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India Oman to Expedite Amendments on Double Taxation Treaties And Boost Bilateral Trades And Investments
  • India, Newsletter, Oman

India Oman to Expedite Amendments on Double Taxation Treaties And Boost Bilateral Trades And Investments

In a bid to boost bilateral trade and investment, India and Oman during the ninth session of India -Oman joint commission meeting (JCM) reviewed the recent developments in businesses and trades and reaffirmed their commitment to expand bilateral trades and encourage businesses to invest in each other’s country to realize untapped potentials in commercial and economic relationships.

The ninth India-Oman CM was held in October 2020 through a virtual platform and was co-chaired by Hardeep Singh Puri, Minister of State for Commerce and Industry and H.E. Mr.Quis bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion of the Sultanate of Oman.

Bilateral trade between the two countries has increased to USD 5.93 billion in 2019-20 registering a growth of 8.5%. India -Oman agreed to cooperate in the areas of Agriculture and Food Security, Standards and Metrology, Tourism, Information Technology, Health and Pharmaceuticals, MSMEs, Space and Civil Aviation, Renewable Energy, Mining, Culture and Higher Education.

Indian companies are already invested in Oman and in Steel, Cement, Fertilizers, Textile, Cables, Chemicals and Automotive Sectors. There are already more than 4000 Indian business establishments in Oman with an estimated investment of 7.5 billion USD.

Company formation in Oman has been encouraged by the Oman Ministry of Commerce, Industry and Investment promotion and assured liberal benefits for Indian companies.

As per a press release, “Both sides also agreed to expedite their internal procedures for signing ratification of the protocol amending India-Oman Double Taxation Agreement and conclusion of the India-Oman Bilateral Investment Treaty.”

India and Oman reviewed and assessed the progress of the proposed MOUs in different sectors and mutually agreed to conclude them promptly. Indian representatives appreciated Oman for signing the International Solar Alliance Framework Agreement.

India has long been associated in business and trade with Oman and  has enjoyed a friendly diplomatic relationship. Increasing bilateral trade and investment between the two countries and a strategic partnership reinforced a need to review and expedite the double taxation treaty and procedural amendments as appropriate.

The India Oman business ties have been robust and expanding for quite some time now and India is Oman’s one of the top trading partners. For Oman, India has been its third-largest source of imports and also the third-largest export market for its non-oil products.

Mr. Hardeep Singh Puri highlighted recent initiatives undertaken by the Indian Government for enhancing the ease of doing business in India and promoting business through Product Linked Incentive (PLI) schemes in various sectors. He also invited Oman business enterprises and Omani Sovereign Wealth Funds to invest in India.

Company formation in India has now become much simpler, transparent and less bureaucratic. IMC, a professionally managed and well-experienced business service consultancy group can help Oman business enterprises to set up companies in India and provide all necessary support from the start to end. IMC is based in one of the Indian metropolitan cities and also has well established operational setups in Dubai and Singapore.

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Procurement of an Employment Visa in Oman
  • Article, Oman

Procurement of an Employment Visa in Oman

The process of gaining employment for foreign nationals in the country of Oman has been increasingly regulated as part of the Omanisation initiative. Once a foreign worker is officially employed by an Oman-based company, the employment visa process starts. But in order to get a job offer from these local companies, an employer should prove that the foreign worker possesses the skills and experience that an Omani national cannot offer. Otherwise, an employment visa may not be granted.

There are two types of visas that are commonly used:

  1. An employment visa: This visa is applicable for individuals who are looking to be employed in Oman
  2. A Residence only Visa: This visa is applicable for spouses and other family members of an employed person.

 

Generally, the employer will apply for a residency Visa for an employee before they arrive in Oman. It is also common for the employer to have all the paperwork completed out for the employee before he / she arrives. The employer will also incur any expenses that are related to the same.

