Oman: What Foreigners Should Know Before Buying Real Estate

Oman is commonly nicknamed the Switzerland of the Middle East, and for good reasons: Omani diplomacy, geography, excellent health care and decades-old domestic stability makes it one of the most neutral countries in the Arab and Islamic world. Due to its peaceful aura, beautiful coastal desert landscapes and cultured and kind people, some individuals would like to move to and own property in this serene country.

Here are some general facts about the country, and after that we will move into the rules and requirements of purchasing real estate in the Sultanate of Oman.

There was an ancient colonial history of modern-day Oman, the Portuguese arrived in the country, but were later pushed out by the natives. Oman prospered amid its maritime trade with India and overland camel caravans with the rest of Arabia. Attracted by these trade flows, the British Empire came and established a protectorate over the region.

Oman gained independence from the United Kingdom in 1951, but the first Sultan of Oman, Said bin Taimur, was ultimately deposed nineteen years later by his son, Qaboos bin Al Said, in 1970. Sultan Qaboos, who was born in Salalah, is one of the most beloved leaders in Oman and in the history of the Arab world. The Sultan maintained himself at the helm of state up until 2020, where he passed away after 50 years of rule.

During the Sultanate of Qaboos period Oman went under significant cultural and economic developments that were nicknamed “The Omani Renaissance”. Education, infrastructure and healthcare becoming extremely well developed under his rule.

The Omani economy and its currency is generally very stable, with most of it consisting of oil and gas, although recent efforts went into diversification, such as tourism, logistics, and textiles manufacturing.

But the most valued resource of all of Oman is its own people, who are known throughout the globe as kind, hospitable folk, with a unique cultural heritage due to the many influences of Persian, Arab, and African cultures. Since the 8th century, Islam has been the dominant religion in the country – although the predominant sect is called the Ibadi, which is slightly different than the generally known Shia or Sunni branches of the Islamic faith.

Photo credit: A desert oasis in Oman

Uploaded to iStock by Ghulam Hussain Nov 2020

Now, with the general fact sheet done, let us turn to Oman's biggest real estate firms and its property purchase requirements.

Foreigners may purchase and own real estate in Oman, although not all of Oman is open to being purchased by foreigners. Non-Omani citizens can only attain property in zones known as Integrated Tourism Complexes, or if they obtain special deeds from the government.

These special areas are zoned, but within these zones foreigners are allowed to have 100% property rights over the land with heritability. They can utilize their property for residential or commercial purposes within these special zones, although hoarding the land and failing to develop it will lead to the property being seized and then auctioned off by the Omani government within 4 years.

Foreign investors would also be pleased to hear that usufruct rights exist in Oman for foreigners, with certain commercial properties allowing said foreign investors to attain leasehold rights over their properties, and utilizing the income as they wish for four years. There is a requirement however that said commercial investors of say shopping malls or retail storefronts or warehouses must have lived in Oman for at least two years.

There are also some restrictions, with investors not allowed to purchase more than one property under this usufruct right. Properties must also be of a multi-story nature and be in the ITC zones or be licensed by the government--for example, if the foreign investors' goal is to develop a resort or two to three story villa-style hotel complex. In order to prevent monopolization or conglomeration of foreigners, no more than 40% of the building can be bought by foreigners, and of that 40%, there cannot be more than 20% of the same nationality. Prices can vary greatly, with a minimum of 90 to 116 thousand US dollars for the purchase prices, and it varies slightly on the location of the property. Such restrictions aim to reduce social friction that could result from large Gulf country or ultra-wealthy South Asian Muslim buyers moving in to what is to date, a relatively small market.

Usufruct rights can be renewed every four years, with a maximum limit of 99, they can also be passed down through heirs that the owner have willed through his legal rights

You can also become a resident in the Sultanate of Oman through purchasing property, such residency through real estate acquisition programs were already discussed on this site for Saudi Arabia , Turkey and the UAE--Oman is not so different.

Photo credit: Riyam Park Monument, Muscat, Oman

Uploaded to iStock by Lukas Bischoff Mar 2018

By attaining a real estate investment in the zones or the specially licensed places, temporary residency is attainable by the buyer and his immediate family through ownership of the property. The renewability of the residency visa is not going to change, so long as you own the property and fill out the necessary paperwork. After presenting valid passports for all applicants and other related paperwork such as certificates of non-criminal record, the minimum investment for the right to have renewable temporary residency is $130,000, while attaining a five year visa requires over $500,000.

Regarding legal paperwork, there are many of them, and we recommend consulting with our Dubai-based ExitStrategy.World back office before undergoing this process.

1. Valid for six months from the application date passport or ID that can be accepted by the Omani government.

2. A purchase agreement between the buyer and the seller, and appropriately notarized by a notary.

3. Attaining and completing a registration form with the government, from the Ministry of Housing.

4. Attaining a valid form of residence from the Ministry of Interior.

5. A current bank statement as proof of having a bank account in Oman.

6. A survey plan of the property that has been OKed by the appropriate government fronts.

7. A permit from the Ministry of Environment and Water.

8. A building permit or zoning certificate from the municipality.

9. A certificate of ownership from the Ministry of Economy.

10. A deed of sale issued by the government

Disclaimer: this is a general overview and is not intended to be an exhaustive summary of how to obtain residency through real estate investment in Oman. The general facts and overview of the situation of the real estate market in Oman, and the current migration trends in Oman itself, perhaps can be discussed in a follow-on article.