The United Arab Emirates (UAE) and Oman each possess distinct strengths and attractions. Deciding which one is a more suitable place to live ultimately hinges on individual preferences and priorities. In this article, we will examine and compare both countries regarding some selected features.
Economy and Economic Factors
Oman heavily depends on its oil and gas resources, which account for 68% to 85% of government revenue, subject to fluctuations in commodity prices. While actively employing enhanced oil recovery techniques to bolster production, Oman has simultaneously adopted a development strategy focusing on diversification, industrialization, and privatization, to reduce the oil sector’s influence on GDP. Key components of the government’s diversification plan include promoting growth in tourism, enhancing shipping and logistics, developing mining and manufacturing sectors, and fostering aquaculture.
The UAE features an open economy characterized by a high per capita income and a significant annual trade surplus. Successful efforts in economic diversification have resulted in a decrease in the proportion of GDP attributed to the oil and gas sector, currently standing at 30%. The government has increased investment in initiatives like job creation and infrastructure expansion, alongside promoting greater private sector engagement in utilities. The establishment of free trade zones, allowing 100% foreign ownership with zero taxes, plays a crucial role in attracting global investors. The UAE’s strategic outlook for the upcoming years revolves around economic diversification, positioning the nation as a worldwide trade and tourism center, fostering industrial growth, and creating improved job opportunities for citizens through advancements in education and increased private sector involvement in employment.
Monetary Value
Omani rial also known as OMR holds an exchange rate of 1 OMR to 2.6 US dollars, while 1 UAE dirham also known as AED equals 0.27 USD. Both currencies are strongly pegged to the US dollar.
Inflation Rate
The inflation rate in Oman rose to 1.27 percent in September, up from 0.80 percent in August 2023. On average, the inflation rate in Oman has been 2.73 percent from 2005 to 2023. The United Arab Emirates has experienced an average inflation rate of 1.62 percent from 1990 to 2023, with the current inflation rate standing at approximately 3 percent.
Unemployment Rate
In September 2023, the unemployment rate in Oman decreased to 3.50%, down from the reported figure of 4.00% in August 2023. The monthly updates for Oman’s unemployment rate are available from March 2018 to September 2023, with an average rate of 2.50%. In the United Arab Emirates, the unemployment rate dropped to 2.75% in 2022, compared to 3.11% in 2021. The average unemployment rate in the United Arab Emirates from 1985 to 2022 is 2.35%.
FATF
The primary goals of FATF involve establishing criteria and encouraging the efficient enforcement of legal, regulatory, and operational measures aimed at combating activities such as money laundering, terrorist financing, and other associated risks that pose a threat to the stability of the global financial system. FATF has a black list (high-risk jurisdictions subject to a call for action) and a gray list (jurisdictions under increased monitoring) for countries who were non-compliant with its rules and regulations. It is worth mentioning that the UAE is on the FATF gray list for increased monitoring. On the other hand, Oman was found to be in high compliance with these international standards.
Investments
Oman distinguishes itself as a remarkable investment choice, highlighting significant competitive benefits and a strategically advantageous position supported by seamless regional connectivity. The nation offers various incentives to entice foreign investors, such as competitive lease rates for qualifying companies located in acknowledged industrial estates, free zones, and specific locations, all subject to individual assessment.
The absence of personal income tax and capital gains tax, combined with the opportunity for foreign nationals to own property for residence or rental purposes, reflects the government’s proactive stance in promoting foreign investment. Prominent sectors available for investment encompass pharmaceuticals and retail, tourism, construction, real estate, and mining.
Engaging in investment within the United Arab Emirates is uncomplicated, and the nation actively encourages it through a business-friendly legal, regulatory, and financial framework. With its status as one of the world’s most open economies and a globally oriented business culture, the UAE serves as a stable and welcoming global hub for investors. The investment landscape in the UAE is categorized into three groups: positive list activities, strategic impact activities, and the 49/51 rule. If your investment aligns with the positive list, you can enjoy 100% foreign ownership.
For activities falling under the strategic impact list, you need to inform the relevant UAE authority to determine approval for your investment. In cases where your activities don’t fit into any of the aforementioned lists, the 49/51 rule will be applicable, allowing 49% foreign ownership and requiring 51% Emirati ownership. Some of the popular areas of investment in the UAE include stocks, national bonds, mutual funds, gold, forex, and crypto.
International Flights
Oman is connected to over 135 destinations through its four international airports, serviced by a network of over 40 scheduled airlines. Oman Air, the national carrier, operates flights to 3 domestic destinations and 45 international destinations across 26 countries. Additionally, SalamAir, Qatar Airways, Kuwait Airways, Etihad Airways, Turkish Airlines, Gulf Air, and EgyptAir provide direct flights to Oman.
The UAE is home to a total of 9 airports. Emirates Airlines, headquartered in Dubai, maintains an extensive global presence with flights to 129 passenger destinations across 73 countries. The airline’s operations involve 1,501 flights per week, averaging 215 flights per day. Additionally, over 50 other airlines connect the UAE to more than 102 destinations in 56 countries.
Tourism
Ranked the 7th country as a travel destination globally for tourism in 2022, Oman is known for its exceptional safety, hospitality, and tourist-friendly environment, with relatively low crime rates, mainly limited to minor incidents on the streets. The country’s blend of international perspectives and traditional charm makes it an excellent introduction to the Middle East. Muscat, a coastal city, features some of Oman’s most stunning beaches, characterized by tranquil waters, golden sands, and picturesque rocky cliffs. Prominent attractions in Oman include the Sultan Qaboos Grand Mosque, Daymaniyat Islands, Mutrah Souq, Khor Najd, Bimmah Sinkhole, and Jebel Sham. While tourists can purchase and consume alcohol in licensed venues like hotels, restaurants, and clubs, Omani law strictly prohibits public drinking, being intoxicated in public, or driving under the influence.
