Legislation 

Foreign Capital Investment 

Investors have the opportunity to secure full ownership of their investments.

Our company within the Ministry plays a pivotal role in enhancing the business landscape and streamlining the setup of diverse investment ventures. Its primary functions include the registration of foreign investors and the simplification of processes for international investors to acquire licenses, approvals, and permits, ensuring a smoother and more efficient investment experience.

The foreign investment framework includes several essential guarantees:

• Revocation Restrictions: Competent authorities are prohibited from revoking approvals, licenses, or permits for an investment project without a valid reason. This can only occur after issuing a written warning to the foreign investor, considering their response, and providing a maximum period of 30 days from the date of the warning to rectify the issues. The opinion of the Ministry of Commerce, Industry & Investment Promotion must be sought before any revocation.
• Judicial Process: Confiscation of an investment project, seizure of its assets, freezing, or placing it under custody or guardianship can only happen through a judicial decision.
• Expropriation Rules: Expropriation of an investment project is permissible only for public benefit reasons, as outlined in the Law on Expropriation for Public Interest. In such cases, fair compensation, determined at the time of expropriation, must be provided to the foreign investor.
• Transfer Freedom: Foreign investors retain the freedom to execute all transfers related to the investment project to or from Oman at any time.
• Ownership Transfer: Investors have the option to transfer ownership of the investment project, either wholly or partially, to another investor.

These safeguards ensure a secure and predictable environment for foreign investors in Oman.

Public-Private Partnership Legislation

The Public Private Partnership (PPP) Law in Oman serves as a catalyst for private sector investment and initiatives, particularly in enhancing the landscape of public-private partnerships. These partnerships are prevalent in projects related to independent energy, water, and other areas, primarily independent energy endeavors.

Key aspects of the PPP Law include:

Ministry of Finance Oversight: The Ministry of Finance takes on the responsibility of preparing, assessing, negotiating, and tendering partnership projects involving both the public and private sectors. The relevant ministry retains full project management responsibility.

Dispute Resolution Mechanism: In cases of disputes, developers have the opportunity to appeal decisions related to the tendering process, project allocation, or project implementation. This mechanism enhances transparency in the PPP framework.

Investor Proposal Submission: The PPP Law permits investors to propose partnership project ideas to relevant authorities through initial feasibility studies aligned with the Sultanate’s strategic and development plans, ensuring economic or social benefits. The respective authority may accept or reject the proposal, but any rejection must be justified.

Regulatory Framework: Specific details for submitting applications and other procedures are outlined in existing laws and regulations.

Commercial Partnership Legislation

The Commercial Partnership Law in Oman is designed to streamline processes and promote both local and foreign investments. This law applies to commercial companies headquartered in Oman or those primarily conducting their operations within the Sultanate.

Key features of the Commercial Partnership Law include:

Adaptability to Economic Conditions: The law incorporates provisions that align with the current economic landscape, regulating the formation and operations of various types of companies. It achieves this by simplifying procedures for investors and creating a conducive environment.

Investor Protection: The law places a strong emphasis on safeguarding the interests of investors and commercial entities by adhering to relevant standards and procedures.

 One-Person Company: As a notable innovation, the law introduces the concept of a one-person company for the first time. This provision offers a more flexible framework for investment, enabling individuals to establish and manage their own commercial ventures.

The Commercial Partnership Law plays a pivotal role in fostering an investor-friendly environment, promoting economic growth, and enhancing the ease of doing business in Oman.