By Shuja Ahmad
Oman’s precious metals sector operates under strict regulatory oversight, combining anti-money laundering requirements, customs regulations, and specialized licensing frameworks. Foreign investors entering the gold and bullion trading market face compliance obligations enforced by Ministry of Commerce, Industry and Investment Promotion (MOCIIP), Royal Oman Police (ROP), and Financial Intelligence Unit (FIU) under the Central Bank of Oman. This guide addresses the regulatory reality of precious metals trading license Oman requirements, capital expectations, and operational compliance, critical elements often missing from generalized business setup advice.
The sector’s regulatory intensity stems from international AML standards and Oman’s commitment to FATF (Financial Action Task Force) compliance. Whether you’re establishing a bullion trading operation, jewelry wholesale business, or precious metals refining facility, understanding the legal framework prevents costly delays and licensing rejections.
Table of Contents
What Is the Gold and Precious Metals Trading Industry in Oman?
The precious metals industry in Oman encompasses wholesale bullion trading, retail jewellery sales, refining operations, and commodity distribution across gold, silver, platinum, and palladium. Unlike general trading activities, this sector operates under the Law on Combating Money Laundering and Terrorism Financing (Royal Decree 30/2016) and its subsequent amendments, which require enhanced due diligence for high-value transactions.
MOCIIP classifies precious metals trading under specific commercial activity codes requiring separate approvals beyond standard LLC registration. The regulatory distinction exists between:
- Investment-grade bullion trading (bars, coins meeting .995+ purity standards)
- Jewellery manufacturing and retail (ornamental items, cultural pieces)
- Industrial precious metals supply (platinum for catalytic converters, silver for electronics)
- Precious metals refining and assaying (requires additional environmental and safety permits)
Growing Demand in the Region
GCC markets maintain cultural and investment demand for physical gold, with Oman positioned as a re-export hub to African and Asian markets. Oman Customs data shows consistent import volumes averaging 15-20 metric tons per month during 2023-2024, primarily from the UAE, Switzerland, and India. Oman’s Duqm Special Economic Zone offers customs advantages for precious metals re-export businesses targeting African markets.
However, market entry requires understanding that this isn’t a lightly regulated retail sector. Central Bank of Oman circular BM 1170 establishes reporting thresholds for cash transactions exceeding OMR 10,000 in precious metals trades—a compliance trigger many new operators overlook.
Why Oman Is a Strategic Market for Gold Trading
Oman’s geographic position between Asian production centres and GCC consumption markets creates arbitrage opportunities, but the real advantage lies in regulatory clarity compared to neighbouring jurisdictions. The Foreign Capital Investment Law (Royal Decree 50/2019) permits 100% foreign ownership in precious metals trading without local sponsor requirements in most commercial zones.
Investor-Friendly Regulations
MOCIIP’s Invest Easy portal streamlines gold trading license requirements through digital submission, though the approval chain involves multiple authorities. Processing times average 18-25 working days once ROP security clearances are complete, which is longer than for standard commercial licenses due to enhanced vetting for precious metals handlers.
The regulatory framework provides stability: Oman hasn’t imposed sudden gold import restrictions or capital controls like some regional markets. Royal Decree 28/2021 reformed business licensing procedures, reducing bureaucratic steps but increasing compliance documentation requirements for YMYL (Your Money Your Life) sectors, including precious metals.
Legal Structure and Business Licenses You’ll Need
Capital requirements for gold trading in Oman vary by activity scope and municipality. While Oman eliminated mandatory minimum capital requirements for most sectors, Muscat and Salalah Municipalities retain internal requirements ranging from OMR 20,000 to 50,000 for precious metals showrooms, primarily as financial substance evidence rather than as deposited capital.
Gold Trading License in Oman
The precious metals trading license in Oman application requires navigating three distinct approval layers:
- MOCIIP Commercial RegistrationActivity code 4648-90 (Wholesale of precious metals)
- Activity code 4777-20 (Retail sale of jewellery in specialised stores)
- Trade name reservation confirming no trademark conflicts
- Proof of commercial premises (minimum 50 sqm for retail, 30 sqm for wholesale-only)
- ROP Security Clearance: Enhanced background checks on all shareholders and managers
- Declaration of ultimate beneficial ownership (UBO)
- Confirmation of no criminal history related to financial crimes
- Processing time: 10-15 working days after document submission
- Municipality Trading Permit, Civil Defence inspection for fire safety (mandatory for showrooms)
- Health and safety compliance (less stringent than food/medical, but still required)
- Signage approval and operating hours authorization
Setting up an Oman bullion trading company requires additional commodity exchange registration if you’re trading futures or derivatives, though most startups begin with physical metals trading under standard commercial licenses.
