Oman has announced major changes to foreign investment rules, barring foreigners from 28 additional categories.
The Ministry of Commerce, Industry and Investment Promotion issued a ministerial decision amending some provisions of the Ministerial Decision No. (209/2020) by updating the list of activities in which foreign investment is prohibited.
The specified business activities in the decision have become exclusive to Omani investors only.
Oman investment laws
The decision is consistent with Article 14 of the Foreign Capital Investment Law issued under Royal Decree No. (50/2019), which stipulates that “a list of activities in which foreign investment is prohibited shall be compiled through a decision to be issued by the Minister.”
The decision seeks to strike a balance between measures to attract quality investments and encourage Omani entrepreneurial projects.
The government’s support to small and medium enterprises (SMEs) serves as an incentive for Omanis to establish their own projects and generate new job opportunities for citizens.
Any Omani investor can invest in all activities in which foreign investment is prohibited.
The move offers opportunities for SMEs owned by Omanis to contest most business sectors, the decision lays emphasis on ensuring that the projects and activities related to the national identity and Omani heritage shall not be compromised.
The abovementioned list will be updated according to the circumstances of each stage, to help keep pace with economic developments.
Banned foreign investments in Oman
- Making handicraft products by distilling flowers and herbs
- Making handicraft products to produce frankincense water and oil
- Making handicraft products from leather
- Making handicraft products from palm leaves
- Making handicraft products from wood
- Making and preparing incense
- Making handicraft products for cosmetics and perfumes
- Making handicraft products from pottery and porcelain
- Making handicraft products from stone and gypsum
- Making handicraft products from silver
- Making handicraft products from copper and metals
- Making handicraft products from aluminum
- Making handicraft products for traditional fishing tools
- Making handicraft products derived from bones
- Skin care services
- Renting of event supplies and furniture
- Retail sale in specialised stores of scrap building materials (including scrap iron trade)
- Retail sale in specialised stores of drinking water (excluding production and transportation)
- Cultivation of live plants
- Planting, ornamental and seedling purposes (nurseries)
- Sale of used vehicles
- Mobile café
- Freshwater fish farming
- Providing mailbox rental services
- Scribe services general
- Sand Service Centre
- Management and operation of LPG filling stations (cooking gas)
- Collection of batteries and used oils
- Grocery stores
