General Land Ownership Rules
Under Oman’s Land Law (Royal Decree 5/1980 and subsequent legislation), land ownership in Oman is generally restricted to Omani nationals and Omani-owned companies. This restriction applies to:
- Agricultural land
- Residential land (outside designated zones)
- Commercial and industrial land (outside designated zones)
Non-Omani GCC nationals may own residential property in certain areas under GCC reciprocity arrangements, though the practical scope is limited.
Leasehold for non-Omanis: While freehold ownership is restricted, long-term leasehold arrangements (typically 30-50 years, renewable) are available for non-Omanis in specific contexts — particularly industrial and commercial real estate.
ITC Framework for Foreign Ownership
The Integrated Tourism Complex (ITC) framework — established by Royal Decree 12/2006 and subsequent amendments — is the primary mechanism for non-Omani residential property ownership. ITCs are designated development zones where:
- Non-Omanis may purchase residential real estate freehold (apartments, villas)
- Owners and their families may obtain long-term residence visas linked to the property
- Commercial facilities within the ITC may be owned by non-Omanis in some cases
ITCs must be approved by the Ministry of Housing and Urban Planning and meet specific development standards. The developer typically holds the master title; individual buyers purchase unit titles registered in the Land Registry.
Major ITC Developments
The Wave, Muscat: Established ITC on the Muscat coastline — residential units, W Hotel, marina, and retail. Developed by Majid Al Futtaim and OMRAN. Prices have risen substantially as the development matured — now among Oman’s most sought-after addresses.
Muscat Bay: Waterfront development near Al Mouj, targeting luxury residential and hotel.
Jebel Sifah: Hillside marina community with residential, hotel, and golf facilities.
Salalah Beach: Tourism and residential development in Dhofar, targeting monsoon season and year-round markets.
Al Mouj Muscat (The Wave extension): Additional phases of waterfront development in the Muscat area.
Industrial Land in Free Zones
In OPAZ-regulated economic zones (Duqm SEZ, Salalah Free Zone, Sohar Free Zone), industrial and commercial land is available to foreign investors on long-term leasehold (typically 30-50 year leases, renewable):
- Duqm SEZ: Plot sizes from small commercial units to large industrial lots (100+ hectares)
- Salalah Free Zone: Industrial and logistics warehouses and plots
- Sohar Free Zone: Industrial plots integrated with the Sohar industrial cluster
Zone leasehold land comes with serviced infrastructure — roads, utilities, drainage, port connectivity. Lease rates vary by zone and plot type.
Commercial Real Estate
For commercial real estate (offices, retail, warehouses) outside ITCs and free zones:
- Leasing: Non-Omanis can lease commercial space without restriction
- Ownership: Generally restricted to Omani nationals/entities for direct freehold
- Joint venture: A non-Omani investor partnering with an Omani entity may access commercial property ownership through the Omani partner
Commercial leases in Oman are typically annual, with longer-term leases (3-10 years) available by negotiation. The commercial real estate market in Muscat has evolved significantly — Grade A office space is available in Al Khuwair, Al Mouj, and Qurum business districts.
Usufruct Rights
Usufruct (right of use) provides non-owners with the legal right to use and benefit from property for a defined period — typically up to 50 years for non-Omanis, renewable. Usufruct is registered in the Land Registry and provides a legally secure basis for long-term occupation and investment in property without full freehold ownership.
Usufruct arrangements are used for:
- Large-scale tourism development on government-owned land (OMRAN’s PPP model)
- Commercial real estate for non-Omani investors
- Industrial facility development in areas outside free zones
Residency through Property Purchase
Non-Omani ITC property owners and their immediate family members qualify for long-term residence visas (typically 10-year renewable visas). This benefit is significant for:
- GCC and international high-net-worth individuals seeking a second home
- Retirees seeking Gulf lifestyle with long-term residency security
- Expatriate workers in Oman who wish to own rather than rent
The residency benefit has been a meaningful marketing tool for ITC developers — though the scale of foreign residential property investment remains modest relative to UAE’s much larger foreign buyer market.