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Oman’s Personal Income Tax Law is already enacted, but the tax itself does not begin until 1 January 2028. That gap matters. For individuals, it creates time to understand which income may fall within the new regime. For employers, it creates a preparation period for payroll, withholding, employee data and compliance processes. Under Royal Decree 56/2025, Oman personal income tax 2028 introduces a 5% rate on taxable income under the new framework, with an annual gross-income threshold of OMR 42,000. The Oman Tax Authority expects approximately 99% of the population to remain outside the tax charge. The impact will therefore be concentrated, but businesses cannot treat PIT as an issue affecting only a small number of high earners. Employers themselves will have responsibilities within the collection and reporting framework. What Changes on 1 January 2028? Oman’s Personal Income Tax Law becomes effective on 1 January 2028. It applies to natural persons rather than creating another corporate tax on businesses. The basic framework uses an OMR 42,000 annual gross-income threshold and a 5% rate applied to taxable income. For individuals, the change means salary will no longer be the only number worth monitoring. Other relevant income can enter the calculation. For businesses, the change introduces an employer-side compliance dimension because withholding and remittance can become part of payroll administration. Area What changes from 2028 Individuals Qualifying natural persons can become subject to PIT Annual threshold OMR 42,000 Tax rate 5% of taxable income Employers Withholding and related compliance responsibilities can apply Cross-border individuals Tax residency and foreign income become important Records Evidence supporting income, costs and reliefs becomes more important The new regime should therefore be viewed as both an individual tax change and an employer-readiness project. Who Needs to Pay Attention Before 2028? Not everyone needs the same level of preparation. The priority should be people and organisations most likely to interact with the new regime. Higher-earning employees: Individuals approaching or exceeding OMR 42,000 in annual income need to understand what enters their total income calculation People with multiple income sources: Salary, rental income, self-employment and investment returns can make the annual position different from salary alone Internationally mobile individuals: Days spent in Oman and overseas can become relevant when determining tax residency People with foreign income: Oman tax residents may need to consider overseas income and foreign taxes already paid Employers: Businesses need to understand withholding, payroll and employee-information requirements before implementation HR and payroll teams: Compensation data, benefits, bonuses and employee records will need to support the new tax process Businesses with internationally mobile staff: Expatriate packages, assignments and cross-border compensation may require additional review** How Will Oman Personal Income Tax Be Calculated? The 5% headline rate does not mean that an individual earning OMR 60,000 will automatically pay 5% of OMR 60,000. The Tax Authority distinguishes between total income, net income and taxable income. In broad terms, the calculation starts with relevant annual income. The OMR 42,000 threshold is then considered, followed by applicable exemptions, costs, losses and relief available under relevant international agreements. Total income → Amount above OMR 42,000 → Applicable exemptions, costs and losses → Taxable income → 5% For example, if an individual has OMR 50,000 of relevant annual income, the amount above the basic threshold is OMR 8,000. If no further adjustment applied, 5% of OMR 8,000 would be OMR 400. Actual liability can differ where the law permits further exemptions or deductions. What Individuals Need to Do Before 2028 Individuals do not need to wait for the first 2028 payslip before understanding their potential position. Three areas deserve particular attention during the preparation period. Identify All Sources of Income Salary is only one potential component of total income. The new law covers a wider range of sources, including employment income, self-employment, rent, interest, investment returns, royalties, pensions, end-of-service benefits and board remuneration. Someone earning OMR 35,000 from employment could therefore still need to examine the regime if significant rental, investment or other income takes total annual income beyond the threshold. Maintaining a clear annual view of different income sources will become more important than looking at basic monthly salary alone. Track Oman Tax Residency Tax residency can determine the scope of income entering the Oman tax framework. Published analysis of the law uses presence in Oman for more than 183 days during the tax year, continuously or intermittently, as the key domestic-law residency test. This becomes particularly relevant to expatriates, executives working across GCC countries and individuals who divide their year between Oman and another jurisdiction. Travel records that previously had little relevance to personal taxation may become important evidence when establishing an individual’s tax position. Keep Evidence for Available Reliefs The law contains exemptions and deductions relating to areas such as education, healthcare, zakat, qualifying donations and housing, subject to applicable conditions. Foreign tax paid can also become relevant in cross-border cases. Individuals who may fall within the regime should therefore develop better record-keeping habits before 2028. Receipts, payment records, investment statements, foreign tax documentation and evidence supporting eligible expenditure can become important when determining taxable income rather than merely gross income. What Does Oman Personal Income Tax Mean for Expats? The new tax is not an “expat tax.” It is also not restricted to Omani nationals. An expatriate who satisfies the applicable Oman tax-residency conditions can fall within the regime. For residents, foreign income can also become relevant, subject to the provisions of the law, available exemptions, foreign tax credits and applicable double tax treaties. For internationally mobile employees, this makes the Oman personal income tax for expats question more complex than checking annual salary. Residency days, overseas income, foreign tax and the terms of international assignments may all influence the eventual position. Why Foreign Income Will Require Better Records For an Oman tax resident, the new regime can extend beyond income received locally. The Tax Authority’s published FAQs describe total income for residents as including relevant amounts and benefits received in Oman or abroad. That makes documentation

