Segal Business Center – Oman Branch

Investment Advice in Oman

In recent years, the Omani government has made extensive efforts to realize a sustainable economy and attract international investments. A sustainable economy means developing and growing financial resources to meet the needs of people and even future generations. Oman has rich natural and mineral potential and attracts many investments in oil and gas, precious metals, and tourism sectors. Also, this country has effective laws and regulations to support foreign and domestic investments. To create a sustainable economy, Oman invests in developing renewable energy, reducing pollution, promoting agriculture, and diversifying the industrial and service sectors. Also, improving infrastructure and economic productivity is considered among its priorities in line with investment in Oman.

Oman is recognized as a favorable environment for investment in the region with its financial facilities, fast investment permits, and simpler business processes. Also, focusing on training and creating a skilled workforce is another part of Oman’s sustainable economic strategies. In short, due to natural potential and effective laws, Oman realizes a sustainable economy by attracting smart investments. It also deals with sustainable development and the social welfare of future generations.

Business opportunities in Oman

Due to the accessibility of global markets in Oman, when you register a company in Oman, you can easily access international markets. So your field of work will expand.

Booming economy in Oman

Oman is known as one of the economically developing countries in the Middle East region. As we said, this country has access to global free markets. This issue has made the economy boom in Oman, and as a result, people who have investment intelligence can take advantage of this opportunity for a promising investment.

Government support for entrepreneurs

To keep its economic situation progressing and bring social welfare to the people, the government of Oman strongly welcomes foreign investors and entrepreneurs. In this regard, it considers financial and tax facilities for them.

Export through Oman

As we said, the position of Oman is such that it has easy access to the countries of the world through open waters. So the best way is provided for you with the lowest cost; Export extensively through Oman and expand your business scope.

Visa and work permit in Oman

Do you know that by registering a company in Oman, you will be issued a work permit in this country and receive a visa? In fact, without needing a job offer or a job offer, you can easily work in your field of work in the company.

The stability of the political situation in Oman

One of the most important factors that affect businesses is the political situation in a country. Oman has peaceful political relations with other countries. This issue has caused political stability in this country and makes the conditions suitable for business.

The developing industry of Oman

The most important profitable and promising industries in Oman include oil and gas industries, tourism, agriculture, mining, services, and manufacturing industries. Definitely, by investing in these industries that have a very high growth potential, you will provide yourself with a bright future.

Simple worker’s rights

According to the laws of Oman, if you hire a worker for your company, his salary will be between 150 and 400 rials. Therefore, you can hire a simple worker for your company at a very reasonable cost.

Disadvantages of Company Registration in Oman

But along with the advantages we mentioned for registering a company in Oman, there are limitations such as the complicated laws of this country. Company registration rules in Oman are a bit complicated and time-consuming. Therefore, if you have immigration companies by your side, you can go through the legal and administrative processes much faster and avoid getting involved in these complicated laws.

Establishing in industrial estates

Oman’s industrial estates offer attractive opportunities for both local and foreign investors. They can help make Oman more attractive to investors by offering a range of benefits, including low rent and energy costs, a 5-year corporate tax exemption, customs exemptions, access to land and buildings for industrial development, and access to amenities and services.

Oman has 13 industrial estates, which are managed by the Public Establishment for Industrial Estates (PEIE). The Public Establishment for Industrial Estates (PEIE) provides a range of facilities and services, including land and buildings for industrial development, nearby hotels for guests and employees, banking and restaurant facilities, telecommunications infrastructure, and retail outlets.

Public Establishment for Industrial Estates (PEIE)

[Public Establishment For Industrial Estates] The Public Establishment for Industrial Estates (PEIE) is responsible for the development and management of industrial estates in Oman. The organization offers various facilities and service packages to investors. The Oman Industrial Estates General Organization, now known as Madayn, was established in 1993 to develop and manage Oman’s industrial estates and today plays a key role in attracting domestic and foreign investments, currently managing more than 6,000 hectares of commercial, manufacturing, development and retail space across Oman, covering more than 400 types of businesses.

Duties and Responsibilities of Madayn

• Development and Management of Industrial Estates: Madayn is responsible for creating and developing the necessary infrastructure for Oman’s industrial estates and provides a suitable environment for industrial activities by providing a variety of services.
• Investment Attraction: Madayn helps attract domestic and foreign investors by providing various facilities and incentives, including tax exemptions, low rent and energy prices, and customs exemptions.
• Supporting Small and Medium-Sized Industries: The Oman Industrial Estates General Organization supports and develops small and medium-sized businesses by establishing specialized centers such as the National Business Center in Muscat Knowledge Oasis.
• Promoting Industrial Innovation: This organization, in collaboration with research centers and universities, promotes innovation and research and development in various industries.

