Oman's economic system is a mixed economy combining market and state roles, heavily reliant on oil and gas exports while diversifying into tourism, manufacturing, and logistics. What type of economic system does Oman have? The 2026 Index of Economic Freedom ranks it 39th globally as moderately free with a score of 68.5, while Freedom House rates it 24 of 100.
What is the economic system of Oman? The economy of Oman is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.
Oman’s economy is heavily reliant on oil and gas exports but also has a growing tourism industry and a focus on diversifying into manufacturing and logistics.
No country is purely capitalist or purely communist.
What do the freedom indexes tell about the economic system of Oman?
For instance, according to the 2026 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Oman is ranked 39th globally and 3rd in the GCC region, indicating that the country has a moderately free economy (score: 68.5/100). This is a significant improvement from its 2022 ranking of 108th, reflecting major gains in fiscal health and trade openness.
In a similar way, the 2026 Freedom House index evaluates the state of political rights and civil liberties globally. Oman gets a score of 24/100, which qualifies it as Not Free.
Oman is a country where the government mostly controls what people do for political reasons, and people have limited freedom to choose (what, how much and how to produce, whether to buy or not, selling price, etc.)
The Link Between Public Sector Employment and the Economic System of Oman
An indicator of the extent to which the State is involved in the economy is the number of public sector employees. In Oman, according to ILOSTAT, the number of public sector employees as a percentage of the total workforce is 78.7% (2020).
In the country’s mixed economy, the number of public sector employees as a percentage of the total workforce varies based on the specific policies and practices adopted by the State.
Some economic activities are left to the private sector while others are under government control. The bigger the public sector the closer is the economy to being a command economy.
What do the biggest companies in Oman say about the country’s economic system?
The biggest company in Oman should also be looked at, as well as whether it is a state-owned or private company. In this case, OQ Group is the largest company in Oman by revenue, a state-owned integrated energy company engaged in oil and gas exploration, production, refining, and marketing. OQ Group reported record revenue of approximately USD 40 billion in FY2024, reflecting Oman’s continued dependence on its hydrocarbon sector. The company is wholly owned by the Omani state.
The historical factors that have influenced the economic system of Oman
The current mixed economy system of Oman is a result of a combination of factors, including the country’s natural resources, its strategic location, and its government policies.
Oman’s oil and gas reserves have enabled it to develop a strong industrial sector, while its strategic location has allowed it to benefit from trade and investment from other countries.
Additionally, the government has implemented policies that have encouraged foreign investment and diversified the economy.
Sources
- List of countries by the public sector size
- ILOSTAT – Oman country profile
- 2026 Index of Economic Freedom – Oman
- Freedom in the World 2026 – Oman
- OQ Group 2024 Annual Results
Last updated: June 20, 2026
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