 

Steps involved in the procedure to obtain an employment visa in Oman

 
1.The employer should obtain a Labour Permit from the Ministry of Manpower

Firstly, an application has to be submitted to the related or specified department in the Ministry of Manpower and simultaneously meet the following requirements:

  • The business organization must first be compliant with Omanisation rules and regulations as well as check the assignment of foreign employees for a particular activity or a department.
  • The firm must ensure that the number of requested foreign workers is permitted for the specified operation of the firm listed under the company’s specific activities.
  • The requested foreign workers in question must hold the correct and required qualifications.
 
 
2. Employment Visa Application

A potential individual applying for an employment visa in Oman must qualify the following eligibility criteria;

  • The applicant (employee) must be between the ages of 21 and 60 years.
  • The employee’s gender and job title must match those specified on the Labour Permit.
 

Please note that some nationalities require special permits. Find below some of the documents required to apply for an employment visa.

  • 2 passport sized photographs
  • Passport copy that is valid for not less than six months
  • For applicants of certain specified countries, the original and a copy of the medical certificate is required. This must be attested by the Ministry of Health.
  • If a foreign national has not completed 2 years with their previous Oman-based company, a release letter will be required. This must be approved by the Directorate General of Passports and Residence.
 
 
3. Relocation to Oman

After an employment visa is granted, the employee is free to travel to and from Oman with a copy of the document. Subsequently, they can also apply for a Residence Card.


4. Local medical tests

Upon arrival to Oman, the employee should collect his / her Residence Card from the Royal Oman Police within a month of entry. The employee will then be required to take a blood test and provide biometric information. After the results are collected, the Directorate General of Civil Status will issue a 2 year Oman Resident Card to the employee.

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Technology City in Oman’s Salalah Free Zone to be constructed with Funds provided by UAE Investors
  • Newsletter, Oman

Technology City in Oman’s Salalah Free Zone to be constructed with Funds provided by UAE Investors

According to a recent “Oman Observer” report, a $350 million investment agreement was reached between a UAE investor and Oman’s Salalah Free Zone for the building of Technology City.  The planned 500,000sqm area will feature numerous support facilities including a data park and a technology academy.  The $350 million funding is the most recent in a series of investments made to the Salalah Free Zone.  According to Tech City CEO Ali bin Mohammed Tabouk, the signed MoU (Memorandum of Understanding) envisions a city dedicated to 4th generation and innovation technologies.

Tabouk went on to say that seven investment agreements were signed during the first half of 2020, bringing the total number of signed projects to 88.  This represents a total of $8.7 billion in investments and a potential for the creation of more than 8,000 jobs.  One of the contracts calls for the building of Phase Twuaeo of Al Mazaya Logistics Station, a 134,000sqm parcel of land dedicated to the development of amenities and facilities for tenants of the free zone and a storage area as well.

Governor Sayyid Mohammed bin Sultan al Busaidi of Dhofar pledged his support to development efforts.  Furthermore, he welcomed the role the free zone is playing in contributing to the diversification of income sources, the economic benefit for Dhofar, and the overall growth of the regional economy.  He went on to say that the success that has been achieved in the Salalah Free Zone will attract future investments as it continues to move toward becoming a regional and global business hub.  This will help in the areas of company registration in Oman and Oman company incorporation. If you need assistance with registration of a company or related taxation services, call on experts. 

Chairman Ahmed bin Nasser Al Mahrazi stated that the success that they have achieved with Salalah Free Zone is commendable. Additionally, he hoped that the business zone attracts global businesses and investments to further enhance the economy.  The success resulted from gaining $8.7 billion in investments translates into numerous business opportunities for small and medium-sized enterprises (SME’s) as well as national companies.  Overall, this equates into many economic developmental benefits.  Additionally, Al Mahrazi, who is also the Minister of Tourism, stated that the investments will drive technology inflows and support the creation of new jobs for the citizens of the region.

Al Mahrazi commented that by maintaining this framework, numerous efforts to organize promotional campaigns will continue and target a number of different markets including India, Iran, South Africa, Turkey, and other countries.  The focus will continue to be on attracting high-quality funding in important areas such as innovation-based technologies, logistics, and manufacturing along with other needed sectors.

