100% foreign ownership in Oman

The Foreign Capital Investment Law

The Foreign Capital Investment Law (FCIL), issued by Royal Decree 50/2019, took effect on 2 January 2020. It replaced the previous regime, which generally capped foreign ownership at 70% and required a minimum foreign investment of OMR 150,000. The main changes:

• Up to 100% foreign ownership of companies in most commercial, industrial and service activities
• No minimum foreign capital requirement under the FCIL itself
• No local partner or sponsor required for permitted activities
• Investor protections, including protection against expropriation without fair compensation and the right to transfer profits and capital abroad
• Incentives for projects in priority sectors and less-developed regions

The law is administered by the Ministry of Commerce, Industry and Investment Promotion (MOCIIP).

100% ownership for foreign investors in Oman: the short answer

Yes. Since 2020, foreign investors can own 100% of a company in Oman in most activities, including through an LLC, an SPC or a free zone company, with no Omani partner or sponsor. A short list of activities remains reserved for Omanis or needs Omani participation, which we check against your activity codes before you file. Read about the business partner question.

Activities that remain restricted

The FCIL lets the ministry keep a list of activities that foreign investors may not undertake. The list changes over time. It has included activities such as:

• Manpower recruitment and employment agencies
• Certain land transport services, such as taxis and some passenger transport
• Fuel stations
• Some vehicle repair and maintenance services
• Production of traditional Omani handicrafts and products
• Some small-scale retail and personal services

Other sectors are governed by their own laws and regulators: banking, insurance, oil and gas, telecommunications, media, legal services and some professions. In these, ownership limits, licensing conditions or professional qualification rules may apply even when the FCIL allows foreign ownership.

Always check your exact ISIC activity codes before you commit. Before any filing, we confirm against the current list whether each activity is open to 100% foreign ownership, whether it needs an Omani partner, and whether a sector approval is required.

Capital: what is actually required?

The FCIL removed the OMR 150,000 foreign investment minimum. In practice:

• Most foreign-owned LLCs and SPCs have no fixed minimum capital, so capital is set in the articles.
• Joint stock companies have statutory minimums: OMR 500,000 for an SAOC and OMR 2 million for an SAOG.
• Regulated activities, such as financial services, insurance and some contracting grades, carry their own capital rules.
• Banks assess whether capital is credible for the planned business when opening accounts.

Protecting your position as a foreign owner

• Use properly drafted articles of association that set out management, signing authority and share transfer rules.
• Avoid "nominee" or concealment arrangements. Operating through an Omani's name (tasattur) is illegal and unnecessary for permitted activities.
• Keep corporate documents, renewals and filings current. Lapsed registrations cause problems with banks and visas.

What changed in 2020

Structures that allow full foreign ownership

• LLC with foreign individual or corporate shareholders
• SPC owned by one foreign individual or company
• Branch of a foreign company
• Free zone companies, which have always allowed 100% foreign ownership

How we check your activities

1. You describe what the business will do.
2. We map it to the official activity codes.
3. We check each code against the list of activities reserved for Omanis and any sector approvals.
4. If an activity is restricted, we suggest alternatives: a different activity code, a free zone, or a structure with Omani participation.

Benefits for foreign owners

• Full control of decisions and profits
• No nominee or sponsor arrangements to manage
• Repatriation of profits and capital
• Investor residence for shareholders through the company

How we help

We confirm your activities qualify before you file, then register the company with full foreign ownership. Read foreign ownership rules and legal structures and how foreigners can start a business in Oman.

Frequently asked questions

Is 100% foreign ownership allowed in all sectors in Oman?

No. Most activities are open, but a list of activities is reserved for Omanis, and some regulated sectors have their own ownership and licensing rules.

Do I still need an Omani sponsor?

Not for activities open to foreign investment. The company itself becomes the sponsor for its foreign employees' visas.

Does 100% foreign ownership apply in free zones?

Yes. Free zones and special economic zones allow full foreign ownership under their own regulations, alongside tax and customs incentives.

Can I repatriate profits from Oman?

Yes. The FCIL protects the transfer of profits, dividends and capital abroad. Oman has no exchange controls, and the Omani rial is pegged to the US dollar.

Where do I check whether my activity is open to foreigners?

The ministry's activity list on the Invest Easy portal shows the current position. We run this check for you as the first step of every engagement.

Official sources

Requirements and fees change, so confirm current details with the authority concerned. This page is general guidance, not legal advice.

• Ministry of Commerce, Industry and Investment Promotion (MOCIIP) – licensing, commercial registration policy and the list of restricted activities.
• Invest Easy – the government portal for registering companies and licences.