The Foreign Capital Investment Law issued by Royal Decree 50/2019 does more than open the Omani market to investors: it devotes an entire chapter to incentives — land by long lease or usufruct, tax and customs exemptions within controls, equality with national projects, and a “single approval” lane for strategic projects. Said Ibrahim Ambusaidi Advocates (SIA), a law firm in Muscat, maps these incentives and how to reach them.

How is the foreign project treated compared with the national one?

Article 18 of the Law provides that the investment project enjoys all the advantages and incentives prescribed for national projects under the laws in force: the baseline is equality, not discrimination against foreign capital. The same article goes further, allowing the Council of Ministers to grant preferential treatment to defined groups of investments in pursuit of development goals, provided the treatment applies equally within each group.

How does the project obtain land?

Article 19 permits the allocation of the land and real estate needed for the investment project by long-term lease or by granting usufruct rights, without being bound by the Royal Decree regulating the use of state land and the land laws, in accordance with rules set by the competent authorities. This is a practically significant exception that gives the project a stable real estate footing even where land ownership is not available to it. Article 21 also allows the project to import, itself or through others, the production inputs, machinery, equipment, spare parts and transport suited to its activity without needing entry in the importers register.

What tax and customs exemptions are available?

Without prejudice to the GCC Unified Customs Law, the executive regulations define the projects that may be exempted from taxes and from customs and non-customs duties, and the durations of those exemptions, under Article 20 of the Law; exemption from income tax follows the Income Tax Law, under Article 22. Exemption is neither automatic nor comprehensive: it depends on the project’s type, location and sector, so the project’s tax feasibility should be built on the provisions in force at licensing, not on impressions.

These incentives interlock with the advantages of the special and free zones and industrial cities, which operate under their own legislation and may suit your project better depending on its activity and markets.

What is the “single approval” lane for strategic projects?

Article 10 of the Law allows the Council of Ministers, on the Minister’s recommendation, to grant an investment project established to implement strategic ventures contributing to development, infrastructure, new or alternative energy or public utilities a “single approval” covering its establishment and operation — collapsing the chain of scattered consents into one comprehensive decision. Where a project’s scale and nature qualify, this lane is worth building into the structure from the outset.

Key facts

A foreign investment project enjoys all the advantages and incentives of national projects, under Article 18 of Foreign Capital Investment Law RD 50/2019.
Land may be allocated to the project by long lease or usufruct outside the constraints of the land laws, under Article 19.
Tax and customs exemptions are defined by the executive regulations with controls and durations, under Articles 20 and 22.
The project may import its requirements without entry in the importers register, under Article 21.
Strategic projects can receive a comprehensive “single approval” for establishment and operation, under Article 10.
Preferential treatment for defined investment groups is possible by Council of Ministers decision, under Article 18.

When to involve a lawyer

Involve a lawyer when structuring your project to capture the incentives and weighing the mainland against the special zones, when drafting the usufruct and long-lease contracts and their revocation terms, when applying through the single approval lane, and when a dispute arises with an authority over a promised exemption or a withdrawn incentive.

At Said Ibrahim Ambusaidi Advocates we design the optimal legal structure for your project, handle allocation, exemption and approval files, and defend your acquired rights 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.

Investment Incentives in Oman: Land, Exemptions and the Single Approval