The political system is likely to remain stable over the coming two years. Anti-government rhetoric rarely focused on the late sultan, Qaboos bin Said Al Said (1970-2020), personally during his rule. There are no indications that the new sultan, Haitham bin Tariq Al Said, will face any serious public dissent; conversely, there is substantial support for government reform among the public and the elite. The country’s large and effective security apparatus will continue to clamp down on any major dissent, though Haitham has indicated a greater tolerance for a freer press.

The neutral foreign policy is a positive point for the political stability of Oman. Oman shares the Ormuz Strait (the most important petrol trade hub in the world) with Iran; and it shares border with South Arabia (enemy of Iran) and Yemen (currently overgoing a civil war). The good foreign relations of Oman reduces the inherent instability of the region. The risk of suffering blockades, like Qatar, is minimum due to the low profile that Oman has in the international relations.

Sultan Haitham bin Tariq Al Said will likely continue encouraging foreign investment as part of the sultanate’s drive to diversify and privatise segments of the economy amid dwindling oil revenues and persistently low international oil prices. Haitham came to power having served on Oman’s Vision 2040 board, which is responsible for setting the sultanate’s economic strategy. He is therefore attuned to Oman’s economic needs and is reportedly close to the sultanate’s major business families.

Under Haitham’s leadership, the government will be unlikely to revise mineral licences or resort to expropriation or nationalisation. Doing so would likely prompt further investor flight to more business-friendly Gulf Arab states. Expropriation and nationalisation risk could increase in the unlikely event that socio-economic discontent prompts the government to enact populist and nationalist measures to maintain stability. 

Oman is considered an Authoritarian Regime in the 2020 Democracy Index, developed by The Economist Intelligence Unit (EIU), where the country ranks 138 out of 167 countries scored.

The country ranks 47 at the 2019 Human Development Index developed by the United Nations Development Programme. Moreover, the country ranks 133 out of 180 in the 2021 World Press Freedom Index elaborated by Reporteers Without Borders (RFS). Despite a uniform media landscape and apparent unanimity, self-censorship is the rule in this peaceful sultanate and criticism of Sultan Haitham bin Tariq (or his cousin and predecessor, Sultan Qaboos bin Said, who died in 2020 after reigning for 50 years) is not tolerated.

The collapse of oil prices is likely to disrupt government spending on transport and logistics infrastructure, with some 80% of government revenues still coming from hydrocarbons. Foreign investors have to contend with an emphasis on local-content requirements, including a foreign worker visa ban that is likely to be extended at least until early 2021. Bribery is prevalent in the public sector, including facilitation payments and petty bribery in front-line services, but the recent conviction of senior government officials and energy-sector executives in high-profile corruption cases renders bribery solicitations less likely in higher government echelons.

Labor unions have little influence over business, and independent pressure groups are unlikely to pose a significant concern for foreign companies. The government restricts foreign land ownership. Foreign nationals from outside the Gulf Cooperation Council (GCC) are allowed to own residential property within government-designated tourism developments but are not permitted to purchase commercial real estate. The majority of foreign-owned companies are required to lease land and properties required for offices or staff residences from local landowners. GCC nationals are not subject to these restrictions but must seek government approval to purchase residential or commercial properties. The government in 2018 instituted further restrictions banning all foreign ownership of agricultural land and real estate in numerous strategic locations.

Restrictions imposed in response to the coronavirus disease 2019 (COVID-19) pandemic are likely to cause significant operational disruption in the coming months. The closure of the border in January 2021 will impact trade and economic performance.

The road network is well developed. Authorities strictly enforce traffic laws; running a red traffic light results in automatic arrest and detention for 48 hours as well as the suspension of the offender's driving license until a judge's decision. 

(Unmetered) taxis are available all over the country. In general, it is advised to discuss the price before departure. Driving outside Muscat can be hazardous due to the presence of free-roaming animals. The Oman National Transportation Company reliably operates bus routes between major cities.

