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Effective since early 2020, Royal Decree No. 50/2019 revamped Oman’s foreign investment regime, allowing 100% foreign ownership in most sectors outside a reserved list. This marked a decisive reform in attracting long-term investment aligned with Vision 2040 diversification goals. The law streamlines licensing, reduces capital thresholds, and introduces comprehensive investor protections.
Investors can now fully own companies in sectors like manufacturing, tourism, logistics, IT, healthcare, and education. A restricted list (≈95 activities) still exists for sovereignty-sensitive or traditional trades.
The previous OMR 150,000 threshold has been removed, easing entry for startups and SMEs—though your feasibility study must reflect viable capital planning.
The Oman Investment Authority (OIA) now processes all investment licensing, land grants, and incentives electronically via the Investment Services Centre.
Foreign investors can access long-term leases or usufruct rights for industrial or development land; utilities and infrastructure are facilitated by regulatory authorities.
Feature | Details |
---|---|
Expropriation Protection | Only court-approved, with fair compensation |
License Security | Can’t revoke without written warning and chance to rectify |
Fund Transfer Flexibility | Full repatriation rights and transferability of ownership |
Financial Incentives | Up to 10-year tax holidays, customs waivers, industrial land access, utility subsidies |
From April 2024, new law mandates that foreign investment companies must hire at least one Omani employee within 12 months of CR activation. Notices will be issued via digital channels, and non-compliance risks CR suspension or restrictions.
“Foreign investors with small SMEs not inclined to employ Omanis… forced to terminate CR due to cost burden.”
“Some firms continue with active CRs without compliance—others get system “obligations” (mandatory notices) placed.”
Access to GCC markets via Oman’s membership
Free zones (Duqm, Sohar, Salalah) facilitating industrial, trade, and logistics expansion
FDI aligned with Oman Vision 2040’s focus on tech, renewable energy, and logistics.
Reduced business licensing friction
Lower fees and elimination of capital restrictions
One-stop licensing via the OIA and Investment Services Centre.
Protection against arbitrary license changes or expropriation
Full repatriation and ownership transfer rights
Stability in land access and commercial infrastructure.
Roughly 95 sensitive business activities remain reserved for Omani nationals—such as handicrafts, LPG services, used vehicle sales, and local water distribution.
Even small enterprises face obligatory Omani hiring, which some describe as administratively burdensome or misaligned with business economics.
Authorized service providers (legal/consulting firms) must comply with new scrutiny, confidentiality, and licensing rules under MOCIIP Decision 306/2022.
Feasibility Study & Pre-Approval Consultation – Required as part of license application to OIA.
License Application via Investment Services Portal – Including investor info, business plan, capital plan.
Employment Compliance Tracking – Register at least one Omani employee within 12 months via PASI.
Accelerated Incentives & Land Allocation – Submit for grants, tax holiday eligibility, infrastructure access.
Ongoing Compliance & Expansion Planning – Maintain CR, update ownership, adjust as permitted.
Some expats have reported CR suspensions or system-generated compliance obligations due to unmet hiring rules, even when the enterprise is operational with legitimate capital planning.
Reddit threads reflect frustration from SME owners who feel the obligations may drive them to exit Oman, while larger firms tend to absorb costs but still find hiring requirements rigid.
Engage legal or setup advisors from licensed MOCIIP-authorized firms to manage applications and compliance.
Carefully plan hiring and Omani staff inclusion, even for small ventures, to avoid jeopardizing licenses.
Leverage investor benefits—like tax waivers or land grants—only after completing initial CR and employee obligations.
Regularly monitor MoCIIP alerts and investment portal notifications for compliance requirements or updates.
Consider scenarios where partial local partnership may offer flexibility vs full ownership.
Oman’s unified investment law offers a landmark opportunity: 100% foreign ownership, simplified licensing, and compelling incentives in a stable and diversifying economy. Yet, the requirement to hire Omani staff, conditional eligibility for certain activities, and administrative compliance mean careful planning is essential.
Foreign investors who take a strategic, informed approach—especially leveraging local advisory support—stand to benefit the most from Oman’s transforming investment landscape.
Can I have 100% foreign ownership in Oman now?
Yes—Oman allows full foreign ownership in most commercial and industrial sectors, except those on a restricted list.
Is there still a minimum capital requirement?
No. The previous OMR 150,000 requirement has been removed. However, feasibility studies must justify reasonable capital plans.
What sectors are off-limits to foreign investors?
