United Arab Emirates vs Oman: A Country Comparison

One of the world’s most striking modern success stories – the United Arab Emirates (UAE) – quite literally rose from the sands of the Arabian Peninsula in 1971 to become a symbol of wealth, ambition, and futuristic vision.

Fuelled by oil but shaped by pioneering leadership, the UAE’s transformation has been nothing short of extraordinary. From a barren desert outpost to a global hub, the UAE’s rise has been fast, calculated and unapologetically ambitious.

You can feel it in Abu Dhabi, the quiet powerhouse of political influence and financial capital, and it’s unmistakable in Dubai, a city now known for its gravity-defying architecture, luxury lifestyles, and unflinching desire to succeed.

Yet, just across the border lies a very different country.

The Sultanate of Oman, the UAE’s quieter neighbour, has charted a different path – one of quiet strength, historical depth and slow-burning transformation.

While the UAE sprinted towards the future, Oman made deliberate strides, guided by the long and steady hand of Sultan Qaboos bin Said Al Said, who ruled for almost 50 years. During his reign, Oman launched the Nahda (Renaissance), carefully modernising the nation while protecting its unique cultural fabric and identity. 

Today, the two countries sit side by side on the southeastern edge of the Arabian Peninsula overlooking the same Indian Ocean – deeply connected, yet vastly different.

They share more than just a border: Cultural threads link both states from Bedouin heritage, the Arabic language and a common religion.

There are distinctly more modern links and similarities – zero personal income tax, cutting-edge infrastructure, free zones designed for international business and attractive real estate markets.

But scratch the surface, and you’ll find distinct identities and sharply differing opportunities for global citizens, entrepreneurs and investors seeking to plant a flag in the Gulf. 

Lifestyle and Culture

The United Arab Emirates and Oman both embody Arabian hospitality, but they cater to quite different tastes.

The UAE – especially the major cities within the seven Emirates, like Dubai and Abu Dhabi – operates at full throttle. The country is truly a global crossroads, home to people from every corner of the globe and a place many dream of living in. 

Convenience is king, and while Emirati culture is present, the sheer range of international influences often takes centre stage. Life here is undeniably modern and geared towards those who thrive on constant activity.

On the other hand, life in Oman is more deeply entwined with tradition and heritage. It offers a more understated, authentic Arabian experience, prioritising its history and natural beauty – mountains, deserts, coastlines – over futuristic cityscapes. 

While Omanis are welcoming, their culture shapes daily life more profoundly than in the diverse UAE. It’s less about the glitz and more about a connection to place. 

Residency Options

​​Sorting out residency is obviously a must if you’re planning to spend some time, invest or run a business in either country. 

Thankfully, both the UAE and Oman have their own residency programmes, but how they go about building residency programs and what they offer is quite different. 

The UAE offers a well-organised range of residency visas. 

Its flagship Golden Visa gives a 10-year residency, attainable through various routes, such as:

• Property investment worth over AED 2 million (around US$545,000)
• Bank deposits or business investments over AED 2 million
• Establishing a qualifying start-up
• Earning over AED 30,000 monthly as a highly skilled professional (about US$8,200).

Then there’s the ‘green visa,’ a five-year self-sponsored option aimed at skilled employees (earning over AED 15,000 a month), freelancers meeting specific criteria and investors or business partners. 

Alongside these, you can still get standard two-year visas by investing in property (from AED 750,000 or US$204,000), setting up a company (a popular route) or through the traditional method of being sponsored by your employer. 

The UAE even has specific visas for remote workers and retirees.

Oman, on the other hand, has traditionally relied on employer sponsorship for its standard two-year work visas. Recently, though, it’s opened the doors to long-term residency via the Investor Residency Programme (IRP). 

Think of this as Oman’s version of a ‘golden visa,’ which is a renewable five- or ten-year residency permit for serious investors. 

To get the five-year visa, you need to invest OMR 250,000 (about US$650,000) in approved real estate in special areas called Integrated Tourism Complexes (ITCs), Omani government bonds or by starting or investing in a local business. 

For the ten-year visa, the investment threshold doubles to OMR 500,000 (around US$1.3 million). Oman also has a specific retirement visa option.

So, what’s the bottom line? 

Both nations offer a variety of visa categories for different people, with routes that permit you to sponsor yourself. 

The key differences come in the form of price and product. Your specific profile and investment level will likely steer you towards one or the other.

Business Set Up and Opportunities

​​​​Having secured your residency – the next question is where to do business in this region. 

Both the UAE and Oman offer welcoming business environments with a host of incentives designed to attract international entrepreneurs.

However, the experience of doing business in each is notably different.

In relation to business setup, the UAE operates like a finely tuned machine, home to a sprawling network of over 40 Free Zones.

These specialised hubs cater to a wide range of industries – tech, finance, logistics, trading and many more – and allow for 100% foreign ownership, tax breaks and streamlined setup processes.

If you need speed, scale and sector-specific infrastructure, there’s a zone for you.

Beyond the free zones, setting up on the mainland gives you unlimited access to the entire UAE market, including government contracts. However, the costs to set up are higher and may take longer to get started. 

Oman, meanwhile, is a compelling alternative, particularly if your focus aligns with its Vision 2040 goals. 

Its free zones (such as Sohar, Salalah, and the Duqm Special Economic Zone) focus heavily on logistics, ports and industrial development and provide similar benefits like 100% foreign ownership and strategic infrastructure. But the pace is more measured, and the overall environment less frenetic. 

