Oman’s Ministry of Finance announces incentives for citizens and private sector

Muscat: As per the high directives from His Majesty Sultan Haitham bin Tarik, the Ministry of Finance announced many facilities and incentives that will be provided to citizens and the private sector during 2021.

First: housing loans provided by Oman Housing Bank:

In order to reduce the waiting period for citizens to obtain housing loans, the annual provision for borrowing during the year 2021, has been increased to (100) million Omani Rials instead of (60) million Omani Rials specified in the bank’s budget for the year 2021, which will lead to an increase in the number of approvals for applications. Loans from (1350) to about (2250) approval during the year 2021.

Second: Distribution of residential lands to citizens:

In order to meet the requests submitted by citizens to acquire residential lands, the Ministry of Housing and Urban Planning will work during the year 2021, on preparing a number of housing plans to be able to distribute about 23,000 residential plots of land in various governorates and states of the Sultanate.

Third: Exempting borrowers from the Oman Development Bank and the Small and Medium Enterprises Development Authority from the loan interest of borrowing for one year (2021):

Other incentives will exempt borrowers from the Oman Development Bank and the Authority for Small and Medium Enterprises interests for one year 2021, As many as 32,104 establishments and firms will get a lump sum waiver worth RO 10,930,432. It is a measure aimed to alleviate the financial burdens of small and medium enterprises and firms that take loans from Oman Development Bank and the Authority for Small and Medium Enterprises (loans of Al Raffd Fund and Sanad), particularly upon the reorientation of electricity and water subsidy.

Fourth: Exemption from licensing fees for small and medium enterprises

Exemption from payment of all licensing fees for small and medium enterprises (SMEs) owned by Omanis dedicated to managing their enterprises (holders of  Riyada card) for the first three years of establishment for the targeted activities specified by the authority, which are the manufacturing industries, service activities (transport, tourism, and logistical trade), as well as activates of agriculture & fisheries

Fifth: Reducing rental contracts fees from 5% to 3%

In order to encourage the process of documenting lease contracts to protect the rights of landlords and tenants, the fees for lease contracts have been reduced to 3% instead of 5% :– ONA