Located on the southern part of the Arabian Peninsula, Oman is the oldest independent Arab state. Recently, the Sultanate has become increasingly attractive to foreign investors.
Oman is a unique country with distinct advantages compared to its neighbors, such as the UAE, Qatar, and Bahrain. The economy is thriving, there are favorable conditions for business and investment, and the infrastructure and tourism sector are well-developed.
Oman: Advantages for Foreign Investors
What Makes Oman an Attractive Destination?
Oman stands out with a combination of social, economic, and lifestyle benefits that appeal to expatriates and investors alike:
- Hospitality and Friendliness. Omanis are known for their warm and welcoming nature, making foreign residents feel at home.
- Breathtaking Nature. The country boasts stunning landscapes, from majestic mountains and silky deserts to lush oases and endless coastlines.
- Rich Cultural Heritage. Oman preserves its ancient traditions and architectural heritage, offering a deep immersion into the history of the Arab world.
- Modern Development. Over the past few decades, Oman has made significant technological advancements and improvements in the quality of life.
- High-Quality Education and Healthcare. Both are free for Omani citizens, demonstrating the state’s commitment to social welfare.
- Diverse Cuisine. Omani gastronomy blends traditional flavors with modern culinary trends, appealing to food lovers.
- Recreational Activities. Opportunities abound for diving, surfing, hiking, rock climbing, and more.
- Safety and Security. Oman maintains one of the lowest crime rates in the world.
- Favorable Climate. While summers can reach up to 50°C, the country enjoys warm weather year-round.
- Language Accessibility. English is widely spoken, though knowledge of Arabic can be an added advantage.
Private Property Ownership in Oman
For those looking at Oman through the eyes of an investor, the country has seen a significant transformation in its real estate market over the last five to ten years. This shift is largely due to strong legal support for foreign investment.
A pivotal change came with Royal Decree No. 12/2026, allowing foreign nationals to acquire freehold property in designated Integrated Tourism Complex (ITC) zones. This law is immutable by government agencies, ensuring stability for investors. As a result, the real estate process has become more transparent and efficient, making Oman more accessible to international buyers.
Several major developers are actively constructing residential and commercial projects, including shopping centers, office spaces, and hotels. The market is experiencing a surge in new offerings, particularly over the past year.
Oman Residency for Real Estate Buyers
One of the biggest incentives for foreign investors is residency by investment.
While there is no minimum property value requirement, residency renewal conditions vary:
- Investments of $1.3 million or more grant a 10-year residency permit, renewable every two years.
- Investments of $650,000 or more provide a 5-year residency permit, with no need for renewal.
Residency is lifelong and can be transferred to immediate family members (spouse and children).
Long-Term Investment Potential
Investing in Omani real estate is a long-term opportunity. Several key factors influence property value growth, including Vision Oman 2040, a national development strategy.
The price per square meter directly correlates with infrastructure advancements, such as government projects, new roads, highways, hotels, schools, universities, and parks.
90% of properties within freehold zones, set for completion between 2028–2030, are expected to see high demand between 2030–2033, making them a strategic investment choice.
Foreign Investment in Oman
Oman’s real estate market is thriving, drawing global investor interest.
With over $3 billion in foreign investments and annual property price growth of 5–7%, the market is both affordable and stable for new investors. Some analysts even consider this a golden era for Omani real estate.
The key factors driving demand over the past decade include legislative changes, economic development, and increased business activity.
Average Real Estate Returns in Muscat
- Annual rental yield: 5–7%
- Short-term rentals: 7–12%
- Commercial properties: 5–15%
Coastal and branded residences (premium real estate under international hotel brands) are among the most profitable and low-risk investments in Oman.
Key Considerations for Investing in Oman
Before making a final decision, investors should consider a few critical aspects:
- Economic Competitiveness. Oman is less diversified than the UAE but has strong growth potential.
- Market Awareness. Unlike Bahrain (a financial hub) or Qatar (a petroleum giant), Oman is still developing its investment identity, focusing on stability, natural beauty, and tourism.
- Strict Regulations. To maintain stability and cultural integrity, Oman imposes restrictions on foreign ownership in certain areas.
Freehold vs. Leasehold Properties
- Freehold Zones (ITC): Foreigners can own both land and property for 99 years with full rights to extend, sell, gift, or pass down the property.
- Leasehold Areas: Property purchases for foreigners are not permitted; only long-term leasing is available.
Final Thoughts
Oman is an excellent choice for those seeking natural beauty, cultural richness, and investment potential. While it may not yet match the global appeal of Dubai, its steady growth and long-term opportunities make it an attractive destination.
Welcome to Oman – your gateway to the Arabian dream!
