Oman Foreign Capital Investment Law (Royal Decree 50/2019)

The Oman Foreign Capital Investment Law was issued by Royal Decree 50/2019 and regulates how non-Omani individuals and companies may invest and carry on business in Oman. It covers licensing through the Investment Services Centre, incentives, guarantees against confiscation and expropriation, transfer of funds, administrative sanctions and criminal penalties.

Note: this page is an English summary prepared by our office for guidance. It is not an official translation, and the binding text is the Arabic text of the law, which you can read in full on our Arabic page for this law.

Key facts

Issued by Royal Decree 50/2019 on 1 July 2019 (Official Gazette No. 1300 of 7 July 2019); in force six months after publication.
Repealed the previous law issued by Royal Decree 102/94; existing projects keep incentives already granted until their terms end (Articles 3 and 4 of the decree).
36 articles in five chapters.
Competent ministry: the Ministry of Commerce, Industry and Investment Promotion (named so under Royal Decree 97/2020, as noted on our page).

Structure of the law

Chapter One, definitions and general provisions: Articles 1 to 17.
Chapter Two, incentives: Articles 18 to 22.
Chapter Three, guarantees: Articles 23 to 27.
Chapter Four, administrative sanctions: Articles 28 to 31.
Chapter Five, penalties: Articles 32 to 36.

Main provisions

Scope and licensing

A foreigner may carry on investment activity in Oman only in accordance with this law (Article 3). The law does not affect the rules on GCC investment, the Duqm Special Economic Zone, industrial estates and free zones (Article 2).
Foreign investment must be made through an establishment or company in a permitted activity, either fully owned by the foreign investor or with a share in its capital, under a licence from the Centre (Article 6).
The Minister issues a list of activities in which foreign investment is prohibited (Article 14).
If no reply to an application is given within the periods set in the regulations, it is deemed accepted (Article 5).
Strategic projects in utilities, infrastructure, energy, roads, transport or ports may receive a single approval from the Council of Ministers (Article 10).

Investor obligations

The investor must follow the approved project timetable and may not make material changes without the Ministry's approval (Article 7). It may not engage in political or religious activities or discrimination (Article 11).

Incentives

A foreign project enjoys the same incentives as a national project, with possible reciprocal or regional extras (Article 18).
Land may be allocated by long lease or usufruct outside the usual land rules (Article 19).
The project may import what it needs without registering in the importers' register (Article 21). Tax exemptions follow the Income Tax Law (Article 22).

Guarantees

No confiscation, attachment, freezing or receivership except by court judgment, other than for tax debts owed to the State (Article 23).
Expropriation only for public benefit, with fair compensation paid without delay (Article 24).
A licence may be cancelled only by a reasoned decision after written warning, a hearing and up to 30 days to remedy the breach (Article 25).
Funds may be transferred freely into and out of Oman (Article 26), and the project may be transferred to another investor (Article 27).

Disputes and grievances

Omani courts hear disputes between the project and third parties, and these cases are treated as urgent; disputes may also be settled by arbitration (Article 17). Grievances against official decisions go to a committee within 60 days, and its decision may be challenged in court (Articles 30 and 31).

Penalties

Administrative sanctions after a 30-day notice to remedy: loss of incentives, suspension for up to six months, or final cancellation for repeated breaches (Articles 28 and 29).
A foreigner investing in breach of the law, and any Omani who takes part with him: a fine of OMR 20,000 to OMR 150,000 (Article 33).
Obstructing inspectors: OMR 1,000 to OMR 5,000 (Article 34).
Disclosing confidential project information: imprisonment of six months to three years and/or a fine of OMR 5,000 to OMR 50,000 (Article 35).
Other offences may be settled with the Minister before judgment (Article 36).

Related guides and services

Frequently asked questions

Can a foreign investor own 100% of a company in Oman?

Article 6 allows foreign investment through a company in a permitted activity with full or partial foreign ownership, under a licence from the Investment Services Centre. Activities on the Minister's prohibited list are excluded (Article 14).

Can profits be sent abroad?

Yes. Subject to the laws in force, investment returns, sale or liquidation proceeds and other listed amounts may be transferred freely at any time (Article 26).

What is the penalty for investing in breach of the law?

A fine of OMR 20,000 to OMR 150,000, which also applies to an Omani partner who takes part in the breach (Article 33).

This summary is general information and not legal advice. For advice on how the law applies to your situation, contact Dr. Abdullah Al Rashdi Office, Advocates and Legal Consultants, on WhatsApp or call +968 92000841.