Investing in Oman FAQ
Can foreigners invest in Oman?
Yes, foreign investors are welcome in Oman. The Foreign Capital Investment Law allows foreign ownership across most sectors. In free zones, 100 percent foreign ownership is permitted. Outside free zones, regulations vary by sector, with many sectors now allowing majority or full foreign ownership.
What are the main investment incentives?
Key incentives include corporate tax holidays in free zones (up to 30 years), no personal income tax, customs duty exemptions on imports of machinery and raw materials, subsidised industrial land in Madayn estates, and full repatriation of profits and capital.
What is the corporate tax rate?
The standard corporate tax rate in Oman is 15 percent on taxable income exceeding OMR 30,000. Businesses operating in free zones benefit from tax exemptions for periods of 10 to 30 years depending on the zone and investment size.
Is there VAT in Oman?
Yes, Oman introduced a 5 percent value-added tax (VAT) in April 2021. Basic food items, healthcare, education, and financial services are zero-rated or exempt. Businesses with annual turnover exceeding OMR 38,500 must register for VAT.
How do I set up a company in Oman?
Company formation involves registering with the Ministry of Commerce, Industry, and Investment Promotion, obtaining a commercial registration certificate, registering with the tax authority, and securing any sector-specific licences. The process can be completed online through the Invest Easy portal.
What are the main free zones?
Oman’s main free zones are Sohar Freezone (heavy industry and logistics), Salalah Free Zone (trade and manufacturing), SEZAD at Duqm (multi-sector), and Al Mazunah Free Zone (border trade). Each zone offers distinct advantages depending on the investment type.
What labour regulations apply?
The Labour Law governs employment relationships including contracts, working hours, leave, and termination. Omanisation quotas require minimum percentages of Omani employees varying by sector. Employers contribute to social insurance for Omani employees.
Can foreigners own property?
Foreign nationals can own freehold property in designated Integrated Tourism Complexes. Outside these areas, usufruct rights of up to 99 years are available. Property ownership in an ITC grants eligibility for an Oman residence visa.
What dispute resolution mechanisms exist?
Commercial disputes can be resolved through the Omani court system, the Oman Commercial Arbitration Centre, or international arbitration. Oman is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
How does Oman protect intellectual property?
Oman is a member of WIPO and has enacted laws protecting patents, trademarks, copyrights, and industrial designs. The Intellectual Property Department at MOCIIP manages registration and enforcement. Oman’s WTO membership reinforces IP protection obligations.