Doing business in Oman

The Sultanate of Oman has established itself as one of the Middle East’s most attractive investment destination, offering political stability, a strategic geographic location and a progressive business environment. Positioned at the crossroads of Asia, Africa and Europe, Oman provides businesses with efficient access to regional and international markets through its modern ports, airports and expanding logistics network.

Driven by Oman Vision 2040, the country continues to implement reforms that promote economic diversification, attract foreign investment, and strengthen private sector. Investors benefit from a transparent legal framework, opportunities for 100 percent foreign ownership in most sectors, competitive tax policies and an expanding network of free zones and special economic zones.

The guide provides practical insights into Oman’s legal, regulatory, tax and commercial landscape, helping businesses understand the key considerations for establishing and growing their presence in the Sultanate.

We hope you find this guide useful for your organizations, and our dedicated teams are available to respond to any of your inquiries about doing business in Oman.

Setting up a business in Oman

The Commercial Companies Law (CCL), effective from April 2019 vide Royal Decree 18/2019, and the Foreign Capital Investment Law (FCIL), effective from January 2020 vide Royal Decree 50/2019, allow for 100 percent foreign investment in certain forms of Omani entities. This includes all activities except those specified in a negative list.

Based on the practices of the Ministry of Commerce, Industry and Investment Promotion (MOCIIP), foreign companies intending to hold shares in an Omani entity need to be incorporated for a minimum period of three years. They also need to provide evidence in the form of an authenticated or apostilled copy of the company’s articles of association, a certificate of incorporation, along with the last three years’ audited accounts to demonstrate financial standing. Where these conditions are not fulfilled, specific dispensation is required from the relevant authorities.

In addition, certain activities, such as banking and finance, tourism, telecommunications, manufacturing, food and beverage, schools and hospitals, and employment agencies, require specific licenses or permits to operate.

Economic Zones

Until 2022, Oman had one Special Economic Zone, Duqm, and three Free Zones, Sohar, Salalah and Al Mazunah. Each zone offers several incentives (including tax incentives), subject to specified conditions. The incentives are not necessarily automatic and may need to be applied for separately.

Spread over 2,000 km² with a 90 km coastline along the Arabian Sea, the Duqm Special Economic Zone is divided in key zones that include the Port of Duqm, Oman Dry Dock, Duqm Airport, Duqm Refinery, industrial, fisheries, tourism and renewal energy zones.

Spread over 65 km² the Sohar Free Zone is divided in key zones that include metals clusters, petrochemical clusters, logistics cluster and food cluster.

Located 5 km from the Port of Salalah and 12 km from the Salalah International Airport, the Salalah Free Zone is strategically located to offer proximity to Africa, Asia and the Middle East.

Spread over 14.5 km² the Al Mazunah Free Zone is managed by the Public Establishment for Industrial Estate (Madayan).

Spread over 1.7 km², Muscat International Airport Free Zone is located just 2 km from the airport’s air-cargo terminal and is designed to support light industries, e-commerce, aviation logistics, and high-value manufacturing.

Sohar Airport Free Zone, part of the larger Sohar economic ecosystem, complements Sohar Port and Sohar Free Zone. Positioned near major industrial clusters, the zone is suitable for businesses requiring both air and sea connectivity — particularly logistics companies, perishables handling, and light manufacturing.

Salalah Airport Free Zone is located in Dhofar Governorate and complements Salalah’s strong logistics network, including the Salalah Port. This zone supports sectors such as air cargo logistics, agro-processing, pharmaceuticals, light industries, and distribution. Its key strength is serving markets in East Africa, the Indian subcontinent, and Yemen, supported by Salalah’s advantageous geographic positioning.

Planned over 388 km², Dhahirah Special Economic Zone is located in the Wilayat of Ibri near the border with Kingdom of Saudi Arabia. The zone is designed as a cross-border logistics and industrial hub featuring key dry port and infrastructure projects.

Located in Barka, Al Batinah South Governorate, Khazaen Economic City is an integrated logistics and industrial hub that includes designated Free Zones, a dry port, residential communities, and commercial facilities.

Located in the Wilayat of Mahdah near the border with the United Arab Emirates, Rawdah Special Economic Zone offers a 200,000 sqm dry port to supports sectors such as chemicals, food processing, metals and logistics.

On 13 January 2026, the law establishing the International Financial Center of Oman (IFC) took effect. Oman’s objective in establishing the IFC is to position itself as a global financial hub, attract international and regional capital, increase the financial sector’s contribution to the economy, support economic diversification, and provide a predictable tax and legal framework aligned with international standards and best practices for eligible establishments.