Oman rolls out new investment rules for special economic and free zones

Oman has recently implemented new regulations for investment in its special economic and free zones, simplifying licensing and land allocation processes, and outlining rules for foreign property ownership, investor residency, and real estate development. The Public Authority for Special Economic Zones and Free Zones (OPAZ) issued these executive regulations under Resolution No. 81/2026, following the enactment of the Special Economic Zones and Free Zones Law via Royal Decree No. 38/2025.

The framework encompasses the entire investment process, from land and property allocation and licensing to project operations, services, incentives, exemptions, compliance, and real estate development. Oman's objective is to enhance the investment climate, boost competitiveness, and lure high-value and strategic projects by offering investors clearer regulations and a more efficient business environment.

Qais bin Mohammed Al Yousef, Chairman of OPAY, stated that these regulations mark a crucial step in finalizing and unifying the legislative structure governing investment in the zones. He emphasized that clear standards for strategic projects would enable authorities to respond more flexibly to individual requirements and economic impacts, expediting procedures and providing investors with enhanced certainty.

A significant aspect of the new rules is the expansion of the one-stop shop system as the primary channel for investor services. This platform will handle applications for land and property allocation, licenses, approvals, permits, and certificates, with electronic links to relevant government authorities. The regulations also facilitate electronic payments and better integration of government data and systems, while safeguarding the confidentiality of investor information.

Real estate development is another critical focus area. The regulations establish rules for licensing projects and off-plan sales, granting expatriates ownership of freehold property units in qualifying developments. They also strengthen buyer protections through escrow account requirements, which include financial and technical conditions that developers must meet before marketing or advertising units for sale. Escrow account withdrawals will be regulated to ensure funds are utilized as intended.

Additionally, the regulations outline provisions for expatriate investors and foreign property owners and their spouses and first-degree relatives, subject to applicable legislation. These measures form part of Oman's broader strategy to attract investment and make its special economic and free zones more attractive destinations for international and domestic businesses.

Oman has also eased residency rules, granting sponsor-free visas for foreign property owners, and established an AI Special Zone in Muscat to target investment and job creation.