What are the sources of finance for the investors?
Commercial banks are the primary source of short, medium and long term credit.
There is no restriction to obtain credit from aboard. Oman Development bank provides finance to corporate small and medium sized companies and small projects.
The maximum lending is RO one million.
Investors may also obtain financing from Gulf Investment Corporation, an institution established by GCC countries. Its head office is in Kuwait and it invests in equity and provides loans to new ventures.
Incentives for foreign investors
The government’s strategy of diversifying the economy is reliant on attracting foreign direct investments into the country; therefore, the government offers several attractive incentives for foreign investors.
Industry Sector Incentives
Income Tax Customs Duty General
Industry and mining
- 5 year tax exemption (renewable for another 5 years under condition)
- Tax losses incurred. During tax exemption may be claimed against future profits (no time bar unit)
- No personal income tax
- Exemptions on import of plant, machinery & raw material for 5 years from commencement of production (renewable once)
- Repatriation of capital & profits of the project permissible
- The businesses may not be confiscated/ expropriated unless in the public interest with equitable compensation
- No import registration (upon approval of relevant authority) – import of production accessories, material, machinery, spare parts and appropriate means of transport
- Export of locally manufactured / processed products
- Tourism promotion operation of hotels and tourist villages (excluding management contracts)
- Production & processing of farm products, poultry farming, processing/ manufacturing animal products and agro industries
- Fishing, fish processing & fish farming, public utility projects (excluding management contracts & project execution contracts)
- Universities, higher education institutes, schools, kindergartens and training colleges, hospitals and medical education institutes
- Expansion (increase in capital-increased fixed assets for: increased production capacity, new products, new services/ activities) of the above businesses are also entitled to the above concessions
- Industrial installations
The Commercial Companies Law (Royal Decree No. 4/1974) governs:
- General partnerships
- Limited Partnerships
- Joint Ventures
- Joint-stock Companies
- Limited Liability Companies (LLC) and
- Holding Companies in Oman.
The Commercial Law (Royal Decree No 55/90) provides for the regulation of merchants and other commercial activities, including commercial obligations and contracts, commercial instruments and bankruptcy related matters.
Commercial registration (Commercial Registration Law (Royal Decree No. 3/74))
All businesses are required to be registered in the Commercial Register at the Ministry of Commerce & Industry. Business entities are required to quote their Commercial Registration Number (CR) on all official documentation. The Commercial Register may be accessed by the public.