Oman is actively working to simplify its company formation process via platforms like Invest Easy, making it increasingly attractive for investors who prioritise stability and long-term growth. 

Key sectors include logistics, renewable energy (solar, wind, green hydrogen), tourism, fisheries and manufacturing – areas with strong government backing and growing international interest. 

While the UAE offers speed and scale, Oman provides focused opportunities in high-priority sectors, with the added benefit of a quieter, less crowded playing field.

UAE vs Oman: Taxes

Both nations have a deserved reputation for being easy on personal income, but the picture for businesses has more layers, particularly after some recent changes.

Both the UAE and Oman levy zero personal income tax. 

Things are also similar on the consumption side. Both countries now have a standard VAT rate of 5% applied to most goods and services – the UAE introduced it back in 2018, and Oman joined the club in 2021.

The real difference is corporate taxation. The UAE made waves by introducing its first federal Corporate Tax in June 2023. It’s structured 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. 

Now, if you set up in a UAE Free Zone, you might still qualify for that 0% rate, but this only applies to specific ‘qualifying’ income and hinges on meeting strict operational and compliance rules. It’s no longer a given.

Oman, on the other hand, has a corporate tax rate of 15%. 

While that headline rate is higher than the UAE’s 9%, Oman has incentives, including tax holidays within its designated economic zones. 

There’s also a 3% rate for qualifying small Omani businesses, though the criteria often exclude typical foreign setups.

The most significant recent shift affecting both nations (from January 2025) is their alignment with global tax reforms under the Organisation for Economic Co-operation and Development (OECD) Pillar Two rules. 

This modification essentially means that very large multinational companies with global revenues over €750 million will have to pay an effective minimum tax rate of 15% in both the UAE and Oman. 

While this mainly impacts multinationals, it signals a move towards global tax normalisation. 

Safety

These are safe countries.

The Numbeo Safety Index for 2025 ranks the UAE as the second safest country worldwide, with a score of 84.5 100. Oman is close behind in fifth place, with a score of 81.7 100. 

In addition, urban areas like Abu Dhabi, Dubai, and Muscat regularly top the safest city lists.

Another perspective from the Global Peace Index (GPI) for 2024, ranks Oman ranked 37th globally compared to the UAE’s 53rd. 

Both are very respectable positions, though Oman fares slightly better under the GPI’s wider criteria. Concerns about personal security are simply unlikely to trouble your daily life in either country.

Cost of living

While both the UAE and Oman offer an excellent quality of life without personal income tax, your day-to-day expenses will likely differ. 

Overall, Oman is generally the more affordable option, especially compared with Dubai or Abu Dhabi.

The Numbeo Cost of Living Index for 2025 places the UAE at 31st globally for overall expenses (higher means pricier), whereas Oman ranks quite a bit lower at 62nd. 

Numbeo’s index considers everything from your weekly shop to rent, painting a clear picture of Oman’s relative affordability.

Mercer’s 2024 Cost of Living City Ranking tells a similar story. Dubai is ranked the 15th most expensive globally, with Abu Dhabi 43rd. 

Muscat is way down the list at 122nd, suggesting a much gentler impact on the expat wallet.

Among the factors driving such ‌cost differences, rent is usually the biggest factor, though daily expenses like groceries, transport and eating out can also be lighter on your budget, depending on where you settle.

Of course, there’s a counterpoint. Salaries in the UAE can sometimes be higher, potentially giving you more local purchasing power to help meet those higher costs. Plus, some prefer the luxury and Western feel of the Arab Emirates.

Nevertheless, if stretching your budget while maintaining a high standard of living is a priority, Oman has the edge.

United Arab Emirates vs Oman: FAQs 

Which is Better? Oman vs The United Arab Emirates 

The truth is, we love places with zero personal income tax, where you can easily set up a business and gain long-term residency. 

Both nations excel in these aspects, as well as being perfect business or Plan B opportunities. 

The UAE is likely your best bet if you value a fast-moving, incredibly diverse lifestyle with world-class facilities and global links. 

It has a broader range of residency visas designed for different types of investors, entrepreneurs and professionals. Its free zones make setting up an international business straightforward. 

Oman, on the other hand, might be a better fit if you prefer stability, a genuine connection to traditional Arabian culture and a more relaxed way of life. 

That said, neither country solves every potential issue. 

It’s important to know that becoming a citizen is exceptionally difficult for foreigners in both nations, and it’s worth considering the broader geopolitical context of the Middle East and the Gulf region when making your plans.

If neither the UAE nor Oman feels quite right, then you might need to cast your net wider. 

Panama, for example, has a straightforward territorial tax system. 

Singapore is a powerhouse for business, known for its efficiency and connections across Asia. Malaysia offers a distinct Southeast Asian experience through its MM2H long-term residency programme.

If getting a second passport is a high priority, St Kitts and Nevis has a well-regarded citizenship by investment programme. Portugal remains a favourite for its lifestyle and clear path to EU citizenship after five years of residency. 

It all depends on your situation and your goals. But whatever you decide, it will take planning. 

That’s where we come in. Nomad Capitalist creates and implements bespoke, holistic strategies for successful investors and entrepreneurs like you to legally reduce your tax bills, diversify and protect your assets, become global citizens and maximise your freedom. To find out more, get in touch today.