Oman’s MoCIIP issues new list of activities prohibited for foreign investment

The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) issued Ministerial Resolution No. (364/2023) amending some provisions of Ministerial Resolution No. (209/2020) defining the list of activities in which foreign investment is prohibited, and limiting it to the Omani investor only.

The decision comes in partnership between the Ministry and the concerned government agencies, their excellencies the governors and the municipal councils to update the list of activities in which it is prohibited to engage in foreign investment, which was issued in 2020. The Ministry seeks to develop the governorates through its participation in the decisions and regulations that aim to develop the governorates of the Sultanate of Oman and take into account its views, such as the regulation organizing the practice of consumer cooperative activity.

The issuance of this decision is consistent with Article (14) of the Foreign Capital Investment Law issued by Royal Decree No. (50/2019), which stipulates that “a list of activities in which it is prohibited to engage in foreign investment shall be issued.”

The decision comes to find a balance between bringing in qualitative investments and encouraging entrepreneurs’ projects in light of the priority that the government attaches to empowering small and medium enterprises that enhance the Omani economy. The Omani investor can invest in all activities in which foreign investment is prohibited. For Omanis in these sectors and to ensure that projects and activities related to the national identity and Omani heritage are not affected. This list will be updated according to the circumstances of each stage to keep pace with economic developments.

The decision added 25 activities within the activities designated for Omani investors only, and the foreign investor is prohibited from practicing them. The activity of “specialized rehabilitation centers” and the activity of “rehabilitation houses” were also canceled from the list where the foreign investor can invest in, bringing the total number to (96) activities for Omanis.

The new prohibited activities are:

• Operating poultry hatcheries – except for projects with large production capacity
• Beekeeping and production of honey and beeswax
• Marine fishing activity
• The activity of slaughtering and preparing poultry, rabbits and birds, except for projects with large production capacity,
• The activity of printing using copiers, computers and other office machines such as photo copiers or thermal copiers
• The activity of transporting and selling non-potable water
• The activity of renting cranes operated by a worker
• The activity of renting other construction machinery and equipment operated by a worker
• The activity of renting construction or demolition equipment operated by a worker
• The wholesale activity of live livestock, except for projects with large production capacity
• The wholesale activity of fish and marine animals
• The wholesale activity of fish products
• The retail activity in stores specializing in meat and meat products
• The retail activity in stores specializing in fish and other seafood and their products
• The retail activity in stores specializing in natural herbs
• The retail activity in stores specializing in medicinal herbs
• The retail activity in stores specializing in birds, pets, ornamental fish and their accessories
• The activity of towing vehicles
• The activity of buying and selling lands and real estate and dividing them
• The activity of managing and renting owned or rented real estate (residential and non-residential)
• Building management activity (owned or leased)
• The property valuation activity
• Building management activity (on a fee or contract basis)
• The activity of managing real estate owners associations
• The pet care services.

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Article 3 also indicated that everything that contradicts this decision or contradicts its provisions shall be repealed, and Article 4 of the decision confirmed that it shall be implemented on the day following the date of its publication.