The mobile network is good but means of telecommunications are expensive. Oman's authorities may cut the mobile network for security reasons. Intelligence services monitor all calls and many communications tools such as Skype or Facetime can be blocked by the government.

Overall, Oman ranks 68 out of 190 countries scored at the 2020 Doing Business Index by the World Bank and 49 out of 198 at the 2020 Corruption Perception Index by the Transparency International Organization.

Security is not a serious concern for organizations operating in Oman. Petty crime levels in Oman are on the rise, although they remain low by regional standards and are normally limited to small-scale incidents in crowded and low-income areas. Crime levels usually do not affect tourists, provided normal precautions are taken. Easily accessible items such as cash, jewellery, and electronics are particularly vulnerable to theft and should not be left in hotel rooms. Vehicle theft is prevalent, particularly when drivers go into a store and leave their keys in their cars. Muscat experienced an increasing frequency of residential burglaries in recent years.

Strikes and collective bargaining are becoming more common in companies that employ a large proportion of Omanis. Strikes can last for weeks if no settlement is reached. Small-scale, localized protests do not target foreign interests.

Oman's key challenge is balancing its relationship with its Western allies, Iran, and other Gulf Co-operation Council (GCC) member states. Oman's mediatory capacity between Iran and the United States, alongside its refusal to participate in the Saudi and United Arab Emirates (UAE)-led military intervention in Yemen, reduces the risk of direct military retaliation against Oman in the event of conflict involving the United States, Iran, and/or the Gulf states, or in the event of unintended escalation following minor naval incidents between the United States or other Gulf states and Iran in the Sea of Oman or near the Strait of Hormuz.

Private and commercial shipping are at growing risk from Somali pirates in the Arabian Sea off the Omani coast and near the Gulf of Aden. The risk decreases to moderate the closer the ships are to the Omani coastline given the presence of a small but effective coast guard. Despite relatively robust security measures along the Omani-Yemeni border to prevent spillover from the conflict in Yemen, where jihadists enjoy unprecedented freedom of movement, entails a moderate risk of successful infiltration by militants capable of transferring IED capability to Oman; nevertheless, Saudi Arabia and the UAE are likely to remain much higher priorities for jihadists. However, Oman’s porous borders with the UAE, Saudi Arabia, and Yemen are crisscrossed by smuggling routes and could also be traversed by transnational militants.

There has never been a serious terrorist attack in the country, and few Omanis are known to have joined international militant groups. The security forces are capable.

Overall, Oman ranks 68 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

A yellow fever vaccination certificate is required for travelers over 9 months of age arriving from countries with risk of yellow fever transmission and for travelers having transited more than 12 hours through an airport of a country with risk of yellow fever transmission.

Oman ranks 73 out of 195 within the 2019 Global Health Security Index, a project of the Nuclear Threat Initiative (NTI) and the Johns Hopkins Center for Health Security (JHU), developed with The Economist Intelligence Unit (EIU).

The sultanate of Oman has a Mediterranean climate (hot and dry summers, mild winters) in the north and the east, tropical in the south and west, and arid in the center. Summers last from March to October and winters from November to February. Temperatures are the highest between October and April (around 30°C). In the tropical zone, remnants of the monsoon bring rain from June until September. Humidity levels are high throughout the country (despite low annual rainfall), except in the desert regions where temperatures are relatively steady throughout the day and the night, contrary to usual desert conditions.

The rainy season lasts from May until September in the extreme south of the country and is often accompanied by floods. In late 2015, the country experienced repeated flooding, worsened by poor drainage systems in urban areas.

Cyclones infrequently strike the sultanate, mainly in the months of June and September as the monsoon arrives and recedes. Tropical Cyclone Ashobaa struck Oman in June 2015 resulting in heavy flooding and significant property damage.

During the summer, extreme temperatures (higher than 50°C [120°F]) and humidity can be dangerous to health. Sand and dust storms can impact air and ground traffic.......