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Corporate Tax Relief for Oman Businesses impacted by COVID-19
  • Newsletter, Oman

Corporate Tax Relief for Oman Businesses impacted by COVID-19

As of March 31st, 2020, tax authorities are now providing tax relief for corporations that are currently doing business in Oman and have been affected by COVID-19 as well as any Government imposed precautionary measures that were put in place to counteract the pandemic in Oman.  These measures include:

  • deferral of filing returns and making tax payments for up to 3 months from the original due date of March 31st
  • exemption from fines and penalties that are related to deferred filings and payments
  • tax deductions for contributions or donations involved for handling the pandemic (must be in accordance with executive regulations and prescribed income tax laws

For example, if you haven’t filed your return or are making tax payments in installments, the deadline has been extended until June 30th from March 31st, the original due date.  Any additional taxes or penalties for filing or paying after the deadline will be waived, provided taxpayers in Oman are able to prove that this was due to the COVID-19 pandemic, including any Government imposed precautionary measures. If you are looking for tax services in Oman, it is best to contact a company that can assist you through the whole process.  

Additional Considerations where Donations, Installment Payments, and Objections to Tax Assessments are concerned

In addition to tax relief that applies to tax returns and tax installment payments, Oman Government authorities have made the following changes:

  • Donations – donations towards measures that will prevent the spread of COVID-19 are fully tax deductible for Oman-based corporations according to Government tax laws and regulations.
  • Installment payments – because of COVID-19, tax installment payments will be approved provided taxpayers can show that the delay has resulted from the pandemic. Any additional taxes that would normally be imposed will be waived.
  • Tax returns and payments: To help corporates file tax returns and payments, it has been changed to 30th June 2020. This leverage has been given considering the COVID- 19 precautionary measures, so there are no additional taxes or penalties that would be applicable.
  • Objections to tax assessments – any objections to corporate tax assessments that are filed after the March 31st due date will be accepted provided taxpayers can show proof that they’ve been adversely affected by the pandemic. Furthermore, any additional taxes or penalties that have been imposed on installments payments will be waived as a result.

For additional information regarding tax relief for corporations that have been negatively impacted by COVID-19, it is recommended that you seek the advice of professional tax services in Oman such as Intuit Management Consultancy (IMC Group).

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How to set up business in Oman with 100% foreign ownership
  • Article, Oman

How to set up business in Oman with 100% foreign ownership?

In the last 40 years, Oman has made significant progress towards economic growth. Besides, it is one of the most favourable locations for business investment in the Middle East region. Some of the top factors that attract foreign investment into the country are business friendly climate, political stability, world-class infrastructure and ease of doing business, among others. Besides, Oman has strong incentive schemes that include custom duty exemptions, subsidised interest rates and income tax exemptions.

In addition, the recently introduced Foreign Capital Investment Law (FCIL) effective as of 2nd January 2020 also aims to boost doing business in Oman. The new law ensures the stability of foreign investment in Oman. This is done by offering numerous incentives and advantages to encourage business flow in the country.

 

100% Foreign Ownership Requirements

With the introduction of the new law, foreign companies, investors and citizens in Oman can have 100% ownership in many industries in mainland Oman. Although, few activities in the mainland Oman still require local ownership or local partner with a minority shareholding. In all, there are around 37 activities that are restricted for 100% foreign ownership which includes transportation, manpower recruitment, translation services, automotive and vehicle repairs and tailoring to name a few.

 

Requirement Relating To Consultancy Services In Oman

If you are offering consultancy services, you need local Omani shareholder that can be a company or an individual. The local partner needs to hold at least 35% shares in the company. Although the minimum share capital requirement to own OMR 150,000 has been relaxed. However, a part amount from this needs to be shown as proof of funds.

 

Documents Required For 100% Foreign Owned Business Setup In Oman

Individual shareholders need to furnish their passport copy. While corporate shareholders need to furnish company incorporation documents such as memorandum of association, trade license, certificate of incorporation,  certificate of incumbency and a board resolution and power of attorney regarding Oman company formation. The above mentioned documents should be notarised, legalised and attested by the country of origin. The concerned authority needs to send these documents to the PPG in Oman for legal translation and stamping.

