Before committing capital to any country, a foreign investor asks two questions: what protects my investment, and what advantages will I receive? In Oman both are answered by the Foreign Capital Investment Law issued by Royal Decree 50/2019, in force since 1 January 2020, and its executive regulations issued by Ministerial Decision 72/2020. This article sets out the main guarantees the law gives foreign investors, the incentives available, and the obligations to watch so that you do not lose these benefits.
Who does the law cover?
The law applies to any non-Omani individual or legal entity that establishes an investment project in Oman. It removed the former minimum capital requirement and allows foreign investors to own 100% of their project in most activities, while a list of activities remains reserved for Omanis or subject to special approval.
Guarantees for foreign investors
1. Equal treatment with national projects
A foreign investment project enjoys all the advantages, incentives and guarantees available to national projects under the laws in force.
2. Protection from expropriation without compensation
An investment project may be expropriated only for public benefit and against fair compensation, assessed at the time of expropriation and paid without delay, taking account of the nature, use and location of the property.
3. No seizure or freezing without a court judgment
An investment project may not be seized, nor its funds frozen or placed under receivership, except by a court judgment. Any such step therefore goes through the courts, usually the Court of Investment and Commerce.
4. Safeguards before a licence is cancelled
A licence is not cancelled outright: the investor must be notified of the alleged breach and given time to respond or remedy it before a decision is taken.
5. Free transfer of funds
The investor may make all transfers relating to the project into and out of Oman at any time, including profits, capital and liquidation proceeds.
6. Freedom to transfer the project
The investor may transfer ownership of the project in whole or in part to another foreign investor or to an Omani, or assign it to a partner, under the prescribed procedures.
Investment incentives
- Allocation of land and real estate for the project by long-term lease or by granting a usufruct right, explained in our article on investment and usufruct contracts.
- Tax and customs exemptions for certain projects as set by the executive regulations, running from the project start date.
- Additional benefits for projects in less developed regions of Oman.
- The Investment Services Centre to simplify procedures, alongside online company formation through the Oman Business Platform.
Investor obligations that can cost you these benefits
- Keeping to the implementation timetable submitted with the approved feasibility study.
- Not making substantial changes to the project without Ministry approval.
- Complying with licences and approved activities, Omanisation requirements and tax obligations.
Breaching these obligations can put the licence or incentives under review, which is why investors need ongoing legal follow-up that does not stop at incorporation.
What if your investment is affected by an adverse measure?
If a licence is cancelled, a measure affects the project's funds, or a dispute arises with a partner or contracting authority, first document the decision and its deadlines, then review the available grievance and challenge routes. We explain how such disputes are resolved in investment contract disputes before the Court of Investment and Commerce.
Frequently asked questions
Can a foreigner own 100% of a company in Oman?
Yes, in most activities under the Foreign Capital Investment Law 50/2019, except activities reserved for Omanis or requiring special approval.
Can my investment be confiscated or frozen?
The project cannot be seized, nor its funds frozen or placed under receivership, except by a court judgment, and it can be expropriated only for public benefit against fair compensation paid without delay.
Can I transfer my profits abroad?
Yes. The law guarantees freedom of transfers relating to the investment project into and out of Oman at any time.
Is there a minimum capital requirement?
The former minimum capital requirement was abolished, although some regulated activities may require specific capital under their own legislation.
Sources: the Foreign Capital Investment Law issued by Royal Decree 50/2019 and its executive regulations issued by Ministerial Decision 72/2020. This is general information as at the date of publication; applying it to a specific project requires review.
If you are planning to enter the Omani market or need to protect an existing investment, see our foreign investor and corporate services or contact Dr. Abdullah Al Rashdi Office on WhatsApp or +968 92000841.