100% Ownership for Foreign Investors in Oman
Oman, under the new Foreign Capital Investment Law which has come into effect in the early of January 2020, allows foreign investors to open businesses in full ownership and does not stipulate the Share Capital requirement.
The Ministry of Commerce and Industry enforcement of the new Foreign Capital Investment Law, promulgated by the Royal Decree No. 50/2019, pledges a handful of incentives and benefits to foreign investors including the removal of the previous mandatory appointment of Local Omani for business registrations in Oman. A huge leap taken by the Government with the clear vision that it will fortify the country’s economic development by attracting more foreign investors that will then lead to further investment opportunities in the future.
Dr. Youssef bin Hamad Al Baloushi, Chief Executive Officer of the Smart Portal of Investment, said: “There is no doubt that investment in general and foreign investment in particular is very importance for any development process. There are countries which compete to attract such investments as it has lots of advantages and solutions.”
Dr. Youssef bin Hamad Al Baloushi added: “In regards with the Sultanate, there is an urgent need to accelerate the pace of attracting and encouraging domestic and foreign investment. This is required due to the current growth stage. The infrastructure for it is also in high level of readiness. There is now also a legislation at hand which will help the transition to a new model capable of reaping the fruits of huge investments. It will also maximize the benefits. The Sultanate is among the nations which have lots of natural resources. The needs and priorities of development have changed radically from the beginning of the Renaissance until now. The Sultanate is ready to adapt to the changes within a short period. It has all the ingredients, resources, and readiness to change and move to a sustainable stage in which all will work, produce and get all sorts of benefits.”
Though translation services, rehabilitation centre, manpower offices, tailoring of garments, car cleaning services, and other 32 business activities remain under the Negative list that will require the involvement of a Local Omani, Investors will still have an array of business activities eligible for 100% ownership to choose from.
Further clarity with regard to the specific provisions of the new Foreign Capital Investment Law will be realized in the coming months once the Executive Regulations is finalized and made public.