AML Registration Requirements
The Financial Intelligence Unit (FIU) under the Central Bank of Oman mandates separate registration for precious metals dealers under Ministerial Decision 3/2019. This creates compliance obligations distinct from your MOCIIP license:
- Appoint a designated AML Compliance Officer (can be the owner for small operations)
- Implement KYC procedures with government-issued ID verification
- Maintain transaction records for a minimum of 7 years
- File Suspicious Transaction Reports (STRs) within 2 working days of detection
- Submit monthly transaction summaries for deals exceeding OMR 5,000
Failure to register with FIU before commencing operations results in penalties of OMR 5,000-20,000 under Article 27 of the AML Law—a compliance gap that has caught several new entrants.
Step-by-Step Guide to Starting a Gold Trading Business in Oman
The licensing process follows a sequential approval chain where each step gates the next:
Step 1: Business Structure Selection Limited Liability Company (LLC) remains standard for foreign investors. Partnership structures exist, but complicate banking relationships. Single-person LLCs (Establishment) are permissible for Omani nationals only—foreign investors must have at least 2 shareholders or operate through free zone structures.
Step 2: Trade Name Reservation Submit 3 preferred names to MOCIIP via the Invest Easy portal. Avoid names containing “gold,” “precious metals,” or “bullion” without supporting documentation showing you’ll obtain the necessary licenses—MOCIIP rejects names that imply unauthorized activities.
Step 3: Commercial Registration Application. Prepare documentation:
- Memorandum of Association (Arabic original, notarized)
- Shareholders’ passports and residence permits
- Proof of commercial address (tenancy contract minimum 1-year term)
- Board resolution appointing authorized signatories
- Bank reference letters showing financial capacity
Step 4: ROP Security Approvals. This non-negotiable step for precious metals handling involves:
- Fingerprinting all shareholders at ROP headquarters
- Police clearance certificates from home countries (translated to Arabic, Oman Embassy attested)
- Declaration of intended business activities and expected transaction volumes
- Statement of source of investment capital
Step 5: Premises Documentation: Lease commercial space meeting municipality standards:
- Ground floor or first floor for retail (required in Muscat for customer-facing operations)
- Safe deposit facilities meeting Civil Defense specifications for storing precious metals inventory
- Security systems with 24/7 monitoring (many insurance policies mandate this)
Step 6: Gold Trading License Application. Once ROP clearances arrive, submit to MOCIIP:
- Completed license application form
- Municipality no-objection certificate
- Civil Defense approval
- Proof of AML training for ownership and staff (several providers offer Ministry-recognised courses)
Step 7: VAT and Customs Registration Register with the Tax Authority for a VAT certificate and Oman Customs for importer/exporter codes. This enables:
- VAT exemption claims on investment gold (see tax section)
- Reduced customs processing times
- Access to Authorized Economic Operator (AEO) benefits if qualifying
Step 8: Banking and Initial Capital. Open a corporate account (minimum initial deposit of OMR 500 at most banks, though they’ll expect significantly higher balances for precious metals traders). Banks conduct enhanced due diligence:
- 6 months of personal bank statements
- Proof of a legitimate source of funds
- Business plan showing expected transaction volumes
- References from international banking relationships, if applicable
Most commercial banks require a minimum balance of OMR 10,000-25,000 for precious metals trading accounts due to transaction monitoring obligations.
Costs Involved in Setting Up a Gold Business
Oman gold import regulations and compliance requirements drive costs beyond standard business setup:
Licensing and Registration:
- Commercial registration: OMR 200-350 (depends on share capital declared)
- Gold trading license annual fee: OMR 300-600 (varies by municipality)
- ROP security clearances: OMR 150-200 per shareholder
- Municipality trading permit: OMR 100-250
- FIU AML registration: No direct fee, but requires compliance system implementation
Premises and Operations:
- Office/showroom rental: OMR 3,000-8,000 annually (Muscat CBD locations command a premium)
- Security systems installation: OMR 1,500-4,000 one-time
- Safe deposit boxes/vault: OMR 2,000-6,000 depending on capacity
- Civil Defense compliance (fire systems): OMR 800-1,500
Professional Services:
- Legal documentation and registration: OMR 800-1,500
- AML compliance system setup: OMR 1,000-2,500 (includes software if required)
- Accounting and tax registration: OMR 300-600
Insurance Requirements:
- Commercial general liability: OMR 500-1,200 annually
- Precious metals inventory insurance: 0.5-1.5% of average inventory value annually
- Employee fidelity bonds: OMR 300-800 per employee handling metals
Realistic First-Year Budget: OMR 15,000-30,000 depending on scale, location, and inventory levels.
