“Chief executives in Oman are making bold strategic decisions to ensure the viability of their business, leading with foresight, embracing innovation and championing climate-friendly investments to secure long-term success. Business leaders in the country have accelerated AI adoption, are actively seeking new domains of value, and are taking decisive steps to upskill the workforce, leading their country into its next phase of sustainable growth.”
Oman’s Vision 2040 has not just reshaped its national economic agenda but has also inspired its business leaders to take the necessary steps to boost competitiveness, efficiency and revenue performance.
Optimism and confidence in economic growth
The government’s latest forecast indicates that Oman’s economic momentum is set to continue with GDP growth projections of 2.7% for 2025.1 This confidence in domestic economic growth is echoed in our survey, with a notable 69% of CEOs in Oman anticipating an increase in 2025 - higher than the Middle East average of 64% and the global average of 57% when reflecting on their own territories.
Q. How do you believe economic growth (i.e., gross domestic product) will change, if at all, over the next 12 months in your territory?
Business leaders are also confident in their own company's revenue growth, with 87% of CEOs expecting this to increase in 2025, rising to 98% over the next three years
Q. How confident are you about your company’s prospects for revenue growth over the next 12 months/three years?
Looking ahead, 69% of CEOs in Oman also plan to grow their headcount in the coming 12 months – compared to 61% of their peers in the wider Middle East, and 42% of global CEOs. While very positive, this may also pose a challenge as 41% identified a low availability of workers with key skills as on of the biggest risks in 2025 - above the GCC average of 34%. This issue is particularly pronounced in sectors such as real estate, construction and hospitality, where Oman has increasingly restricted foreign labour to promote the Omanisation agenda.
While this long-standing initiative has contributed to increasing local employment, there is shortage of local skilled workers that has forced companies to either invest more in training or offer higher wages to attract qualified Omani professionals. These dynamics highlight the need for a strategic approach to workforce development, with greater emphasis on education and skills training.2
Q. To what extent will your company increase or decrease headcount in the next 12 months?
Cyber risks (36%) and macroeconomic volatility (33%) are also considered among the top threats - the latter being closely tied to global oil price fluctuations, broader economic trends like inflation and rising interest rates, and the geopolitical dynamics in the wider Middle East.
CEOs in Oman are more likely to name climate change as a risk than their counterparts across the region, concerned that Oman remains vulnerable to specific climate-related risks such as flooding and cyclones3. 31% of Oman CEOs say they expect to be ‘highly’ or ‘extremely’ exposed to these physical and transition risks of climate change, compared to 18% of CEOs in the GCC and 14% globally.
Q. How exposed do you believe your company will be to the following key threats in the next 12 months? (NET: Highly or extremely exposed)
Reinvention is urgent, driven by AI and the climate crisis
Amidst ongoing efforts in Oman to enhance non-oil revenues and stimulate private sector participation, business leaders are keen to make the most of the opportunities that are emerging as part of Oman’s transformation.
Our survey findings reveal that 67% of CEOs in Oman believe they will need to adapt their businesses in 10 years or less to remain viable, higher than 64% of GCC CEOs and 60% of overall Middle East CEOs.
Q. If your company continues running on its current path, for how long do you think your business will be economically viable?
In the past five years, business leaders have proactively sought to create value in a competitive market. Nearly 60% have targeted new customer bases, 46% have developed innovative products, and almost half have introduced new pricing models. These actions reflect a strong commitment to reinvention, as leaders adapt to shifting market dynamics and position their businesses for sustainable growth.
In Oman, businesses are leveraging the technologies of AI and GenAI in the drive to reinvent their operating models. The country’s National Program for Artificial Intelligence and Advanced Digital Technologies, under the Oman Vision 2040, aims to integrate AI into economic and developmental sectors. Over the next year, efforts will focus on integrating AI across key non-oil sectors including healthcare, energy, finance, and logistics, with the aim of improving productivity and accelerating adoption of the technology.
GenAI adoption rates are notably high, with 87% of CEOs in Omanhaving adopted GenAI in some form over the past 12 months, surpassing the global average of 83%.
