Laws And Regulations
The State had realized the necessity of radical and effective legislative reforms to attract both local and foreign investments. New trade and investment laws like the Royal Decree 102/94 promulgating the Foreign Capital Investment Law, Royal Decree 1/79 promulgating the Law for the Organization and Encouragement of Industry, Royal Decree 77/2004 promulgating the Privatization Law are only few instances of legislation supporting the free and liberalized economic policies of the State.
Under the Oman law, non- Omanis, whether natural or juristic persons and subject to the exemptions granted to G.C.C nationals, shall conduct any type of commercial, industrial, tourism business or otherwise participate only with a license from the Ministry of Commerce & Industry.
An investor, whether natural or juristic can engage in a commercial activity in the Sultanate only through establishing/registering a Company at the Ministry of Commerce and Industry. The license requirements for registering a Company with foreign equity participation include minimum capital requirements, Omani participation in the shareholding etc. 100% foreign ownership are also allowed in restricted areas like projects which are considered as necessary and contributing to the national economy, companies which conduct business by virtue of special contracts or agreements with the government or companies which are established by virtue of a Royal Decree.
Licensing will be granted to the projects subject to the Foreign Capital Investment Law without the need for obtaining prior approvals from any other Ministry other than the Ministry of Commerce & Industry. However, due regard will be given to the negative lists issued by any other Ministry before granting license to any Company.