MUSCAT: Shaikh Saif bin Mohammed al Shabibi, Minister of Housing, has issued a ministerial decision regulating ownership of properties for companies. The decision will take effect on the day after its publication in the Official Gazette. The first article of the decision states that companies that are fully owned by nationals or citizens of GCC states are permitted to possess lands and properties needed for a specific authorised activity as per the legislations in place, provided the following conditions are met.
The value of the property should be commensurate with the company’s capital prescribed in commercial register and the ownership should be restricted to properties required for setting up administrative offices, staff accommodation, warehouses, showrooms or touristic facilities.
Ownership of properties should not override the actual need and the granted space should not exceed the project’s requirements.
The decision also states that the properties subject to ownership should be in the area where the company’s activities are located.
The company should have no less than 10 workers registered in the Sultanate.
No ownership of properties should be obtained for the purpose of profit-making by reselling.
Likewise, selling the property before the passage of four years from the date of registration, or before exploiting the land for the purpose of appropriation, is not permissible.
Article 2 of the decision states that the companies are not allowed to lease out the property to a third party, except for the properties appropriated for touristic purposes. The decision also states that the ownership application submitted by companies that are not fully owned by nationals won’t be accepted in the governorates of Musandam, Al Dhahirah, Al Buraimi, Dhofar (except Salalah), Niyabat of Al Jabal Al Akhdhar, Jabal Shams, the old neighbourhoods, the concession areas, Liwa, Shinas and Duqm.
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