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Oman restricts 28 new activities from receiving foreign investment

Oman’s Ministry of Commerce has updated the list of activities reserved for Omani investors only.

Muscat, Oman
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Oman’s Ministry of Commerce, Industry, and Investment Promotion has updated the list of activities prohibited for foreign investment, restricting them to Omani investors exclusively, The Times of Oman has reported.

The Ministerial Decision No. 435/2024 amends certain provisions of Ministerial Decision No. 209/2020, to add 28 activities to the list of those excluded from receiving foreign investment. The decision aligns with Article 14 of the Foreign Capital Investment Law under Royal Decree No. 50/2019.

The decision will take effect the day after its publication. Existing investment projects at the time of implementation cannot be transferred without written approval from the Minister of Commerce, Industry, and Investment Promotion or his delegate.

The primary aim is to provide an incentive for Omanis to establish their businesses and create new job opportunities for citizens. The total number of restricted activities has now reached 123.

The newly prohibited activities include:

  1. Production of handicrafts by distilling flowers and herbs
  2. Production of handicrafts for frankincense water and oil
  3. Production of leather handicrafts
  4. Production of palm leaf handicrafts
  5. Production of wood handicrafts
  6. Production and preparation of incense
  7. Production of handicrafts for cosmetics and perfumes
  8. Production of pottery and ceramics
  9. Production of stone and gypsum handicrafts
  10. Production of silver handicrafts
  11. Production of copper and metal handicrafts
  12. Production of aluminum handicrafts
  13. Production of traditional fishing tools
  14. Production of bone-derived handicrafts
  15. Skin care services
  16. Event and furniture rental
  17. Retail in specialized stores for scrap materials (including scrap iron trade)
  18. Retail in specialized stores for drinking water (excluding production and transportation)
  19. Cultivation of live plants for planting, decoration, and seedlings (nurseries)
  20. Sale of used vehicles
  21. Mobile cafes
  22. Freshwater aquaculture
  23. Mailbox rental services
  24. Public scribe services
  25. Sand Services Center
  26. Management and operation of LPG filling stations (cooking gas)
  27. Collection of used batteries and oils
  28. Grocery stores

The Foreign Capital Investment Law applies to any natural or legal person who is not Omani and establishes an investment project in Oman, creating an attractive investment environment by granting incentives, privileges, and guarantees.

Foreign ownership in companies is allowed up to 100%, and foreign investors can invest in over 2,000 commercial or industrial activities.