On September 21, Oman introduced a significant regulatory reform aimed at accelerating investment decisions within its Special Economic Zones and Free Zones. The new Executive Regulation, enacted through Decision 81/2026 by the Public Authority for Special Economic Zones and Free Zones, mandates that investors submitting a complete license application will receive a response within seven working days. If no response is issued within this period, the application will be automatically approved.
This regulatory update follows the broader framework established by Royal Decree 38/2025 and represents a concrete step toward enhancing the business environment for foreign and domestic investors in Oman’s economic zones. Historically, the zones have attracted investment through extended tax holidays and full foreign ownership, but delays in processing licenses have posed challenges, particularly for manufacturing firms dependent on timely approvals to reduce financial uncertainty and borrowing costs.
Oman’s Eleventh Five-Year Development Plan, adopted earlier this year, sets ambitious targets including attracting foreign direct investment (FDI) equivalent to 11 percent of GDP and increasing the private sector’s contribution to 56 percent of GDP by 2030. With a GDP base of approximately RO 42 billion, this implies seeking around RO 4.6 billion in FDI. Despite achieving RO 2.57 billion in FDI inflows in the first quarter of 2026, much of Oman’s investment stock—RO 32.2 billion as of the same period—is concentrated in oil and gas sectors, with manufacturing representing less than 10 percent.
Unlike hydrocarbon investments governed by negotiated concession agreements, manufacturing and other private enterprises have previously faced longer, uncertain waiting periods for license approvals. The introduction of a standardized, publicly guaranteed timeline aims to reduce such friction. The new regulation stipulates a seven-day review period for initial license applications (Article 16), automatic license issuance following electronic verification of documentation (Article 17), and automatic renewal processes subject to continued compliance (Article 18).
Certain exceptions apply. The seven-day countdown begins only once an application is deemed complete, leaving responsibility on the applicant to ensure all documents and conditions are met (Article 7). For license transfers, strategic project approvals, or real estate licenses, decision timelines extend to 5, 30, and 15 days respectively, with silence in those cases signaling rejection rather than approval.
The regulation also offers enhanced incentives for qualifying projects. Strategic projects—those exceeding RO 10 million and contributing to technology transfer, local content, supply security, or exports—can enjoy up to 10 years of land rent exemptions and up to four years exempt from Omanisation requirements. Income tax exemptions now cover ten sectors, including data centers and green hydrogen ventures, and goods produced may be exported without permits. Residency visas linked to investment extend to investors’ spouses and close family members, contingent on submitting feasibility studies, investment timetables, proof of solvency, and commercial registrations.
Omani businesses stand to benefit from this reform through local content requirements embedded in the strategic project criteria, promoting linkages between foreign investors and domestic suppliers. Smaller projects meeting certain conditions may also receive expedited treatment, with the licensing authority empowered to waive the RO 10 million threshold where appropriate.
As Oman seeks to generate 50,000 private sector jobs annually, the zones have demonstrated their role in employment generation by exceeding last year’s target with 4,467 jobs created. The six-month transition period until March 2027 provides existing license holders time to comply with the new requirements and serves as an opportunity for companies in Suhar, Al Duqm, and Salalah to align their projects with the updated strategic and activity classifications.
By establishing a definitive timeline for project approvals, Oman aims to leverage its strategic port locations and trade agreements—particularly with India and the United States—to strengthen its position as a manufacturing and logistics hub. The success of this initiative now hinges on investors’ readiness to meet application requirements and the capacity of Omani professional service firms to support them through the process.