Cost of Living in Oman

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The cost of living in Oman is more reasonable than in many neighbouring countries, and income is generally tax-free. Prices are highest in the capital city, and according to the 2024 Mercer Cost of Living Survey, Muscat ranks 122nd out of 226 cities. It is costlier than Ottawa, Canada, and Wellington, New Zealand, but cheaper than Athens, Greece, and Lisbon, Portugal.

As a highly skilled Western worker, you’ll likely be offered a generous expat package with a lucrative salary, accommodation, a car, bonuses, flights home, and medical insurance. But some things are too good to be true: as comprehensive as these contracts seem, there are always unforeseen costs.

Watch out for the added cost of things like visa-related health checks. School fees are also a big add-on cost. Relative job insecurity is an issue in the country, and it could affect your financial security as an expat working in Oman. While this is being addressed, it is not an easy fix and could be more of a concern for expats than employment packages and cost of living.

Cost of accommodation in Oman

Accommodation costs in Oman are much more affordable than many expat destinations, with lower rent and utility expenses. New homes are constantly popping up, so finding a place that fits any budget, mood, and style is easy. That said, costs do vary with size, facilities, and area. Many rentals come unfurnished, so shipping and buying furniture are additional costs, and utilities such as water, gas, and electricity are generally excluded from the quoted rental price.

You should note that some landlords may ask for advance lump sums equivalent to four, six or 12 months’ rent in advance. In some cases, paying rent monthly is possible, too, so it is important to understand the lease contract.

Cost of transport in Oman

Driving a car in Oman is much cheaper than in Europe. As a result, virtually everyone drives, and you easily find a second-hand vehicle to buy from another expat who may be moving on to their next destination. Few people use public transport – though buses are a cheaper alternative.

Taxis are also good value – there is a metered fare to gauge the price, and passengers can often negotiate this if they are not satisfied with the amount. You can also find local ride-hailing services like Otaxi, which allows you to confirm the fare before entering the taxi.

Cost of groceries in Oman

European expats will find the cost of food and drink to be cheaper in Oman, while others may find it pricier. Regardless, though, if you are willing to buy local products, it’s an easy way to save money. That said, Oman has introduced a ‘sin tax’ on certain products – such as tobacco, alcohol, pork and energy drinks, among others – which has dramatically increased their prices.

Cost of entertainment and eating out in Oman

Eating out can be costly, and if you want a drink, you’ll have to frequent expensive Western-style hotels. If you don’t mind forgoing alcohol, there is a wide array of independent ‘dry’ establishments where meals are excellent and reasonably priced.

Sadly, tourist activities are highly overpriced. On the flip side, beach activities cost next to nothing, cinema tickets are relatively cheap, and the Royal Opera House, a must-see, has internationally competitive prices.

Alcohol

Buying alcohol in Oman can be complicated and costly, and there are strict laws and lifestyle customs to abide by. If you would like to buy and drink alcohol in Oman, you must procure a liquor permit. The amount of alcohol you can buy is limited to your monthly income. It is illegal to purchase alcohol that exceeds 10 percent of your monthly income. An authorised residence card is required to get a permit.

Alcohol can only be bought and consumed in establishments and restaurants with a proper licence to sell it, and if rules are not followed, you may face hefty fines. With a liquor permit, you can also buy alcohol from bottle shops for home consumption.

Cost of healthcare in Oman

Citizens of Oman and other member countries of the Gulf Cooperation Council (GCC) can access public healthcare for free. Other expats get a subsidised rate when using the public healthcare system but tend to opt for private options.

Health insurance is a must when moving to Oman, and most companies will offer it for you and your entire family as part of the employment package. Be sure to check the terms and conditions of any insurance offered to ensure it covers dental, optical and mental healthcare too.

Cost of education in Oman

The cost of schooling is a huge expense if your employer does not cover it – especially if you have several children. While there are public schools, you’ll find that most expats generally opt for costly international and private schooling, and many schools require fees to be paid before the first day of the term.

Although international schools in Oman are pricey, they typically offer a wide range of global curricula and offer English as the language of instruction. Moreover, these schools typically have excellent facilities, teaching standards and engaging extracurricular activities.