12 / 23
12
Assuming that Oman keeps pace
with enacting global standards
on economic policy, the current
development and expansion taking
place in the Sultanate’s economic
infrastructure will further contribute to
attracting both domestic and foreign
investors. This is evident when you
take into consideration the benefits of
its investment climate across multiple
industry sectors, the stability of the
country’s economic and political
system, an investment-friendly legal
framework, and a flexible tax system.
Favourable Legislation
Al Mazaya’s Report further points out
that the Sultanate's real estate sector has
earned a good share of the government’s
attention, with a view to introducing
more amendments that are necessary to
ensure the market's ability to compete
at the regional level. Most recently,
several amendments made to the Foreign
Investment Law have provided increased
openness and incentives, in relation to
tax and customs. These recent inclusions
are in addition to existing legislation that
allows for licensed freehold purchases
of all-inclusive tourism compounds
and the purchase of reclaimed lands
throughout all the Governorates (regions)
of the Sultanate. It is worth noting that
flexible conditions for land ownership
by individuals and companies is largely
in accordance with usufruct (long-
term leasing) laws and contracts, with
an additional stipulation that lands
purchased for tourism projects must
be reclaimed within four years from
the registration date. The owner does,
however, withhold the right to resell the
constructed buildings at any time and, in
addition, the title deeds for the property
can also be passed onto the owner's
heirs. These types of investments enjoy
a tax exemption period of five years.
The Sultanate's real estate market
currently provides a large number of
investment opportunities, although this
currently rests on a package of incentives
that help ensure the continuation of
momentum from local investors. This
is particularly relevant to developing
areas like tourism, where the Sultanate is
positioned to occupy an increasinglymore
prominent standing on the global tourism
map. Moreover, investors can rely on the
Sultanate’s commitment to capitalising
on sound, yet flexible, economic policies
that are able to respond to fluctuations in
both neighbouring and global markets.
Sultanate of Oman – Real Estate
Overview
In this context, Al Mazaya Holding's
Weekly Real Estate Report points
out that the real estate sector, in
the Sultanate of Oman, has moved
from a phase of development and
reclamation of lands, by way of sale
and purchase by domestic and GCC
investors, to a phase of diversifying
its real estate products, in terms of its
residential and commercial offerings.
Mazaya Monthly Real Estate Report -
Week 3 - May 2016