Although limited in absolute terms, the Omani market presents promising opportunities for Italian companies across several sectors. The Sultanate has a population of 5 million, 40% of whom are foreign nationals, and is characterised by a wealthy elite with high spending capacity and a strong interest in Made in Italy products such as clothing, footwear, jewellery, and luxury goods. There is also significant appreciation for Italian expertise in highly technical fields that Oman intends to develop further in the coming years. Key sectors in Italian exports to the Sultanate already include machinery and mechanical equipment for the Oil & Gas sector, processed iron, steel and aluminium products, electrical materials and components for various industrial applications, as well as products from the chemical industry.
The most significant opportunities for Italian enterprises are linked to the development of Vision 2040, the national strategy designed to promote the country’s economic diversification over a twenty-year horizon. Of particular relevance are Oman’s investment plans in the green hydrogen sector, which have already attracted interest from major international consortia seeking to establish partnerships with Italian firms for the implementation of supply chain development projects awarded by the Government. In this regard, last April the Sultanate signed a landmark Joint Development Agreement (JDA) for the creation of the world’s first commercial-scale liquid hydrogen corridor, connecting the Gulf State to the Netherlands and Germany.
The Oil & Gas sector, which accounts for 30% of national GDP and provides around 70% of the Government’s annual revenue, continues to offer significant investment opportunities, particularly in upstream exploration and production. Oman is actively seeking foreign expertise in drilling, hydraulic fracturing (fracking), and advanced oil recovery technologies, especially for ageing fields with complex geological profiles. Given the age of the country’s oil infrastructure, there is growing demand for modern equipment such as pipelines, wellheads, pumps, and seismic technologies to enhance exploration and recovery operations.
Oman has also launched offshore exploration—effectively initiated in 2017—which represents a new frontier for investors. The Government’s commitment to eliminating routine gas flaring by 2030, in line with its sustainability strategy, could further stimulate investment in the sector. In the field of energy storage, Omani authorities aim to foster practical cooperation with Italian companies, as demonstrated by the investment made by the Oman Investment Authority – the country’s sovereign wealth fund – in the Italian technology startup Energy Dome.
To further boost bilateral trade – which reached EUR 708.9 million last year – a decision was taken in March 2024 to reopen the Italian Trade Agency Country Desk in the capital, Muscat, following its temporary closure during the pandemic.
