Oman’s fashion and textile industry is experiencing remarkable growth in 2026. The government’s economic diversification strategy under Oman Vision 2040 prioritizes manufacturing and retail sectors, creating ideal conditions for entrepreneurs entering the garment business.
Whether you plan to launch a modest fashion boutique in Muscat, establish a uniform manufacturing unit in Sohar, or build an online clothing brand serving the GCC market, this guide walks you through the complete process of starting a garment business in Oman with updated 2026 regulations and industry insights.
Understanding the Garment Business Landscape in Oman
A garment business encompasses designing, manufacturing, wholesaling, or retailing clothing and textiles. In Oman’s market, this includes traditional attire like dishdashas and abayas, modest fashion wear, corporate uniforms, sportswear, and contemporary casual clothing.
The Omani textile sector recorded 18% growth in 2025, driven by increasing domestic consumption and export opportunities to neighboring GCC countries. The Ministry of Commerce, Industry and Investment Promotion (MOCIIP) identified fashion manufacturing as a priority sector for foreign investment.
Why Start a Garment Business in Oman in 2026?
100% Foreign Ownership Permitted
The Foreign Capital Investment Law allows complete foreign ownership in textile manufacturing and retail without requiring Omani partners. This applies to both mainland operations and free zone establishments, giving entrepreneurs full control over their business decisions and profits.
Strategic Geographic Location
Oman’s position provides direct access to GCC markets representing over 60 million consumers. The Port of Salalah and Port of Sohar offer efficient shipping routes to Asia, Africa, and Europe. New trade agreements signed in 2025 reduced export tariffs to key markets.
Growing Consumer Market
Oman’s population reached 4.8 million in 2026, with rising disposable incomes driving demand for quality clothing. The modest fashion segment alone grew 22% annually, while corporate uniform demand increased as businesses expanded across Muscat, Salalah, and emerging economic zones.
Competitive Operating Costs
Manufacturing costs in Oman remain 15-20% lower than UAE and Saudi Arabia. Electricity rates for industrial users decreased in 2026 following renewable energy integration. Labor costs are competitive while maintaining high skill standards through government training programs managed by the Ministry of Labour.
Tax Advantages
Oman maintains no Value Added Tax (VAT) on clothing and textiles as of 2026, providing pricing advantages over neighboring markets. The corporate income tax rate stands at 15%, with SME rates of 3% for qualifying businesses registered with the Oman Tax Authority.
Government Support Initiatives
The Public Authority for SME Development (Riyada) introduced the Fashion Forward Initiative in 2026, offering grants up to OMR 50,000, subsidized machinery loans, and mentorship programs for textile entrepreneurs. Export-focused businesses receive additional support from Oman Exports Development.
Profitable Garment Business Niches in Oman
Choosing the right niche determines your business success. Here are high-demand segments in 2026:
Traditional Omani Attire
Production of dishdashas (men’s traditional robes), abayas (women’s outer garments), and kummas (traditional caps) represents consistent demand. Key considerations:
• Premium market segment values quality fabrics and tailoring
• Seasonal peaks during Ramadan and Eid festivals
• Custom embroidery and personalization increase margins by 30-40%
Modest Fashion and Contemporary Wear
The modest fashion industry reached OMR 45 million in Oman during 2025. This segment includes modern abayas, hijab-friendly casual wear, and workplace-appropriate clothing that combines modesty with contemporary design. Young Omani consumers particularly favor brands offering Instagram-worthy modest fashion.
Corporate and School Uniforms
Consistent B2B revenue comes from supplying uniforms to hotels, hospitals, schools, and corporate offices. The Ministry of Education standardized school uniforms in 2026, creating opportunities for approved suppliers. Hotels in Muscat’s expanding tourism sector regularly tender uniform contracts worth OMR 20,000-100,000 annually.
Sportswear and Activewear
Fitness culture growth in Oman increased activewear demand by 35% in 2025. Opportunities exist in gym clothing, running apparel, and modest sportswear for women. The Oman Olympic Committee supports local sports apparel manufacturers through promotional partnerships.
Sustainable and Eco-Friendly Clothing
Environmental awareness is rising among Omani consumers. Brands using organic cotton, recycled fabrics, and sustainable production methods attract premium pricing. The Oman Environmental Society certifies eco-friendly manufacturers, providing marketing credibility.
