Comparison of Nations: United Arab Emirates and Oman - An Examination of Their Differences

The United Arab Emirates (UAE) and the Sultanate of Oman, two countries located on the southeastern edge of the Arabian Peninsula, have emerged as attractive destinations for international entrepreneurs. Both nations offer welcoming business environments with incentives designed to attract foreign investments.

The UAE, established in 1971, has become a symbol of wealth, ambition, and futuristic vision, with Dubai being known for its gravity-defying architecture, luxury lifestyles, and unflinching desire to succeed. On the other hand, Oman, the UAE's quieter neighbor, has charted a different path, focusing on quiet strength, historical depth, and slow-burning transformation.

In terms of business, both countries offer 100% foreign ownership, tax breaks, and streamlined setup processes. The UAE operates a network of over 40 Free Zones, while Oman's free zones focus heavily on logistics, ports, and industrial development. The UAE will introduce a Corporate Tax in June 2023, with a 0% rate for taxable profits up to AED 375,000 (around US$102,000) and a competitive 9% rate on profits exceeding that threshold. Oman, meanwhile, has a corporate tax rate of 15%, though qualifying small Omani businesses may benefit from a 3% rate.

Both the UAE and Oman will align with global tax reforms under the Organisation for Economic Co-operation and Development (OECD) Pillar Two rules from January 2025. Additionally, very large multinational companies with global revenues over €750 million will have to pay an effective minimum tax rate of 15% in both countries.

When it comes to living costs, the Numbeo Cost of Living Index for 2025 places Oman at 62nd globally, while the UAE ranks 31st. Muscat, the capital of Oman, is way down the list at 122nd in Mercer's 2024 Cost of Living City Ranking, suggesting a much gentler impact on the expat wallet. Rent is usually the biggest factor in cost differences between the two countries.

Salaries in the UAE can sometimes be higher, potentially giving more local purchasing power to help meet those higher costs. However, Oman, with its Investor Residency Programme (IRP), offers long-term residency opportunities, making it a more affordable option compared to the UAE, especially Dubai or Abu Dhabi.

Both countries are known for being very safe, with the UAE ranking second safest and Oman fifth safest in the Numbeo Safety Index for 2025. The current leaders of these countries are President Mohamed bin Zayed Al Nahyan in the UAE and Sultan Haitham bin Tariq in Oman, with the latter issuing royal decrees as recently as September 2025.

In conclusion, both the UAE and Oman present unique opportunities for businesses and individuals seeking a welcoming environment, competitive tax rates, and a safe living environment. The choice between the two may depend on factors such as personal preferences, business needs, and lifestyle considerations.

Comparison of Nations: United Arab Emirates and Oman - An Examination of Their Differences