 

Other Requirements Include:

Business plan with details including investment cost, project description and commencement date of the project.

CR application form with the below mentioned details:

  • Proposed name of the company
  • Shareholding structure with the percentage of holding and details of the nationality of the shareholders.
  • Proposed company grade ranging between 4 to 1 (1 being the excellent grade). For Grade 4, the share capital requirement is OMR 20,000 and it goes up to OMR 150,000 for Grade 1, and OMR 250,000 for an excellent grade. There is no longer a requirement to deposit the share capital before opening a company.
  • Company’s financial year.
  • Activities that the company proposes to carry out.
  • Details of the manager and authorised signatories of the company.

 

Procedure To Set-Up LLC Company In Oman With 100% Foreign Ownership

 
  • Firstly, obtain the Commercial Registration with the Ministry of Commerce and Industry giving details of the trade name, Business Plan and CR Application form.
  • Obtain the Chamber of Commerce Registration.
  • Make arrangements for office or warehouse lease.
  • Make an application for Municipality License.
  • For annual audit and tax purposes, you need to make an application for registration with the Ministry of Finance.
  • If you need to apply for labour quota or staff visas, you need to make an application with the Ministry of Manpower.
  • To be able to apply for visas with Royal Oman Police, you need a PRO registration on the Commercial Registration.
  • Depending on the business activities, if any additional approvals are required that must be taken.

 

Fee For Setting Up A Company In Oman With 100% Foreign Ownership

With the enforcement of new law, the overall government registration fee is OMR 3500. This covers the fee for the Ministry of Commerce and Industry, Chamber of Commerce, Ministry of Finance and Ministry of Manpower. Besides this, you have to pay for the Municipality Licence cost depending on the value of lease and activities undertaken by the company. The registration fee of Oman Customs Government is OR 20.

 

How Can IMC Group Help You?

IMC Group has been operating in the GCC for over 10 years. We can assist you in setting up a 100% foreign owned company in Oman. We can also advise you on the shareholding percentage requirements for foreigners and the rights which go with that percentage and other such business matters. In addition, we can also assist you with drafting your incorporation documents, listing out the documents required to be filed, documents to be notarized and other formalities. For more information, get in touch with us.

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Foreign Investment Law to Drive Small Business Growth in Oman
  • Newsletter, Oman

Foreign Investment Law to Drive Small Business Growth in Oman

New foreign investment law in Oman is all set to simplify and facilitate the processes for getting permits, licenses and approvals required by foreign investors.

Small businesses generally relate to the regular lifestyles of people. So, to make it easier for such businesses to find their foundation in Oman, the foreign investment law ratifications have been put in place. With this doing business in Oman has become easier for small entrepreneurs.

By way of the foreign investment law, small businesses have been exempted from 100% ownership. This new law is aimed towards improving the corporate climate of Oman and in making it more attractive for the entrepreneurs.

According to the law that has been introduced in Oman, Foreign investment will take place through companies or establishments in the form of the permitted activity. They will be the owner of invested foreign capital on the whole, or they will be making contributions to the same. Also, a license in regards to this activity will be issued by governing authorities. Hence, company formation in Oman shall no longer be a matter of great concern.

Nevertheless, in the best interest of the small-time businessmen in Oman, there has been an exemption of foreign ownership for 37 businesses. This includes photocopying solutions, translation, laundry, tailoring (for men and women), transportation, vehicle repairs, drinking water sale, recruitment and manpower solutions, salon and hairdressing services, fishing, driving instructions, rehabilitation homes meant for orphans, disabled and elderly and taxi services.

The Omani entrepreneurs have welcomed this move on the part of the government. Speaking on the subject, an entrepreneur from Oman put down, “Many Omanis are thriving on small-time local businesses that cannot withstand straight competition from the foreign investors”.

In his interview with the Observer, the entrepreneur further added, “It is also necessary to bring about a reduction in the prices of certain services to make them worth possessing by the common citizens. This would pave the door for small business growth which is not possible in the presence of the bigger giants in the market.”

