Oman offers long-term residency permits to attract foreign investors

Oman has disclosed plan to offer long-term residency permits to attract foreign investors into the country.

According to the state TV, the country will also reduce income tax for small and medium businesses.

The plans, which was announced on state media on Tuesday March 9, 2021, are part of Oman’s Vision 2040 aimed at diversifying the economy away from oil, which makes up the bulk of state revenues.

Oman is one of the Gulf’s weakest economies and was hit hard by the coronavirus pandemic and low oil prices.

The International Monetary Fund reported that the country’s economy likely shrank 6.4% in 2020 and estimated it would make a modest recovery to 1.8% growth this year.

The measures also include income tax being reduced for companies in sectors aimed at economic diversification that will begin operating this year.

Oman will also cut rent at the Duqm Special Economic Zone and industrial areas until the end of 2022.

It said granting longer residencies for foreign investors would be done “in accordance with specific controls and conditions that will be announced later after their study is completed by the Council of Ministers, in addition to incentives related to the market.”

The cabinet also approved a long-term urban growth strategy that “is considered a key enabler for achieving Oman Vision 2040,” state TV said citing Oman’s ruler, Sultan Haitham bin Tariq al-Said.