#1استثمر في عُمان Invest OMAN Oman Investment Incentive Guide#200 080 M Table of Contents 03 Sectors Small and Medium Enterprises Health Sector Education Sector Higher Education Sector Mining Sector Food Security Sector Tourism Sector Aviation Sector 01 Introduction 02 Free Zone Incentive Guide Special Economic Zones Scientific Zones Industrial Zones#301 Introduction One of the most economically vibrant countries in the Gulf, Oman has a dynamic pro-business environment, and with exemplary strong leadership from His Majesty Sultan Haitham bin Tarik, our robust and diversifying economy is guided by Oman Vision 2040 - our blueprint for sustainable growth and success. Stable and tranquil, Oman is an exceptional destination for investment with an outstanding competitive offer - infra- structure ranked as amongst the best regionally, a highly skilled multi-lingual talent pool, an abundance of natural resources, first-class manufacturing and business properties, quality of life that is second to none and, of course, an enviable strategic location with seamless regional connectivity. Here at the Ministry of Commerce, Industry & Investment Promotion we are dedicated to helping businesses make the most of the wealth of opportunities Oman presents. From start-ups and SMEs to multinationals, the Ministry offers an extensive portfolio of support services and expert assistance. Whether you are looking to set up in Oman, find a local partner, ramp-up your company's exports or develop your enterprise in any way - our team is here to help ensure you get maximum value from being part of our growing and ambitious economy. Qais bin Mohammed Al Yousef Minister Ministry of Commerce, Industry & Investment Promotion#402 Incentives Guide Sohar Free Zones 100% foreign ownership One-Stop shop for all relevant clearance Low capital requirements Relaxed level of Omanization Exemption from corporate income taxes up to 25 years No personal income tax Free Trade Agreements with US and Singapore No import or re-export duties SOHAR PORT/FREEZONE#502 Incentive Guide L 100% Foreign Ownership Flexible customs procedures Exemption from customs duties on imports and exports Exemption from minimum capital investment requirement Exemption from taxes on profits or dividends for 30 years Exemption from tax on personal income One-Stop shop services Free Trade Agreements with US and Singapore Flexible Omanization rate up to 20% No restrictions on repatriation of capital, profits and investments Best located port in the Middle East with world-class infrastructure Salalah Free Zones المنطقة الحرة بصلالة Salalah Free Zone The world within your hands#602 Incentive Guide L Al Mazuna Free Zones 100% ownership of the invested project's capital 20% of Omanization in operating companies Flexibility in the transaction process for remittance and dealing of foreign exchange Exemption from income tax on profit for 30 years Exemption from the law of commercial agencies Allow the establishing of a representative office within the customs territory of Oman Exemption from customs duties on imports and exports Permission to import all eligible goods into the Sultanate of Oman Exemption from the requirement of a minimum investment in addition to a wide freedom to use foreign currencies Grant the factories operat- ing in the free zone a national certificate of origin Allow Yemeni workforce to work in the free zone without entry visa or permanent residence permit in Oman المنطقة الحرة بالمزيونة AI MAZUNAH FREE ZONE#702 Incentive Guide 100% Foreign Ownership No currency restrictions Exemption from minimum capital require- ment Exemption from customs duties on im- ports and ex- ports Tax exemption up to 30 years from the date of commencement of operations, renewable for the same period 100% repa- triation of capital and profit is permitted Usufruct agreements up to 50 years; renewable for similar periods الدقم Duqm المنطقة الاقتصادية الخاصة Special Economic Zone Duqm Special Economic Zone Special Economic Zone#802 Incentive Guide مجمع الابتكار مسقط Innovation Park Muscat Exemption from income tax for 5 years, renewable for similar period twice Usufruct agreements up to 25 years, renewable for similar periods Innovation Park Exemption from customs duties on imports and exports Muscat Exemption from minimum capital investment requirement Targeted Sectors: Health Energy Environment and Water Scientific Zones#902 Incentive Guide fiff مدائن madayn о о о о ○ о о о о о о о 100% of foreign ownership in all industrial cities Lease period of lands and facilities for up to 30 years, renewable for the same period Right to waive the lease right for the remaining period of the contract Right to sell constructions and buildings on the leased land Right to lease the buildings and facilities built on the leased lands by investors Right to involve new partners in the lease contract Rental value of OMR 1 annually per square meter for the first five years for industrial uses Exemption from tax on net profit for a period of five years for industrial projects Exemption from customs duties and taxes on production inputs Income tax at a fixed rate of 15% per annum and fixed customs duties of 5% Percentage of foreign workforce touches up to 65% Developed and equipped lands with basic services (water, electricity, telecom, roads) о Freedom of working around the clock Projects can receive 100% foreign ownership Industrial Cities: 100% of foreign ownership in all industrial cities о Al Wadi Al Kabir о Rusayl о о Suhar о Raysut Sur о о Nizwa Buraimi о • Al Mudhaibi