Why is Oman becoming attractive to foreign investors in real estate?

Introduction to the Economy of Oman

For a long time, the Sultanate of Oman based its economic strategy on the extraction and export of hydrocarbons. However, in recent years, the government has recognized the need for change and has begun to actively develop alternative sources of income. As a result, the tourism and real estate sectors in Oman are experiencing rapid growth, attracting the interest of international investors. Unlike neighboring Eastern countries such as the United Arab Emirates, Oman offers more accessible market entry conditions, low barriers to entry, and fewer competitors in the rental sector.

Attractiveness for investors

Let's take a closer look at what exactly Oman can offer potential investors, as well as which sectors of the real estate market are already actively developing in this sultanate.

Geographical location

The first thing to note is the strategically advantageous geographical location of Oman, situated at the crossroads of the Arabian Peninsula, East Africa, and South Asia. This location provides direct access to major regional markets and serves as a magnet for foreign investors.

Investment climate

It is also important to note the investment climate in the country. Oman follows a foreign policy strategy based on principles.“friendship with everyone and the prevention of hostility”...which helps to avoid serious security issues. Internal political stability plays an important role in creating a comfortable business environment. Under the leadership of Sultan Haitham bin Tariq Al Said, Oman is taking active steps to attract foreign capital, including:

• tax subsidies;
• simplification of the investment registration process;
• reduction of government service fees.

Changes in legislation

At the beginning of 2023, the authorities of Oman reduced the cost of commercial registration for foreign entrepreneurs and exempted them from the requirement to provide insurance guarantees when participating in government tenders. According to World Bank data, Oman's gross domestic product increased by 4.3% in 2022, while the inflation rate was recorded at 2.8%. The Omani rial is pegged to the US dollar at a rate of 1:2.6.

Promising areas of development

As for the most promising areas, aside from real estate, particular attention is drawn to:

• port infrastructure;
• free economic zones.

These sectors attract investors due to their high growth potential and appeal.

Investment attractiveness

The investment attractiveness of Oman is evident: the country is doing everything possible to create favorable conditions for doing business and launching new projects. Free economic zones play a significant role in this process, where special conditions have been implemented for foreign companies, including tax incentives and simplified registration procedures.

Obtaining a residence permit

Regarding obtaining a residence permit,investorsThey have the opportunity to take advantage of privileges when purchasing real estate. The conditions for obtaining a residence permit include having a certain amount of investment and completing the necessary paperwork for the property being acquired. The program for obtaining a residence permit is characterized by its simplicity and transparency, making it very attractive to many investors.

Prospects for life in Oman

Nevertheless, it is important to consider both the positive and negative aspects of life in Oman. The country's infrastructure is quite developed, although there are areas where the development still requires time. The standard of living in Oman is generally comparable to that of other Arab states, which is also a significant advantage for living there.

Security and neighboring countries

Oman's neighbors include countries such as the UAE and Saudi Arabia. At the same time, the crime rate in the country remains low, creating a safe atmosphere for living and working. Oman's architecture captivates with its diversity and unique cultural traditions, adding extra advantages for both investors and tourists.

Conclusion

In summary, it can be said that Oman's attractiveness to investors continues to grow due to a favorable investment climate, supportive government policies, and the presence of economic opportunities, making this country a promising place for investment and business activities.

Current projects in Oman

Currently, the authorities of the Sultanate of Oman are working on an ambitious project that includes the creation of a vast free trade zone and logistics center covering an area of 2,000 square kilometers. This initiative offers unique opportunities for international investors interested in the real estate market in this region.

Oman is increasingly becoming an important destination for those considering the possibility of purchasing property abroad, especially among the Gulf countries.

Investment attraction strategy

The government of the Sultanate is actively encouraging the influx of foreign investments by creating favorable conditions for the hospitality industry and construction companies. According to information from the National Center for Statistics and Information of Oman, by the end of July 2023, the volume of real estate transactions in the country increased by an impressive 16.8%, amounting to over 4.22 billion dollars.

