Towards an Active Role for Franchising in the Sultanate of Oman within the Framework of Vision 2040

Towards an Active Role for Franchising in the Sultanate of Oman within the Framework of Vision 2040

Dr. Abdelrahim Al-Reeh
Senior Expert in Franchising and Corporate Development
9/12/2025

Preface

In an era defined by digital explosion, the growing capabilities and creativity of the human mind, and the availability of powerful technological tools and innovative enablers, the positive role of franchising becomes increasingly evident. Franchising supports, empowers, and develops the capacities and investments of the private sector—locally and globally.

Chambers of commerce across the world have played a major role in this shift as they strive to become more responsive to the evolving landscape of a sector that forms a significant component of the micro-economy, which itself serves as the foundation of economic structures, capital formation, and several macroeconomic indicators.

This vision was reiterated in the Manila Declaration issued by global franchise associations during their meeting in the Philippines on 25 October 2023. The declaration emphasized the critical need for a stronger and more active private-sector role in confronting the challenges faced by various countries—particularly those arising from accelerating technological, environmental, and informational transformations.

Franchise systems strengthen and elevate the private sector’s role through intelligent mechanisms that enhance the attraction of both domestic and foreign investments across all sectors. They expand employment opportunities, build training pathways, transfer technologies and operating systems, and support the implementation of sustainable development strategies.

Through franchising, proven business success models can be transferred horizontally and vertically—from one region or country to another—within a governance framework that ensures safe investment, protects the interests of both parties, and is grounded in a binding code of conduct and a mutually beneficial win-win contractual relationship.

The Role of Chambers of Commerce in Supporting Franchise Associations and Coalitions

One of the essential responsibilities of the Chamber of Commerce, as the voice of the private sector, is to operate within the framework of Oman Vision 2040 to support economic diversification by strengthening and empowering the private sector. This includes expanding its investment base, building a knowledge-based and technologically advanced economy, enhancing sustainability, and providing services and information that help strengthen business relations domestically and globally through trade delegations, exhibitions, conferences, and B2B forums.

Within this context, the Chamber plays an important role in supporting franchising and in facilitating the establishment of a World Franchise  Council ( WFC ) in the Sultanate composed of franchisors, suppliers, and stakeholders.

Franchising extends to nearly all economic activities—industry, services, education, health, advanced information systems, trade, tourism, apparel, jewelry, renewable energy, and even social franchising. The food and beverage sector—especially halal, healthy, and athlete-focused foods—has long been among the most prominent franchising segments. Yet many remain unaware of franchising’s increasingly substantial role in developing manufacturing industries, technology transfer, circular economy initiatives, environmental solutions, and more.

It is therefore the Chamber’s duty to organize awareness programs and training courses on franchising and its role in establishing Omani brands, leveraging the expertise available through the TAGMOA Franchise Alliance for the Middle East & Africa, to adopt modern tools and encourage national companies to transform into global enterprises while enhancing the private sector’s contribution to economic, social, and environmental responsibility.

With global shifts in business models, technology, and communication systems, the role and capabilities of chambers of commerce worldwide have transformed significantly. They must adapt to new business concepts, evolving structures, and the expanding horizontal and vertical capabilities of franchising—especially as the world rapidly transitions into advanced digital and technological landscapes that redefine business ecosystems and create new strategic frameworks.

Oman’s Economy: Rich and Full of Opportunities

First:

Oman is gifted with a uniquely diverse geographical landscape—vast deserts, high mountains, extensive coastlines, fertile valleys, and flowing water channels—as well as abundant mineral resources including copper, chromium, gold, and oil. Much remains undiscovered across its mountains and deserts. Combined with its strategic coastal position along the Arabian Sea and the Indian Ocean—connecting Oman historically with Africa—this geography provides exceptional economic potential.

Second:

The Sultanate enjoys notable political and economic stability, strong financial resilience, low inflation, and a high-value national currency.

Third:

Oman is known for its welcoming culture, maritime heritage, and strong civil administrative structures.

Under Vision 2040, Oman launched major regulatory reforms to stimulate private-sector growth and foreign investment. The Foreign Capital Investment Law, effective in 2020, eliminated minimum capital requirements and allowed up to 100% foreign ownership in many sectors, creating strong incentives for international companies to enter Oman—including through franchising.

