Foreign Ownership of Companies in Oman: Is 100% Ownership Possible?

Can a foreign investor establish a company in Oman and own it entirely, without an Omani partner? Today the answer is yes for most activities. The Foreign Capital Investment Law issued by Royal Decree 50/2019 opened the door to full foreign ownership, while keeping a list of prohibited activities and licensing controls. Said Ibrahim Ambusaidi Advocates (SIA), a law firm in Muscat, explains the framework and its conditions.

What is the legal framework for foreign investment?

Article 6 of the Foreign Capital Investment Law requires foreign investment to be conducted through a licensed establishment or company, by owning its capital in full or by participating in it. The text expressly permits full ownership; the Omani-partner requirement is no longer the general rule it was under the previous law. The investor is bound by the timetable submitted for implementing the project in line with its feasibility study, and may not make material changes to the project without the competent authority’s approval, under Article 7.

In matters without a special provision, the investment project is subject to all laws in force in the Sultanate, taking into account the international investment and double-taxation treaties in force, under Article 9. The investment privilege is no exemption from the companies, labour and tax laws and the rest of the legislation.

Which activities are closed to foreign investment?

The law did not open everything. Article 14 provides that a ministerial decision shall issue a list of activities in which foreign investment is prohibited. That list has indeed been issued and is updated from time to time, reserving certain activities to Omanis. The first practical step for any investor is to check the targeted activity against the list in force at the time of application, then satisfy the licensing requirements set by the executive regulations and the competent authorities under Article 15.

Article 11 further prohibits the investment project from pursuing political or religious purposes or anything prejudicing public order — general limits that apply to all.

How does licensing work in practice?

Licence applications and approvals run through the systems of the Ministry of Commerce, Industry and Investment Promotion, and the executive regulations set the conditions, procedures and timelines for approvals, permits and licences, under Article 15. Strategic projects have a faster lane: Article 10 allows the Council of Ministers, on the Minister’s recommendation, to grant projects contributing to development, infrastructure, new or alternative energy or public utilities a comprehensive “single approval” for their establishment and operation. A foreign investor may also transfer ownership of the project, wholly or partly, to another foreign or Omani investor, under Article 27.

Key facts

• A foreign investor may own an Omani project’s capital in full, under Article 6 of Foreign Capital Investment Law RD 50/2019.
• Activities closed to foreign investment are fixed by a ministerial list under Article 14, updated periodically.
• The project is bound by its timetable and feasibility study, and material changes need approval, under Article 7.
• Strategic projects can obtain a comprehensive “single approval” by Council of Ministers decision, under Article 10.
• The project remains subject to all other Omani laws where no special provision applies, under Article 9.
• Transferring project ownership, wholly or partly, is permitted under Article 27.

When to involve a lawyer

Involve a lawyer before choosing the investment structure: to verify your activity against the prohibited list, select the most suitable legal form, draft partner agreements where a local partner exists, secure the sectoral licences, and structure any later ownership transfer without disturbing the licences’ continuity.

At Said Ibrahim Ambusaidi Advocates we accompany foreign investors from structuring to licensing and operation and represent them in their disputes before the authorities and courts across Oman. The first consultation is free by phone or WhatsApp on +968 9706 3030. We are based in Al Khoudh, Seeb, Muscat, and work Sunday to Thursday, 9:00 to 13:00 and 14:00 to 17:00, in Arabic and English.

This article is general legal information, not legal advice.