Quality Government investment incentives offered in Oman
Oman is a welcoming country to foreign investors who are willing to invest in both non-oil as well as hydrocarbon sector of the economy. Therefore, companies setting up in free zones in Oman are eligible for various incentives and facilities as follows:
- Income tax holiday period for the first 5 years from the date of commencement of production or activity, for businesses in the priority sectors of i) manufacturing and mining; ii) tourism and iii) agriculture and fisheries;
- As a part of Oman’s Vision 2020, the Sultanate has implemented the Invest Easy portal to ensure efficient and simplified business setup procedures for foreign investors.
Incentives for export-oriented companies
- The Sultanate is associated with major trade organisations and agreements including WTO, GCC common market and GAFTA. Thereby, reducing the costs and complexity of procedures involved in exporting to all member nations;
- Entitlement to numerous Free-Trade agreements with nations of prime importance such as US, Singapore, Iceland, Switzerland and Liechtenstein that have a dynamic consumers market;
- All non-oil exporting companies in Oman are provided export credit insurance by the Export Credit Guarantee Agency (ECGA). This significantly reduces the risk exposure of our multi-national Clients having an export company in the Sultanate.
Incentives for manufacturing companies
As per the law for Organisation and Encouragement of Industry, manufacturing companies can benefit from a range of incentives subject to Industrial Development Committee’s recommendation, including:
- Complete exemption from customs duties on imports of machinery and raw materials;
- Provision of all utilities including electricity, water and gas at a subsidised rate;
- Entitlement to government soft loans.
Incentives for transport and logistics companies
- Oman has a total of 3 free zones, 2 SEZs and 8 Industrial Estates including i) Al Mazunah; ii) Sohar; iii) Salalah and iv) Duqm SEZ. Consequently, companies incorporated in these free zones are entitled to full exemption from corporate taxes and customs duties as well as other non-tax benefits. To get a detailed insight regarding all the Free zones in Oman, you can refer to our Oman free zones webpage;
- Currently, the Sultanate is working towards expansion of Muscat International Airport. Moreover, Oman’s prime trans-shipment port Salalah is also being upgraded. Thereby, making it an ideal transport and logistics hub for multi-national companies;
- Oman’s National Railway project aims to link all the prime development areas of the country with a single railway network. Further, it is also connecting the Sultanate’s Salalah port with railway networks of all the GCC nations.
Incentives for ICT companies
- From 2016, the ICT sector has been opened to foreign investors in Oman. The Knowledge Oasis free zone in Muscat offers attractive incentives including i) complete foreign ownership; ii) 100% exemption from personal taxes and iii) duty-free access of products from Oman to GCC nations;
- The Sultanate is working towards expanding its fibre-optic infrastructure to cover 90% of Muscat Governorate by the year 2021. By 2030, it also aims to connect 95% of the urban areas with broadband network.
Incentives for oil and gas sector
- The Sultanate incentivizes International Oil Companies (IOCs) for exploration and developmental activities focusing on extraction of hydrocarbons that are difficult to recover. Benefits include i) favourable contract terms; ii) generous terms for development of a hydrocarbon field that requires sophisticated tools and mechanisms;
- Oman witnessed an increase in its oil production in the recent years due to the implementation of its new Enhanced Oil Recovery (EOR) techniques;
- The Sultanate is also investing in modernisation of its ageing oil and gas infrastructure as a part of its eighth 5-year plan.
Let us know if you need Healy Consultants Group PLC’s assistance to determine how to effectively and efficiently avail the government incentives for your Oman business setup.