Customs and Import Duties
Oman’s precious metals law establishes zero customs duty on gold bars and coins meeting investment-grade standards (.995+ purity), but applies a 5% duty on jewellery and semi-finished products. Oman Customs HS codes relevant to the sector:
- 7108.13: Gold bars/ingots (0% duty)
- 7113.11: Jewellery of silver (5% duty)
- 7113.19: Other jewellery of precious metals (5% duty)
Import documentation requirements:
- Certificate of origin from the exporting country
- Assay certificate showing purity/fineness
- Commercial invoice with HS code classification
- Import permit from MOCIIP (for first-time imports)
- AML declaration for shipments exceeding USD 50,000
Duqm Special Economic Zone offers duty-free import/re-export for registered entities, reducing costs for traders focusing on transit trade rather than domestic sales.
Tax and Compliance Requirements for Precious Metals Trading
Corporate Tax Structure
Oman applies 15% corporate income tax on net profits exceeding OMR 30,000 annually (first OMR 30,000 taxed at 3%). However, the Tax Authority permits significant deductions for precious metals businesses:
- Gold inventory purchases (cost of goods sold)
- Assay and refining fees
- Import duties and logistics costs
- AML compliance system expenses
- Security and insurance premiums
Effective tax rates typically range 8-12% for established operations after allowable deductions.
VAT on Gold Oman
Royal Decree 121/2020 implementing VAT creates specific treatment for precious metals:
Zero-rated (0% VAT):
- Investment gold bars and coins (.995+ purity for gold, .999+ for silver)
- Gold traded for investment purposes with clear documentation
- Export of precious metals to GCC countries
Standard-rated (5% VAT):
- Jewellery and ornamental items, regardless of gold content
- Numismatic coins with collectable value exceeding the metal content
- Gold is sold for industrial use
This creates compliance complexity: transactions must be correctly classified at the point of sale, with documentation supporting zero-rating claims. Tax Authority audits focus on businesses claiming excessive zero-rated sales without supporting evidence of investment purpose.
Anti-Money Laundering (AML) Obligations
AML compliance gold trading in Oman requires systematic procedures beyond basic KYC:
Customer Due Diligence Requirements:
- Full identity verification for transactions exceeding OMR 1,000
- Enhanced due diligence for transactions exceeding OMR 10,000 (source of funds declaration)
- Politically Exposed Person (PEP) screening for transactions exceeding OMR 5,000
- Corporate customer verification, including beneficial ownership identification
Transaction Monitoring:
- Flag structuring behaviour (multiple transactions below OMR 10,000 threshold)
- Monitor unusual purchasing patterns inconsistent with the customer profile
- Identify cash-intensive transactions requiring STR filing
- Track cross-border movements exceeding OMR 15,000
Reporting Obligations:
- File Suspicious Transaction Reports to FIU within 48 hours
- Submit monthly aggregate data on transactions exceeding OMR 5,000
- Maintain detailed records accessible for Central Bank of Oman inspections
- Annual AML compliance certification by an external auditor (for operations exceeding OMR 100,000 annual turnover)
Penalties for non-compliance: OMR 10,000-50,000 fines plus potential license suspension. ROP has the authority to conduct unannounced compliance inspections.
Challenges and Opportunities in Oman’s Gold Market
The Omani market presents specific operational realities absent from generic business guides:
- Regulatory Intensity: Expect quarterly FIU reporting, annual Tax Authority audits, and periodic MOCIIP compliance reviews. This isn’t a setup-and-forget business—ongoing compliance demands dedicated resources.
- Price Volatility Management: Gold price fluctuations create inventory valuation challenges for VAT and tax purposes. The Tax Authority permits the FIFO (First-In-First-Out) or weighted-average cost methods, but requires consistency between them.
- Currency Risk: While the Omani Rial is pegged to USD at 0.385, international bullion purchases entail foreign exchange exposure. Most traders maintain both USD and OMR accounts for hedging.
Opportunities in Digital Gold and Exports
E-commerce licensing through MOCIIP enables domestic online sales of precious metals. However, cross-border e-commerce faces restrictions: most international shipping carriers refuse to carry bullion, limiting practical e-commerce to domestic delivery.