List of Industrial Estates

Currently, Oman Industrial Estates Company manages the following six industrial estates:

• Al-Rusayl Industrial Estate
• Sohar Industrial Estate
• RAYSUT Industrial Estate
• Sur Industrial Estate in Qalhat
• Nizwa Industrial Estate
• BURAIMI Industrial Estate
• Al Mazunah Industrial Estate
• Samail Industrial Estate
• Ibri Industrial Estate
• Mudhaibi Industrial Estate
• Mahas Industrial Estate
• AlWadi AlKabir Industrial Estate
• Knowledge Oasis Muscat (KOM)

The Madayn is also studying and planning to establish other industrial estates in various parts of Oman. The establishment of an industrial and economic zone in the Duqm Governorate, located in eastern Oman, is among the areas that have been considered for this purpose.

Company Registration in Oman

Carrying out any commercial activity in Oman depends on the establishment of the company and obtaining the license related to that activity. Before 2020, company registration (business license) in Oman had strict rules, and the best choice for Iranians was to register a first-class company with a guarantor (Omani partner). In this type of company, the maximum share of the Iranian partner was 70% and the Omani partner was 30%, and at the beginning of the work, the Iranian person had to submit to the government documents proving the financial turnover equal to one hundred and five thousand Omani Rials. The issue of having a sponsor and the fact that an Iranian person was not the full owner of his company was considered a big problem for Iranians and investors.

Another type of company registration was called “Establishment of a company with foreign investment” and in this type of company, the investor had to invest one million Omani rials to own 100% of a foreign company. But in 2020, new laws were approved, the achievement of which was a huge transformation in the foreign investment system.

In the new laws, Iranians can register a company with 100% ownership without the need for a guarantor and obtain investor status.

Benefits of Company Registration in Oman

Company registration in Oman is recognized as a valid step for local and international businesses. This step has many benefits, including the following:

• Access to global markets
• Company registration in Oman allows you to operate as an international company in global markets. Also, earn huge profits with this method of international trade.
• Protection of assets and companies
• Registering a company in Oman allows you to protect your assets and owners. This means preventing the influence of real people in the company’s transactions and financial issues
• financial well-being
• The government of Oman offers financial and tax facilities to new businesses.
• Low complexity
• The process of establishing a company in Oman is relatively simple compared to many other countries.
• Geographical location
• Oman is a country located in the Persian Gulf and close to the markets of the Middle East and Africa. In this sense, it is attractive as a strategic location for international businesses.
• Supporting foreign investments
• The government of Oman provides financial and tax facilities to attract foreign investments and create employment in the country.
• Direct business environment
• Oman is known as a country with a straightforward and low-stress business environment.

Special privileges of company registration in Oman

• Residence with the highest degree of citizenship (investor) for one year and then two years for all partners (possibility of extension without restrictions as long as the company is active)
• Obtaining residence for all partners and partners’ families
• The possibility of obtaining residence for spouses and children under 21. Salamkan obtaining residence for all partners and partners’ families
• Opening a personal and corporate bank account and obtaining a Visa card
• Obtaining a business card and entering international trade
• Use of banking facilities
• The possibility of children’s education at all levels of education due to the presence of branches of American and European schools and universities
• Ease of obtaining visas for American and European countries for Omani citizens (one of the benefits of the Oman residence card is the ease of obtaining visas for American, Canadian, and European Union countries)
• There is also the possibility of unlimited travel without the need for an invitation (SPONSORSHIP) to the countries of Qatar, Kuwait, and the United Arab Emirates.
• Entering the virgin market of European and African countries
• This country is a member of the World Trade Organization (WTO).
• The possibility of exporting and importing goods to all parts of the world without Iran’s international restrictions
• Low import tariff to Oman
• High level of security and economic stability for long-term investment
• High income for traders and investors due to high monetary value and good connection with other countries of the world (Oman Rial is the third strongest currency in the world)

Opening a Bank Account

Opening a bank account in Oman to register a company is an important step in the process of starting a business. To open a bank account in Oman, you must go through the following steps:

Researching and choosing a bank: The first step is to check different banks in Oman and compare their services, terms, and fees. It is very important to choose a bank according to your needs and offering the best facilities.

Collecting documents: To register a company in Oman and open a bank account, you must collect the required documents. These documents include passport, identity proof, financial information, and other legal and financial documents.

Submission of documents: After collecting the documents, submit them to the bank of your choice. The bank will check your documents and verify your identity.