  A Tax Clearance Certificate is an important document for businesses and taxpayers dealing with tax compliance in Oman. It provides evidence that the relevant tax obligations and returns have been addressed for the specified period. Understanding the requirements before starting the application can help avoid unnecessary delays. MFN Auditing can also assist businesses in reviewing their tax position and preparing for the clearance process. What Is an Oman Tax Clearance Certificate? The Oman Tax Authority issues an Oman Tax Clearance Certificate as evidence of tax compliance for a specified period. The certificate can cover a period of up to three years. It mainly relates to paying due taxes and submitting the relevant tax returns. Businesses should therefore review their tax records before requesting the certificate. The certificate confirms that the taxpayer has addressed the applicable tax obligations for the period covered by the request. This makes it useful when an organisation needs formal evidence of its tax position. The relevant tax returns should also have been submitted. Any difference between filed returns, tax payments and the Tax Authority’s records should be reviewed before applying. Who Can Apply for a Tax Clearance Certificate in Oman? Businesses registered with the Oman Tax Authority may need tax clearance as evidence of their tax position. The applicant’s registration and filing status are important parts of the process. Companies and establishments with tax obligations may request a certificate for an applicable period. Their tax records should show the relevant returns and payments. The taxpayer’s registration details should match the information held by the Tax Authority. Differences in company information may need to be corrected before the application proceeds. Businesses should also check that the person submitting the request has the required access to the electronic tax system. This can prevent avoidable problems during submission.   Oman Tax Clearance Certificate Requirements Applicants should review their tax position before submitting a clearance request. A complete filing history and accurate payment information can make the process easier. The key requirements relate mainly to taxpayer registration, tax returns and payment of applicable taxes. Keeping these areas in order is an important part of tax compliance. Tax Registration and Taxpayer Details The taxpayer should be registered with the Oman Tax Authority and have an active profile for accessing electronic tax services. Company information should also be accurate. Businesses should check details such as their registration information and tax identification information. Errors should be addressed before making the request. Tax Returns Must Be Filed Relevant tax returns should be submitted before requesting clearance. Missing returns can affect the taxpayer’s compliance position. Businesses should review their filing history and identify any periods that remain outstanding. Returns should be checked for completeness and accuracy. A proper review can also identify discrepancies before the application is submitted. This gives the taxpayer an opportunity to address issues in advance. Outstanding Tax Dues Must Be Checked Taxpayers should review their tax dues before applying. Outstanding amounts may affect the ability to obtain straightforward clearance. Payment records should be compared with the taxpayer’s account. This can identify payments that have not been properly reflected or reconciled. Keep Tax Payment Evidence Available Businesses should retain payment receipts and relevant tax records. These documents can support reconciliation when reviewing the taxpayer’s position. Filed returns should also be retained with the corresponding payment information. Maintaining organised records makes it easier to investigate differences. Good record keeping is useful for routine compliance as well as tax clearance. It also gives the business a clear record of its tax history. Check the Requested Period The certificate relates to a specified period and can cover up to three years. Applicants should therefore confirm the dates required for their particular purpose. The requested period should match the requirement of the organisation or authority asking for the certificate. Incorrect dates can result in an unsuitable certificate. Documents Needed for an Oman Tax Clearance Certificate The official service information does not provide a long mandatory document list for the Tax Clearance Certificate application itself. Applicants should therefore avoid treating every supporting record as an officially required document. Tax and Company Records Applicants should have their taxpayer identification information available. Companies should also keep their Commercial Registration and tax registration details accessible. Filed tax returns and payment records are important for checking the taxpayer’s compliance position. They help establish that the relevant obligations have been addressed. Review Records Before Applying A quick review of the available records can identify missing returns or payment differences. It is better to identify these issues before submitting the application. Businesses should compare their accounting records with filed tax information. Any material difference should be investigated and corrected where necessary. How to Apply for an Oman Tax