Foreign Capital Investment Law to come into force on Jan 2

MUSCAT, DEC 28 - The Ministry of Commerce and Industry will begin implementing the Foreign Capital Investment Law issued under the Royal Decree 50/2019, from Thursday, January 2, 2020. This is in accordance with the provisions of Article 5 of the decree which says that the law will come into force after six months from the date of its publication in the official gazette. The new law will help in making the environment for investment attractive for investors and create appropriate conditions for it. This is in view of the competition among various countries of the world to attract investments. The law enshrines a number of incentives, privileges and guarantees to support foreign investment inflows into the Sultanate.

Eng Ibrahim al Mamari (pictured), Chief Executive Officer of the Investment Services Centre at the Ministry, said the provisions of the new Foreign Capital Investment Law are applied to every non-Omani natural or juristic person who sets up an investment project in the Sultanate, using his capital and assets for the project which is economically feasible for the country. He said the Law has many incentives and benefits to encourage the stability of foreign investments in the Sultanate because of its impact on economic development. It allows the investor to establish a company in one of the permitted activities and own the entire capital of the company.

There is no limit of the capital for the companies established under this law, provided the foreign investor adheres to the timetable submitted by him to implement his project and approved in accordance with the economic feasibility study. It does not allow any fundamental changes in the investment project without the ministry’s approval. Al Mamari said: The investment laws play an important role in attracting foreign investments. It helps in flow of capital for establishment of companies to absorb the giant economic projects wanted by the Sultanate. It increases the level of efficiency of operating companies and helps in transfer of economic expertise and modern investment technologies. This leads to the diversification of economic base and has positive impacts.