Signing the contract: After confirming the documents, the bank prepares the bank account contract for you. To sign the contract, you must go to the bank in person or send it to the bank by mail.

Initial capital deposit: At this stage, you must deposit the company’s initial capital to a specific bank account. This step can be done in cash or by bank transfer.

Receive account details: After depositing the capital, the bank will provide you with details including the account number and further instructions to register the company in Oman.

Important banks in Oman to open an account

• Muscat Bank, Zafar Bank
• National Bank of Oman, Aliz Islamic Bank
• Oman Arab Bank, Nizwa Bank
• Oman Bank Beirut HSBC Bank

Types of bank accounts in Oman

In Oman, banks offer different types of bank accounts. Some of the most common types of bank accounts for company registration in Oman are:

Current Account: This type of account allows for daily transactions through checks, bank cards, or money transfers. You can withdraw money from this account frequently and in the amount needed for your daily expenses and purchases.

Savings Account: This type of account allows you to keep your money in the bank and receive interest. This account is usually suitable for savings purposes and not good for daily transactions.

Fixed Deposit Account: With this type of account, you deposit some money in the bank for a certain period and receive a fixed interest for it. This account is suitable for your long-term investment in Oman.

Business Account: This type of account is suitable for businesses and companies. With a business account, you can manage your business income and expenses from this account.

Business Financing

Oman is recognized as a favorable environment for investment in the region with its financial facilities, fast investment permits, and simpler business processes. Also, focusing on training and creating a skilled workforce is another part of Oman’s sustainable economic strategies. In short, due to natural potential and effective laws, Oman realizes a sustainable economy by attracting smart investments. It also deals with sustainable development and the social welfare of future generations.

The government of Oman, in cooperation with the private sector, has set up centers to support small and medium businesses and provide them with special services to enter international markets. Granting financial facilities, business-legal consultations and establishment in growth areas are among the significant services that these centers provide to Omani and non-Omani businesses that intend to invest in this country.

During negotiations with these support centers, the Segal Business Center has provided the ground for the entry of Iranian artisans and businessmen into the Sultanate of Oman. With the agreements made, a mechanism has been developed to facilitate this process so that by connecting Iranian companies to their counterparts in Oman, their cooperation can be started very quickly.

Shared Workspace

Finding the right business office in Oman can be challenging, but with the necessary information on the process of registering a company in Oman with your brand, it becomes easier. To start working in Oman, you need to determine what type of office best suits your needs. One of the popular options for renting an office, due to which many people think of immigrating to Oman, is the use of shared work environments. These types of offices are very suitable for entrepreneurs, startups, and small companies. Shared work environments offer facilities such as high-speed internet, meeting rooms, office equipment, and a suitable space for networking.

Benefits of a shared workspace

• Lower cost: Renting a shared office is much cheaper than renting an independent office.
• Networking: There are more opportunities to interact with other entrepreneurs and businesses.
• Flexibility: Rental agreements for co-working spaces are usually more flexible than for independent offices.
• Full equipment and facilities: Many co-working spaces provide businesses with full office equipment and well-equipped meeting rooms.

Residence in Oman

Company registration is one of the best ways to stay in Oman. Due to the approval of the new laws of the Oman government, to reduce dependence on oil revenues and increase the investment rate, it is possible to register a company with 100% ownership for foreigners, even Iranians.

Up to five Iranians can apply for residency in Oman through the registration of a single company (grade 4) as a partnership. In this way, after registering the company and receiving the commercial register, the processes of obtaining a two-year residence begin. All activities related to accommodation from zero to a hundred are carried out by Masarat Muscat.

Benefits of staying in Oman

• Oman is one of the safest countries in the region and the world, hence it has been called the Switzerland of the Middle East.
• In Oman, you can do international business and open international bank accounts.
• The quality of life in Oman is at a very high level in terms of relaxation and avoiding stress.
• There are European and American schools for your children to study.
• Almost all the world’s brands, including European, Asian, and American, can be found in Oman.
• Residency in Oman facilitates your conditions for immigration to other countries of the world.
• The relations between Iran and Oman have a privileged status in terms of politics and economy.
• The distance between Iran and Oman is short, the travel cost is lower than other countries in the world.
• Many educated Iranians live in Oman.
• The average salary in Oman is high.
• A private car is cheap and available.
• Investors enjoy extensive tax exemptions.
• The economy of this country is safe due to Oman’s distance from political tensions, and the possibility of major crises or instability is very low.
• Oman has a free trade agreement with America and several other countries, and this is a great opportunity for smart Iranian businessmen.
• Americans make the most investments in Oman.