Oman is known for its stable economy and strategic location, offering a range of promising investment opportunities. While the oil and gas sector has long been the biggest sector of foreign investment, Oman is actively diversifying its economy under the Oman Vision 2040, which aims to reduce reliance on oil and encourage growth in non-oil sectors. These include manufacturing, real estate, transportation, electricity and water, and construction, creating new avenues for foreign investment.
Business Friendly Laws and Regulations
Laws and regulations have been introduced to encourage foreign investment in Oman. Key regulations include the Foreign Capital Investment Law (Royal Decree 50/2019), the Commercial Companies Law (Royal Decree 18/2019) and the Foreigners' Residence Law (Royal Decree 16/1995), which offer incentives for foreign investors. Additionally, the government has set up special economic zones, free zones and industrial estates with favorable regulations.
For real estate investors, the law permits non-Omani ownership in integrated tourism complexes, offering further opportunities in the property sector (Non-Omani Ownership of Real Estate in Integrated Tourism Complexes Law, Royal Decree 12/2006).
Starting a Business in Oman
Starting a business in Oman is done through the Oman Business Platform, a one-stop shop for investors. The process begins with selecting a legal structure (such as a limited liability or joint stock company) and preparing necessary documents, including the company's articles of association and project description. All foreign documents must be notarized and translated into Arabic.
Legal Protections for Investors
Oman provides a legal framework to protect foreign investments. The country has specialized commercial court system for swift resolution of disputes, as well as support for arbitration, both locally and internationally. Foreign arbitration awards are easily enforced under the New York Convention of 1958, offering a layer of security for international investors. Furthermore, Oman's judicial cooperation agreements with other countries facilitate the enforcement of foreign judgments, providing additional protection for investors.
His Majesty recently issued a Royal Decree to establish a specialized court dedicated to investment and commercial disputes. This court will specifically serve foreign investors, with the aim of ensuring expertise, efficiency, and timely resolution of claims. The law establishing this court will come into force on 1 October 2025.
Conclusion
With its forward thinking economic vision, investor friendly laws, and strong legal protections, Oman is positioning itself as an attractive destination for foreign investment. Whether in energy, real estate, or manufacturing, the country offers a lot of opportunities for investors looking to invest into the growing market. Bait Al Qanoon can assist you with your investment plans and provide advice and legal support about entering into the Omani market, whether it is assistance with company formation, mergers and acquisition, contract drafting, regulatory compliance or licensing requirements
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.
