Oman has posted one of the strongest gains in the “2026 Index of Economic Freedom,” jumping 19 positions to rank 39th globally, up from 58th in 2025, as the sultanate reaps the benefits of stronger public finances and a broader push to improve its competitiveness.
The latest edition of the index, compiled by the United States-based Heritage Foundation, assessed 176 economies across 12 indicators grouped under four pillars: rule of law, government size, regulatory efficiency and open markets. These indicators span areas such as property rights, judicial effectiveness, tax burden, fiscal health, business freedom, labour freedom, trade freedom, investment freedom and financial freedom.
Oman scored 68.5 out of 100 in 2026, marking its best performance in the past five years. The result keeps the Gulf country in the “moderately free” bracket while also placing it above the average scores recorded globally and across the region.
A key driver of the improvement was a major leap in fiscal health, where Oman’s score surged to 97.5 in 2026 from 63.2 a year earlier. The gain reflects lower public debt relative to GDP as well as fiscal surpluses in the state budget, suggesting that recent efforts to strengthen budget discipline are beginning to register in global benchmarks.
The country also turned in strong results in several other categories. Oman recorded a score of 78.4 in trade freedom and 74.7 in government spending, while maintaining high marks for tax burden at 97.6, investment freedom at 70 and financial freedom at 60.
Within the Gulf, Oman now ranks third, behind the UAE in 23rd place and Qatar in 31st. Bahrain was ranked 57th, Saudi Arabia 59th and Kuwait 90th, underlining Oman’s improved standing in a region where governments are competing to attract investment, diversify growth and strengthen the private sector.
Globally, Singapore, Switzerland, Ireland, Australia and Taiwan occupied the top five places in the 2026 ranking. The United States was placed 22nd, while the United Kingdom came in 29th.
Oman’s push to improve its performance is being led by the National Competitiveness Office, which is coordinating with government entities through a national team focused on the economic freedom and network readiness indices. The work falls under the National Programme for Private Sector and Foreign Trade Development, known as Nazdaher, and is aligned with Oman Vision 2040.
The index’s authors argue that higher levels of economic freedom are associated with broader development outcomes, including higher incomes, poverty reduction, healthier societies, stronger democratic governance and better environmental performance. For Oman, the latest rise in the rankings is likely to be read as a signal that fiscal reforms and competitiveness-focused policies are helping burnish its appeal to investors.