8 Reasons to start your real estate business in oman
Sultanate of Oman is a country on the south-eastern coast of the Arabian Peninsula in Western Asia. Located in a strategically important position at the mouth of the Persian Gulf, Oman is a growing business center. It is one of the growing GCC nations that is also an established home to foreign expats with a lot of business opportunities. The Omani Government has been continuously proceeding towards the nation’s development and has initiated multiple steps to give comfort to the foreign ex-pats and grab more foreign investors. Vision 2040 of Oman targets the growth in all sectors including smart cities and vibrant villages. If you are planning to diversify your business at an international level, Oman is a location that you can count on.
The location of Oman, near to the Persian Gulf makes it naturally a strategic location for all kinds of businesses. Since 1970s, Oman is witnessing continuous and extensive economic reforms that change the economy and business. At one side, development of tourism and real estate sector moves forward in a fast pace. According to a report published by Alpine capital, the hospitality industry of Oman is expected to be worth US$1 Billion by 2022. The government measures supporting the industry and easing the regulators are on the expectation of a greater influx of tourists to the country. Now days, Sultanate makes all efforts to attract maximum foreign investment, paving the way for even more business opportunities in Oman.
Here are top Five reasons by which Oman is suitable to start a real estate business.
One: Strategic Location
Oman’s geographic location is very much important in promoting real estate business possibilities in the country. Geographically Sultanate of Oman locates at a strategic location, which is most favorable for business development. It has a travel time of less than two hours to major commercial hubs of Asia, Africa and Europe. Based on this advantage Oman is planning to develop as a global logistics hub. The sultan’s long-term development strategy, Oman Vision 2040, emphasises industrialisation, privatisation and Omanisation. Logistics, tourism and industrial manufacturing have been identified as potential future economic drivers.
Two: Strong Economy
Oman is a country with a relatively stronger economy in the region. From the 1998 Oil price crisis, Oman started diversifying its economic base to different sectors. Vision 2040 is really targeting to decrease oil sector share to less than 10 percent of GDP. Vision 2040, at the same time, plans to attract large-scale foreign investment in the fields of tourism, infrastructure, technology, and manufacturing.
Three: Favourable Tax and Investment Laws
Oman offers favorable tax and investment laws which makes ease of doing real estate business better. In Oman, there is no personal income tax for business owners or employees. There are no foreign exchange restrictions or levies, and there is an exemption from corporate income tax on the first OMR30,000. Once established, a company typically has a flat rate of 15% corporate tax. Within free zones, there is a complete exemption from corporate taxes for up to 50 years. Oman is part of various trade agreements which allows free trade and liberalised laws, including trade agreements of GCC, GAFTA, FTAs with US and Singapore, Iceland, Norway, Switzerland.
Four: Expected influx of tourists
.According to a report published by Alpine capital, the hospitality industry of Oman is expected to be worth US$1 Billion by 2022. The national tourism strategy aims to raise the contribution of the sector to GDP to 9 % by 2027. Oman vision 2040 is readying the Sultanate for a more diverse and balanced hospitality sector. Within 2024, many establishments are set to enter the market. The target of vision 2040, to attract nearly 11 million local and international tourists, shall expand the expectations of the hospitality sector.
Five: Political Stability
Oman is the Arab country with highest political stability. It is firs country which got independence in the region. Business environment in Oman is absolutely safe. No any kind of political or social issues which hinder act of business. More over only a flat rate of 15% of corporate tax is charged. Prioritization of the government for the real estate sector and the ease in the regulations should open new doors for the real estate sector.
Oman has a world-class infrastructure that can compete with any of the countries in GCC and outside. Highly developed ports, airports, and large road networks make Oman a business-friendly nation. Moreover, by 2040, the Sultanate’s population is projected to exceed 7.5 million, including 3.9 million expats. The Ministry of Housing and Urban Planning is working to create smart, modern cities as well as vibrant villages that will benefit one another. The Ministry is working on a variety of initiatives aimed at organising the real estate sector and providing the right environment by building integrated residential neighbourhoods and designing cities in collaboration with public and private institutions, in order to bring forward sustainable city models aimed at improving the Sultanate’s citizens’ and residents’ quality of life.
Seven: Multiple Facilities
The Ministry of Foreign Affairs and Commerce of Oman has taken steps to improve infrastructure, commercial connectivity, security, property rights, and international networking, creating a favourable environment for entrepreneurs to take advantage of investment opportunities, transform business ideas, and contribute to economic growth.
Eight: Vision 2040 Oman
Oman Government is continuously making efforts for business development in the country. The government has started single window system through which companies can start working smoothly. Moreover, the Government offers incentives like tax exemptions, interest-free loans, free trade zones and preference in the allocation of government land. As per vision 2040, the focus of Oman economy will change from Oil to many other fields like tourism, technology, hotel, real estate, infrastructure and production. For this, Government has a favorable policy for any kind of business initiatives. Hence this is the most important factor attracts real estate business to the country.