As the Sultanate of Oman progresses through 2026, a wide-ranging package of policy reforms, regulatory changes and national initiatives has come into force, marking one of the most comprehensive transition periods in recent years and reinforcing the country’s long-term development agenda under Oman Vision 2040. Effective from the start of the year, these measures impact businesses, residents, investors and government institutions, spanning environmental protection, fiscal regulation, financial modernization, public health, trade, aviation, energy, investment and cultural life, while strengthening governance, sustainability and economic diversification. At the core of these reforms is the launch of the Eleventh Five-Year Development Plan (2026–2030), which represents a major restructuring of Oman’s national development strategy with a focus on building a diversified and sustainable economy, enhancing decentralised growth across governorates, improving the efficiency of social development programmes, and strengthening institutional performance and governance frameworks to support long-term resilience.
Environmental sustainability has taken a significant step forward with the implementation of the fourth phase of the nationwide plastic shopping bag ban, effective January 1, 2026, under Environment Authority Decision No. (2024/8). This phase expands the ban to a wide range of commercial activities, including agricultural supply stores, date vendors, construction and building material outlets, pet shops, juice shops, ice cream and sweet vendors, traditional food stalls and other retail operations, reflecting Oman’s growing commitment to reducing plastic pollution and promoting responsible consumption practices across the economy. In parallel, fiscal oversight has been strengthened through stricter enforcement of the Digital Tax Stamp (DTS) system, with the Tax Authority prohibiting the sale or circulation of energy drinks and other excise products without the mandatory stamp from January 1, 2026. This measure extends earlier import restrictions introduced in June 2025 and aims to enhance tax compliance, protect consumers, ensure product authenticity and safety, and combat illicit trade in the local market.
Financial modernization has also been underscored by the Central Bank of Oman’s introduction of the Sultanate’s first OMR 1 polymer banknote, which entered circulation on January 11, 2026, alongside the existing paper-based note as legal tender. The move symbolises innovation within the national currency system while maintaining public confidence and accessibility through Oman Post distribution points. From a macroeconomic perspective, Oman’s economic and financial outlook for early 2026 remains positive, with projections pointing to moderate, broad-based growth supported by improving public finances, stronger credit metrics and expanding non-oil sectors as diversification efforts continue to gain traction. The Islamic finance sector is also expected to register double-digit growth during 2026, driven by strong sukuk issuance and increasing public demand for sharia-compliant financial products, reinforcing the sector’s growing role within the national financial system.
Energy and sustainability initiatives remain central to Oman’s future planning, with the Sultanate advancing its clean-energy agenda under a national renewable roadmap that includes plans for six major solar projects totalling 6 gigawatts by 2031. These projects aim to reduce reliance on natural gas, expand renewable energy capacity and support national goals related to energy security, emissions reduction and sustainable growth. On the investment and business development front, preparations for the Sohar Investment Forum—expected to attract participants from more than 30 countries—highlight rising Saudi, African, Asian and GCC interest in Omani economic zones, logistics corridors and industrial development opportunities. Complementing this momentum, Muscat is set to host the Middle East Space Conference 2026, bringing together government leaders, space agencies, private-sector players and innovators to explore the expanding space ecosystem in the region and Oman’s role within it.
Internationally, Oman continues to strengthen its diplomatic and legal engagement, including active participation in forums such as the Doha Legal Forum in Qatar, underscoring the Sultanate’s role in regional dialogue on legal cooperation, governance and institutional development. Aviation connectivity has also expanded, with new international routes launched by Oman Air and Salam Air from Muscat International Airport, reinforcing Oman’s position as a regional transport and tourism hub. Alongside these structural and economic developments, Muscat’s cultural and sporting calendar remains vibrant, with the return of Muscat Nights 2026 throughout January and the globally broadcast Tour of Oman cycling race in February, events that showcase the Sultanate’s cultural diversity, dramatic landscapes and growing reputation as a host of major international events. On the sporting front, Oman’s national cricket team is preparing to compete in the ICC T20 World Cup 2026, with team leadership expressing confidence in a balanced squad combining youth and experience. Meanwhile, authorities continue to investigate a tragic tour boat accident off the coast of Muscat on January 27, 2026, highlighting the importance of maritime safety amid growing tourism activity. Collectively, these developments demonstrate that beyond legislative and regulatory reform, Oman’s 2026 landscape is defined by economic resilience, sustainability initiatives, expanding global engagement, cultural vitality and continued national modernization.
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