Clearance Certificate Online The Tax Clearance Certificate is available through the Oman Tax Authority’s electronic services. Applicants should use the appropriate tax service rather than another certificate option. Step 1: Access the Oman Tax Authority E Services Start by accessing the Oman Tax Authority’s electronic tax services. The taxpayer should use the official online platform for the application. Check that the appropriate taxpayer profile is being used. Using the wrong profile can lead to incorrect information being submitted. Step 2: Sign In to the Tax Portal Sign in using the appropriate taxpayer credentials. The user should have the necessary authority to access and submit tax services. Check the taxpayer profile after logging in. Confirm that the displayed company and tax information is correct. Step 3: Select Tax Clearance Certificate Locate the Tax Clearance Certificate service within the available electronic services. Make sure the selected service matches the document required. Do not confuse it with a Tax Residency Certificate or Start Liquidation Certificate. These are separate services with different purposes. Step 4: Enter the Requested Tax Period Enter the relevant start and end dates for the certificate. Remember that the certificate can cover a specified period of up to three years. Check the dates carefully before moving forward. The period should match the requirement

Setting up a representative office can give a foreign company a local presence in Oman without immediately establishing a full commercial operation. It can help a company understand the market, build business relationships and promote its products or services. However, a representative office is not designed to operate like an ordinary sales or trading company. Foreign companies need to understand the permitted activities, registration requirements, documentation, staffing rules and ongoing compliance obligations before choosing this structure. The current Oman government registration route allows eligible foreign companies and enterprises operating in trade, industry and services to register a commercial representation office. The application can be handled through Invest Easy or relevant service offices. What Is a Representative Office in Oman? A representative office provides a foreign company with an official presence in Oman while remaining connected to its overseas parent company. It is mainly intended for representation, promotion, communication, and market development. It is useful for companies that want to study opportunities in Oman before committing to a larger commercial structure. A Local Presence for a Foreign Parent The representative office acts on behalf of the foreign company that established it. Its activities are connected to the parent company rather than being designed as an independent local business. The office can communicate with potential business contacts, gather market information and promote the foreign company’s products or services. Market Development Without Normal Trading A representative office can help a company understand customers, industries, suppliers and commercial opportunities in Oman. It should not be treated as a replacement for an operating branch or LLC when the company’s objective is to conduct regular sales and commercial transactions. Connection With the Foreign Company The office remains closely connected with the overseas parent company. Authorisation documents and powers given to the office manager establish the authority under which the office operates. Oman’s Commercial Companies Law recognises representative offices and branches as distinct forms of foreign company presence. Who Can Open a Representative Office in Oman? Foreign companies and enterprises operating in trade, industry and services can apply for a commercial representation office under the current government service. The eligibility assessment should be completed before preparing the application because documentation and business activities must match the intended structure. Foreign Company Eligibility The current government service identifies foreign companies and enterprises dealing in trade, industry, and services as eligible applicants. The parent company should have valid corporate documents that establish its legal existence and authority to establish the Oman office. Parent Company Requirements The foreign parent needs to provide documents showing its registration, constitutional structure and approval for establishing the representative office. The company’s board or authorised body may also need to approve the appointment of the representative office manager and the establishment of the Oman presence. Ownership and Local Partner Questions The ownership structure should be checked according to the current activity and registration rules. Companies should not assume that every foreign business structure requires an Omani shareholder. The exact requirement can depend on the proposed activity and applicable regulations, so the structure should be confirmed before submission. What Documents Are Required for an Oman Representative Office? Document preparation is one of the most important parts of the registration process. Foreign documents may need authentication and Arabic translation before they can be submitted. Preparing the complete document set in advance can reduce delays during application review. Parent Company Documents The foreign company generally needs to prepare its commercial registration certificate, Memorandum and Articles of Association and other documents proving its legal existence. Meeting minutes or a board resolution approving the representative office may also be required. The current government service specifically lists meeting minutes, Articles of Association and the commercial registration certificate among the requirements. Authorisation Documents The parent company should prepare documents authorising the representative office manager to act on its behalf. A power of attorney may also be required, along with identification documents and information relating to authorised signatories. Authentication and Translation