Oman, a hidden jewel of the Arabian Peninsula, has become an attractive option for investors, entrepreneurs, and expats. Known for its cultural richness, safe and secure environment, access to healthcare, and long-term residency, Oman is a great place for those looking for both opportunity and quality of life.
In this article, we’ll cover the top benefits and challenges of living in Oman, while highlighting investment options for those who want to acquire a residency permit.
Key Takeaways
- The main benefits of living in Oman are a luxury lifestyle and real estate options, political stability and safety, long-term residency options, a tax-friendly environment, a high standard of living, and a strategic location for business.
- The key challenges for expats and investors who want to live in Oman are limited property ownership options, bureaucracy and administrative delays, dependence on oil and gas, limited financing options for expats, and high initial investment requirements.
- The main investment options to get residency in Oman are real estate investment, business investment, and purchasing government bonds.
Top 6 Benefits of Living in Oman
Many expats are interested in investing in Oman, drawn not only by financial returns but also by the appealing lifestyle. Here are several advantages that are invaluable for newcomers:
Luxury Living and Real Estate Options
Oman has a wide range of luxury properties in areas like Al Mouj and Muscat Hills. Foreign investors can own freehold properties in Integrated Tourism Complexes (ITCs), including beachfront villas, golf course estates, and modern apartments.
Political Stability and Safety
Oman is considered one of the safest countries in the Middle East. For expats and investors, this provides reassurance when planning long-term residency or investments.
Long-Term Residency Options
The Omani government has introduced long-term residency by investment programs. Investing at least OMR 200,000 in real estate, government bonds, or business, you can acquire a 10 year renewable permit of residency.
Tax-Friendly Environment
There is no personal income tax in Oman, which allows expats to maximize their earnings. Businesses also benefit from competitive corporate tax structures and investment incentives.
High Standard of Living
Residents enjoy the excellent infrastructure, healthcare, and educational facilities. Additionally, having luxurious shopping malls, fine dining, and exclusive leisure clubs increases the level of people’s satisfaction.
Strategic Location for Business
Oman’s position between Asia, Africa, and Europe makes it a perfect place for business owners or investors. Being a logistics hub is a major advantage for international trade.
Top Challenges For Expats and Investors
Oman surely comes with tons of benefits. But let’s not forget about the other side. We want you to be there prepared, right? So let’s talk about the top challenges that you might face in Oman.
Limited Property Ownership Options
As a foreigner, you can only buy a property that is included in Integrated Tourism Complexes (ITCs). For many investors, it means fewer locations to diversify property holdings.
Bureaucracy and Administrative Delays
Be patient when it comes to paperwork in Oman. While the country is considered a modern country, setting up a business or completing official paperwork can sometimes be slow. Processes such as licensing, approvals, and renewals may involve multiple steps and government offices.
Dependence on Oil and Gas Economy
Although the Vision 2040 states that Oman is diversifying its economy, it still has 2 main economic drivers: oil and gas. Global price fluctuations can indirectly affect investors’ choices, as they may feel some uncertainty.
Limited Financing Options for Expats
Banks in Oman are cautious when it comes to lending to foreign investors and expatriates. Mortgage access can be more restrictive compared to locals. By this being said, we mean that you’ll probably need to rely on self-funding if you want to buy a property in Oman.
High Initial Investment Requirements
Residency by investment programs in Oman require a large amount of money. The minimum amount of investment starts from 200,000 Omani Rials.
Investment Options in Oman
At the beginning of September, Oman announced seven options to obtain citizenship. Options include purchasing real estate within Integrated Tourism Complexes (residential, commercial, or hospitality), establishing a company in Oman, acquiring Government Development Bonds, or buying shares listed on the Muscat Stock Exchange. Other routes involve maintaining a fixed-term deposit with a licensed Omani bank, operating a business that employs at least 50 Omani nationals, or receiving a nomination as key personnel or a partner from a company regulated under the Foreign Capital Investment Law. Let’s talk about the most famous investment options that will give you an opportunity to get a residence permit. For all of them, applicants must invest at least OMR 200,000 (around USD 520,000). In return, they gain full foreign ownership of their assets, streamlined access to essential government services, and tailored support through the Invest Oman platform - the official one-stop destination for strategic investments.