Choosing Your Garment Business Model
Your business model determines capital requirements, operational complexity, and profit margins:
Manufacturing and Production
Requirements:
• Production facility (300-1,000 square meters)
• Industrial sewing machines, cutting equipment, pressing tools
• Skilled tailors and pattern makers
• Raw material sourcing from suppliers
• Initial investment: OMR 25,000-80,000
Retail Boutique or Showroom
Requirements:
• Prime retail location in malls or commercial districts
• Interior design and display fixtures
• Inventory management system
• Sales staff and point-of-sale technology
• Initial investment: OMR 15,000-50,000
E-commerce and Online Sales
Requirements:
• E-commerce website and mobile app
• Digital marketing and social media presence
• Storage facility and packaging materials
• Logistics partnerships with delivery services
• Initial investment: OMR 8,000-25,000
Many successful businesses combine models—manufacturing products sold through both retail locations and online channels.
Legal Structure and Registration Process
Selecting Your Business Structure
Single Person Company (SPC)
Ideal for solo entrepreneurs maintaining complete ownership. Provides limited liability protection while keeping operational simplicity. Registration through the Invest Easy Portal takes 5-10 business days with government fees around OMR 150-300.
Limited Liability Company (LLC)
Suitable for partnerships or businesses planning significant expansion. Requires minimum two shareholders and higher capital commitments. Better for larger manufacturing operations or multi-outlet retail chains.
Free Zone Company
Perfect for export-focused businesses. The Sohar Free Zone, Salalah Free Zone, and Duqm Special Economic Zone offer 100% repatriation of profits, zero import duties on raw materials, and streamlined customs procedures. The Knowledge Oasis Muscat supports technology-integrated fashion businesses.
Step-by-Step Registration Process
Step 1: Trade Name Reservation
Submit your proposed business name through the MOCIIP Invest Easy Portal. Names must be unique, avoid misleading terms, and include appropriate legal designations (SPC, LLC, etc.). The 2026 portal features AI-powered name checking that suggests alternatives if your choice is unavailable. Reservation costs OMR 10 and remains valid for 90 days.
Step 2: Activity License Application
Select appropriate commercial activities from the classification system:
• Textile manufacturing
• Garment production and tailoring
• Clothing retail and wholesale
• Fashion design services
Manufacturing activities require approval from the Public Authority for Consumer Protection (PACP) for product safety compliance.
Step 3: Document Submission
Upload required documents to the portal:
• Passport copies (minimum 6 months validity)
• Memorandum of Association (notarized)
• Lease agreement for commercial premises
• Municipality approval for location
• Business plan (for manufacturing licenses)
• No Objection Certificate from current sponsor (if applicable)
Step 4: Fee Payment
Government registration fees for garment businesses:
• Commercial Registration: OMR 100-200
• Trade License: OMR 150-400 (activity-dependent)
• Municipality License: OMR 100-300
• Total: OMR 500-1,200
Step 5: Receive Registration Certificate
Upon approval, the MOCIIP issues your Commercial Registration Certificate with unique CR number, Business License, and digital verification codes. Processing typically completes within 5-10 business days for standard applications.
Opening a Corporate Bank Account
Major Omani banks supporting garment businesses include Bank Muscat, National Bank of Oman, Oman Arab Bank, and Sohar International Bank. The 2026 banking sector introduced specialized SME accounts with reduced fees and integrated payment gateways for e-commerce.
Required documents:
• Commercial Registration Certificate
• Memorandum of Association
• Shareholder identification documents
• Board resolution authorizing account signatories
• Initial deposit: OMR 1,000-3,000
Choosing Location and Setting Up Operations
Best for retail boutiques and showrooms. Prime locations include Muscat Grand Mall, City Centre Muscat, Oman Avenues Mall, and commercial districts in Al Khuwair, Qurum, and Al Ghubra. Annual retail rents range OMR 8,000-25,000 depending on location and size.
Sohar Industrial Area
Ideal for manufacturing operations. The Sohar Industrial Estate provides dedicated zones for textile production with reliable power supply, water access, and proximity to Port of Sohar for importing raw materials. Warehouse rents start at OMR 3-5 per square meter annually.
Salalah Free Zone
Perfect for export-oriented businesses targeting African and Asian markets. Benefits include zero customs duties, 100% profit repatriation, and streamlined logistics through Salalah Port. The free zone offers ready-built factories and customizable land plots.
Duqm Special Economic Zone
Emerging manufacturing hub with competitive land costs (OMR 1-2 per square meter annually) and government incentives for industrial projects. The Special Economic Zone Authority at Duqm (SEZAD) provides dedicated support for textile manufacturers.
