Overview
The Foreign Capital Investment Law established the legal framework governing foreign direct investment in Oman, defining the rights, obligations, and protections available to international investors. Successive amendments have progressively liberalised ownership limits, streamlined registration procedures, and expanded the sectors open to foreign participation. The law is a cornerstone of Oman’s strategy to attract international capital, technology, and expertise to accelerate economic diversification and create employment opportunities.
Key Points
The law allows one hundred percent foreign ownership in many sectors, a significant liberalisation from earlier restrictions that required Omani partners. Investment protection guarantees include fair and equitable treatment, protection against expropriation without compensation, and free repatriation of capital and profits. Dispute resolution provisions include access to international arbitration through ICSID and bilateral investment treaty frameworks. The One-Stop Shop for investor services consolidates licensing, registration, and approvals through a single point of contact.
Current Status
Foreign direct investment inflows have increased following recent liberalisation measures. International companies have established operations in manufacturing, logistics, tourism, and technology sectors. The Oman Investment Authority coordinates investment promotion and aftercare services for foreign investors. Special economic zones offer additional incentives including tax holidays, customs exemptions, and simplified labour regulations for qualifying projects.
Vision 2040 Context
Vision 2040 targets a substantial increase in foreign direct investment as a share of GDP. The Foreign Capital Investment Law is continuously updated to maintain competitiveness with regional peers and align with international best practices. By providing a transparent, predictable, and welcoming legal environment, Oman positions itself as the destination of choice for investors seeking opportunities in the Gulf and broader Middle East region.