Foreign investors eligible to own land in Oman

‘New element in Economic Stimulus Plan allows foreign companies to own land of over 5,000 sq metres or leased land which is either commercial or commercial / residential or tourism or industrial land’: Al Yousuf Foreign investors will be entitled to ownership of land for the first time in the Sultanate under the new Economic Stimulus Plan unveiled by the Omani government last week. According to Qais bin Mohammed al Yousuf, Minister of Commerce, Industry and Investment Promotion (MoCIIP), the move is part of a series of incentives offered by the government to enhance Oman’s investment appeal, as well as ease the business environment severely impacted by the pandemic and economic slowdown. Land ownership promises to further sweeten the package of incentives pledged by the government in the form of, among other things, registration fee reductions for new investors, lower income tax rates for small and medium enterprises, long-term residency permits for foreigners, and interest rate deductions. “There’s a new element to this stimulus plan: allowing foreign companies to own land of over 5,000 sq metres or leased land which is either commercial or commercial / residential or tourism or industrial land,” said Al Yousuf. “Earlier, foreign companies were not allowed to own land. But now, with the new stimulus, companies for the first time will be allowed to own land, provided certain conditions are met — for instance, the land is meant for the company to operate its business, and provided it falls in areas allowed for foreign ownership.” The minister made the revelations during an interview to Oman TV over the weekend. Further, to assure foreign investors that the Omani government is committed to honouring pledges set out in the Economic Stimulus Plan, he said the ministry is open to signing long-term Service-Level Agreements (SLAs) with strategic investors. “Under the stimulus plan, the MoCIIP can enter into SLAs with large strategic investors to assure them that the incentives we have announced will remain in place for the medium to long term, thus giving them comfort that they are welcome into Oman,” Al Yousuf said. He added that the SLA initiative is based on feedback garnered from the investor and business community on the need to offer robust assurance to foreign companies on the longevity of the government’s incentive measures. Asked about measures to fuel Omani exports, Al Yousuf said the ministry is collaborating with Oman Development Bank (ODB) and the export credit agency, Credit Oman, to come up with a package of incentives to encourage Omani firms tap new export markets for their goods. “Already, many Omani companies have found acceptance for their products in export markets based on their quality standards and competitive pricing. Our job is to further open up new markets for them and try to see whether more Omani products can be exported around the world,” he replied. In concluding, Al Yousuf said the new Economic Stimulus Plan complements previously announced reform measures to help ease investment inflows into the Sultanate. “This is the right time to start your business in Oman,” he stressed. “I know the pandemic has really created a slowdown in the economy, but now with His Majesty Sultan Haitham bin Tarik and the entire cabinet following up on the implementation on the latest plan, we now have a well-balanced strategy — taking into account the Medium Term Fiscal Plan (Tawazun) announced earlier — that will benefit large and small businesses as well as FDIs,” he added. CONRAD PRABHU @conradprabhu