The Ministry of Commerce and Industry (“MOCI”), has recently brought into force a new Foreign Capital Investment Law (“FCIL”) promogulated by Royal Decree No: 50/2019, effective as of 2 January 2020. The law has revitalized the regulations and administrative processes applicable to foreign investment in Oman.
The new procedures improve the speed and efficiency of company registration for foreign investors as the requirements and conditions have been simplified. Importantly, 100% foreign ownership is now possible and local participation is no longer mandatory.
Furthermore, MOCI will now impose a flat fee of 3,500 OMR. This figure previously varied depending on certain factors.
However, it is worth noting that foreign investment in certain activities is restricted if the company is owned 100% by a foreign investor. MOCI has published a list of 37 activities in this regard.
Companies also need to comply with the new Commercial Companies Law issued by Royal Decree No. 18/2019.
In 2020 BSA Al Rashdi and Al Barwani, advocates and legal consultants will continue providing expert support and professional services to foreign companies and investors in Oman.
Please contact us should you require any further details. Our corporate team would be delighted to assist.
Authored by Ralph Hejaily, Head of Corporate Practice Oman.