Duqm SEZ provides genuine re-export opportunities: import duty-free, store in bonded warehouses, then export to African markets without Omani VAT or customs duties. Several Omani companies successfully operate pure re-export models without domestic sales operations.
Hallmarking digitization: Oman recently introduced digital hallmarking verification, creating opportunities for businesses offering authentication services alongside sales.
Marketing Your Gold Business in Oman
Regulatory constraints shape marketing approaches. Consumer Protection Law prohibits:
- Guaranteed return claims on precious metals investments
- Price appreciation promises
- Comparison advertising claiming “lowest prices” without substantiation
Effective marketing focuses on:
- Transparency in purity certification (display assay reports)
- MOCIIP license number visibility (builds regulatory credibility)
- Clear pricing showing metal content value separate from craftsmanship premiums
- Educational content about gold investment fundamentals
Digital marketing faces unique considerations: Google Ads and Meta platforms restrict precious metals advertising, requiring pre-approval and compliance documentation. Most successful operators invest in SEO for informational queries rather than paid advertising.
Conclusion
Establishing a precious metals trading operation in Oman requires navigating layered regulatory requirements spanning MOCIIP commercial licensing, ROP security clearances, FIU AML registration, and Tax Authority compliance. The gold trading license in Oman requires more than standard business setup knowledge, successful operators invest in understanding the Oman precious metals law, implementing robust AML systems, and maintaining ongoing regulatory compliance.
The sector offers a genuine opportunity for experienced traders and investors with adequate capital and compliance infrastructure. However, this is not an entry-level business venture, regulatory intensity, capital requirements, and operational complexity favour established businesses expanding to Oman over first-time entrepreneurs.
If you want to start a gold business in Oman, professional guidance through the licensing maze proves invaluable. MakeMyCompany specializes in precious metals business formation, handling MOCIIP applications, ROP security processing, and FIU compliance setup. We provide realistic timelines, transparent cost breakdowns, and regulatory expertise specific to Oman’s precious metals sector.
The difference between smooth licensing and months of rejections often lies in documentation quality and regulatory understanding. Professional setup support ensures your application reflects regulatory expectations from the initial submission.
About the Author
Shuja Ahmad is a business setup consultant specializing in regulated sectors in Oman, with particular expertise in precious metals licensing, AML compliance frameworks, and MOCIIP regulatory procedures. With extensive experience navigating ROP security clearances and FIU registration requirements, Shuja has assisted numerous foreign investors in establishing compliant precious metals trading operations across Muscat, Salalah, and the Duqm Special Economic Zone.
For professional assistance with gold trading licensing, AML system implementation, or the setup of a precious metals business in Oman, Shuja can be reached through MakeMyCompany business formation services.
FAQs
Is foreign ownership allowed for gold trading in Oman?
Yes. The Foreign Capital Investment Law (Royal Decree 50/2019) permits 100% foreign ownership in precious metals trading activities. However, you must obtain ROP security clearances and demonstrate a legitimate source of investment capital. Free zones offer streamlined foreign ownership, but most precious metals traders operate in commercial zones to access domestic markets.
Do I need a local sponsor to open a gold business in Oman?
No. Precious metals trading falls under sectors permitting full foreign ownership without local sponsor requirements. However, some foreign investors partner with Omani nationals to gain market access and banking relationships, though this is optional rather than mandatory.
How long does it take to get a gold trading license in Oman?
Realistic timeline: 6-8 weeks from initial application to license issuance, accounting for ROP security clearances (2-3 weeks), MOCIIP processing (1-2 weeks), municipality approvals (1-2 weeks), and FIU AML registration (1 week). Delays occur when applicants lack complete documentation or encounter complications with ROP background checks. Expedited processing is not available for precious metals licenses due to mandatory security reviews.
Can I sell gold online in Oman?
Yes, with an e-commerce license from MOCIIP and compliance with online sales regulations. However, investment-grade bullion online sales face practical limitations: most payment processors restrict precious metals transactions, and shipping carriers often refuse bullion shipments. Domestic online sales with in-person delivery or bank transfer settlement are more common than full e-commerce operations.
Is gold import allowed into Oman?
Yes, under Oman Customs regulations, a Certificate of Origin, assay certification, and proper HS code classification are required. Investment-grade gold (bars, coins, 995+ purity) enters duty-free, while jewellery faces 5% customs duty. First-time importers require import permits from MOCIIP. All imports exceeding USD 50,000 trigger enhanced FIU scrutiny, requiring source-of-funds documentation.