Foreign corporate documents may need to go through the relevant authentication or legalisation process before submission in Oman. Arabic translation should also be arranged where required. Companies should check the applicable requirements with the relevant authorities before submitting documents. What Activities Are Prohibited for a Representative Office? The restrictions are as important as the permitted activities. A company that wants to conduct regular commercial operations should consider another legal structure. Using a representative office outside its approved purpose can create compliance problems. No Normal Sales Activity A representative office cannot simply operate as a local sales company and sell products as part of normal commercial activity. Companies expecting regular local sales should assess a branch or LLC instead. No Commercial Importing or Exporting The office cannot normally import or export goods as a trading operation. Limited commercial samples may be used for promotional purposes where permitted, but this should not be confused with commercial trading. No Unrelated Product Promotion The office should promote the products or services of the represented foreign company. It should not use its registration to promote unrelated companies or activities outside its approved scope. No Direct Consumer Trading The office is not intended to function as a normal consumer-facing sales operation. Companies planning direct commercial dealings should review another structure before starting operations. How to Register a Representative Office in Oman The registration process requires careful preparation because foreign corporate documents and proposed activities must meet the applicable requirements. The current government service states that applications can be submitted through Invest Easy or service offices. Step 1: Confirm That the Foreign Company Qualifies Start by checking the parent company’s eligibility, operating activities and corporate status. The proposed activities of the representative office should also be clearly defined before the application is prepared. Step 2: Prepare the Parent Company’s Documents Collect the commercial registration certificate, Articles and Memorandum, board or company resolution and authorisation documents. Identification documents and information about authorised representatives should also be prepared. Step 3: Authenticate and Translate Foreign Documents Foreign corporate documents may require authentication

  Omanisation remains an important part of workforce planning and employment compliance in Oman. The policy aims to increase employment opportunities for Omani nationals while regulating the recruitment and employment of expatriate workers. For employers, Omanisation is more than meeting a workforce target. It can affect recruitment decisions, expatriate work permits, employment costs, and workforce planning. Requirements can also differ depending on the company’s business activity, profession, and workforce structure. With changes introduced in 2026, businesses should regularly review their Omanisation position and make sure their recruitment and HR practices remain aligned with current requirements. What Is Omanisation? Omanisation is Oman’s workforce nationalisation policy, designed to increase the participation of Omani nationals in the country’s private-sector workforce. Under the policy, employers in certain activities and professions are required to employ Omani nationals at specified levels. At the same time, restrictions may apply to expatriate recruitment in certain professions. The requirements are not necessarily the same for every business. Employers need to consider their registered business activity, industry, job categories, workforce size, and applicable Ministry of Labour decisions when determining their obligations. For this reason, businesses should avoid relying on a general Omanisation percentage without checking whether it applies to their specific activity. What Are the Omanisation Requirements for Employers in 2026? There is no single Omanisation requirement that applies equally to every company in Oman. The applicable requirement can depend on factors such as: Business activity and sector Profession or occupation Number of employees Number of Omani employees Expatriate workforce Applicable localisation decisions Current Ministry of Labour regulations Employers should therefore assess their Omanisation position based on their actual business activities and employee classifications. This is particularly important when a company is planning to expand its workforce. Before hiring an expatriate employee, the employer should check whether the position is open to expatriate recruitment and whether the proposed hiring could affect its Omanisation compliance. Omanisation Rules for Companies Hiring Expatriates Omanisation directly affects how businesses approach expatriate recruitment. Companies may need to consider their Omanisation status before applying for work permits for expatriate employees. Certain professions may also be restricted to Omani nationals, meaning employers cannot simply fill every position with an expatriate worker. Before recruiting an expatriate, employers should review: Profession eligibility to confirm whether the position is currently available for expatriate recruitment. Applicable Omanisation requirements based on the company’s business activity and workforce. Current workforce composition to understand the balance between Omani and expatriate employees. Work-permit requirements to ensure the necessary approvals and documentation are in place. Activity- or profession-specific restrictions that may affect expatriate employment. Potential work-permit costs to understand the financial impact of the proposed recruitment.   