Incentives drive shift to joint stock firms

MUSCAT: The Ministry of Commerce, Industry and Investment Promotion has rolled out a comprehensive package of incentives to encourage limited liability companies to convert into closed joint stock companies, or to establish new entities under this structure. The initiative forms part of the Royal Directives launched last May through the Capital Market Stimulus Programme, which aims to strengthen company growth, improve competitiveness and support sustainable expansion across key sectors.
To promote the programme, the Ministry has carried out field visits to companies and held awareness meetings through branches of the Oman Chamber of Commerce and Industry in several governorates. These engagements focused on explaining the benefits of conversion and guiding businesses through the requirements of becoming closed joint stock companies. As a result of these efforts, seven limited liability companies have already transformed into closed joint stock companies, while ten new closed joint stock companies, including holding firms, have been established.
The Ministry noted that this transition has helped participating companies adopt stronger corporate governance practices, improve transparency and compliance, and enhance their financial resilience. These improvements have increased their ability to compete in both local and international markets, while also making them more attractive to high-quality investment.
Mohammed bin Salem al Hashmi, Director of the Regulatory Establishments Department at the Ministry, said the incentive programme represents a strategic step towards strengthening Oman’s business environment. He explained that conversion to closed joint stock company status raises governance standards and regulatory compliance, which in turn supports long-term sustainability, financial stability and business growth, while contributing to the development of the national capital market.
He added that the initiative also improves the efficiency of regulatory oversight and prepares companies to operate within clearer and more structured frameworks, striking a balance between investor protection and market growth, in line with the goals of economic diversification.
The incentive package includes a two-year exemption from one-third of income tax, access to fast-track financing through the Development Bank, a 10 per cent price preference in government tenders, flexible income tax payment plans and a six-month exemption from value-added tax. To qualify, companies must have a minimum capital of RO 500,000, employ at least 20 Omani nationals or meet approved Omanisation levels; and comply with VAT requirements, ensuring that the programme supports meaningful growth and long-term economic sustainability. — ONA