While further clarity is being expected on the part of the common people and the small business owners in the future, there are some major developments confirmed in regards to the Foreign Investment Law.

Minister of Commerce & Industry will be issuing executive riles under this new law. The regulations added will include significant changes from the old Foreign Investment Law.

As per reports published in newspapers, the executive rules shall come to the forefront by 30th July 2020. A complete list of small business activities where foreign investment shall remain exempted is also likely to be introduced in no time.

The new Foreign Investment Law will not affect the existing laws concerning the GCC investments, Public Establishment for free zones and Industrial Estates and Special Economic Zone.

As per suggestions by the Minister of Commerce & Industry, the power of granting single approvals for the establishment, operation and management of strategic development assignments shall rest with the Cabinet.
All procedures and rules governing the approvals and the process of granting land for different investment projects shall be set out by the executive regulations.

While small businesses eagerly await the introduction of the executive regulations for clarifying some points in the new Foreign Investment Law, the law has indeed relaxed the foreign investment command in Oman to a considerable extent. Specifically speaking, it has boosted the atmosphere for business in Oman by granting 100% foreign ownership to the majority of the business activities.

It is believed that the new Foreign Investment Law will be marking tremendous liberalization in the Sultanate’s history. The law lays emphasis on creating an attractive and robust investment environment for foreign investors and businesses in Oman. The law will be spurring investment; driving economic growth and generating employment for sure.

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Complete Foreign Ownership Is Now A Possibility In Omani Businesses
  • Newsletter, Oman

Complete Foreign Ownership Is Now A Possibility In Omani Businesses

100 percent or complete foreign ownership is now possible in majority of Omani companies as per the new Foreign Capital Investment Law that came into effect in the Sultanate starting January 7, 2020. However, there was an exception of a small number of trades and services, in which this won’t be applicable.

There are 37 types of commercial activities that are prohibited for complete or 100 percent foreign ownership including translation and photocopying services, laundry, tailoring, vehicle and automotive repairs, sale of drinking water, transportation, manpower and recruitment services, taxi operation, hairdressing and salon services, fishing, rehabilitation homes meant for the elderly, or disabled, and orphans.

Leaving aside this blacklist, signifying an important but relatively smaller fraction of the Omani economy, the new law broadcasted by Royal Decree 50/2019 (FCIL) opens the doors for assuring new sectors for doing business in Oman or going for 100 percent foreign investment, as per a Muscat-based legal expert.

The Ministry of Commerce and Industry (MoCI) has taken some major steps in the new FCIL to enable a regulatory regime in Oman that is investment-friendly. They also plan to now permit 100 percent foreign ownership in most of the companies set up in Oman other than those conducting any activity out of the above-mentioned blacklist. This blacklist, which has 37 activities listed, currently does not include sectors which were earlier strict in their Omani ownership requirements like oil and gas, defence, and restaurants.

Emphasizing the significance of the new statute to Oman’s determination to foster foreign investment inflows, the FCIL is likely to place the Omani market in a more robust position to offer the foreign investors with a more welcoming, open, and vigorous regulatory framework in which they can conduct business.

If planning for foreign company registration in Oman, it is important to note that the FCIL does not specify a minimum share capital requirement. The MoCI has also relaxed its earlier practice of necessitating any company which has one or more foreign shareholders to begin with a minimum starting share capital of RO 150,000 (almost $390,000). Please note that the fee for registering such type of a company at the Ministry is higher than earlier and starts from RO 3,000 (almost equivalent to $7,800) and is subject to further increase depending on the anticipated share capital of the new company.

Any further clarity in terms of the specific provisions of this new law is likely to be available when the Executive Regulations would be issued later this year.

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7 Tips for Women Who Wish to Start A Business
  • Article, Bahrain, India, Oman, Saudi Arabia, Singapore, U.A.E

7 Tips for Women Who Wish to Start A Business

These days, women have loads of opportunities and the required abilities to start a business – be it full-time or part-time. Social media has also helped in changing the perception and women these days are taking the risks and becoming entrepreneurs.  There are many women who are also quitting their full-time jobs and starting their own ventures. So if you’re also thinking of starting your own enterprise but confused about how to go about starting it, then read on. We have collated seven tips for you, which would help you to kick-start your business.

