By virtue of Oman Sultani Decree No. 5/1980 on Regulating Use of Lands in the Sultanate, all lands within the jurisdiction of Oman are state owned, unless registered in the name of a private person, juristic or individual.
Oman Sultani Decree No. 5/1980 prohibits non-Omanis from purchasing land in Sultanate of Oman unless an exemption is granted by way of a special Royal Decree.
This Practice Note will discuss how non-Omanis, juristic or individual, buy real estate properties in Oman.
Practical Guidance
Foreigners can purchase properties in Oman in more than one way. Oman Sultani Decree No. 29/2018 Promulgating the Law Prohibiting Ownership of Lands and Real Estate Properties by Non-Omanis in Certain Places prohibits non-Omanis’ from purchasing lands and real estates in:
governorates of Dhofar, except Wilayat of Salalah, Musandam, Al Buraimi, Al Dahira, and Al Wusta,
the Wilayats of Liwa, Shinas and Masaira,
Al Jabal Al Akhdar, Jabal Shams and other strategic mountains determined by competent authorities,
islands,
sites close to the palaces, security and military authorities determined by the competent authorities, and
ancient and heritage quarters determined by the competent authorities.
A juristic person having foreign ownership (with at least 30% Omani shareholding) incorporated as a joint stock company can purchase land in its own name and the land must be developed within four years, according to Oman Sultani Decree No. 76/2010 Promulgating Corporate Ownership of Land and Real Estates. The land can be sold as subdivided plots but only after development. Under Oman Sultani Decree No.76/2010, the land can be bought anywhere in Oman, except the ones stated above.
A juristic person having foreign ownership (with at least 30% Omani shareholding) whether incorporated as a joint stock company or not, can buy property in its own name as an administrative building, warehouse, factory or any other purpose meant for the operation of business.
Oman Sultani Decree No. 12/2006 on the System of Real Estate Acquisition by Non-Omanis in Integrated Tourism Complexes specifically allows real estate acquisition by non-Omanis in specific pockets, known as Integrated Tourism Complexes as finally built up units or land for further development. In this, foreigners can make 100% foreign investment on built-up units. The land cannot be sub-divided and sold as plots without development but can be given on usufruct.
The foreigners can buy property and obtain long term land use rights within the freezones and industrial estates.
Related Content
Legislation
Oman Sultani Decree No. 5/1980 on Regulating Use of Lands in the Sultanate
Oman Sultani Decree No. 2/1998 Promulgating the Land Register Law
Oman Ministerial Decision No. 43/1998 on the Regulations of Corporate Ownership and Registration of Real Estate
Oman Sultani Decree No. 12/2006 on the System of Real Estate Acquisition by Non-Omanis in Integrated Tourism Complexes
Oman Sultani Decree No. 21/2004 on Regulating the Ownership by GCC Nationals of a Property in the Member State
Oman Sultani Decree No. 76/2010 Promulgating Corporate Ownership of Land and Real Estates
Oman Ministerial Decision No. 5/2011 Regarding Commercial or Residential-Commercial or Industrial Lands Ownership
Oman Sultani Decree No. 29/2018 Promulgating the Law Prohibiting Ownership of Lands and Real Estate Properties by Non-Omanis in Certain Places
Oman Ministerial Decision No. 43/2012 Organizing Areal Extensions and Increases for GCC Citizens, Non-Omanis and Omani Juridical Persons
Oman Sultani Decree No. 29/2013 Omani Civil Transactions Law
Oman Sultani Decree No. 5/1981 on the Usufruct Law
Oman Sultani Decree No. 88/1982 on the Executive Regulations of Oman Sultani Decree No. 5/1981 on the Usufruct Law
