Overview
The regulatory environment governing Oman’s real estate sector has undergone significant reform under Vision 2040. Key legislative changes include the Foreign Capital Investment Law (2019), updated Commercial Companies Law, and sector-specific regulations aimed at improving ease of doing business. Oman’s ranking in the World Bank Doing Business index improved notably, though further regulatory modernisation is needed.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Primary Regulator | Sector ministry | Enhanced governance |
| FDI Framework | Open with conditions | Fully liberalised |
| Licensing Complexity | Moderate | Streamlined |
Analysis
Regulatory reform in the real estate sector balances investor attraction with national interest protection. The sector’s regulatory framework is administered by relevant ministries with oversight from the Supreme Council for Planning. Omran Group, Al Mouj, Eagle Hills, Dar Al Arkan, Majid Al Futtaim operate within a licensing regime that has been progressively simplified. The introduction of the Invest Easy portal has reduced business setup time from weeks to days. However, inter-agency coordination remains a bottleneck, with overlapping mandates between sector regulators and cross-cutting bodies like the Environmental Authority and Labour Ministry.
Challenges
Regulatory complexity and enforcement inconsistency remain key concerns. Oversupply in luxury segments, limited affordable housing stock, slow mortgage market development, low Omanisation in construction trades, and regulatory complexity in land use planning. Additionally, the pace of regulation often lags behind technological and market developments, creating uncertainty for first movers.
Opportunities
Regulatory sandboxes, digital permitting platforms, and outcome-based regulation can unlock growth. Affordable housing PPPs, smart city development (Madinat Al Irfan, Sultan Haitham City), ITC expansion attracting foreign buyers, REIT legislation enabling institutional investment, and sustainable building standards driving green construction.
Vision 2040 Targets
Increase GDP share to 12 percent; deliver 300,000 affordable housing units; achieve 40 percent Omanisation in construction; launch a REIT framework; develop three smart cities.