Foreign Ownership Regulations in Oman

Published on October 21, 2025 and written by Cyril Jarnias

Oman, a Middle Eastern country located on the southeastern coast of the Arabian Peninsula, offers numerous opportunities for foreign investors. However, as in many countries in the region, there are specific regulations regarding foreign ownership. This article will guide you through the essential aspects of real estate investment in Oman for non-residents.

The Legal Framework: Between Openness and Control

The Sultanate of Oman has significantly relaxed its foreign ownership laws in recent years, as part of its economic diversification strategy and to attract foreign direct investment. However, certain restrictions remain in place to preserve national interests.

Permitted Areas for Foreign Investment

Foreigners are allowed to purchase real estate in specifically designated areas, called “Integrated Tourism Complexes” (ITCs). These zones were created to promote high-end tourism and residential development. Among the most well-known ITCs are:

• The Wave, Muscat
• Muscat Hills
• Jebel Sifah
• Al Mouj
• Hawana Salalah

In these areas, foreigners can acquire properties with full ownership rights, similar to those of Omani citizens.

Restrictions Outside Designated Areas

Outside ITCs, the purchase of real estate by foreigners is generally limited. Non-Omanis cannot buy land or properties in most residential or commercial areas of the country. However, there are exceptions for certain government-approved development projects.

The Approval Process: A Regulated Procedure

Acquiring real estate by a foreigner in Oman requires following a rigorous approval process. Here are the main steps to follow:

1. Property Identification

Begin by identifying a property in a permitted area (ITC). It is recommended to work with a licensed real estate agent who is familiar with local regulations.

2. Eligibility Verification

Ensure that the chosen property is indeed available for purchase by foreigners. Some properties within ITCs may be reserved for Omani citizens.

3. Approval Application

Submit an approval application to the Ministry of Housing and Urban Planning. This application must include:

• A copy of your passport
• Detailed information about the property
• Proof of financial solvency
• A clean criminal record certificate

4. Application Review

The authorities will review your application, which may take several weeks. They will particularly verify that the purchase does not pose a national security issue.

5. Obtaining Approval

Once approval is obtained, you can proceed with the property purchase. Registration is done with the Ministry of Housing and Urban Planning.

Rights and Responsibilities: What You Need to Know

Once you own real estate in Oman, you benefit from certain rights but must also comply with specific obligations.

Rights of Foreign Owners

• Full Ownership: In permitted areas, you hold full ownership of the property.
• Right to Resell: You can resell your property to another foreigner or an Omani citizen.
• Inheritance: The property can be passed on to your heirs according to Omani laws.
• Residence Visa: Purchasing a property valued over 250,000 Omani rials (approximately $650,000) entitles you to a renewable residence visa.

Obligations to Respect

• Compliance with Local Laws: You must adhere to all Omani laws and regulations concerning real estate ownership.
• Tax Payments: Although Oman does not impose an annual property tax, you will need to pay registration fees upon purchase (approximately 3% of the property value).
• Property Maintenance: You are responsible for maintaining your property in accordance with local standards.
• Usage Restrictions: Property use must comply with zoning rules and specific ITC restrictions.

Expert Tips for a Successful Investment

Investing in real estate in Oman can be a rewarding experience, but certain precautions should be taken. Here are some tips to maximize your chances of success:

1. Do Your Research

Before committing, thoroughly study the Omani real estate market. Understand price trends, developing areas, and the country’s economic outlook.

2. Work with Local Professionals

Hire a reputable real estate agent and a lawyer specializing in international real estate transactions. Their local expertise will be invaluable in navigating market complexities.

3. Visit in Person

If possible, visit Oman and the properties you’re interested in before purchasing. This will give you a better understanding of the environment and property quality.

4. Understand Tax Implications

Consult a tax advisor to understand the tax implications of your investment, both in your home country and in Oman.

5. Consider the Long Term

Real estate investment in Oman should be considered for the long term. Markets may fluctuate, but the country’s political and economic stability makes it an attractive destination for patient investors.

6. Diversify Your Investments

Don’t put all your eggs in one basket. Consider real estate investment in Oman as part of your overall investment portfolio.

7. Stay Informed About Regulatory Changes

Foreign ownership laws may evolve. Stay informed about potential changes that could affect your investment.

In conclusion, investing in real estate in Oman offers interesting opportunities for foreign investors, despite certain restrictions. With a thorough understanding of regulations, proper due diligence, and professional advice, you can successfully navigate the Omani real estate market. The combination of an evolving legal framework, a diversified economy, and a developing real estate market makes Oman a destination to seriously consider for international real estate investors.