Which Jobs Are Reserved for Omani Nationals? Oman has introduced restrictions on the employment of expatriates in certain professions as part of its nationalisation strategy. A profession may be restricted completely or subject to specific conditions, depending on the applicable regulation. These restrictions have also been expanded over time to cover additional occupations. Employers should therefore check the current rules before advertising or recruiting for a position. Why Job Titles Matter The job title registered for an employee can be important when determining whether an expatriate can legally be employed in a particular role. Employers should make sure that: The employee’s registered occupation accurately reflects the role The profession is permitted for expatriate employment where applicable Required approvals or permits are obtained Employment records remain accurate and up to date Using an outdated profession list or assuming that a role is available to expatriates can create unnecessary compliance risks. Omanisation and Expatriate Work Permits in 2026 One of the important developments for employers in 2026 is the relationship between Omanisation performance and work-permit costs. Ministerial Decision 602/2025 introduced a classification framework for establishments based on factors including compliance with applicable Omanisation requirements. The framework became effective in January 2026. This means Omanisation can have a direct financial impact on businesses that employ expatriate workers. New Work-Permit Fee Rules Under the new framework, establishments meeting applicable Omanisation targets can benefit from a 30% reduction in work-permit fees. Employers that do not meet the applicable Omanisation requirements may face double the standard work-permit fees. The exact application depends on the employer’s circumstances and the relevant regulatory requirements, so businesses should check their current status rather than assume that one fee structure applies to every company. Why This Matters for Employers The changes make Omanisation relevant not only to HR teams but also to business owners and finance departments. A company’s Omanisation position can influence: Expatriate recruitment costs Work-permit expenses Workforce expansion plans HR budgets Recruitment strategies Overall employment compliance For businesses that regularly hire expatriate employees, monitoring Omanisation should therefore form part of routine workforce and financial planning. What Happens If a Company Fails to Meet Omanisation Requirements? The consequences of Omanisation non-compliance can vary depending on the applicable business activity, profession, and current regulations. Depending on the circumstances, employers may need to consider: Higher work-permit fees if applicable Omanisation targets are not met. Restrictions on expatriate recruitment that may affect hiring for certain positions. Additional compliance requirements that may require corrective action from employers. Administrative difficulties when managing employment and work-permit procedures. Regulatory review concerns if workforce records or Omanisation requirements are not properly maintained.   Omanisation Requirements for Small and Growing Businesses Omanisation is an important consideration for small and growing businesses as their workforce changes. When a company expands, it may need to hire additional Omani and expatriate employees while ensuring that its workforce remains aligned with applicable requirements. Planning Omanisation alongside business growth can help employers avoid unexpected recruitment restrictions, additional work-permit costs, and administrative challenges. Opening a New Branch Businesses expanding into new locations may need to hire additional employees. Before recruiting, employers should consider the applicable Omanisation requirements for the new business activity and planned workforce. Expanding Into a New Business Activity Adding a new business activity can result in different employment requirements. Employers should review the applicable rules before expanding to ensure that

Khazaen Economic City sits in Barka along the Muscat-Batinah Expressway, giving it a direct link to the capital and the wider northern corridor of Oman. It has grown into an integrated logistics and industrial hub that combines industrial land, warehousing space, commercial areas and supporting infrastructure under one development. For investors, the real question is not just what Khazaen offers, but which type of business fits the location and what needs to be prepared before applying. This guide covers the opportunities, incentives, eligibility, documents, application steps, and practical costs an investor should know. Many businesses approach MFN Auditing at this early research stage to understand how the pieces fit together before committing capital. What Makes Khazaen Economic City Different for Investors? Khazaen is not a single industrial estate. It is planned as a full economic city with residential, commercial, industrial and logistics zones working together. This structure changes how an investor should think about location, supply chains and long-term expansion. An Integrated City, Not a Standalone Zone Khazaen brings industrial plots, logistics facilities, retail space and residential areas into one connected master plan. A manufacturer setting up here is not isolated from the workforce, suppliers or customers it needs day to day. Connection to Muscat and the Road Network Its position on the Muscat-Batinah Expressway puts Khazaen within reach of the capital’s ports, airport and consumer market. Businesses distributing goods across the north of Oman gain a shorter, more predictable route to their customers. The Role of the Khazaen Dry Port The Khazaen Dry Port gives logistics-focused businesses an inland point for container handling, customs processing and cargo movement. Companies importing raw materials or exporting finished goods can use it to reduce dependence on coastal port congestion. Which Businesses Can Invest in Khazaen Economic City? Khazaen accepts a wide range of activities across industrial, logistics, food, commercial and retail categories. The sections below break down where most current investment activity is concentrated. Manufacturing and Industrial Projects Light and medium manufacturing, assembly, packaging and repair operations make up a large share of Khazaen’s industrial base. Infrastructure-related