Saturday 12 / July / 2025
Oman actively encourages foreign investment under its Foreign Capital Investment Law, offering significant incentives such as national treatment, potential tax breaks, land access options, and strong guarantees against unfair expropriation. Foreign investors can establish projects across most sectors through the streamlined Investment Services Centre, benefiting from efficient approvals and freedom to transfer funds.
Speaking exclusively to the Times of Oman, a representative of Mohammed Ibrahim Law Firm, a leading law office in Oman, explained that specific economic activities are reserved solely for Omani nationals to protect local culture, preserve traditional crafts and livelihoods, and support small-to-medium enterprises. These prohibitions are clearly defined in recent Ministerial Decisions. Key sectors off-limits to foreign investment include the manufacture and retail of traditional Omani products like halwa, kummah, khanjars, abayas, incense, and frankincense items, as well as craft production using materials such as leather, fronds, wood, silver, copper, stone, or pottery. Retail of these traditional goods alongside items like honey, natural/herbal products, souvenirs, and traditional weapons is also restricted.
Numerous local service sectors are protected, including tailoring Arabian clothing, specific vehicle repairs and washes, driving instruction, laundry, hairdressing/barbering (outside tourist establishments), document photocopying, and building cleaning, said Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm.
Another spokesperson from the firm stated that basic retail including grocery shops, specialized sales of fresh produce, meat, fish, poultry, animal feed, cooking gas, scrap building materials including scrap iron, used vehicles, and telecommunication cards are generally reserved.
Sensitive areas like labour recruitment, real estate brokerage/management, customs clearance, Hajj/Umrah transport, water transport/sale, certain fuel station operations, beekeeping, small-scale poultry operations, and marine fishing are also prohibited. Recent amendments added further restrictions, including mobile coffee shops, commercial PO box services, skin care services, plant nurseries, freshwater aquaculture, and event supply rentals.
Existing foreign investments in prohibited activities at the time the relevant decisions took effect are generally allowed to continue but cannot be transferred to new foreign owners without specific ministerial approval. This framework effectively balances Oman’s openness to international capital with the protection of vital national economic and cultural interests, the expert said.
(Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established 18 years ago and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).
(Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established 18 years ago and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).
