Incentives to Invest in Oman

Oman presents a multitude of compelling incentives designed to foster investment in the country:

• Competitive Rental Rates: Cost-effective land rental rates in select locations facilitate business setup.
• No Individual Income Tax: The absence of personal income tax enhances the financial appeal of living and working in Oman.
• Tax Exemption: Several sectors, including manufacturing, mining, agriculture, fishing, aquaculture, animal husbandry, tourism, export of manufactured products, and public utilities, benefit from tax exemption for up to five years from product or service provision, with potential extensions under specific conditions.
• Customs Duties Exemption: Companies in designated industries enjoy customs duties exemptions. Additionally, goods of Gulf origin (GCC) and Arab origin are customs duty exempt under trade agreements.
• Income Tax Exemption in Free Zones: Businesses in free zones enjoy a 30-year income tax exemption, providing a significant advantage for long-term investment.
• Omanization Rate Flexibility: In free zones, the Omanization rate is set at less than 20%, allowing a more flexible approach to hiring foreign workers.
• Foreign Ownership: Outside free zones, foreign ownership percentages range from 70% to 100% post-approval by the Council of Ministers, promoting foreign investment.
• Foreign Capital Investment: The Foreign Capital Investment Law enables the Ministry of Commerce and Industry and Investment Promotion to grant licenses with no minimum capital requirement, facilitating investment across various scales.
• Capital Freedom: Oman allows unrestricted entry and exit of capital from the Sultanate, with no profit transfer restrictions, streamlining business operations.
• Competitive Utility Prices: Oman offers competitive prices for electricity and water services compared to neighboring countries, reducing operational costs for businesses.

These incentives collectively cultivate a favorable investment climate, positioning Oman as an attractive destination for businesses and investors seeking growth and expansion opportunities.