manufacturing, such as producing materials used in construction, also fits well given the pace of regional development. Logistics, Food and Commercial Activities Warehousing, freight forwarding and distribution centres serving retail and wholesale customers. Cold storage, food storage and bulk handling for temperature-sensitive and construction goods. Corporate offices, finance and professional services, IT businesses and data centres. Retail and Supporting Businesses Supermarkets, hypermarkets and automotive dealerships serving the resident and worker population. Furniture businesses, wholesale and market-related activities alongside hospitality services. What Are the Strongest Investment Opportunities in Khazaen in 2026? Some sectors stand out from the general list because of current demand patterns and recent project activity inside the city. Logistics and Warehousing Storage and distribution demand keeps rising as more businesses move goods through northern Oman. Khazaen’s inland location, paired with the dry port, gives logistics operators an advantage over coastal-only facilities. Food Processing and Cold Chain Food security has become a national priority, and Khazaen’s centralised food ecosystem supports this directly. Demand for temperature-controlled storage continues to grow as more food businesses look for reliable inland options. Industrial Manufacturing Manufacturing localisation remains a focus for Oman, and Khazaen offers the industrial land and utility access needed to support it. Suppliers serving construction and infrastructure projects find a natural customer base close by. Pharmaceutical Logistics and Construction Materials Pharmaceutical warehousing and distribution infrastructure are growing categories within Khazaen, requiring controlled storage conditions and reliable logistics support. Cement-related products, pipes, infrastructure components and building materials continue to see steady demand too. A useful current proof point is that OPAZ reported four new Khazaen projects in 2026 with total investment exceeding OMR 12.8 million, including glue production, tile processing, infrastructure products, cement works and a pharmaceutical warehouse. What Investment Incentives Does Khazaen Offer? Khazaen’s incentive package covers land terms, ownership rules, tax treatment and operational support, and each category matters differently depending on the project type. Land and facility leases for up to 45 years, giving long-term certainty for large capital projects. The ability to sell buildings built on leased land, along with subleasing options subject to applicable terms. 24-hour operations along with an investor support team, worker accommodation and truck facilities. Foreign Ownership and Business Control Khazaen allows 100% foreign ownership of projects, which matters greatly to international investors who want full control over their Omani operation. The specific activity and applicable regulatory requirements should still be checked before assuming full ownership applies automatically. MFN Auditing is regularly asked to confirm ownership conditions for a specific activity before an application is submitted. Tax and Customs Advantages Khazaen states a five-year net-profit tax exemption for industrial projects, along with customs advantages relevant to the zone framework. Investors should verify the exact tax treatment that applies to their project structure, since this can vary based on the activity and current regulations. Khazaen currently lists these incentives, including leases of up to 45 years, 100% foreign ownership, a five-year net-profit tax exemption for industrial projects, 24-hour operations and developed infrastructure. What Are the Requirements for Khazaen Economic City Investment? Preparing a strong application depends on having company, project and financial details organised in advance. Company and Project Information This includes the company name, Commercial Registration details where applicable, shareholder information and passport or identification documents for each investor. The project side should describe the proposed activity, land or facility size, estimated investment, expected capacity, required utilities, workforce numbers and an implementation timeline. Financial and Supporting Documents A feasibility study, business plan and bank statements are commonly requested, along with audited financial statements for corporate shareholders where required. Industrial projects also need manufacturing process and technology details included. Khazaen’s published application materials request company and shareholder information, CR documents, financial information, technology details for industrial projects, and supporting business-plan or feasibility-study documents. What Documents Should You Prepare Before Applying? A practical checklist helps avoid delays once the application process begins. Completed investment application along with Commercial Registration and

Starting an industrial business in Oman involves more than registering a company and securing premises. A manufacturing or production project must operate within Oman’s industrial regulatory framework, which determines when an industrial licence is required, what information an applicant must provide and what happens once production begins. This became particularly important in 2026, when Oman introduced a new industrial regulatory framework through Royal Decree 27/2026. Businesses planning a factory, manufacturing facility, processing operation or another industrial project should therefore work from the current licensing requirements rather than older procedures that may no longer reflect the law. What Is an Oman Industrial License? An Oman industrial license is the regulatory authorisation that allows an industrial project to proceed with establishing, implementing and operating its approved industrial activity. The new industrial law defines both the industrial licence and the obligations attached to an industrial project. An industrial licence should not be confused with a Commercial Registration (CR). Commercial registration