Approximately 95 activities—mainly traditional handicraft industries, LPG filling, used car trade, some retail—are restricted to Omani nationals only.
Do I have to hire Omanis?
Yes—foreign-owned companies must employ at least one Omani within 12 months of CR issuance from April 2024 onward.
What happens if I don’t comply with Omanization?
Your commercial registration may be suspended or system obligations placed; CR modifications may be blocked until compliance is met.
Are there investor visas/residency benefits?
Yes. Investor residency programs offer 5–10 year visas tied to investment, dependents, and free zone eligibility.
Can I repatriate profits and capital freely?
Yes—foreign investors have full rights to transfer funds and exit investments without restriction.
Are investor protections guaranteed?
The law prohibits arbitrary license revocation, ensures fair compensation for expropriation, and prohibits interference without court order.
Who is the licensing authority now?
The Oman Investment Authority (OIA) and its Investment Services Centre oversee licensing, incentives, and land allocation.
Can foreign investors bring in service providers to manage applications?
Only MOCIIP-authorized legal/consulting entities may assist with licensing to ensure due diligence and confidentiality compliance
Oman’s privatization agenda opens new avenues for foreign investors. For example, Asyad Group plans to list at least 20% of its shipping unit (Asyad Shipping Co.) on the Muscat Stock Exchange, with shares earmarked for foreign institutional investors and anchor participants in 2025. This move is designed to attract international capital and improve public sector efficiency.
Foreign investors can engage via private placements, IPO bids, or secondary market purchases—especially in sectors such as logistics, energy, and infrastructure.
Under the Unified Investment Law, key growth sectors include:
Renewable Energy: Particularly green hydrogen, solar parks, and wind farms. Projects like the Duqm hydrogen anchor development target annual production near 2030 levels.
Logistics & Port Services: Investments in Duqm, Sohar, and Salalah ports are ideal for exporters, cold chain, and 3PL providers.
Manufacturing & Mining: Foreign firms are increasingly engaging in local production of industrial goods and mineral processing operations supported via Free Zone incentives.
These targeted growth areas are aligned with Oman Vision 2040’s goals to expand non-oil exports and attract sustainable, diversified FDI.
Oman’s Capital Market Incentives Program (CMIP) launched in August 2024 encourages companies to list on the MSX-AIM or main board, with benefits such as corporate tax refunds, easier conversion from LLC to SAOG, and procurement preferences from government tenders.
Foreign investors may partner with local companies converting to SAOCs to access these incentives and enhance exit strategies or secondary market activity.
As of 2025–2026, MoCIIP is actively auditing licensed foreign investor companies for compliance with the requirement to employ at least one Omani national within 12 months. Notices are issued digitally with fines or CR access restrictions for noncompliance.
Violating restricted activity lists—dating from Ministerial Decision 435/2024, defining 123 sectors reserved for Omani nationals—can lead to license suspension, fines, or forced termination of operations.
Licensed service providers assisting foreign investors must also comply with confidentiality and approval standards under MOCIIP Decision 306/2022—failing which they risk suspension and legal action.
To navigate regulatory complexity while maximizing benefits:
Engage MOCIIP-authorized advisors early for license application, compliance support, and Omanization strategy.
Evaluate sector eligibility carefully to avoid prohibited activities—especially niche handicraft, retail, or service trades outlined in Decision 435/2024 Oxford Business Group+4EY+4iskanco.com+4Reuters+14LinkedIn+14Business Setup Oman+14.
Plan for hiring and social insurance costs—even in low-revenue phases—to comply with workforce mandates iskanco.comReddit.
Structure joint ventures or micro-local partnerships to facilitate market entry or gradual compliance where relevant.
Monitor OIA and MoCIIP portals for notifications, audits, or new laws—ensure timely updates to CR and licensing info.
Let us handle your company registration, office setup, and licensing to ensure a seamless process.
At setupinoman, we specialize in assisting businesses with establishing their presence in Oman. Our services include:
Business Registration & Licensing – Handling all MoCIIP applications and approvals.
Legal Documentation & Compliance – Ensuring smooth document translations and notarization.
Banking & Office Setup – Helping businesses secure bank accounts and office leases.
Visa & Employee Services – Managing work permits and Omanization requirements.
What is the minimum investment required to qualify for a residency visa in Oman?
The minimum investment typically starts from OMR 20,000 for standard investor visas. However, the Golden Visa program requires investments starting from OMR 250,000.
Can I own 100% of my business in Oman as a foreign investor?
Yes, Oman allows 100% foreign ownership in most sectors, especially under the Foreign Capital Investment Law. Some regulated sectors may require local participation.
