AZZA AL HABSI
MUSCAT, JAN 13
A Royal Decree has been issued establishing the International Financial Centre of Oman (IFC Oman), creating a new platform intended to serve internationally oriented financial and business activities under a fully independent legal, regulatory and judicial framework aligned with international standards.
The centre will provide a modern, integrated environment for financial institutions, multinational companies and investors, supported by advanced infrastructure and digital systems, with an emphasis on transparency, efficiency and investor protection.
IFC Oman’s strategy is built around “focus and differentiation”, aiming to develop niches where Oman can compete rather than attempting a broad, one-size-fits-all model. The approach seeks to leverage Oman’s advantages, including cost efficiency, geopolitical neutrality, quality of life and strategic location.
Priority areas being assessed include Islamic finance, sustainable and green finance and innovation-driven financial services, though the centre’s final focus is expected to be shaped by market demand and ongoing client engagement as planning progresses.
As part of its competitiveness package, IFC Oman is expected to offer a combination of “tangible and intangible” incentives typically associated with international financial centres. These include attractive tax incentives, 100% foreign ownership and a competitive cost of doing business driven by operational efficiencies.
The centre will also operate an agile, common-law-based regulatory framework aligned with international standards and designed around investor and business needs, positioning IFC Oman as a business-friendly jurisdiction offering regulatory certainty and responsiveness, according to the analysis.
On governance, IFC Oman will have a dedicated structure with independent regulatory authorities and an independent board. The framework separates the IFC Oman Authority, the IFC Oman Regulator and the IFC Oman Dispute Resolution Authority, in line with globally recognised standards.
The analysis notes that IFC Oman is administratively and financially independent and will report to the Deputy Prime Minister for Economic Affairs.
A key feature is the centre’s scope: like other international financial centres, IFC Oman is designed to serve global clients under IFC Oman rules, while firms that operate directly in Oman’s domestic market will remain under the Omani legal framework.
Madinat Al Irfan has been selected as the headquarters, described as an integrated ecosystem combining work, lifestyle and business facilities, with access to hotels and key amenities, while additional locations may be considered later to expand reach.
With the legal framework in place, IFC Oman will move into a “readiness phase” focused on completing the regulatory and ecosystem setup, establishing operational structures and putting best-practice systems and processes in place. IFC Oman is expected to be ready to commence operations before the end of 2026.
The initiative is positioned as aligned with Oman Vision 2040, with expected benefits including investor confidence, financial innovation, human capital development and wider spillovers through higher demand for professional services, business travel and related service industries.
(The writer is an economist at OMINVEST)
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