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The Heritage Foundation released its 2026 Index of Economic Freedom in March showing Oman had climbed 19 positions to rank 39th globally with a score of 68.5. That marked a substantial recovery from 95th place and a score of 58.5 in 2023 when the economy was classified as mostly unfree. The latest rating places the Sultanate in the moderately free category for the second consecutive year after it stood at 56th with 62.9 in 2024 and 58th with 65.4 in 2025.
Oman’s tax burden score stood at 97.6 driven by the absence of personal income tax and a 15 percent corporate rate the Heritage Foundation data showed. Public debt fell to 35 percent of gross domestic product by the end of 2024 or 2025 from above 60 percent in 2020. These fiscal gains contributed to the higher overall rating that now exceeds both world and regional averages.
Judicial effectiveness received a boost from the establishment of an Investment and Trade Court under Royal Decree No. 35 of 2025 issued in December 2024. The modernization of the banking law that same month to accommodate digital assets and fintech further supported financial freedom. More than 260 government services underwent automation in July 2025 as part of broader digital transformation efforts.
Implementation of Oman Vision 2040 had achieved 74 percent of its national targets by October 2025 the Vision 2040 Implementation Follow-up Unit reported. The strategic plan underpins many of the reforms that have enhanced the business environment and regulatory framework. Such progress aligns with Oman’s long-term goals for economic diversification.
In the Middle East and North Africa region Oman’s performance stands out against lower scores recorded by several neighbors Heritage Foundation figures indicate. For instance Iran registered 41.8 points to rank near the bottom of global standings. The global average score stood at 59.9 in the 2026 assessment a modest rise of 0.2 point from the prior edition.
The index evaluates 12 specific factors ranging from property rights to financial freedom with Oman’s strengths concentrated in areas such as tax burden monetary freedom and trade freedom. Weaknesses persist in government spending where the score remained lower. Continued reforms could push Oman closer to the mostly free threshold of 70 points in future editions according to the Heritage Foundation assessment.
