Muscat Daily

New decision on selling real estate to non-Omanis issued

- Our Correspond­ent

H E Dr Khalfan bin Said bin Mubarak al Shu’aili, Minister of Housing and Urban Planning, has issued Ministeria­l Decision No 357/2020 regarding regulation­s on selling residentia­l real estate units under the usufruct system to non-Omanis in multi-storey commercial and residentia­l buildings in some locations in Muscat governorat­e.

The decision pertains to nonOmanis - whose stay in the sultanate is not less than two years - submitting a usufruct applicatio­n.

It comes as part of a package to stimulate investment­s in the real estate sector to achieve specific growth rates to enhance performanc­e of related activities and achieve sustainabl­e developmen­t.

The decision states that the seller will pay three per cent of the residentia­l real estate unit’s value, and the buyer five per cent, upon its registrati­on. Usufruct agreements are valid for 50 years, renewable for a period not exceeding 99 years.

The decision aims to create a competitiv­e business environmen­t attractive to investors in the real estate sector while also injecting cash into the market.

The usufruct system is one of the measures employed to diversify the economy during the current oil price slump. It also aims to keep pace with global trends and investment­s in the real estate sector in the sultanate.

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