establishes the business entity and its registered activities, while industrial licensing deals specifically with the industrial project and its authorised operations. What Changed for Industrial Licensing in Oman in 2026? Royal Decree 27/2026 introduced the Common Industrial Regulatory Law of the GCC into Oman and created an updated legal framework for industrial projects. The decree was issued on 11 February 2026, published in Official Gazette 1635 on 15 February and came into force 30 days after publication. The law covers industrial licensing, initial approvals, changes to industrial projects, production, registration in the Industrial Register, project obligations and regulatory oversight. This makes the 2026 framework particularly important for both new industrial investors and businesses changing an existing manufacturing operation. Who Needs an Industrial License in Oman? An industrial project must obtain the required industrial licence before carrying out activities covered by Oman’s industrial regulatory framework. The requirement is broader than simply opening a new factory. Under the 2026 law, an industrial licence is relevant when an industrial project intends to: Establish a new industrial project: New manufacturing and industrial operations must follow the applicable licensing process Change production: A licensed facility cannot simply make material changes to its approved production without following the regulatory requirements Expand an industrial project: Expansion of an existing industrial operation falls within the licensing framework Develop the project: Material development of the licensed industrial operation can require regulatory action Merge or divide a project: Structural changes involving an industrial project are regulated Change its location: Moving an industrial project is not simply an address amendment and must comply with the industrial licensing rules Dispose of the project: Full or partial disposal of an industrial project is also covered by the industrial regulatory framework What Is the Difference Between Initial Approval and an Industrial License? Initial approval is a regulatory non-objection that allows an investor to proceed with the requirements needed for an industrial licence; it is not the industrial licence itself. This distinction is expressly recognised in the 2026 industrial law. The initial approval can be valid for one year, with an extension possible where the competent authority considers it appropriate. The industrial licence is the subsequent authorisation permitting the project to proceed with establishment, implementation and operation within the approved industrial field. What Are the Oman Industrial License Requirements? An industrial license application must contain the prescribed project data, supporting documents and studies required under the applicable rules. The exact supporting requirements can vary according to the type, scale, location and environmental impact of the proposed industrial operation. Businesses should be prepared to establish the commercial, technical and regulatory viability of the project rather than treating the application as a simple administrative formality. Valid business registration: The underlying business should have the appropriate commercial registration and authorised activities Industrial project information: The application needs accurate information about the proposed industrial operation and its activities Technical project details: Manufacturing processes, machinery, production capacity and other technical information may be relevant to the assessment Required studies: The competent authority can require the studies prescribed for the particular industrial project Premises or land documentation: The project should have an appropriate legal basis for using its proposed industrial location Environmental requirements: Projects with environmental implications may require approvals from the relevant environmental authority Health and safety compliance: Industrial premises must satisfy applicable safety and public-health requirements Additional regulatory approvals: Certain products and sectors can require separate approvals from the authorities responsible for those activities How to Apply for an Industrial License in Oman The Oman industrial license application follows a regulatory review rather than becoming valid automatically when an application is submitted. Businesses should complete the commercial and project-planning work first so the industrial application accurately reflects the operation that will actually be established. Define the industrial activity: Identify the exact products, manufacturing process and intended production activity Complete commercial registration: Establish or update the business so its registered activities correspond with the proposed operation Secure the industrial location: Confirm the factory, industrial estate, economic zone or other permitted location for the project Obtain initial approval where applicable: Use the initial approval stage to progress the requirements needed for the final industrial licence Prepare the application: Complete the prescribed forms with the required project data, documents and studies Secure supporting approvals: Obtain environmental, building, safety or sector-specific approvals where they apply to the project Submit the industrial licence application: File the completed application through the applicable government licensing channel Respond to information requests: Provide any additional information requested by the competent authority within the prescribed period Receive the decision: Once approved, the industrial licence will identify the authorised project and the period within which production is expected to begin How Long Does an Oman Industrial License Take? Under the 2026 industrial law, the competent administration must decide on a completed industrial licence application within a maximum of 30 days. The applicant must then be notified of the decision within no more than seven days from the date on which it is issued. There is an important qualification. If additional information is