Q. To what extent did generative AI increase or decrease the following in your company in the last 12 months?
Oman’s CEOs also show high levels of trust in GenAI, more so than their global counterparts. 15% have revealed that they trust having AI (including GenAI) embedded into key processes to a ‘large’ or ‘very large extent’. The results so far have been promising – 56% say GenAI has increased profitability in their company in the past 12 months, half say it has increased revenue, and 44% say it has created jobs. It has also led to improved personal efficiencies, with 65% of CEOs reporting increased productivity in their own time at work and 59% observing greater efficiency among their employees.
Looking ahead, over the next three years 87% plan to integrate AI as part of their technology platforms (vs. 78% globally), 82% in business processes and workflows (vs. 76% globally), 72% into new products and service development (vs. 63% globally), and 72% in workforce and skills (vs. 68% globally).
Q. To what extent do you predict AI will be systematically integrated into the following over the next three years?
GenAI is predicted to contribute significantly to Oman’s GDP in the coming years4 - and 65% of CEOs in Qatar believe their own organisation’s profitability will increase as a result of GenAI in the next 12 months, compared to just 49% globally.
Climate-friendly investments
Oman’s commitment to net-zero emissions by 2050 has seen it expanding its electricity-generation capacities through renewable power projects, with the aim to build the world largest green hydrogen plant in Duqm. This will position the country as a global hub for green hydrogen exports, as economies around the world turn to the clean fuel to transition to a more sustainable energy future.5
In support of its governments plans towards combating climate change, 69% of CEOs in Oman have revealed that they have made climate-friendly investments in the last five years. However, only 13% are willing to accept lower rates of return on such investments - lower than the global average of 25%. This is supported by the fact that, for 26% of CEOs in Oman, lower returns for climate friendly investments were a key barrier to decarbonisation.
The survey also shows that there is more work to do in Oman if companies are to meet their decarbonisation targets. 39% of Oman’s CEOs say that regulatory complexity is inhibiting their company’s ability to decarbonise the business model, while 35% say they cannot access the right finance, and 29% (compared with 6% of CEOs globally) say that lack of management buy-in is a barrier.
Q. To what extent, if at all, have the following factors inhibited your company’s ability to initiate climate-friendly investments in the last 12 months?
Industry convergence aiding the reinvention agenda
The blurring of boundaries between sectors as companies seek to partner with innovative technology companies has become a defining feature of the digital age6. This can also be seen in Oman with more than a third (36%) of CEOs indicating that their company has started competing in sectors or industries that they were not previously involved in, in line with their peers in the wider GCC. And looking ahead, 44% of CEOs are planning to make acquisitions over the next three years as competition intensifies., including exploring options outside of their traditional sector.
Sum of CEOs who have started to compete in a new sector over the last 5 years
CEOs in Oman can set reinvention plans on a course for success if they:
Actively collaborate with key stakeholders including the government to support AI and technology initiatives aimed at boosting the digital economy’s contribution to GDP. By engaging in key national projects, businesses can play a pivotal role in advancing Oman’s AI and tech ecosystem. Business leaders must also embrace public-private partnerships that can strengthen technical infrastructures, and support cutting-edge, AI-driven research and developments.
Collaborate with the government on the Omanisation agenda to address skills gaps in the private sector, ensuring alignment with Oman’s diversification goals. This includes investing in upskilling initiatives and partnering with educational institutions to develop the necessary talent for emerging sectors, thereby driving both organisational growth and national economic development.
Build proactive strategies to address climate-related challenges, such as investing in resilient infrastructure, enhancing disaster preparedness, and integrating sustainability into core business strategies with a focus on long-term value, even if it means accepting lower rates of return in the short term. Oman’s exposure to climate risks provides an opportunity for its CEOs to play a leading role in regional efforts to mitigate and adapt to these challenges, aligning with the country’s broader commitment to sustainability under Vision 2040.
Explore collaboration, partnerships and acquisition opportunities in emerging sectors in the region as part of a wider strategy to expand portfolios and accelerate diversification. Strategic partnerships with GCC countries, particularly Saudi Arabia with which Oman maintains strong trade ties, can help business leaders in Oman tap into emerging opportunities across sectors like health, education, technology and consulting.
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