There is great interest from foreign investors to establish productive, industrial, and commercial projects in the Sultanate of Oman. However, the substantial facilities made available to the foreign investor are often not utilized if the primary objective of investor concerned is to obtain a residency visa to stay in the country for multiple years. This facility to work in Oman has been exploited by some to compete with small Omani merchants and entrepreneurs.
The Ministry of Commerce, Industry, and Investment Promotion, which is responsible for granting commercial registrations, has realized this matter, and has taken several steps to stop those breaching local decisions and laws. However, the volume of commercial registrations confirms that the issue needs continuous monitoring. On the other hand, many large investors have succeeded in establishing projects that serve the national economy and create opportunities for the people of the country to work in several projects. Thus, while the focus should remain on attracting foreign investment, measures should be reinforced to curb the potential for misuse of this channel by some. Indeed, the issue was discussed during the annual media briefing of the ministry, attended by their excellencies, the Minister and Under-Secretaries.
Commercial registrations granted via the Invest Oman platform totalled 437,858 registrations by the end of December 2023, compared to 386,537 registrations in 2022. The Ministry pledged to improve the business environment, exercise flexibility, and enhance services through its multiple platforms established for this purpose. These efforts have led to the strengthening of Oman’s position as an important destination for investment. Besides, these platforms have boosted awareness of the laws and legislations governing the business environment in Oman.
The Minister mentioned that a foreign investor who does not complete his procedures regarding opening a bank account or carrying out his mandated responsibilities, such as employing Omani staff or engaging in hidden, it will be obliged to cancel his registration.
Indeed, the fight against hidden trade has been continuing since the formation of the national team tasked with combating this phenomenon. To deter this practice, the Ministry has granted investor residency visas to around 3,700 foreigners. But because of the failure of some to adhere to the laws, the ministry evaluated the work of all these investors and detected violations by some who were notified to rectify their situation.
The volume of investment in the country is increasing annually despite the unfortunate actions some investors. It soared to about RO 25.050 billion until the end of the third quarter of 2023, representing an increase of RO 4.821 billion, compared to the third quarter of 2023. This increase validates Oman’s investment policies, which continue to deliver positive returns overall to the national economy.
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