MUSCAT : Oman’s score increased by 2.5 points, rising from 62.9 in 2024 to 65.4 in 2025, ensuring its place as the 58th freest economy globally out of 184 countries.

In the Middle East and North Africa (MENA) region, Oman ranked 5th out of 14 countries, maintaining its strong position among its regional peers. The country’s economic classification of ‘moderately free’ reflects steady progress in several key areas, including regulatory efficiency, market openness, and the rule of law.

The report, released by the Heritage Foundation, attributes this rise to positive developments in key economic areas. Oman’s continued efforts to diversify its economy away from reliance on the energy sector and cultivate a more vibrant entrepreneurial ecosystem are recognised as key drivers of this progress.

The 2025 Index evaluated 12 sub-indicators to measure economic freedom, including factors like the size of government, regulatory efficiency, and openness of markets. Oman’s improvements were particularly notable in the rule of law, property rights, and its evolving financial sector.

“The energy sector has been the most important engine of growth in Oman’s open economy. Tax rates are competitively low, and foreign investment is generally welcome in many sectors,” states report on Oman’s economic freedom.

“Recognizing the importance of a more dynamic entrepreneurial environment, Oman has pursued modernization and diversification of its economy. Fiscal consolidations have progressed with budget surpluses and a low debt level. Oman’s sovereign credit rating has been upgraded to investment grade. The financial sector continues to evolve with commercial banks performing well.

“The overall rule of law is relatively well respected in Oman. The country’s property rights score is above the world average; its judicial effectiveness score is below the world average; and its government integrity score is approximately equal to the world average.

“Oman’s overall regulatory environment is relatively well institutionalized but lacks efficiency. The country’s business freedom score is above the world average; its labor freedom score is below the world average; and its monetary freedom score is well above the world average,” reads the report from Heritage Foundation.

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