When it comes to staff outsourcing in the GCC, Oman might not be the first name that comes to mind. But that’s changing- fast. With its strategic location, business-friendly policies, and a rapidly growing talent pool, Oman is quietly emerging as a top choice for companies looking to outsource their operations. Whether you’re in IT, customer service, or back-office support, Oman offers a unique blend of cost efficiency, skilled labor, and a welcoming business environment that’s hard to ignore.
But don’t just take our word for it. Let’s look at the numbers. The outsourcing market in Oman is on the rise, with the IT sector alone expected to grow at a compound annual growth rate (CAGR) of 9.91% between 2023 and 2028. Meanwhile, Oman’s labor force is expanding rapidly, with over 2.5 million people employed as of 2023, and the country’s GDP projected to hit US$111.54 billion in 2025. These statistics paint a clear picture: Oman is not just a beautiful tourist destination- it’s a serious player in the GCC outsourcing game.
So, what’s driving this shift? Let’s break it down.
More Bang for Your Buck
Let’s face it- cost is a major factor when it comes to outsourcing. And Oman delivers big time. Compared to other GCC countries like the UAE and Saudi Arabia, Oman offers significantly lower operating costs. For example, rents in Muscat, Oman’s capital, are around 72.9% cheaper than in Dubai. That’s a huge saving, especially for small and medium-sized enterprises (SMEs) looking to stretch their budgets.
But it’s not just about real estate. Labor costs in Oman are also highly competitive. The average monthly salary for a mid-level IT professional in Oman is around OMR 1,500, compared to 4,810 AED-99,000 AED in the UAE. This cost advantage allows businesses to access top-tier talent without breaking the bank.
And let’s not forget the tax benefits. Oman offers a corporate tax rate of just 15%, one of the lowest in the region. There’s also no personal income tax, making it an attractive destination for expatriates. For businesses, this means more money stays in the company coffers, allowing for greater investment in growth and innovation.
A Growing, Skilled Workforce
Of course, cost savings alone aren’t enough. To succeed in outsourcing, you need a workforce that can deliver. And Oman’s talent pool is both skilled and growing. As of 2023, Oman’s labor force stands at over 2.5 million people, with a labor force participation rate of 68.3%. What’s more, the country is investing heavily in education and training to ensure its workforce is ready for the demands of the modern economy.
Oman’s focus on education is paying off. The country has a literacy rate of 97.34%, one of the highest in the region. In addition, a significant population of Omani university graduates are in STEM fields (science, technology, engineering, and mathematics), making them well-suited for roles in IT, engineering, and other technical fields.
But it’s not just about technical skills. Oman’s workforce is also highly bilingual, with a large percentage of the population fluent in both Arabic and English. This is a huge advantage for companies looking to serve both regional and international markets.
A Strategic Location with Easy Access to Key Markets
Location matters, and Oman’s strategic position at the mouth of the Persian Gulf gives it easy access to some of the world’s most important markets. The country is just a short flight away from major business hubs like Dubai, Riyadh, and Doha, making it an ideal base for companies looking to serve the GCC region.
But it’s not just about proximity. Oman also boasts world-class infrastructure, including the Port of Salalah, one of the largest and most efficient ports in the region. This makes it easy for businesses to import and export goods, as well as to connect with global supply chains.
Oman’s airports are also a major asset. Muscat International Airport offers direct flights to over 50 destinations worldwide, making it easy for businesses to travel in and out of the country. And with a straightforward visa process for expatriates, Oman is a welcoming destination for both businesses and their employees.
A Business-Friendly Environment
Setting up an outsourcing operation in a new country can be challenging, but Oman makes it easy. The country has been working hard to improve its business environment, and it shows. In the World Bank’s 2023 Ease of Doing Business report, Oman ranked 68th out of 190 countries, up from 78th in 2020. This improvement reflects the government’s commitment to creating a more business-friendly environment.
One of the key factors driving this improvement is Oman’s regulatory reforms. The country has streamlined its business registration process, making it faster and easier for companies to set up shop. In addition, Oman allows 100% foreign ownership in most sectors, a major advantage for international businesses.
The government is also investing heavily in infrastructure to support business growth. For example, the Duqm Special Economic Zone offers state-of-the-art facilities and incentives for businesses, including tax holidays and customs exemptions. This makes it an attractive destination for companies looking to establish a presence in the region.
A Focus on Technology and Innovation
Oman is not just keeping up with the times- it’s ahead of the curve. The country has made significant investments in technology and innovation, positioning itself as a hub for IT and digital services. For example, Oman’s National Program for Enhancing Economic Diversification (Tanfeedh) has identified ICT as one of the key sectors for driving economic growth.
This focus on technology is paying off. Oman’s ICT sector is growing at a rapid pace, with the market expected to reach $5.96 billion by 2025. The country is also home to a growing number of tech startups, supported by initiatives like the Oman Technology Fund, which provides funding and mentorship to innovative companies.
For businesses looking to outsource IT services, this is great news. Oman offers a pool of highly skilled IT professionals, as well as access to cutting-edge technology and infrastructure. Whether you’re looking to develop software, manage data, or provide customer support, Oman has the resources you need to succeed.
A High Quality of Life for Expatriates
Let’s not forget the human element. For businesses considering outsourcing, the quality of life for expatriate employees is a key factor. And Oman delivers on this front as well. The country is known for its safety, stability, and high standard of living, making it an attractive destination for expats.
The city offers a range of amenities, from world-class healthcare and education to shopping and entertainment options. And with its stunning natural beauty- think pristine beaches and rugged mountains- Oman is a great place to live and work.
For businesses, this means happier, more productive employees. And with expatriates making up 43.25% of Oman’s population, the country is well-equipped to welcome international talent.
The Final Takeaway
In a region known for its rapid growth and dynamic business environment, Oman is carving out a niche as a preferred destination for staff outsourcing. With its cost efficiency, skilled workforce, strategic location, and business-friendly policies, Oman offers everything a company needs to thrive in the competitive world of outsourcing.
But beyond the numbers and the infrastructure, there’s something else that makes Oman special: its people. Known for their hospitality and warmth, Omanis create a welcoming environment for businesses and expats alike. It’s no wonder that more and more companies are choosing Oman as their outsourcing destination.
So, if you’re looking to outsource your operations in the GCC, don’t overlook Oman. With a growing labor force, a booming ICT sector, and a commitment to innovation, the country is poised to become a major player in the outsourcing world. The question is: will you be part of its success story?
Read Also: 2025 UAE Staff Outsourcing Trends