1. Prepare an impressive pitch:

The first step before you start talking to your network or looking for investors, you must prepare a good pitch. You should know which product you are selling and why a customer should spend their money on it? So do you know what an elevator pitch is? Your pitch should be such that it is impressive yet not long. It should be crisp and something that grabs your attention quickly. It should also be something that enables people to understand your product or service and how the customers would be benefitted using it. Think of how your product is filling the gap in the market and giving what has been lacking.


2.  Study your market in detail:

After the sales pitch, do a detailed study on the customer base, that is, who will buy your product or service. What’s the size of your customer base? Are you targeting a niche customer base or generic one? Find answers to these questions first and then decide to present your idea to your potential investors.


3. Upskill yourself on financial aspects and knowledge:

Before making a sales pitch to investors, you must be confident with numbers, financials and data. Managing a business is not possible without mastering the financials of your venture; in fact your data and numbers should be on your fingertips. In case you’re not so confident about the financial aspects, you must upskill yourself and learn this from someone experienced and good at it. You should have answers to questions such as “What are the capital requirements of your business over time?”; “What are your gross margins?”; “What’s the time frame you are looking at for a break-even?” etc.


4. Don’t think twice and ask for help if needed:

You should not hesitate to look for help and advice in case you are have any doubts in how to set up your business. In this, networking is a very critical skill that should have so as to flourish in the entrepreneurial world. You must confidently tap into your network of acquaintances and friends, which is crucial to run your own business.


5. Have a useful board of advisers:

Having a board of advisers in an early stage in your company could really benefit your company’s image. While deciding the board members, make sure that you pick experienced people who can act as trusted advisers in your venture. These investors can advise you in all decision-making process and could even take you to your initial customers. So to start with, check and invite individuals from your own network who might have relevant experience. After deciding the board members, you could plan in-person or even virtual meetings on a periodic basis for discussing important issues.


6. Create a hiring roadmap:

Make a list of people you will require in your company in the coming 1 year or so and then start finding and hiring them. These people could be working with you full or part time or could be working for equity till the time you get some funding.


7. Work harder and faster than others!

Last but not the least, get ready to work harder than your competitors, or what you have done earlier. Do you know that most of the small business owners or entrepreneurs put in over 60 hours every week? Also, be ready for the inevitable failures or setbacks. It’s all part of the game. You must also not ponder too much and delay making the decisions, as others might launch the same product or service before you.

So, starting your own venture might have multiple challenges but if you keep these tips in mind, you’re surely off to a great start!

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  • Newsletter, Oman

Oman-India Forum all Set to Attract Indian investors

The Public Establishment for Industrial Estates (Madayn) arranged an Oman-India Investment Meet between September 29 to September 30 at Crowne Plaza in Muscat under the support of Yahya bin Said Al Jabri, who is the Chairman of the Special Economic Zone Authority at Duqm (Sezad) and Chairman of Ithraa.

The event falls within the endeavours of Madayn to pull in new foreign investments to the Sultanate and bolster affiliation with the private sector, specifically in the industrial sector. The meet hosted a very high-profile Indian business delegation comprising almost 35 businessmen who represented various sectors like food, logistics, telecommunications, information technology and renewable energy. Many business and investment officials who represented the public and private sectors in the Sultanate also came for the event.

This event also provided a perfect platform to highlight the investment opportunities available in Oman and Madayn’s industrial towns in particular. It also opened a great opportunity for exploring alliances between the Omani and Indian organizations and factories, which would ultimately add more value to the national economy, offer more job opportunities for the Omani groups in the industrial sector and allow business setup in Oman.

This high level event also highlighted Madayn’s vision in improving the Sultanate’s rank as a leading regional hub of manufacturing, innovation and entrepreneurship excellence, information and communications technology (ICT), and its quest in enticing industrial investments and offering continued support, through regionally and internationally-competitive policies, strong infrastructure, newer value-adding services, and simple and easy-to-manage governmental processes.

