Introduction
Oman is a country located in a highly useful area geographically. It has ideal connections to Saudi Arabia and the UAE, which are two of the powerhouse nations in the region. As such, it is a highly attractive prospect to many foreigners and foreign entities. With a population of almost 5 million, around 50% are expatriates.
Being part of the GCC, there are specific regulations in place relating to setting up of businesses and the ownership rights of foreigners. Generally, an individual must have a local partner who will be a partner owning at least 35%.
However, some of the Middle Eastern nations such as the UAE, have begun to amend their regulations to make them more inviting and attractive to foreign investors. The amendment is not yet active though it may be soon.
Greater Freedom for Foreign Ownership
Currently, the process of finding a foreign partner to set up a business in Oman or indeed, any of the GCC nations, can be something of a challenge. It adds another aspect the business owner has to consider and may dissuade certain people from even trying to set up a company.
This matter is becoming more well-known, and in an attempt to deal with it and also to increase foreign investment and business, the change may soon be in place to increase the foreign ownership to 100%. There will undoubtedly still be restrictions in place to protect businesses, though the aim is to allow for overall greater freedom.
The change is still not confirmed, though it has experienced much discussion and consideration at the official level.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.