Significant investments have also been directed toward infrastructure and digital transformation, alongside support for emerging industries. Given its strategic location, Oman is poised to become a major logistics and commercial hub connected to African markets and global supply chains—especially since it lies outside the Strait of Hormuz, making it an attractive destination for joint logistics and secure-transport investments.

The Sultanate continues to expand its ports, free zones, and airports, strengthening its position as a regional gateway.

Oman’s economic shift has begun to show tangible results. Non-oil sectors—construction, manufacturing, transportation, and others—are experiencing continuous growth. Government efforts to encourage investments, develop free zones, promote exports, and reduce imports have produced positive outcomes in 2025.

Key Indicators of Private-Sector Growth in Oman (2024–2025):

• Active private enterprises reached ≈ 268,033 in Q1 2025, up 9.4% from ≈ 244,986 in Q1 2024.

• Micro-enterprises experienced the fastest growth: ≈ 11.3% increase (235,510 vs 211,521).

• Private-sector value added reached ≈ 10.53 billion OMR in Q1 2025 (up from ≈ 10.06 billion OMR in 2024).

• Large companies contributed approximately 59.7% of total value added.

• Omani employees in the private sector reached ≈ 406,000 as of July 2025 (≈ 47% of total workforce).

• Private-sector credit increased by 6.1%, accompanied by growth in deposits and non-financial institution holdings.

These indicators demonstrate the increasing attractiveness of small and medium-sized enterprises (SMEs), which are becoming the preferred choice for many investors. This highlights the importance of franchise-based SME development, business incubators, and innovation—areas where the Tagmoa Franchise Alliance offers substantial expertise.

International Financial Insights

World Bank

The World Bank affirmed that Oman’s economic performance reflects the success of its financial and economic policies, aligned with the priorities of diversification and fiscal sustainability under Vision 2040. Oman achieved recurrent fiscal surpluses due to improved financial management and secured current-account surpluses supported by non-oil exports and service-sector growth.

International Monetary Fund (IMF)

The IMF reported that Oman’s real GDP growth strengthened to 1.7% in 2024 (up from 1.2% in 2023), driven by non-hydrocarbon activities—especially manufacturing and services.
GDP growth is projected to reach 2.4% in 2025 and 3.7% in 2026, supported by investments in logistics, manufacturing, renewable energy, and tourism. Inflation remains low: 0.9% (January–April 2025).

These insights confirm the dynamism of Oman’s market, its limitless investment potential, and the economic feasibility of new ventures.

Moreover, Oman’s strong economic ties with the UAE, Saudi Arabia, and other GCC countries expand opportunities for trade, finance, and investment—especially in the industrial and agricultural sectors.

Franchising as a Strategic Tool to Achieve Oman Vision 2040

The above analysis highlights the strategic importance of franchising as a mechanism capable of supporting economic diversification, achieving Vision 2040’s objectives, transferring knowledge, expanding investments, creating jobs, enhancing innovation, and strengthening entrepreneurship.

This strengthens the need to develop specialized platforms that support the franchising ecosystem and connect it with investors at local, regional, and global levels.

In this context, the TAGMOA Franchise Alliance emerges as a pivotal regional platform:

A cross-border alliance covering the GCC, Middle East, and Africa, connecting expertise and opportunities.

It provides an integrated suite of services, including:

• Advisory Services: Supporting franchisors and franchisees, providing legal, administrative, and financial solutions.

• Mediation Services: Facilitating fair and transparent dispute resolution and safeguarding contractual relationships.

• Franchise Development Services: Designing operating models, building governance systems, and preparing advanced training programs based on global best practices.

Tagmoa also prepares economic and market studies that identify opportunities and emerging trends, helping investors and decision-makers build strategies grounded in reliable data.

Moreover, Tagmoa plays a central role in promoting Gulf and Arab brands, enabling their regional and global expansion, and positioning the region as an important player in the global franchising ecosystem. It also provides SME development services, business incubation support, and assistance in launching emerging franchise initiatives.

Conclusion

Such acoalition strengthens the private sector’s ability to keep pace with economic and digital transformations, offering a vital bridge between investors and international expertise. It opens broad prospects for achieving sustainable development goals and translates the aspirations of national and regional visions—particularly Oman Vision 2040—into practical, impactful outcomes.