FAQ

Oman is highly competitive for business due to its strategic location, acting as a gateway to Gulf, Asian, and African markets. The country provides a stable political and economic environment, crucial for business confidence. Investments in infrastructure, like modern ports and roads, enhance logistics. Oman’s business-friendly policies, including tax incentives and streamlined setup processes, increase its attractiveness. The Vision 2040 plan focuses on economic diversification and private sector growth, promising long-term opportunities. Additionally, a skilled workforce and commitment to sustainable development align with global business trends, making Oman an advantageous business environment.

Oman offers numerous benefits to investors through over 105 agreements, including FTAs and bilateral investment treaties. Key benefits include:

GCC Membership: Facilitates free movement of goods within a unified customs union.

US-Oman FTA: Allows 100% ownership for U.S. investors and exempts customs duties on exports to the U.S.

GCC-Singapore FTA and EFTA Agreement: Reduces customs duties and eases market access to Singapore and EFTA countries.

GAFTA: Promotes free movement of goods among Arab League nations.

WTO Membership: Ensures a stable, transparent trading environment.

Double Taxation Agreements: Prevents double taxation with 34 treaties.

Bilateral Investment Treaties: Protect and promote foreign investments.

These agreements provide access to key markets, reduced barriers, and enhanced protections, making Oman an attractive investment destination. For more information, visit Invest Oman.

Special Economic Zones (SEZs): In Oman, SEZs offer a comprehensive environment for various economic activities, including industrial, commercial, residential, and recreational services. They provide greater flexibility, autonomy, and a broader range of incentives compared to Free Zones.

Free Zones (FZs): These zones cater to businesses focusing on foreign markets, offering specific regulations and incentives. Free Zones in Oman facilitate international trade with economic benefits and bonded regime conditions, ideal for companies prioritizing trade abroad.

Industrial Cities: Targeting local and GCC markets, Industrial Cities in Oman benefit from free trade agreements within the GCC. Products manufactured in these cities are exempt from customs tax in GCC countries, promoting local and regional trade.

Each type of zone supports different aspects of economic development and trade in Oman, offering distinct benefits and regulations tailored to their target markets.

OPAZ operates under six strategic pillars: Plan & Develop, Regulate & Supervise, Facilitation & Aftercare, Market & Attract, Activate & Accelerate, and Organization Excellence. These pillars guide OPAZ's actions to develop and regulate the zones under its authority, ensuring they provide a business-friendly and sustainable investment environment.

OPAZ Zones target a wide array of industries across Oman's zones. The primary sectors include:

Green Energy: Focusing on advancements in green hydrogen and its derivatives, as well as green steel and downstream applications.

Petrochemicals: Significant emphasis on the petrochemical industry and its various applications.

Industrial Manufacturing: Encompassing sectors such as plastics, steel, renewable energy, and chemicals.

Technology and Data: Innovation in data centers and technological advancements.

Pharmaceuticals and Healthcare: Development in pharmaceuticals and related healthcare industries.

Agriculture and Food: Emphasizing fresh produce, food processing, and the vibrant food and fish industries.

Logistics and Supply Chain: Streamlined logistics solutions to support various industries.

These targeted sectors reflect OPAZ’s strategic emphasis on innovation, sustainability, and comprehensive economic growth across diverse domains.

OPAZ Zones offer several competitive advantages for investors and businesses. These include tax exemptions for up to 30 years, 100% foreign ownership, full repatriation of capital and profits, a transparent legal system, and zero import or re-export duties. Additionally, Oman's modern business law framework, respect for free markets, strategic location, and business-friendly environment contribute to its attractiveness as an investment destination. For more detailed information, please visit each Zones' website.

Businesses in OPAZ Zones benefit from several tax incentives and exemptions that include:

• Customs Duties: There is a 100% customs exemption for exproted products (excluding the local market).
• VAT: The standard 5% VAT is not applicable in the Special Economic or Free Zones.
• Corporate Income Tax: 100% Exemption for all qualifying companies.

For more detailed information or assistance, you can contact OPAZ directly.

To register a business for tax exemptions in OPAZ Zones, follow these steps:

1. Business Registration: Register your company with the Ministry of Commerce, Industry and Investment Promotion (MOCIIP), obtain a commercial registration certificate from the OCCI, and secure necessary licenses from the relevant Zone Operator.

2. VAT Registration: Apply for VAT registration through the Tax Authority Portal, providing the commercial registration certificate, business license, and proof of valid registration.

3. Apply for Tax Exemptions: Complete the “Tax Exemption Form for Companies in Special Economic Zones and Free Zones,” including detailed business information and attach required documents such as the commercial registration certificate, project licenses, and Omanization certificate.

4. Comply with VAT Administration Requirements: Ensure goods and services supplied to or within the Zones meet conditions for zero-rating, maintain accurate records of all VAT-related transactions, and comply with reporting requirements.

Foreign workers in Oman can obtain a single type of work visa, which varies based on the duration of employment. The available durations for these work visas are as follows:

2-Year Work Visa: Ideal for long-term employment or projects that require extended commitments.

9-Month Work Visa: Suitable for medium-term projects or seasonal work that spans several months.

