Oman’s Ministry of Commerce and Industry is all set to implement the Foreign Capital Investment Law from January next year. This new law, which was issued under Royal Decree No. 50/2019, will ensure an influx of foreign capital into the Sultanate by enhancing the country’s image as an attractive and stable investment destination.
Speaking on the implementation, Mohammed bin Rashid Al Badi, Acting Director of the Legal Department at the Ministry of Commerce and Industry, said that the law is expected to come into force six months after its publication in the official gazette. “Until the implementation of the new Foreign Capital Investment Law, the law which is already in force will continue to regulate foreign capital investment. The new Foreign Capital Investment Law will apply to all non-Omanis who want to establish a project that is economically feasible for the Sultanate, for which they would use their own capital and assets.”
According to Al Badi, the new law comes with a lot of incentives for foreign investments which will ensure a steady flow of capital and economic stability in the Sultanate. “It allows the investor to establish a company in one of the permitted activities, enabling them to own all of the capital. The law does not stipulate a minimum for foreign capital investment in a project, provided that it abides by the proposed time frame for its implementation in accordance with the economic feasibility study.”
Al Badi said that the Article 18 of new law grants an investment project the right to all advantages, incentives, and guarantees that are accorded to a national project, under the legal framework already established for the purpose in the country. He added that foreign investment projects that are instituted in the less developed regions of Oman may receive additional benefits.