Is real estate investment enough to obtain a residency visa in Oman?
Yes, under the Golden Visa category, purchasing property worth at least OMR 250,000 can qualify you for long-term residency.
What is the difference between the Golden Visa and the Standard Investor Visa?
Golden Visas offer longer residency terms (5–10 years), faster processing, and broader eligibility, while Standard Investor Visas require lower investment but shorter duration and renewals.
How long does the investor visa process take?
On average, it takes 4 to 8 weeks, depending on security clearance, company registration, and documentation accuracy.
Can I apply for residency before launching my business?
You must complete company registration and capital deposit before applying for the residency visa under the business investor category.
Is it necessary to open a corporate bank account in Oman for this process?
Yes, you need to deposit the minimum share capital into a corporate account to receive the capital deposit certificate, which is essential for visa processing.
Are there any age or nationality restrictions for investor visas?
There are no age restrictions, and citizens from most countries are eligible, although background checks and financial verification are required.
Do I need a physical office in Oman for my business registration?
Yes, a registered office address is mandatory — this can be a virtual office, shared workspace, or physical premises, depending on your business type.
What types of businesses are best for investment-based residency?
Tourism, tech, healthcare, logistics, real estate development, and manufacturing are some of the most attractive sectors for foreign investors.
Is free zone investment also eligible for residency visas?
Yes, businesses established in Oman’s free zones like Duqm or Salalah can qualify, though some limitations apply based on visa type and activity scope.
Can I bring my family with me under an investor visa?
Yes, investor visa holders can sponsor family members including spouse and children, subject to documentation and proof of income.
What are the key documents required for an investor visa application?
Passport copies, security clearance, MOA, business license, capital deposit certificate, tenancy contract, and recent photographs are commonly required.
Do I need to hire local employees?
While not mandatory in all cases, certain sectors may require a minimum Omanization rate to qualify for full operational licensing and staff visa issuance.
What happens if I close my company after receiving the residency visa?
Your visa may be cancelled unless you transfer your sponsorship or obtain a different qualifying residency basis (e.g., real estate or employment).
How long is the investor visa valid?
Standard visas are issued for 2–5 years and renewable; Golden Visas are valid for 5 or 10 years, depending on the investment category.
Can I operate multiple businesses under one investor visa?
Yes, but you must ensure each entity is properly registered, and you hold a qualifying ownership percentage in each.
Are there any tax advantages for foreign investors?
Oman offers no personal income tax and competitive corporate tax rates (15%). Free zones also offer tax holidays for up to 10 years.
Can I change business activities after obtaining a visa?
Yes, but you must update your commercial registration and possibly re-obtain approvals or licenses depending on the new activity.
Is a local sponsor required for mainland businesses?
Not anymore in most sectors. Since the law change in 2020, most businesses can be 100% foreign-owned without requiring a local partner.
How do I maintain my visa status if I spend time abroad?
Investor visas typically allow you to spend time abroad, but extended absence (6+ months) may affect renewal or validity, unless explained.
Are digital or online businesses eligible?
Yes, tech and e-commerce businesses are highly encouraged and eligible for both investor and long-term residency options.
Do I need to show ongoing revenue to maintain the visa?
Not always, but inactivity or lack of compliance may risk rejection during renewal. Annual filings and proof of operation are recommended.
Can I apply for residency through an existing business I acquire?
Yes, provided you meet ownership thresholds and the business is compliant with all legal, tax, and licensing requirements.
What is the role of the Oman Investment Authority in this process?
OIA supports large-scale strategic investments, especially in sectors aligned with Vision 2040. Smaller businesses work mainly with MOCIIP and ROP.
Is the visa tied to one company or can I invest in multiple?
You can invest in multiple companies, but your primary residency visa will be tied to the company where you have majority stake or initial approval.
Do I need health insurance for the investor visa?
Yes, valid health insurance is a prerequisite during visa application and renewal processes.
How much capital is required for the Golden Visa through real estate?
You must invest at least OMR 250,000 in approved properties; for 10-year visas, the amount increases to OMR 500,000 or more.
What is the role of the Royal Oman Police (ROP) in this process?
ROP handles visa issuance, background verification, residency cards, and security clearances.
Can I get citizenship through business investment in Oman?
Currently, Oman does not offer direct citizenship-by-investment programs. However, long-term visa holders may be eligible for permanent residency or naturalization under exceptional circumstances.
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Al-Khuwair, Muscat, Sultanate of Oman