Attractive coastlines and cultural heritage

The coastline of Oman stretches for 1,700 kilometers, covering an area from the famous Strait of Hormuz to the picturesque beaches of the Arabian Sea. In this scenic region, there is a harmonious blend of modern amenities and rich Arab heritage — you can find both historical bazaars and medieval fortresses alongside luxurious hotels and resorts.

Available investments

The minimum amount required for real estate investments in Oman is135 thousand dollars...which provides the opportunity to purchase an apartment in resort areas such as Salalah. Our research shows that in the current year of 2023, interest from Russian-speaking investors in real estate in Oman has tripled compared to the previous year, with the average budget for transactions being approximately...310 thousand euros.

Comparison with the Dubai market

The conditions for acquiring real estate in Oman and the expected returns are comparable to those offered in Dubai. Thus, the following return indicators can be highlighted:

• Short-term rental —12-13%per year;
• Long-term rental —6-8%per year.

Tax climate

From the perspective of the tax climate, Oman offers its investors very attractive conditions. Examples of this include:

• The absence of taxes on rental and sale of real estate;
• A low VAT rate of5%;
• The fee for property registration, which does not exceed3%.

Residence permit program

A special advantage of investing in the Omsk real estate market is that, unlike Dubai, there are no minimum requirements for obtaining a residence permit, and the process is significantly simplified. In Dubai, visa processing is only possible with a ready-made property, whereas in Oman, the visa acquisition process is much less complicated and takes significantly less time.

Conclusions

Thus, the growing appeal of Oman as a place for real estate investment clearly positions the sultanate as an increasingly attractive destination for foreign buyers. Each year, the number of investors considering Oman as an investment opportunity continues to rise, which only confirms the dynamic development of this region.

Introduction

In today's era, every aspect of a website's design and functionality is crucial for how users perceive it. One particularly important tool for interacting with visitors is forms. But how do you create a feedback form that is not only practical but also visually appealing? Let's look at the key points to consider when developing such forms.

Clarity of design

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Choosing a color scheme

Next, an important aspect is the choice of color palette. Color choices can significantly influence user behavior during their interaction with the form. Try to use contrasting shades for buttons and input fields to draw attention to them. Bright colors can help highlight the submit button and encourage users to take action, but be careful—excessively bright or harsh shades can create a negative impression.

Structure of the form

The structure of the form itself is another important point. Forms that contain a large number of fields can create an overwhelming feeling for users. Consider breaking the form into several stages, where users move on to new questions only after completing the previous ones. This approach helps reduce the load and makes the process smoother and less stressful.

Data validation

In addition, it is important to implement validation of the entered data, which will prevent errors and ensure the accuracy of the information. You need to make sure that the system signals errors and provides users with clear prompts. For example, if a field is left empty, it should immediately point this out and offer the user the necessary explanation.

Additional elements

It's also important not to forget about various additional elements, such as headings and explanatory texts. Use a friendly and straightforward communication style, which will help create an image of an open and responsive company.

Prospects of the real estate market in Oman

In recent months, the real estate market in Oman has been actively attracting the interest of investors due to a wide range of available offerings for purchase. For example, in the capital city of Muscat, one can find modern gated residential complexes adjacent to historic golf courses and located in close proximity to picturesque beaches. These properties are becoming particularly sought after among those who prefer an active lifestyle. The construction of such residences is planned to be completed by 2027, and currently, there are 23 offerings available starting from2,107,000 dollars.

Elite complexes and features of the offers

Another interesting project can be found in the Sifa area, where a new elite complex of villas and townhouses is being offered, located right by the coast, providing its residents with access to a private beach and pier. The completion date for this development is scheduled for2025 year...and now there are 20 properties available with prices starting from...145,000 dollars.

