Oman’s new Foreign Investment Law is expected to bring more investors to the Sultanate and make it more attractive for them to commit to projects in the country.
Investors, new Businessmen, megaproject holders are bound to abide by new Foreign Investment Law from Thursday, January 2 onwards.
The Foreign Investment Law will come into effect from that day, according to article 5 of Royal Decree number 50/2019, which states that the ruling will be implemented six months after being published in the official gazette.
The new Law aims at :
Creating an attractive investment environment for investors and creating conditions that would encourage more investors to come into Oman.
The law has been drafted keeping in mind the competition countries face to attract investors, and for this reason, investors who choose to dedicate resources to projects in Oman will receive attractive incentives, privileges and guarantees that are expected to stabilize foreign investments in the country.
The provisions of the new foreign capital investment law are applied on every non-Omani natural or legal person who sets up an investment project in the Sultanate, using his capital and assets for the project which is economically feasible for the country.
The Foreign Capital Investment Law allows the investor to establish a company in one of the permitted activities and own the entire capital of the company. There is no limit of the capital for the companies established under this law, provided the foreign investor adheres to the timetable submitted by him to implement his project and approved by the economic feasibility study.
It does not allow any fundamental changes in the investment project without the ministry’s approval.
The Omani economy aims to be founded on a strong base, which involves diversification built on knowledge and innovation. To do this, Oman is strengthening the forward and backward linkages between economic sectors to expand the production and export base, diversifying business partners, deepening investment in high value-added sectors, and enhancing the contribution of non-oil sectors to the gross domestic product. “Promoting sustained, inclusive and sustainable economic growth, full and productive employment. This has been reflected in several orientations and objectives in Oman Vision 2040. Oman is ranked today among high-level income countries and incarnates an inspiring model of focus on investment in human capital and infrastructure for the knowledge development needed to deliver socio-economic sustainability.”
Composed and Searched By: Sheher Bano