о Al Mazunah о Ibri о Mahas о Samail о Knowledge Oasis Muscat#1003 Incentive Guide For Sectors All Sectors ⚫ Corporate income tax of 15% о о о Exemption from customs duties on importing factor equipment Exemption from customs duties on raw materials for factories There are no restrictions on exports to and from: Gulf Cooperation Council countries, United States of America, Greater Arab Free Trade Area Benefiting from the membership of the Sultanate of Oman in the economic agreements, which are: Gulf Cooperation Council countries Gulf Customs Union Greater Arab Free Trade Area Free trade agreement with the United States of America#1103 Incentive Guide For Sectors Payment to the Entrepreneurship Card holders in only 28 days Providing training, support and consulting programs for those who have the entrepreneurship card. Allocating lands with usufruct rights for enterprises that have an entrepreneurship card. Providing specialized business incubat ors in various governorates of the Sultanate of Oman. Providing marketing services to all small and medium enterprises. Launching specialized programs for small and medium enterprises in the areas of supplier development and export support Small and Medium Enterprises All ocating at least 10% of government tenders and procurement for small and medium enterprises. Exemption from tender fees and bid bond requirements for contracts and tenders of the Oman Investment Authority Pay the amounts due to small and medium enterprises within 15 days. From the delivery of the last invoice in the tenders under the Oman Investment Authority Reducing registration fees in the General Secretariat of the Tender Board by 50% for small and medium enterprises Limiting government purchases whose value is less than 10,000 riyals for Riyada card holders Allocating financing programs for small and mediumenterprises with a financing ceiling of up to 250 thousand riyalsfor entrepreneurship card holders#1203 Incentive Guide For Sectors Health Sector O о о Assignment of purchase tender products at 10% higher price if the product is from a local vendor. Tax exemption on pharmaceutical factories and medical equipment for a period of 5 years. Exemption from customs duties on raw materials and equipment used in the production line. Mining Sector 。 The company is not obliged to achieve the omanization rate at the exploration stage. • Investors can explore all available minerals in the Area, and they have о о the right to exploit selected minerals according to the economic feasibility study. Concession areas are granted for 20 to 30 years (The convention includes prospecting, exploring and mining).#1303 Incentive Guide For Sectors Education Sector о о о Allocation of usufruct lands to appropriate sites for school. Consideration of fees, labor laws and recruitment requirements for non- Omani teachers and the school's governing body. Incentives are given to activities licensed for private school projects. Provision of bank facilities to raise the value of loans, reduce interest and extend the repayment period. Elimination or reduction of taxes applicable to private schools. Higher Education Sector о о о Exemption from fees related to usufruct. Grant of 3 million OMR to private universities. Allocation of usufruct lands to appropriate sites for universities and colleges.#1403 Incentive Guide For Sectors Food о Security Sector о O Right-to-use land for fish farming projects for 25 years and two years' grace period. Land leasing at OMR 50 per acre for the first 100 acres and above OMR 5 per acre. 。 Customs exemption for: о о (Switzerland, Norway, Iceland) States of America Singapore AFTA GCC States Arab States (JAFTA) Adoption of electricity pricing for projects (average tariff of 20 baisa) for projects with less than 100,000 kilowatts per year. 3% Development Bank-backed loans and two-year grace period.#1503 Incentive Guide For Sectors Aviation о Discounted rates for rent at Oman airports for new investors. Sector о Reduced rates from Transom company for new airline handling operations. Tourism Sector о о о о Land will be granted under usufruct for a period of 25 to 50 years, depending on the type and size of the project. A development agreement will be signed with the owners of integrated tourism complexes, which may provide additional incentives and benefits. Special visas will be granted to property owners in integrated tourism complexes. Exemption from paying the rental value for a period up to five years from the date of signing the usufruct contract. The rental value per square meter is 500 baisa per year for Muscat Governorate and Salalah Governorate and 200 baisa for the rest of the Sultanate's governorates. The rental value is calculated only on the built-up area or at least 50% of the area.#1603 Incentive Guide For Sectors Musandam Governorate о • Investors are exempted from customs duties for building materials, tools and equipment. Tourism Sector о Exemption from tourism fees set at a rate of 4%. 。 In the first 10 years of the project, investors receive exemption from 5% local tax and 15% corporation tax.#1703 Incentive Guide For Sectors Free Trade Agreements: о • GCC - European Free Trade Association (AFTA): Iceland, Liechtenstein, Norway, Switzerland. 。 Oman - United States FTA о о • GCC-Singapore FTA о • Greater Arab Free Trade Area (Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen)#18For more Information / Investments services feel free to contact us +968 8000 0222 www.investoman.om or visit Invest OMAN lounge Muscat, Al Seeb, Almouj street, 125