Oman opens new residency route for foreign investors, property owners

The move aims to reinforce the efforts of the Government of the Sultanate of Oman to strengthen the investment environment, enhance the competitiveness of Special Economic Zones and Free Zones

Oman has introduced new rules governing residency for foreign investors and property owners in its special economic zones (SEZs) and free zones, in a move aimed at attracting overseas capital and making its investment destinations more attractive to foreign businesses and individuals.

 

The regulations allow qualifying non-Omani investors and owners of real estate units in these zones to obtain residence permits. Their spouses and first-degree relatives are also covered, subject to applicable conditions.

 

The changes form part of Executive Regulation No. 81/2026, issued by the Public Authority for Special Economic Zones and Free Zones (OPAZ) under Royal Decree No. 38/2025. The regulations were published on September 20 and came into effect on September 21, 2026.

  

Immigration law firm Fragomen, in an advisory dated November 9, said the regulations also introduce workforce planning, Omanisation and reporting requirements for companies operating in these zones.

 

However, the firm flagged an important uncertainty for prospective investors: it is not yet clear whether the new residency provisions operate under Oman's existing long-term investor residency programme, which offers renewable five- or ten-year permits, or create an entirely separate pathway.

 

"Companies operating in these zones should review the new requirements and assess whether their workforce planning, Omanisation practices and reporting procedures need to be updated," Fragomen said.

 

What does this mean for foreign property buyers?

 

The new framework is significant for foreign investors looking at property ownership in Oman's designated economic zones.

 

Under the parent legislation, non-Omani investors and owners of real estate units in these zones are eligible for residency, along with their spouses and first-degree relatives, subject to the prescribed conditions.

 

The framework also permits non-Omanis to acquire freehold ownership in eligible real estate development projects within the zones. The executive regulations provide further rules governing property development, off-plan sales and escrow accounts.

 

This is part of Oman's wider effort to integrate real estate development with its economic diversification strategy and attract foreign residents and businesses to its investment zones.

 

The regulations are not a blanket permission for foreigners to purchase property anywhere in Oman. Eligibility depends on the location and nature of the project and the applicable regulatory approvals.

 

What experts and law firms are saying

 

The new regulations have attracted attention from international advisory firms, with legal and tax specialists highlighting both the investment opportunities and the compliance obligations.

 

Fragomen's November 9 advisory points to uncertainty over the relationship between the new residency provisions and the existing five- and ten-year investor residency programme. This is an important distinction for foreign investors who may be considering property purchases specifically to secure long-term residence.

 

KPMG, in its analysis of the executive regulations, highlighted the broader changes to Oman's investment framework, including tax incentives, licensing simplification and compliance requirements.

 

The firm said the regulations provide greater clarity on the implementation of Oman's special economic and free zones regime. It also described the introduction of a one-stop shop for licensing and other approvals through OPAZ as a welcome step towards facilitating ease of doing business.

 

The KPMG analysis also highlights a six-month period for existing affected entities to regularise their status, with the deadline falling on March 21, 2027.

 

Separately, OPAZ Chairman Qais Mohammed Al Yousef said the regulations would strengthen regulatory clarity, simplify investor procedures and improve the competitiveness of the zones. He highlighted the role of digital transformation and a one-stop-shop system in improving the investor experience.

 

Businesses face new compliance requirements

 

The changes are not limited to foreign investors and property owners. Companies operating in the zones will also need to examine their employment and workforce management practices.

 

The framework introduces requirements relating to workforce planning, Omanisation and reporting. Omanisation refers to the government's policy of increasing the participation of Omani nationals in the workforce.

 

The regulations also provide a more structured licensing and compliance framework. Under the rules, standard licences are generally valid for three years and can be renewed for similar periods, subject to prescribed conditions.

 

Non-compliance can attract administrative penalties, including fines of up to 50,000 Omani rials per violation, along with possible licence suspension or cancellation.

 

Oman's wider push to attract foreign capital

 

The reforms come as Gulf economies compete to attract international investors, entrepreneurs and businesses through investment-linked residency programmes and business-friendly regulatory frameworks.

 

For Indian investors, Oman offers geographical proximity, business opportunities and access to a growing regional market. The new framework could make its designated investment zones more attractive to those considering property ownership or setting up businesses in the country.

 

However, investors should not assume that buying a property automatically guarantees a five- or ten-year residence permit. The eligibility requirements, application procedures and relationship between the new provisions and existing residency programmes need to be clarified by the Omani authorities.