Foreign Real Estate investment in Oman
Is it possible for expats to buy a property in Oman?
YES, The Minister of Housing and Urban Planning, Dr. Khalfan bin Saeed Al Shuaily, has issued a ministerial directive allowing foreigners to buy and own any type of real estate in Oman. This recently announced decision benefits international investors in numerous ways. The investor can own a real estate property that is worth 250,000 OMR and shall provide the investor with second-class residency. If the investment property is worth more than 500,000 OMR, it will give the investor a first-class residence. If the investment property is worth less than 250,000 OMR, he can only buy it in integrated tourism complexes (ITCs).
The class of residency awarded to the investor or expat is the primary distinction in this case. Real estate such as residential homes, commercial assets, and industrial properties are all included under first-class residency ownership. The only residential properties eligible for second-class residency are those barely worth 250,000 OMR. Therefore, an expat may only purchase real estate that is worth less than 250,000 OMR in Integrated Tourism Complexes (ITCs) or through usufruct agreements.
This law is applied across Oman, albeit some places are only open to Omanis, in which case no non-Omani or expat can buy any property. Musandam, Buraimi, Dhahirah, Wusta Liwa, Shinas Masirah, Jabal Akhdar, and Jabal Shams are examples of such areas. Expat property ownership is prohibited in areas close to military installations, historic, archaeological, and designated agricultural sites.
The decision to increase the economic contribution of real estate, as well as its ability to draw major investors and businesses, was made with the goal of achieving economic diversity. Usufruct law oman, a new system of ownership that permitted foreigners to hold properties outside the defined area, was also previously proclaimed by the government. With specific terms and conditions in place, this usufruct law in Oman allowed expats of many nations to purchase an apartment in a building.
Usufruct is a legitimate right to use and profit from land that is provided in accordance with a signed contract. Real estate’s usufruct may be held for a 50-year initial period and then renewed for additional terms. For the duration, the usufruct beneficiary may use the property as its own.
All of these initiatives show how eager the Omani government is to support the development of the real estate industry and attract more foreign direct investment to the Sultanate of Oman.
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