Essential Equipment and Machinery
For Manufacturing Units:
• Industrial sewing machines (lockstitch, overlock, flatlock): OMR 300-800 each
• Cutting tables and fabric spreading machines: OMR 500-2,000
• Industrial pressing and ironing equipment: OMR 400-1,500
• Embroidery machines (optional): OMR 3,000-10,000
• Quality control and inspection equipment: OMR 500-2,000
For Retail Operations:
• Display racks, mannequins, and mirrors: OMR 2,000-5,000
• Point-of-sale system with inventory management: OMR 800-2,500
• Fitting rooms and customer seating: OMR 1,000-3,000
• Interior design and lighting: OMR 3,000-10,000
The Oman Development Bank offers equipment financing with competitive rates for registered garment businesses. The Public Authority for SME Development provides machinery subsidies covering up to 30% of costs for qualifying SMEs.
Hiring and Human Resources
• Tailors and seamstresses: OMR 200-400 monthly
• Pattern makers and designers: OMR 350-600 monthly
• Sales staff: OMR 250-450 monthly
• Quality controllers: OMR 300-500 monthly
• Production manager: OMR 500-1,000 monthly
Understanding Omanisation Requirements
The Ministry of Labour implements Omanisation quotas for private sector businesses. In 2026, garment businesses follow these guidelines:
• Small businesses (1-9 employees): Flexible quotas with gradual implementation
• Medium businesses (10-49 employees): Minimum 15% Omani workforce
• Large operations (50+ employees): Minimum 25% Omani workforce
The National Training Institute offers subsidized programs training Omanis in tailoring, fashion design, and textile production. Hiring graduates qualifies your business for government incentives including wage subsidies covering 60% of Omani salaries for the first 12 months.
Visa Sponsorship for Foreign Workers
Process employment visas through the Royal Oman Police (ROP) system. The 2026 e-Visa 2.0 platform reduced processing times to 3-7 business days. Costs per employee:
• Visa approval: OMR 50
• Medical examination: OMR 25
• Residence card: OMR 30
• Total per employee: OMR 200-300
Marketing Your Garment Business
Strong branding differentiates your business in Oman’s competitive fashion market. Essential elements include:
• Professional logo and brand name (consider bilingual Arabic-English branding)
• Consistent visual identity across packaging, tags, and marketing materials
• Brand story connecting with Omani values and culture
• Quality photography showcasing products professionally
Digital Marketing Strategies
Social Media Marketing
Instagram remains the dominant platform for fashion in Oman, with 65% of consumers discovering brands through social media in 2025. TikTok grew rapidly, particularly among younger demographics. Focus on:
• High-quality product photos and styling videos
• Influencer collaborations with Omani fashion bloggers
• Behind-the-scenes content showing production processes
• Customer testimonials and styling tips
E-commerce Website
A mobile-optimized website is essential. The 2026 e-commerce landscape in Oman saw 78% of online purchases completed via smartphones. Integrate payment gateways supporting:
• Credit/debit cards (Visa, Mastercard)
• Bank transfers
• Cash on delivery (preferred by 40% of Omani online shoppers)
• Digital wallets (OmanNet, Apple Pay, Google Pay)
Search Engine Optimization
Optimize for Arabic and English search terms. Register your business on Google My Business, ensuring accurate location information for local searches like ‘abaya shop near me’ or ‘tailoring services Muscat.’
