Opening a coffee shop in Oman has become an attractive business opportunity, especially with the growth of café culture and new business setup reforms under Oman Vision 2040. The demand for coffee has expanded beyond Muscat into smaller cities, fueled by young professionals, expats, and a growing tourism industry.
In this guide, I will explain the steps, licenses, costs, and opportunities involved in starting a coffee shop in Oman in 2025.
Table of Contents
Why Start a Coffee Shop in Oman in 2025
Oman’s economy in 2025 is diversifying, and the food and beverage industry is thriving. Cafés are no longer just places for coffee—they are social hubs and business meeting spots. With increasing tourism, urban development, and a young population eager for lifestyle experiences, coffee shops are in high demand.
Government incentives, such as 100% foreign ownership in select activities, tax breaks in free zones, and even eligibility for the Golden Visa, make Oman one of the most promising Gulf countries for café entrepreneurs.
Choosing the Right Business Structure
When starting a coffee shop in Oman, selecting the right business structure is crucial. Entrepreneurs can choose between an LLC, free zone company, or 100% foreign-owned entity depending on investment goals, expansion plans, and compliance with MoCIIP regulations under Oman’s 2025 business setup reforms.
Limited Liability Company (LLC)
Most investors establish a coffee shop as an LLC, which allows foreign investors to operate legally while limiting liability to the company’s assets.
Free Zone Company
If you plan to open a coffee roasting facility or trade internationally, free zones like Duqm or Sohar may be attractive. These zones offer tax benefits, customs exemptions, and full profit repatriation.
100% Foreign Ownership in 2025
As of 2025, many retail and food services activities allow 100% foreign ownership. This means you can open a coffee shop without needing a local partner, depending on your activity classification under the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP).
Licensing Requirements for Coffee Shops in Oman
To open a café in Oman, several licenses and approvals are required.
Trade Name and Commercial Registration (CR)
Register a unique business name and obtain your Commercial Registration (CR) via the Invest Oman portal or InvestEasy system.
Municipality License
Each coffee shop must have approval from the Municipality, which inspects the premises, layout, and safety standards.
Food Handling License
The Food Handling License is mandatory for any business preparing or serving food and beverages. This ensures compliance with Oman’s food safety regulations.
Health & Safety Certificate
Your premises must meet hygiene standards, with inspections covering kitchen equipment, ventilation, and staff training.
Step-by-Step Process to Open a Coffee Shop in Oman (2025)
Opening a coffee shop in Oman involves several legal steps. Investors must register a trade name, obtain commercial registration, secure municipal approval, apply for food handling and health licenses, comply with Omanization rules, and undergo inspections. The 2025 Invest Oman portal streamlines these processes with faster digital approvals and transparency.
Step 1: Reserve a Trade Name
Submit your chosen café name through the Invest Oman portal. Ensure it aligns with Omani naming rules.
Step 2: Apply for Commercial Registration (CR)
Register the company with MoCIIP. Depending on ownership, you may choose LLC or 100% foreign-owned retail activity.
Step 3: Secure Municipality Approval
Get permits from the local municipality for location and layout. This step ensures your shop complies with urban planning rules.
Step 4: Obtain Food Handling and Health Licenses
Submit hygiene plans and staff medical clearances. Inspectors will visit before granting approval.
Step 5: Hire Staff and Meet Omanization Rules
In 2025, coffee shops must meet Omanization quotas, typically 20–25% Omani employees in retail food services.
Step 6: Final Inspection and Opening
After all approvals, the municipality grants your final license, and you can officially open your coffee shop.
Costs of Opening a Coffee Shop in Oman (2025)
Opening costs vary based on location, size, and concept. Typical ranges include:
- Trade Name Registration: OMR 10–20
- Commercial Registration (CR): OMR 100–300
- Municipality & Food Licenses: OMR 700–1,500
- Premises Fit-Out & Equipment: OMR 15,000–40,000 (depends on design, machinery, branding)
- Golden Visa (if applicable): Starting at OMR 250,000 investment for 5-year residency
Golden Visa Benefits for Coffee Shop Owners
Entrepreneurs who invest in Omani businesses, including cafés, may qualify for the Golden Visa launched in August 2025.
Benefits include:
- 5- or 10-year residency permits
- No requirement for a local sponsor
- Family sponsorship (spouse and children)
- Eligibility to own property in freehold zones
This makes Oman not only a profitable market but also a long-term home for entrepreneurs.
Taxes and Compliance in 2025
- Corporate Tax: 15% on taxable profits (small businesses may qualify for reduced rates).
- VAT: 5% VAT applies if your turnover exceeds OMR 38,500 annually.
- Personal Income Tax: Scheduled to be introduced in 2028 at around 5%, but not active yet in 2025.
Omanization and Staffing Rules
In line with Oman Vision 2040, all businesses must contribute to local employment. For coffee shops:
- 20–25% of employees must be Omani nationals.
- Failure to comply can result in penalties or non-renewal of your license.
Challenges of Opening a Coffee Shop in Oman
- High Competition: International and local brands dominate urban areas.
- Omanization Compliance: Finding trained local baristas may require extra investment in training.
- Location Costs: Prime retail areas in Muscat are expensive.
- Import Dependency: Coffee beans and equipment often need to be imported, adding to costs.
Opportunities in 2025
- Tourism Growth: With Oman positioning itself as a tourism hub, cafes near resorts and attractions thrive.
- Specialty Coffee Trend: Growing demand for organic, sustainable, and specialty brews.
- E-Commerce and Delivery: Partnering with food delivery apps increases reach.
- Franchise Potential: Investors can explore local or international coffee franchises for faster market entry.
Conclusion
Opening a coffee shop in Oman in 2025 is a promising venture for entrepreneurs who understand the licensing process, compliance requirements, and market trends. With strong consumer demand, government support, and even opportunities to qualify for the Golden Visa, Oman is positioning itself as a thriving café market in the Gulf.
While challenges like Omanization quotas, costs, and competition exist, a well-planned business can succeed in this growing sector.
Frequently Asked Questions (FAQs)
Can foreigners own a coffee shop in Oman?
Yes. As of 2025, many activities including coffee shops allow 100% foreign ownership without a local partner.
Do I need a Golden Visa to open a coffee shop?
No, but if your investment meets thresholds (OMR 250,000+), you may qualify for a 5- or 10-year Golden Visa.
How much does it cost to open a coffee shop in Oman?
Basic licensing may cost OMR 800–2,000, while total setup including fit-out and equipment can range from OMR 15,000–40,000.
What are the Omanization requirements for coffee shops?
You must employ 20–25% Omani nationals in your workforce, depending on business size and category.
Which city is best for a coffee shop in Oman?
Muscat offers the highest foot traffic, but Salalah, Sohar, and Duqm are growing markets with less competition.