Real Estate Investment
For those of you who are interested in real estate investment, we’ve gathered the four main types of properties in Oman:
Residential Property
Residential property includes apartments, villas, and townhouses. Consider the fact that in cities like Musca, the demand for real estate is rising. Areas like Shatti Al Qurum, Al Mouj, Jebel Sifah, Muscat Hills, and Muscat Bay often offer high rental income.
Commercial Property
Commercial properties are office spaces, retail shops, and mixed-use buildings. If you’d like to buy a commercial property, start exploring Muscat’s Central Business District and Rusayl Industrial Estate.
Tourism Property
Tourism is one of the fastest-growing sectors of the economy in Oman. The country welcomes millions of visitors each year. By 2040, the country expects almost 12 million tourists, and the government is investing heavily in this sector. This makes hotels, resorts, and other hospitality properties in areas like Jebel Sifah and The Wave Muscat a profitable choice.
Industrial Property
As Oman focuses on industrial growth and trade, warehouses, factories, and logistics centers are in high demand. Popular areas for industrial property investment are Sohar, Rusayl, Salalah, Nizwa, and Al Mazunah.
If you’d like to learn more about real estate opportunities in Oman, read the following article or contact our specialists, who are ready to meet your needs.
Business Investment
The second option of acquiring residency in Oman is investing in a business. This option is specifically designed for entrepreneurs and investors who want to start their business in Oman and build a strong base for their families. For those who want to combine business growth and residency benefits, it’s an ideal option.
Here are the main requirements for this type of business investment:
- Register the business through Oman’s commercial registry, complete incorporation, and acquire any sector-specific licenses required.
- Keep the company in good standing by maintaining its paid-up capital, filing taxes, meeting payroll obligations, and fulfilling reporting requirements.
- Create employment opportunities for 50 or more Omani nationals, which supports Oman’s workforce development goals.
Purchasing Government Bonds
Another path of receiving a residency permit in Oman is buying government bonds. All you need is to invest around USD 520,000 in approved government bonds or a long-term bank deposit, keep the investment for a required amount of time, provide certificates from the bank or the issuer to pass the required checks, and make sure you’ve paid all the necessary fees.
To sum it up, Oman is one of the most attractive countries for investment because it has a rare combination of luxury living, political stability, and long-term investment opportunities. For expats and investors, the country provides not only attractive financial incentives and residency programs but also a high quality of life, excellent infrastructure, and a safe, family-friendly environment. While having challenges like limited property options, bureaucracy, and high initial investments, the benefits, such as strategic location, tax-friendly environment, and long-term residency options, make Oman a great choice for those looking for both comfort and strategic investment advantages.
FAQ
Oman has a more relaxed lifestyle compared to the highly commercialized environments of the UAE, like Dubai or Qatar. Oman's highlights are its cultural heritage, natural beauty, and community values.. This makes the country an attractive option for those who are looking for comfort and a family-friendly environment.
Yes, one of the advantages of Oman’s Golden Visa is family sponsorship. Investors can include their spouses, children, and, in many cases, even parents in their residency application. This makes Oman an attractive option for those who want to relocate as a family.
If you sell your qualifying property or business, your residency, which is linked to that investment, may no longer be valid. To maintain residency, you’ll need to reinvest in another eligible property, business, or government bonds that meet the program requirements. It’s important to plan ahead and coordinate with the Ministry of Housing and Urban Planning or relevant authorities to ensure continuity.
Typically, properties in Integrated Tourism Complexes (ITCs) can be rented out, giving investors the chance to generate rental income. However, landlords must follow local tenancy laws, including contract registration and tenant rights. Consulting with a local real estate agent or legal advisor ensures compliance and maximizes returns.
