Muscat: The Ministry of Commerce, Industry and Investment Promotion has announced the suspension of foreign investment licence applications for expats with limited skills. However, skilled professionals working in companies are still allowed to apply, provided they meet the necessary conditions.
The move comes to reduce the number of fake foreign investment licence applications.
"As part of the measures taken by the Investment Services Centre to address fake foreign investment licence applications, and in continuation of the steps taken in recent months regarding the suspension of licences for residents with special individual licences, the Centre announces the suspension of licence applications for expats with limited-skilled professions, as stipulated in the Ministry of Labour's classification for private sector establishments. Skilled professionals working in companies may still apply for a licence, subject to approval from the company owner and proof of the applicant's financial solvency," the ministry said in a statement.
This move follows previous measures implemented over the past months, which included halting applications from residents with special licenses for individual professions. The Investment Services Center emphasised that these steps are intended to enhance economic activity and improve the overall investment climate and business environment in Oman.
The Ministry expressed gratitude for the community’s continued engagement and valuable feedback, highlighting the importance of public input in shaping effective policies. In cases of suspected violations related to foreign investment licenses, the Ministry encourages reporting through the official channels of the Investment Services Centre or by calling the toll-free number: 80000070.
Last month, the Ministry of Commerce, Industry, and Investment Promotion issued Ministerial Decision No. 435/2024 to amend certain provisions of Ministerial Decision No. 209/2020, which defines the list of activities prohibited for foreign investment, restricting them to Omani investors only.
This decision aligns with Article 14 of the Foreign Capital Investment Law issued under Royal Decree No. 50/2019, which stipulates that "a list of activities prohibited for foreign investment shall be issued by the minister."
The decision aims to balance attracting qualitative investments with encouraging entrepreneurial projects, in line with the government's priority to empower small and medium enterprises (SMEs) that enhance the Omani economy.
The decision added 28 activities to the list reserved for Omani investors only, prohibiting foreign investors from engaging in them, bringing the total number of such activities to 123.
The newly prohibited activities include the production of handicrafts by distilling flowers and herbs, the production of handicrafts for producing frankincense water and oil, the production of leather handicrafts, the production of palm leaf handicrafts, the production of wood handicrafts, the production and preparation of incense, the production of handicrafts for cosmetics and perfumes, the production of pottery and ceramics, the production of stone and gypsum handicrafts, the production of silver handicrafts, the production of copper and metal handicrafts, the production of aluminum handicrafts, the production of traditional fishing tools, and the production of bone-derived handicrafts.
The decision also includes activities such as skin care services, event and furniture rental, retail in specialised stores for scrap materials (including scrap iron trade), retail in specialised stores for drinking water (excluding production and transportation), the cultivation of live plants for planting, decoration, and seedlings (nurseries), the sale of used vehicles, mobile cafes, freshwater aquaculture, mailbox rental services, public scribe services, Sand Services Center, the management and operation of liquefied petroleum gas (LPG) filling stations (cooking gas), the collection of used batteries and oils, and grocery stores.
It is worth noting that the provisions of the Foreign Capital Investment Law apply to any natural or legal person who is not Omani and establishes an investment project in the Sultanate of Oman by enabling their capital and assets to establish economically viable investment projects for the Sultanate. The law helps create an attractive investment environment and facilitates suitable conditions for investment, given the global competition to attract investments by granting incentives, privileges, and guarantees that contribute to stabilising foreign investments in Oman.
Additionally, the Foreign Capital Investment Law grants foreign investment projects the right to enjoy all the benefits, incentives, and guarantees enjoyed by national projects according to the laws in force in the Sultanate of Oman. Foreign ownership in companies is allowed up to 100 per cent based on the Foreign Capital Investment Law, and foreign investors are permitted to invest in over 2,000 commercial or industrial activities.
As a result of these advantages and incentives, Oman achieved significant growth in foreign direct investment by the end of the first quarter of 2024, with a 19.3 per cent increase compared to the same period in 2023.
The total foreign direct investment by the end of the first quarter of 2024 reached OMR 25.38 billion, compared to OMR 21.27 billion during the same period of 2023.