Traditional Marketing Channels
• Pop-up stores at festivals and events (Muscat Festival, Salalah Tourism Festival)
• Collaborations with established boutiques for consignment sales
• Fashion shows and trunk shows at hotels or event venues
• Print advertising in lifestyle magazines (Oman Today, Y Magazine)
Complete Cost Breakdown for 2026
Understanding all costs helps you budget accurately and secure appropriate financing:
Initial Setup Costs
• Business registration and licenses: OMR 500-1,200
• Office/workshop rent (annual): OMR 3,000-15,000
• Security deposit: OMR 500-2,500
• Interior renovation and design: OMR 2,000-10,000
• Utilities connection: OMR 300-800
Equipment and Machinery
• Small tailoring shop: OMR 3,000-8,000
• Medium production unit: OMR 10,000-25,000
• Large manufacturing facility: OMR 30,000-80,000
Initial Inventory and Materials
• Fabrics and raw materials: OMR 3,000-15,000
• Finished inventory (if reselling): OMR 5,000-20,000
• Packaging and branding materials: OMR 500-2,000
Marketing and Launch
• Website development: OMR 800-3,000
• Photography and content creation: OMR 500-2,000
• Social media advertising: OMR 300-1,500
• Launch event or promotion: OMR 1,000-5,000
Monthly Operating Costs
• Staff salaries: OMR 1,000-5,000
• Rent and utilities: OMR 400-1,500
• Marketing and advertising: OMR 200-1,000
• Materials and supplies: OMR 500-3,000
• Miscellaneous expenses: OMR 200-500
Total Investment Summary
• Small tailoring shop: OMR 12,000-25,000
• Medium boutique/production: OMR 30,000-60,000
• Large manufacturing facility: OMR 70,000-150,000
Compliance and Regulations
The Public Authority for Consumer Protection (PACP) regulates textile product safety. Compliance requirements include:
• Proper labeling with fabric composition, care instructions, and country of origin
• Safety testing for children’s clothing (flame resistance, choking hazards)
• Chemical safety compliance (no harmful dyes or substances)
• Size standardization following international or GCC standards
Tax Registration and Filing
Register with the Oman Tax Authority within 30 days of business commencement. File annual corporate income tax returns within 6 months of financial year-end. Maintain proper accounting records following International Financial Reporting Standards.
Import and Export Regulations
For businesses importing fabrics or exporting finished garments, register with Oman Customs. The 2026 Single Window System streamlined customs procedures, reducing clearance times to 24-48 hours for compliant shipments.
Conclusion
Starting a garment business in Oman in 2026 offers exceptional opportunities for entrepreneurs with clear vision and solid execution. The combination of 100% foreign ownership, growing consumer markets, strategic geographic location, and government support creates an ideal business environment.
Success requires understanding your target market, choosing the right niche, securing proper licensing through the MOCIIP, and implementing effective marketing strategies. Whether you establish a traditional Omani clothing workshop in Muscat, a modern boutique in Salalah, or an export-focused manufacturing unit in Sohar, thorough planning and professional execution are essential.
Consider working with licensed business consultants who specialize in garment industry setup in Oman. They can navigate regulatory requirements, expedite licensing, and connect you with suppliers, manufacturers, and distribution channels, allowing you to focus on designing quality products and building your brand.
Frequently Asked Questions
Can foreigners own a garment business in Oman?
Yes. The Foreign Capital Investment Law permits 100% foreign ownership in textile manufacturing and retail sectors without requiring Omani partners. This applies to both mainland companies and free zone establishments.
What license do I need for a garment business in Oman?
You need a commercial license from the Ministry of Commerce, Industry and Investment Promotion specifying your activities (textile manufacturing, garment retail, tailoring services, etc.). Manufacturing operations require additional approval from the Public Authority for Consumer Protection.
Should I start in a free zone or mainland?
Choose a free zone if you plan to export products internationally. Sohar Free Zone and Salalah Free Zone offer zero customs duties and simplified regulations. Select mainland setup if targeting the Omani domestic market through retail stores or local contracts.
How long does it take to start a garment business in Oman?
Business registration through the Invest Easy Portal takes 5-10 business days. Complete setup including location acquisition, equipment installation, and hiring typically requires 4-8 weeks. Expedited processing is available through professional business setup services.
What are the most profitable garment niches in Oman?
Traditional Omani attire (dishdashas, abayas) maintains consistent demand with high margins. Modest fashion for working women grew 22% in 2025. Corporate uniforms provide reliable B2B revenue. Sustainable and eco-friendly clothing attracts premium pricing from environmentally conscious consumers.
Do I need to hire Omani employees?
The Ministry of Labour implements Omanisation quotas. Small businesses (under 10 employees) have flexible requirements. Medium operations need approximately 15% Omani workforce. The government offers wage subsidies covering 60% of Omani salaries for 12 months for new hires from training programs.
What is the minimum investment needed?
A small tailoring shop requires OMR 12,000-25,000 for setup. Medium-sized boutiques or production units need OMR 30,000-60,000. Large manufacturing facilities require OMR 70,000-150,000. The Oman Development Bank and Public Authority for SME Development offer financing and grants for qualified businesses.
Where should I source fabrics and materials?
Import directly from suppliers in India, Bangladesh, China, or Turkey through Port of Sohar or Port of Salalah. Local distributors in Muscat’s Muttrah Souq and Ruwi commercial district supply fabrics for smaller operations. Free zone companies enjoy zero import duties on raw materials.