The event came in line with Madayn’s attempts to attain its key objectives which include pulling in global investments into the Sultanate while localising the national capital; thus, encouraging the private sector to realise sustainable economic and social development; attaining environmental sustainability, and also help in creating new job opportunities for the national factions and encourage company registration in Oman.

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  • Newsletter, Oman

New investment law to operate in Oman starting January 2020

Oman’s Ministry of Commerce and Industry is going to enforce a new law starting January 2020 with an aim to make the country an attractive investment destination. The launch of this law is a move to ascertain the steadiness of foreign investments in the Sultanate.

Mohammed bin Rashid Al Badi, the Acting Director of the Legal Department at the Ministry of Commerce and Industry, was of the view that the ministry will apply the Foreign Capital Investment Law that is issued under Royal Decree No. 50/2019, starting from January 2, 2020. The law is anticipated to come into force after six months of its publication in the official gazette, and while talking about this, Mohammed Al Badi said: “Until the implementation of the new Foreign Capital Investment Law, the law which is already in force will continue to regulate foreign capital investment. The new Foreign Capital Investment Law will apply to all non-Omanis who want to establish a project that is economically feasible for the Sultanate, for which they would use their own capital and assets.”

He also said that for creating an appropriate investment environment in the Sultanate, an investment services centre had been founded at the Ministry of Commerce and Industry for the registration of foreign investors, business setup in Oman and for facilitating various licencing procedures.

It is compulsory for the investment services centre and other applicable organizations to comply with processes and timelines for allotting foreign investors with requisite permits, approvals and licenses. If the applicants fail to get a reply in the stipulated time, it would mean that their application has been rejected.

Al Badi also said that the Foreign Capital Investment Law offers multiple incentives and benefits for foreign investments to foster their stability and flow in the Sultanate, as they eventually have an impact on the economic development. It permits the investor to set up a company or do company formation in Oman in one of the acceptable activities, thus allowing them to own all of the capital.

This law does not specify a minimum benchmark for foreign capital investment in a specific project, as far as it complies with the proposed time frame for its execution as per the economic feasibility study.

He also said that the law does not allow for any substantial changes without the ministry’s approval. “Article 18 of the law gives the investment project the right to avail all of the advantages, incentives and guarantees enjoyed by the national projects in accordance with the laws already practiced in the Sultanate. Additional benefits may also be given to foreign investment projects established in the less developed regions of the Sultanate.”

Article 19 of the law allows the allocation of land or real estate for the investment project specifically under a long term lease. It also permits the right of usufruct without the requirement for the provisions of the Royal Decree controlling the use of land in the Sultanate, or the Land Law, to be complied to. This is as per the rules and guidelines laid out by the regulations in coordination with the pertinent authorities.

These authorities would specify and assign sites in each governorate for setting up of investment projects with the right of usufruct. They would also offer general services like water, gas, electricity, roads, sewage, communications and other such facilities to the project area. Article 21 of the law demands that the investment project can, either by itself or through a third party, import whatever it needs for its setting up process, expansion or operations.

This also includes any production requirements such as raw material, machinery or spare parts and means of transport that are apt for the nature of its activity, without the need for registering itself as an importer.

Al Badi also said that to stabilise the foreign investment in the Sultanate, the Foreign Capital Investment Law provides some guarantees; for example, the rights of investment projects being established in the Sultanate. Article 23 of the Foreign Capital Investment Law No. 50/2019 specifies that projects cannot be detained and investment is now allowed to be frozen or taken into custody, except if there is a court ruling for it. It also gets exemption from taxes of the state.

The newly launched Foreign Capital Investment Law also assures that the investment project cannot be seized, except as per the provisions of the expropriation law in public interest. In that case, a fair compensation needs to be provided without any delay. This is specified in Article 24 of the law. Likewise, the right of usufruct or lease is not permitted to be seized in the case of privatization of the land or real estate; the only exception is in cases that are prescribed either by law or by a court ruling.

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