New foreign investment law comes into effect this week

Muscat: The Ministry of Commerce and Industry (MOCI) will implement foreign capital investment law issued by Royal Decree 50/2019, from January 2, 2020.

Article five of the Royal decree stated that 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 counties of the world to attract investments. For the purpose,  incentives, privileges, and guarantees were being given which are expected to help stabilize foreign investments in the Sultanate of Oman.

The chief executive officer of the Investment Services Center of the Ministry of Commerce and Industry said that the provisions of the new foreign capital investment law is applied on every non-Omani natural or legal 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 that the Foreign Capital Investment Law has many incentives and benefits to encourage the stability of foreign investments in the Sultanate because of its impact on economic development.

The Foreign Capital Investment Law 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 the inflow of capital for the 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 the transfer of economic expertise and modern investment technologies. This leads to the diversification of the economic base and has positive impacts.

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