Oman ranks 58th in 2025 Economic Freedom Index

09/03/2025 06:09 AST

Oman's economic freedom score has gone up from 62.9 to 65.4 making its economy the 58th freest in the 2025 Index of Economic Freedom.

The index - released by American think tank The Heritage Foundation - evaluated 184 economies across the globe, assessing economic freedom based on 12 metrics categorised under four key policy areas: rule of law, government size, regulatory efficiency and open markets.

With its rating increasing by 2.5 points from last year, Oman is now ranked fifth out of 14 countries in the Middle East and North Africa. The sultanate's economic freedom score is higher than the world and regional averages and its economy is considered 'moderately free' according to the 2025 Index.

Oman scored highest (97.6) in the Tax Burden metric, followed by 82.5 in Monetary Freedom and 78.2 in Trade Freedom metrics among others.

The energy sector has been the most important engine of growth in Oman's open economy. Tax rates are competitively low and foreign investment is generally welcome in many sectors.

'Recognising the importance of a more dynamic entrepreneurial environment, Oman has pursued modernisation and diversification of its economy. Fiscal consolidations have progressed with budget surpluses and a low debt level. Oman's sovereign credit rating has been upgraded to investment grade. The financial sector continues to evolve with commercial banks performing well,' the report stated.

The sultanate achieved remarkable progress in the 2024 Index of Economic Freedom, rising 39 positions to rank 56th globally, a big climb from its 95th standing in 2023.

In the Middle East and North Africa, the UAE leads at 23nd, followed by Qatar (27th), Bahrain (55th), Saudi Arabia (62nd) and Kuwait (88th), among others.

Singapore continues to be the world's freest economy, demonstrating a consistently high level of economic resilience and prosperity. Switzerland is the world's second freest economy, followed by Ireland. Taiwan has maintained its fourth highest ranking, the highest the country has ever achieved in the index, while Luxembourg is fifth.

Especially notable is the continuing decline of the United States, categorised as 'mostly free'. Its score plummeted to 70.2, one of the lowest levels in the history of the Index. The US is now the world's 26th freest economy.

The 2025 report reveals a world economy that, taken as a whole, remains 'mostly unfree'. The global average economic freedom score has increased by 1.1 points to 59.7 from the previous year's 58.6.

Muscat Daily