In Bandar-Jissa, there is also active construction of a new residential complex, which includes unusual villas with an ocean view. These properties are expected to be ready byin the year 2027and at the moment the market offers 118 options with a minimum price starting from519,000 dollarsIn Salalah, there is another attractive offer — a complex of villas located on the coast, which is planned to be completed in2026.including 373 individual sentences with prices starting from215,000 dollars.

New residences in Muscat

We shouldn't forget about the newly built residence in Muscat, where residents will be able to enjoy well-maintained parks and outdoor pools. The expected completion of this residence is scheduled for2026The project itself offers 500 ready-made options with prices starting from125,000 dollarsAdditionally, there is a complex of villas in this city with beach access, next to which is a 5-star hotel. This project is for sale starting at1,411,000 dollars.

Additional options for investors

It is also worth noting the new complex of villas, offering modern pools and located near the center of Muscat. The completion date for the construction is also set for2026...and the number of available options is 84, starting at a price of...418,000 dollarsAmong the elite offerings stands out the "Residences at Mandarin Oriental" aparthotel, which opened inin the year 2023On the coastline of the bay in Muscat, forecasting 156 unique apartments.

Rules for foreigners buying real estate

When considering the most promising regions for foreign citizens to purchase real estate in Oman, it should be clarified that the rights to acquire housing are not available to everyone, but only to those who hold a residence permit, and only in specially designated areas, such as integrated tourist complexes, as well as in certain regions of the capital. These restrictions are determined by the Ministry of Housing.

Key regions for investment

Currently, two key regions are identified where it is advisable to direct investments:

• Muscat
• Salala- a resort area known for its developed infrastructure and picturesque beaches.

Real estate and citizenship expert Ekaterina Maslova emphasizes that these areas are becoming increasingly important for investors.

Plans for the development of smart cities

In conclusion, it is worth noting that in the middle2022The Omani Ministry of Housing has launched a program project to create "smart cities," inviting international consulting firms to participate in competitions. This underscores the country's significant intentions to develop and modernize its territories.

The future of the city of Sukar

By 2040, it is expected that the city of Suhar, located in the northern part of the Al Batinah governorate and adjacent to the border with the UAE, will be able to occupy a central position in the financial and transportation sectors of Oman.

The role of Nizhny Novgorod in cultural life

The city of Nizwa, which is the largest center in the Al-Dakhiliyah region, will play an equally important role in the fields of design, fashion, culture, and entertainment – this creates a starting point for the further development of all these areas in the country.

Muscat as a cultural and trading center

Muscat, which is both the capital of the sultanate and one of the most historic cities on the Arabian Peninsula, serves as a significant trading and cultural hub, attracting the attention of both buyers and investors in the real estate market.

• Interesting for people looking for a permanent place to live.
• Popular among those who plan to spend their winter holidays or seasonal vacations.

Muscat offers a safe atmosphere, a comfortable environment, and developed infrastructure, making it an ideal place for families looking to enjoy a peaceful getaway away from the hustle and bustle of city life.

Housing market prices

As for the housing market, the monthly rent for two-bedroom apartments in the Muscat Hills area averages1,038 dollarsin the coastal area of Al Ghubra — about909 dollars, and in Al Mouj — about$1,300..

Currently, the average cost of purchasing real estate in Oman is around300 thousand dollarsProfessional consultants are ready to offer assistance in selecting real estate both in Oman and in other Gulf states.

Opening and running a business

When it comes to starting and managing a business in Oman, the need to comply with certain rules and requirements does not deter foreign investors from pursuing their plans in this country.

• Investors interested in investing in trade, industry, or tourism can obtain the necessary license through the Ministry of Trade and Industry.
• It is important to have a stake in a local company.

The licensing process depends on the fulfillment of a number of conditions, among which is a minimum charter capital of no less than390 thousand dollarsexcept for companies in the information technology sector, for which the threshold will be only52 thousand dollars.

Free economic zones

Free economic zones are also available in Oman, located away from the capital. These zones primarily focus on the development of industries such as logistics, manufacturing, metallurgy, and petrochemicals, which opens up wonderful opportunities for foreign entrepreneurs interested in expanding their projects.

