital requirements, while also promoting significant development projects in its ports and free zones. However, challenges such as bureaucratic hurdles and local content requirements may deter some foreign companies from fully capitalizing on these opportunities.