70 economic activities reserved for Omani investors
Ministerial Decision 209/2020 came into force on December 14, 2020 cataloguing a broad array of predominately small and medium-size businesses that can be set up only by Omani investors
A summarised list of these activities, which are restricted to local investors (among others who fall outside the remit of the FCIL statute), was made public by the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) last December
As many as 70 different economic activities are now covered in the so-called ‘negative list’ that are effectively off-limits to foreign investors under the Foreign Capital Investment Law (FCIL) enacted by the Omani government in 2019.
A summarised list of these activities, which are restricted to local investors (among others who fall outside the remit of the FCIL statute), was made public by the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) last December.
Ministerial Decision 209/2020, issued by Minister Qais bin Mohammed al Yousuf, came into force on December 14, 2020 cataloguing a broad array of predominately small and medium-size businesses that can be set up only by Omani investors (as well as GCC nationals and those covered by the Oman-us FTA).
But legal consultants providing advisory services to their local and international clientele have since obtained a detailed breakdown of the activities that are prohibited for foreign investment.
The activities, distributed across a broad category of sectors, are as follows:
(i) Retail sale of following goods and services in dedicated stores: Gift items and Silverware; Traditional weapons; Pottery and Craft items; Handicrafts;
Beekeeping merchandise; Plant nurseries; Flowers; Art, Paintings and Souvenirs; Phone Cards of local service providers; Cooking Gas; Animal Feed; and Suitcases and Bags.
(ii) Tailoring, embroidery and production of: Women’s abaya, Omani kumma (cap), Arab male outfits, Non-arab male outfits, Dresses and outfits of Arab and non-arab women, Sports attire, and Military uniforms;
(iii) Automotive parts, repairs and services: Servicing of motor vehicles;oilchangeandlubrication services; Auto electrical services and Battery recharge; Radiator repair and services; Tyre and tyre hub repairs; Wheel balancing; Auto air-conditioning repairs; Car cleaning and polishing, and Exhaust System cleaning.
(iv) Cooking gas: LPG filling stations; Wholesale supply of cooking gas; and Transport of gas cylinders.
(v) Fuel Marketing Stations:
Filling stations; Diesel filling stations; and Operation and Management of filling stations.
(vi) Foodstuff & Confectionery: Manufacture of Omani halwa.
(vii) Traditional crafts: Manufacture of Omani khanjar.
(viii) Laundry: Laundry services (outside of hotels and resorts); Clothes ironing services (outside of hotels and resorts); and Laundry and Dry Cleaning (outside of hotels and resorts).
(ix) Mobile phone sales and services: Retail sales of telecom goods and accessories in specialised stores; and Retail sales of mobile phones and accessories in specialised stores.
(x) Offices: Photocopying and typing services; Documentation services; Customs clearance services, and Real estate brokerage.
(xi) Insurance and loss adjustment: Assessment of cancelled vehicles; and Insurance commission agencies.
(xii) Recruitment Manpower offices services: and
Recruitment offices.
(xiii) Hair-cutting and salon services: Haircutting and facial services for men (other than those in hotels and resorts); Hairdressing and salon services for women (other than those in hotels and resorts; and Barber services for children (outside of tourism establishments).
(xiv) Orphanage and elderly care: Specialised care homes; Homes for the aged, Orphanages and Rehabilitation centres.
(xv) Food and agro-produce: Fruits and vegetable wholesale outlets; Retail sales of fresh fruit, vegetables and dates in specialised stores, and Retail sale of traditional honey in specialised stores.
(xvi) Others: Potable water tanker operations; Pilgrimage transportation services; Loading and unloading of goods; General cleaning of buildings; Design and installation of neon signboards; Operation of driving schools; Libraries and Archival services.
The new Foreign Capital Investment Law, promulgated by Royal Decree 50/2019, came into force on January 1, 2020, effectively doing away with the need for a local partner when investing in the Sultanate. The new statute provides an array of incentives, tax benefits and other inducements to encourage international investors to weigh opportunities for business and investment in Oman.