Lebanon vs Oman: what the same business costs to run in 2026

Why this comparison?

A restaurant or factory owner in Lebanon knows their numbers well: the generator bill, the price of diesel, and the shop rent. The real question is not "Is Oman cheaper?" but: How much would the same business cost if it operated in Muscat? This is a line-by-line comparison, using officially published figures up to October 2026, with a clear distinction between official numbers and estimates.

Electricity: The Biggest Difference

• In Lebanon: In July 2026, Électricité du Liban announced that the average daily supply was 4 hours. The commercial tariff is 27 cents per kilowatt-hour, while the Ministry of Energy set the private generator rate for September 2026 in cities at 52,840 LBP per kilowatt-hour (about 59 cents), plus a fixed subscription fee.
• In Oman: The non-residential tariff is 25 baisa per kilowatt-hour (about 6.5 cents) for consumption up to 100 megawatt-hours annually, according to Public Services Regulatory Authority Decision 44/2024. Larger facilities are subject to a cost-reflective tariff, with a fixed option of 33 baisa (about 8.6 cents) on low voltage in 2026.

Example: A Restaurant Consuming 4,000 kWh Monthly

A restaurant consuming 4,000 kilowatt-hours per month, with 4 hours of state electricity and the rest from a generator, pays about $2,147 per month in Lebanon for consumption alone. The same consumption in Oman costs about $260. This is a calculated example; the actual bill is affected by the meter, fixed fees, and the proportion of generator use.

Fuels: Transport and Distribution

• Diesel: About $1.52 per liter in Lebanon (pricing as of 2 October 2026), compared to 258 baisa (about $0.67) in Oman in October 2026.
• Gasoline 95: A 20-liter can costs about $31.68 in Lebanon versus about $12.43 in Oman.

Example: Distribution Company

A distribution company consuming 3,000 liters of diesel monthly faces a fuel price difference of about $2,550 per month, assuming the same quantity. Distances and demand volumes differ between the two countries, so this is a difference in fuel price, not total distribution cost.

Factory: Land and Exemptions

In the industrial cities managed by Madayn:

• Industrial land rent is 1 Omani rial per square meter per year, increasing by 15% every five years. A 1,000 square meter plot costs about $2,600 per year.
• Exemption from net profit tax for 5 years for qualifying industrial projects, then 15%.
• Customs exemption on machinery, equipment, and raw materials needed for production, subject to conditions and approvals.
• Land contract for 30 years, renewable, with full foreign ownership.

Profit Tax: 17% vs 15%

Corporate profit tax in Lebanon is 17%, and in Oman 15% outside special exemptions.

Rent and Salaries: Market Estimates

These two items do not have official tariffs, so we present them as estimates based on our experience in the Omani market (source: Al Tamkeen estimates, October 2026). Actual prices vary by location and activity, and we review them for each project:

• Commercial rent: A shop in a good commercial location in Muscat can be rented for around 1,000 rials per month, compared to over $4,000 for the smallest shop in downtown Beirut.
• Salaries: Foreign labor is available in Muscat, with salaries starting from about 150 rials per month, varying by skill and sector.

Family and Residency

• Establishing your company in Oman allows you to obtain an Investor Residency through your company, and you can include your family subject to conditions.
• Public schools are open to residents' children for nominal fees and follow an Arabic curriculum, subject to seat availability.
• Golden residency through property ownership is available according to the requirements of the relevant authorities, and family inclusion is possible as per regulations.
• Oman is ranked first in the Arab world for quality of life (Numbeo, mid-2026), and holds the highest Arab score in the Gallup Law and Order Index for 2025 (91 out of 100, tied with Bahrain and Saudi Arabia).

What These Numbers Don't Say

Honesty is part of the study:

• The Omani market is small (about 5.4 million people). Factories often sell to the Gulf, India, and beyond; duty-free exports to the Gulf are conditional on rules of origin (at least 40% value added, and Saudi Arabia adds a national labor percentage).
• Some activities are restricted for foreigners by official list, such as grocery stores, fuel stations, and tailoring shops.
• Demand and competition vary by neighborhood and sector, and cost figures alone are not enough for expansion decisions.

Calculate for Your Project

At Al Tamkeen, we have prepared a calculator where you can enter your project numbers in Lebanon (electricity and supply hours, fuels, salaries, rent), and it will show the corresponding cost in Muscat, item by item, with the source of each price.

Sources

Public Services Regulatory Authority Oman (Decision 44/2024), Nama Tariff 2026, Électricité du Liban, Lebanese Ministry of Energy and Water, fuel pricing in both countries (October 2026), Madayn and the Oman government portal, PwC Tax Summaries, Investor Residency Program at the Ministry of Commerce, Industry and Investment Promotion, Numbeo, and Gallup.