Foreign investment in the Sultanate of Oman

Foreign investment in the Sultanate of Oman

Foreign investment in the Sultanate of Oman

Foreign investment in the Sultanate of Oman
plays a vital role in driving economic growth and sustainable development.

Oman is one of the leading destinations for foreign investment in the Middle East, thanks to its stable investment environment and investor-friendly laws.
Oman offers numerous incentives to attract further foreign investment, such as allowing up to 100% foreign ownership of projects and waiving minimum invested-capital requirements. In addition, the land and property needed for an investment project are made available through long-term leases or usufruct rights.

Statistics show that foreign direct investment in Oman grew by 9.2% by the end of 2020, reaching OMR 15,761.9 million. These investments represent 70.9% of total foreign investment and 78.2% of GDP for 2020.

In the same vein, the Sultanate continues to improve its investment climate by offering a range of facilities and updating laws and legislation to encourage further foreign investment.

That said, sustained effort is still needed to achieve lasting success in attracting foreign investment.

In conclusion, foreign investment plays a decisive role in driving economic growth and development in the Sultanate of Oman. That said, further effort and improvement are still needed to reach the desired economic goals.

 

Real Estate Investment in the Sultanate of Oman: 

Real estate investment in Oman is an attractive option for investors, thanks to political and economic stability, advanced infrastructure, and supportive sector legislation.

Oman’s residential real estate market is estimated at USD 4.38 billion in 2024, and is projected to reach USD 6.80 billion by 2029, growing at a compound annual growth rate of 9.19% over the 2024-2029 forecast period.

Oman’s real estate sector faced challenges due to the COVID-19 pandemic, but it remains a promising sector, especially as the government focuses on economic diversification and strengthening the industry through transparent legislation and infrastructure investment.

Property Ownership in the Sultanate of Oman: 

The Sultanate of Oman has issued a set of decisions and laws regulating foreign ownership of property – residential, commercial, and administrative. Under these laws, foreigners are permitted to own property in Oman under a usufruct system for up to 99 years.

Conditions for foreign property ownership in the Sultanate of Oman include:

  • The foreign buyer must hold a valid residency ID for at least two years.
  • The buyer must be at least 23 years old.
  • The purchase must be for residential use only, either individually or with first-degree relatives.
  • Construction on the building must be complete according to the approved plans.
  • The building must not be more than 4 years old from the date the completion certificate was issued.
  • The building must be at least 4 storeys high, with units containing at least 2 rooms.
  • The minimum unit price is set at OMR 45,000 in Muscat and OMR 35,000 in the other governorates.
  • The seller must collect 8% of the unit’s value upfront, with the remainder payable in installments.
  • Sales to foreigners may not exceed 40% of the total units in a property, or 20% to a single nationality.

Best areas for real estate investment in the Sultanate of Oman:

  • Muscat: the capital is the most attractive area for real estate investment, particularly in districts such as The Wave, Muscat Hills, and Qurum Beach.
  • Sohar: an important industrial area with advanced infrastructure and a strategic location.
  • Duqm: the Duqm Special Economic Zone is a distinguished area with major promising investment opportunities.
  • Salalah: growing commercial activity makes Salalah an attractive area for real estate investment.
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