How to Do Business in Oman?
Short Answer
Doing business in Oman requires understanding the legal framework for company formation, cultural norms around relationship-building, sector-specific regulations including Omanisation requirements, and the practical steps for registration and licensing through the Ministry of Commerce, Industry and Investment Promotion.
Detailed Answer
The first step for foreign businesses is to determine the appropriate legal structure. Options include establishing a limited liability company, registering a branch of a foreign company, or operating through a special economic zone entity. Since the 2019 Foreign Capital Investment Law, full foreign ownership is permitted in most sectors.
Company registration is handled through the Invest Easy portal, an online platform operated by the Ministry of Commerce. The process involves selecting a trade name, defining business activities, drafting articles of association, depositing minimum share capital, and obtaining the commercial registration certificate. Additional sector-specific licences may be required from relevant ministries.
Cultural awareness is essential for business success in Oman. Relationships and personal trust are foundational to commercial dealings. Initial meetings often focus on building rapport rather than negotiating terms. Business cards should be exchanged with the right hand, and meetings frequently begin with coffee and dates as a gesture of hospitality.
Arabic is the official language of business and government, though English is widely used in commercial settings. Legal documents and government correspondence are typically in Arabic. Engaging a local legal advisor is strongly recommended to navigate regulatory requirements and ensure compliance with labour laws, tax obligations, and Omanisation quotas.