BUSINESS REPORTER
MUSCAT, SEPT 1
The Ministry of Commerce, Industry, and Investment Promotion has issued Ministerial Decision No 435/2024, which adds 28 activities to the list of sectors reserved exclusively for Omani investors. This amendment modifies the previous Ministerial Decision No. 209/2020 and brings the total number of activities off-limits to foreign investors to 123.
The decision aligns with Article 14 of the Foreign Capital Investment Law, established under Royal Decree No. 50/2019, which mandates the issuance of a list of activities prohibited for foreign investment by the Minister. This strategic move aims to strike a balance between attracting quality foreign investments and promoting Omani entrepreneurial ventures, particularly in small and medium enterprises (SMEs), which are crucial for the national economy.
By expanding the list of restricted activities, the Ministry intends to create more opportunities for Omanis to establish their own businesses, thereby fostering job creation and economic growth. The decision also emphasizes the importance of preserving Omani heritage and national identity, ensuring that sectors related to these areas remain under local control.
Among the newly added activities are several traditional crafts, including the production of handicrafts using flowers, herbs, frankincense, leather, palm leaves, wood, and metals. Other activities now restricted to Omani investors include the retail of construction scrap materials, operation of mobile cafes, freshwater aquaculture, and management of LPG filling stations, among others.
According to Article 2 of the decision, any provisions conflicting with this amendment are now nullified, while Article 3 specifies that the decision will take effect the day after its publication. Existing foreign investments in the affected sectors will not be impacted unless transferred, which would require approval from the Ministry.
Despite the restrictions, Oman remains an attractive destination for foreign investment, as evidenced by a 19.3 per cent growth in foreign direct investment (FDI) by the end of the first quarter of 2024, reaching RO 25.38 billion, compared to RO 21.27 billion in the same period in 2023. The Foreign Capital Investment Law allows foreign ownership of up to 100 per cent in over 2,000 commercial and industrial activities, underscoring the country’s commitment to creating a competitive and stable investment environment.
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