Saturday 30 / May / 2026
Under Oman's Foreign Capital Investment Law issued under Royal Decree 50/2019, foreign investors may establish businesses across most economic sectors. However, the Ministry of Commerce, Industry and Investment Promotion has determined a specific list of activities prohibited to be practiced by foreign investment pursuant to various ministerial decisions issued from time to time, as amended up to Ministerial Decision No. 435/2024.
In an exclusive interview with Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm, explains that “the restricted activities relate to sectors prohibited to be practiced by foreign investment under the applicable ministerial decisions.”
He stated that “the restricted activities include traditional crafts and heritage products such as Omani halwa, khanjar, kummah, abayas, tailoring, perfumes, cosmetics, pottery, silver and copper products, leather goods, and traditional fishing tools. The restrictions also extend to several retail and community-based services including grocery stores, mobile coffee shops, fresh fruit and vegetable trading, meat and fish shops, honey and dates trading, medicinal herb stores, telephone accessory shops, souvenir and antique stores, drinking water retail, PO box rental, Sanad centres, and general clerical services.”
“Certain automotive, fisheries, agricultural and commercial activities are also included in the prohibited list including tire and radiator repair, vehicle washing, oil changing, towing, fuel and LPG stations, marine fishing, freshwater aquaculture, beekeeping, crane and construction equipment rental, property management, real estate brokerage and valuation, event supply rentals, pet care, and used battery and oil collection. However, poultry hatcheries, poultry slaughtering, and live cattle wholesale are permitted for projects with large production capacity. Hairdressing, barbering, laundry, and dry-cleaning are allowed within tourist establishments such as hotels,” he said.
He further stated that “projects lawfully established before the relevant decisions may continue, but transfer to a new foreign owner requires ministry approval. Violators face fines ranging from OMR 20,000 to OMR150,000, and the same penalty applies to any Omani who participates with a foreign investor in violation of the law.”
This framework effectively balances Oman’s openness to international capital with the protection of vital national economic and cultural interests, he concluded.
(Mohammed Ibrahim Law Firm (info@mohammedibrahim.net), (+968 244 87 600) was established on 14th December 2006 and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).
