Starting a garment business in Oman is a smart move in 2025 due to rising demand, full foreign ownership options, and a growing fashion market. From choosing your niche to licensing, setup, and marketing, the process is clear and rewarding. With the right strategy and location-based focus, entrepreneurs can build a successful clothing brand in Oman and scale across the GCC region.
What is a Garment Business?
A garment business involves designing, manufacturing, selling, or distributing clothes. This can include casual wear, uniforms, ethnic outfits, or even high-end fashion. In Oman, there’s demand for both traditional and modern clothing styles, creating space for small designers and large-scale production units alike. Whether you want to open a boutique, launch a tailoring workshop, or build a full factory setup, Oman offers great opportunities for growth.
Why Start a Garment Business in Oman?
Oman is growing fast in terms of lifestyle and retail. Locals and expats alike are buying more clothes—especially custom-made or branded. With stable demand, supportive government policies, and a strong location in the GCC, Oman is a smart place to enter the textile and fashion space.
Oman’s Stable Economy
The government is encouraging business owners to invest, and fashion retail is one of the areas that keeps expanding. The demand for Omani dishdashas, abayas, and modern garments is rising.
100% Foreign Ownership
In many sectors, including fashion, foreigners can own their businesses without a local partner. This helps maintain control and keep profits with the owner.
No Sales Tax
As of now, Oman has no VAT on clothing, making it a better deal for buyers and increasing your sales potential.
Benefits of Starting a Garment Business in Oman
Starting a garment business in Oman comes with some key advantages:
- Full ownership in many sectors
- Affordable labor compared to neighboring countries
- Modern infrastructure for logistics and shipping
- Supportive free zones with easy business rules
- Growing population with demand for both traditional and western wear
If you have a product that suits Omani taste or fills a market gap, you can scale your business quickly.
Step-by-Step Process to Start a Garment Business in Oman
Let’s go step by step to help you understand how to start your garment company in Oman.
Step 1: Choose Your Garment Niche
You need to decide what type of clothing you want to focus on. This can be:
- Men’s and women’s casual wear
- School and work uniforms
- Abayas and dishdashas
- Sportswear
- Luxury or designer clothes
Once you select a niche, plan your product line and pricing.
Step 2: Decide Your Business Model
Will you manufacture garments, resell other brands, or create your own label? Your model will shape the rest of the setup:
- Manufacturing unit – You need space, machines, tailors, and raw materials.
- Retail store – You need a good location and strong visual branding.
- Online store – You need a website, social media presence, and delivery partners.
Step 3: Choose a Legal Structure
You can choose between:
- Sole Proprietorship – Small scale, easy to manage
- LLC (Limited Liability Company) – Suitable for mid-sized businesses
- Free Zone Company – If you want 100% ownership and export focus
Free zones like Knowledge Oasis Muscat or Salalah Free Zone offer good benefits for manufacturers.
Step 4: Register Your Business
Go to the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) and register your company. You’ll need:
- Business name approval
- License application
- ID and passport copies
- Activity approval (for garments)
- Local office address or Ejari for lease
After submission, approval can take 5 to 10 working days.
Step 5: Open a Business Bank Account
Once your business is registered, open a corporate bank account in Oman. Banks may ask for:
- Trade license
- Shareholder documents
- Company setup proof
- Business plan
Pick a bank that suits your needs—many offer digital banking and easy international transfers.
Step 6: Get Location and Equipment
Choose your workspace based on your business type:
- For retail: find a place in commercial areas like Muscat, Sohar, or Salalah.
- For production: lease a workshop with enough power and ventilation.
- For online: storage space and a simple office are enough to start.
Buy stitching machines, cutting tables, ironing equipment, racks, mannequins, and branding material.
Step 7: Hire Skilled Workers
Recruit tailors, machine operators, designers, and sales staff depending on your model. Oman allows visa quotas for skilled labor. You can also train local talent under the Omanisation program.
Step 8: Branding and Marketing
Your clothes must look good and your brand must feel premium. Use:
- A strong logo and brand name
- A clean, mobile-friendly website
- Social media platforms like Instagram and TikTok
- Ads on local directories and Google
People trust visuals—so invest in high-quality photos, videos, and promotions.
Step 9: Pricing and Sales Channels
Price your garments based on:
- Production cost
- Target audience
- Competitor pricing
You can sell through:
- Retail shop
- Mall kiosk
- Pop-up events
- Website
- Delivery apps
- WhatsApp business
Step 10: Stay Compliant
Renew your business license every year. Follow labor rules, pay staff on time, and ensure health and safety for your workshop. If you import/export, follow Oman Customs clearance rules.
Cost of Starting a Garment Business in Oman
The actual cost depends on your size and business model. Here’s a general idea:
- License registration: OMR 1,000 to 2,000
- Rent (yearly): OMR 3,000 to 8,000
- Machinery setup: OMR 5,000 to 15,000
- Initial stock & fabrics: OMR 3,000 to 10,000
- Staff salaries: OMR 250–500 per person per month
So, your total investment could range from OMR 12,000 to OMR 30,000 for a medium-sized setup.
Conclusion
Starting a garment business in Oman is a promising move if you have a clear plan, good designs, and understand what people want to wear. The country is opening up to creative brands, foreign investors, and digital shops—so you can enter with confidence.
If you need help with paperwork or setup, talk to a Business Setup in Oman consultant who can guide you through every step.
FAQs
Can a foreigner open a garment business in Oman?
Yes. Many sectors in Oman allow full foreign ownership, including fashion and textiles.
What license do I need for a tailoring or garment store in Oman?
You need a commercial license under garment or tailoring activities from MOCIIP.
Is it better to start in a free zone or mainland Oman?
If you plan to export, a free zone is better. If you want to sell locally, go for mainland setup.
How long does it take to open a garment business in Oman?
On average, 1 to 3 weeks if all your documents are ready and you have a clear setup plan.
What are the most popular garments in Oman?
Traditional dishdashas, abayas, modest fashion, uniforms, and casual clothing are all in demand.