Ranked 4th globally in international tourist spending in 2022, UAE is renowned for its cutting-edge infrastructure, encompassing modern transportation systems, world-class hotels and resorts, and luxury shopping malls. Recognized as one of the safest and most stable nations globally, it boasts a low crime rate and a tolerant society. The UAE features diverse landscapes, including beaches, deserts, mountains, and urban areas, providing tourists with opportunities for outdoor activities such as hiking, camping, and water sports. Renowned for its shopping scene, the country offers a mix of luxury malls and traditional souks. Notable attractions in the UAE include Burj Khalifa, Dubai Mall, Sheikh Zayed Grand Mosque, Palm Jumeirah, Dubai Miracle Garden, and Ferrari World Abu Dhabi. UAE residents have the privilege of consuming alcohol at home and in licensed establishments. While liquor licenses are still mandatory for residents in Dubai, they are no longer required in Abu Dhabi and other emirates (excluding Sharjah) for purchasing alcohol for personal use. It is essential to note that drinking or being under the influence of alcohol in public is a punishable offense under UAE law.
Living Expenses
In Oman, housing and apartment prices escalate with proximity to urban centers. While food and transportation expenses remain relatively consistent nationwide, they are also experiencing a gradual increase. Muscat records the highest prices, and although costs can be comparatively lower in areas outside the city, the trade-off is also often limited. For a family of four, anticipated monthly expenditures amount to $2,587.7, excluding rent, while a single person can expect estimated monthly costs of $746.4, also excluding rent. Renting an apartment in the city center typically incurs a cost of approximately $560.69, while opting for a location slightly further from the center averages around $400.
In the United Arab Emirates (UAE), the estimated monthly expenses for a family of four amount to approximately $3,412.0, excluding rent. For an individual, the projected monthly costs stand at $982.7, excluding rent. Rent expenses in the UAE vary, with studio apartments typically ranging from $8,100 to $13,600 per year, while one- and two-bedroom apartments fall within the range of $19,000 to $27,000 annually.
Granting Residency Permits to Investors
The Oman Golden Visa represents a residency-through-investment initiative catering to investors, entrepreneurs, and their families. This program presents an array of advantages, including a pathway to residency in Oman and visa-free travel to over 100 countries, making it an appealing choice for those seeking enhanced global mobility. There are two visa options available, spanning five and ten years respectively, each with their own specific eligibility criteria. For a 5-year visa, individuals must meet certain conditions, such as investing a minimum of OMR 250,000 (equivalent to $650,000) in bonds issued by the Omani government, purchasing a home valued at least OMR 250,000 (or multiple fully constructed homes), or investing a minimum of OMR 250,000 in an Omani business. To qualify for a 10-year visa, one must establish a business in Oman with no specified minimum investment requirement and employ at least 50 Omani nationals. Alternatively, ownership of a public or closed joint stock, another business, or shares with a market value of at least OMR 500,000 (equivalent to $1,300,000) also qualifies. Additionally, acquiring a home worth at least OMR 500,000 (or multiple fully constructed homes) or investing a minimum of OMR 500,000 in an Omani-based limited liability company, closed joint stock company, or Omani government bonds meets the criteria for obtaining a 10-year visa.
Foreign individuals embarking on business ventures or investing in established companies within the United Arab Emirates (UAE) or its free zones are eligible for a residency visa. This investor visa, a component of the Golden Visa program, grants investors a long-term visa for themselves and their dependents, contingent upon meeting specific criteria related to the scale and capital of the investment. The UAE investor visa extends the privilege of sponsoring visas for family members, including spouses, parents, children, and one domestic worker. Obtaining a UAE residency visa for a ten-year period is achievable through real estate acquisition. Investors have the option to purchase properties in Freehold Zones, designated areas where non-citizens are permitted to invest in real estate. To qualify for the 10-year visa, investors must commit a minimum of AED 10 million (equivalent to $2,722,829) to approved investment funds in the UAE. Alternatively, investors can establish a company in the UAE with a minimum capital investment of AED 10 million or become a partner in a new or existing UAE-based company, with the share value of the investment reaching at least AED 10 million. For a 5-year visa, investors can meet eligibility criteria by holding a property with a gross value of no less than AED 5 million (equivalent to $1,361,414) or by being entrepreneurs with an existing project requiring a minimum capital of AED 500,000 (equivalent to $136,141), subject to additional jurisdictional considerations.
Conclusion
The UAE is renowned for its contemporary urban centers and high living standards, boasting a diverse population and a robust economy that provides abundant job opportunities in sectors like finance and tourism.
The country also offers a broad spectrum of leisure and entertainment choices, including shopping, dining, and nightlife. Conversely, Oman is celebrated for its natural beauty and adherence to traditional culture, featuring a rugged coastline, verdant mountains, and expansive deserts.
Oman’s economy, with a focus on oil and gas, tourism, and fisheries, is robust. The country provides a more serene and unhurried lifestyle, making it an ideal residence for those seeking tranquility. Both nations boast well-developed healthcare and education systems, enjoy a warm climate, and are considered safe places to live.