The Ministry of Commerce, Industry and Investment Promotion in Oman is actively collaborating with relevant entities to improve the investment environment in the country for foreign investors. The Ministry is working on overcoming challenges faced by foreign investors and providing incentives to encourage them to establish projects that contribute to the national economy. To enhance the investment environment, the Ministry has reduced commercial registration fees for foreign investors, treating them similarly to Omani investors. Foreign investors are required to employ at least one Omani employee while enjoying various incentives and facilitations to set up projects in Oman.
Oman’s investment sector has seen significant developments, including allowing foreign investors to own 100% of their investments in over 1700 commercial and industrial activities. The government has also streamlined procedures for investors by reducing and merging government services, exempting investors from minimum capital requirements, providing necessary lands and properties for investment projects, and offering tax exemptions for up to 30 years. The Investor Residency Program initiative was launched to attract top-tier foreign investments by providing residency for investors and their families interested in investing in Oman for periods ranging from 5 to 10 years, extendable based on certain conditions.
Foreign investors are now able to register various types of companies and engage in economic activities outlined in the Commercial Companies Law, except for those listed as prohibited for foreign investors. The Investment Services Center at the Ministry works to periodically review the list of prohibited activities for foreign investors. Additionally, the Ministry emphasizes the importance of foreign investors obtaining investment licensing to ensure the successful implementation of their projects. Investors are required to provide detailed information, project timelines, expected employee numbers, expertise, and feasibility studies, among other requirements.
The Ministry has been conducting evaluations of foreign investment companies across Oman to ensure compliance with the Foreign Capital Investment Law. Companies failing to appoint an Omani employee within one year of establishment face administrative consequences until the situation is rectified. The volume of Foreign Direct Investments in Oman surpassed RO 25 billion by the end of Q3 2023, marking a significant increase from the previous year. FDI in the manufacturing sector reached RO 1.4 billion, attracting 35 industrial projects with investments exceeding RO 800 million in various industrial activities within industrial and free zones.
Different forms of investments play a crucial role in expanding economic growth, targeting projects in diversification sectors, boosting GDP growth, generating job opportunities for Omanis, and facilitating the export of Omani products worldwide. The Ministry is dedicated to promoting a conducive investment environment for foreign investors and ensuring the successful implementation of their projects. The recent advancements in the investment sector in Oman reflect the government’s commitment to attracting high-quality foreign investments and contributing to the country’s economic growth and development.
