The world recognises the importance of aligning work environment policies with the investment procedures in any country. This alignment helps boost productivity, stabilises the workforce in institutions and reduces annual employee turnover.

This, in turn, leads to increased GDP for national economies, enhanced job opportunities for citizens, access to technology and the adoption of artificial intelligence in the work performed by institutions and their employees.

From this perspective, the Sultanate of Oman is working to strengthen the relationship between labour laws and the investment environment to attract more domestic and foreign investments and provide more job opportunities for its citizens.

These two elements are, in fact, closely intertwined in economic development and are achieved through a set of policies and procedures, including improving the work environment and workers’ conditions, enacting legislation that protects workers’ rights such as wages, working hours and occupational safety.

Thus, the government is keen to establishing institutions for the swift and fair resolution of labour disputes, and continuing to support training and development programmes to enhance worker productivity. It is also achieved by strengthening the social and professional stability system, so that workers feel job security and fairness, leading to increased productivity and stability. This, in turn, reduces labour turnover costs and improves production quality, especially with having clear laws and swift, transparent transactions in government institutions that foster investor confidence in the economic environment.

Over the past decades, Oman has made significant efforts to build an integrated work and investment environment by developing labour and investment legislation. The new Labour Law, issued in 2023, balances the rights of both workers and employers. The Foreign Capital Investment Law, issued in 2020, grants significant incentives to foreign investors, allowing full foreign ownership in several economic sectors.

This is in addition to ongoing efforts to establish special economic zones, such as those in Al Duqm, Suhar and Salalah, as well as other governorates. These zones offer a regulated business environment, advanced infrastructure and adherence to international labour standards.

Furthermore, the government is committed to digital transformation of its services to reduce bureaucracy and expedite licensing and company registration procedures to increase confidence in the economic environment. It also fosters partnerships between the government and the private sector for continuous training and workforce development, while simultaneously improving the work and living environment, occupational safety, social security and health insurance.

Improving the business environment and attracting investment is becoming increasingly evident in Oman, especially as investors prefer countries with legislative and social stability; and those with a qualified, trained and stable workforce. Furthermore, the existence of flexible and clear laws gives investors’ confidence in the sustainability of their businesses.

Reports from international organisations indicate that Oman enjoys ease of doing business and global competitiveness, which has led to an improved ranking in indicators related to the business and investment environment.

As we know, the relationship between the business and investment environment is complementary; the better the former, the more attractive the latter becomes. Thus, the Omani government’s efforts effectively contribute to attracting investments and strengthening confidence in the Omani economy.

The relationship between the business and investment environment in Oman is a fundamental pillar in building a balanced and sustainable economy.

This is due to the ongoing efforts of relevant authorities to develop labour legislation and enhance the investment environment, which strengthens confidence in the national economy and attracts both foreign and domestic capital.

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