Oman Issues New Foreign Capital Investment Law

Oman has recently issued a new Foreign Capital Investment Law, which will aim to attract foreign investment by offering key incentives and expanding investment sectors to foreign investors. The new law is part of a string of recent reforms by the government that looks to create a more robust regulatory environment for investment and encourage the private sector to play a more important role in Oman's development and boost the economy. This article outlines some of the take-away points of the new Foreign Capital Investment law.

The new Foreign Capital Investment Law ("New FCIL") was published in the Official Gazette on 1 July 2019 (Sultani Decree No. 50/2019).

While we expect further clarity in the coming months, here are the key developments that have been confirmed for now :

The New FCIL will not come into force until 1 January 2020. The Minister of Commerce & Industry will issue executive regulations under the New FCIL and it is these regulations which are likely to include significant changes from the old FCIL. Reports in newspapers have referred to the minimum capital for companies with non-Omani owners being dispensed with or reduced and the introduction of sectors where no Omani ownership will be required - however we must wait and see what the executive regulations will include. They should be published by 30 July 2020. The Minister shall also issue a list of activities in which foreign investment is prohibited. The New FCIL shall not affect existing legislation concerning GCC investments, the Special Economic Zone at Duqm, the Public Establishment for Industrial Estates or free zones. The...