Free economic zones are attractive places for doing business, offering favorable conditions and support for new ventures.

Free economic zones in Oman

Oman has several free economic zones that provide foreign entrepreneurs the opportunity to establish their companies. Among the most well-known are the Salalah zone, Salalah port, Sohar industrial port, the free zones of Sohar and Al-Mazyunah, as well as the special economic zone of Duqm and the Musandam zone. These regions offer great prospects for foreign investors looking to enter the Omani market.

Tax obligations for foreign entrepreneurs

However, starting a business is just the beginning. Foreign entrepreneurs should also carefully study the tax obligations they will need to fulfill. Every registered company in Oman, including branches of foreign legal entities, is subject to certain tax rates. As of today, the corporate tax rate in the country is15%for all companies, including individual entrepreneurs and foreign company representatives. In addition, there is a set VAT rate for goods and services within the country.5%.

Tax benefits for certain types of activities

It is important to note that for organizations engaged in certain types of activities, there are tax benefits. These sectors include:

• industry
• mineral extraction
• export
• tourism
• agriculture
• fishing

These tax preferences are in effect for5 yearsSince the beginning of the company's operations, with the possibility of extension for a similar period. It is also worth emphasizing that there is no tax on income from dividends and securities transactions, which makes investments in financial assets more attractive.

Obtaining a residence permit for foreign investors

As for obtaining a residence permit for foreign investors, in Oman this can be done by investing in commercial enterprises or real estate. The minimum investment amount is648 thousand dollarsIf we are talking about a limited liability company, a joint-stock company, or government bonds. However, it is worth noting that most investors prefer purchasing real estate, for which there is no established minimum threshold, allowing them to obtain residency even with small investments.

Opportunities for investors from CIS countries

For investors from CIS countries, there is also the possibility of obtaining a residence permit when purchasing real estate. The Omani government does not set minimum amounts for acquisition, which makes the program more accessible. Investing in properties located in integrated tourist complexes can be a good solution. It should be noted that the candidate for a residence permit must be older than...21 years oldAnd during the application process, it is required to provide valid health insurance for the entire duration of stay.

Advantages of the residency program in Oman

The advantages of the residency scheme in Oman include the fact that the process of opening a bank account in local banks is significantly simplified, and the investor's relatives can obtain a visa through an invitation from the residency holder. Unlike similar programs in Dubai, Oman does not have strict minimum investment requirements, and the residency application process can be completed through an expedited procedure with low compliance requirements. This approach creates new opportunities for starting a business and contributes to an increase in investment in the country.

Conclusion

In conclusion, we see that the Sultanate of Oman is becoming an increasingly attractive destination for foreign investors looking to diversify their portfolios. The state's economic policy, focused on creating a favorable business environment and attracting foreign capital, opens new horizons for investment, especially in the real estate sector.

It is impossible not to note how the combinationa steadily growing economy,low tax burdenandabsence of excessive competitionIn the field of rental, Oman is made unique for investments. Its long coastline and access to both sides of the Arabian Peninsula provide an additional competitive factor, presenting this region as one of the most attractive for living and recreation.

Investment opportunities

Investment proposals, for example, the opportunity to receiveresidence permitThe purchase of real estate is also a distinguishing factor that sets Oman apart from neighboring countries. Thanks to the simplicity of the registration process and minimal requirements, the country creates favorable conditions for attracting new investors.

The main advantages of Oman for foreign investors:

• Stable political and economic situation
• Growing real estate market
• A friendly investment environment
• Tax benefits
• The simplicity of the process for obtaining a residence permit

In conclusion, I would like to emphasize that the Sultanate of Oman, thanks to its stable political and economic situation, growing real estate market, and friendly investment environment, is ready to offer foreign investors numerous opportunities. Therefore, if you are looking for a reliable investment destination and want to make the most of your capital, Oman could be an excellent choice. Don't miss your chance to discover all the charms of this unique country, and remember: the future begins with the right choice today.