6-Month Work Visa: Designed for short-term assignments or temporary roles that need a half-year commitment.

4-Month Work Visa: Best for very short-term projects or temporary work that lasts only a few months.

Each visa type is tailored to match the length of the employment term or project duration, providing flexibility for both employers and foreign workers. For further details on the application process and requirements, it’s advisable to contact OPAZ directly on 1919.

Omanization rates in OPAZ Zones vary to support local employment and investment needs. These rates generally range from 10% to 35%, depending on the specific zone and its operational requirements. For example, some zones like Salalah Free Zone and Duqm Special Economic Zone have a lower Omanization rate around 10%, designed to facilitate business operations and attract new investments. In contrast, zones like Khazaen Economic City and Madayn Industrial Cities have higher Omanization rates up to 35%, focusing on integrating local talent into various industries. This range ensures a balanced approach to economic development and workforce localization within Oman.

In OPAZ Zones, legal entities that can be registered include:

1. General Partnership
2. Limited Partnership
3. Joint Venture
4. Joint Stock Company (public / closed).
5. Holding Company
6. Limited Liability Company (LLC)
7. One-Person Company

Additionally, you can register:

• New sole proprietorships
• Branches of local or international trading companies

For more information, please contact OPAZ Call Center 1919 .

Here is a summary of the steps you will need to follow to register a company in an OPAZ Zone:

Initial Preparation:
Choose the legal form and OPAZ Zone for your business.

Document Collection:
Gather identification for all shareholders.
Obtain notarized and attested documents for foreign corporate shareholders.

Registration:
Register online via the Oman Business Portal or visit a Sanad Service Center.
Complete the application and upload required documents.

Fee Payment:
Pay applicable fees online (Company Registration Fee, Oman Chamber of Commerce and Industry Fee, and any administration fees).

Submission and Verification:
Submit the application and await review by the Zone Operator.

Completion:
Receive your Company Registration Number and necessary certificates.
Registration is valid for five years and must be renewed thereafter.

For further assistance, please contact OPAZ call center on 1919.

To register a company in an OPAZ Zone, you need the following documents:

For all shareholders:
Copies of identification (passports for non-Omani and ID cards with Civil Number for Omani nationals).

If a shareholder is an existing corporation outside Oman:
Notarized and attested documents including:

• The parent company’s Commercial Registration.
• Board Resolution authorizing the formation of the company in the special economic zone or free zone (signed by shareholders).
• The company’s Articles of Association.

Approval:
All the above documents must be approved by the Omani Embassy in the origin country and the Ministry of Foreign Affairs at the origin country via an official stamp.

When choosing a company name in Oman, ensure it follows the commercial trade law and is unique. Your name should be in Arabic or translated to Arabic unless it’s for a foreign company branch. Avoid names that are similar to known businesses or organizations, and steer clear of political, religious, or offensive content. Make sure the name doesn’t misrepresent Oman’s geography or infringe on any property rights. Remember, a branch can’t have a separate name from the main business, and using “Oman” or “Omani” is restricted unless you have Omani partners or are fully Omani-owned. If you need more guidance, feel free to reach out to OPAZ at info@opaz.gov.om.

The commercial registration certificate is valid for 5 years and any amendments can be registered as they occur. When registering with the Oman Chamber of Commerce and Industry, you will have the option of registering for 1 or 2 years.

OPAZ Zones issue various categories of Business Activity Licenses, including:

1. Commercial
2. Industrial (3 different categories)
3. Tourism (4 different categories)
4. Mining
5. Services (for outside contractors registering to provide services to Free Zone companies)

These licenses cover a wide range of business activities to support diverse industry needs within the zones. For more information, feel free to contact OPAZ at info@opaz.gov.om.

Environmental permits in OPAZ zones are categorized based on the level of environmental risk associated with business activities: Category 1 (Heavy) for high-risk activities requiring an Environmental and Social Impact Assessment Study (ESIA), Category 2 (Medium) for medium-risk activities needing an Environmental Management Plan (EMP), and Category 3 (Light) for low-risk activities that must comply with general environmental conditions. These categories ensure adherence to appropriate environmental standards.

To obtain an environmental permit in OPAZ Zones, first determine the category of your business activity based on its environmental risk: Category 1 (Heavy), requiring an Environmental and Social Impact Assessment Study (ESIA); Category 2 (Medium), needing an Environmental Management Plan (EMP); or Category 3 (Light), which must comply with general environmental conditions. Prepare the necessary documentation accordingly. Submit these documents to the Zone Operator for review, with Category 1 submissions being forwarded to OPAZ for final approval. Once approved, finalize your documentation through the Oman Business Platform (OBP). After establishment, apply for the necessary Environmental License through the Zone Operator. Stay updated with regulatory changes and consider working with an environmental consultant to ensure compliance. For more information, contact OPAZ.

Oman has been actively investing in its ICT infrastructure and digital capabilities to foster economic diversification and enhance its global competitiveness. The quality and ease of use of Oman's ICT infrastructure is now widely recognized – with Oman rising up the ranks of the eGovernment Development Index from 98th place in 2003 to 50th place in 2022.