Financial Crime World

Oman’s New Financial Institution Compliance Requirements: A Game-Changer for Foreign Investment

Introduction

In July 2019, Oman introduced a new Foreign Capital Investment Law (FCIL) that has significantly relaxed the rules and restrictions on foreign investment in the country. The law, effective from January 2020, replaced the earlier FCIL issued by Decree 102/1994.

Key Changes Under the New FCIL

  • Removal of Mandatory Requirements for Omani Shareholders: Foreign investors are now allowed to have 100% ownership in a wide range of permissible businesses, except for certain activities prohibited by the Ministry of Commerce and Industry (MOCI).
  • Definition of Investment Projects: An investment project refers to any economic activity established in Oman by a foreign investor individually or in partnership with another foreigner or Omani. The MOCI is required to maintain a register listing all licensed investment projects, along with their investment details, which are updated every six months.

Compliance Requirements for Foreign Investors

  • Understanding Procedural Aspects: Foreign investors must obtain an understanding of procedural aspects, such as application to the competent authority and documentation requirements for land rights.
  • Determining Eligibility for Incentives: They must also determine their eligibility for incentives under the new law and understand compliance requirements.

Why is Compliance Important?

The new law has created a more attractive environment for foreign investment in Oman, making it essential for relevant businesses to analyze potential opportunities and consider the following steps:

  • Analyzing permissible businesses
  • Obtaining an understanding of procedural aspects
  • Determining eligibility for incentives
  • Understanding compliance requirements

Contact Information

If you have any questions or would like to learn more about the new FCIL and its implications, please contact our experts at PwC Oman: