 Oman is one of the most business-friendly countries in the Gulf region. With its stable economy, tax-friendly policies, and strategic location, Oman presents an attractive destination for setting up a business.
This guide will walk you through the process of setting up a company in Oman. 1. Why Start a Business in Oman?
2. Business structures Oman offers various business structures to suit different needs. The most common options include:
You will need to submit at least three name options for approval. The following documents are required to register your company:
4. Register Your Company The company registration process includes:
A Tenancy Contract is required to obtain a Municipality License. The cost varies depending on the nature of the business and the number of activities registered. 6. Apply for Tax and Visa Requirements
To operate in Oman, you need to open a corporate bank account. Most banks require your Commercial Registration Certificate, Shareholder Details, and Business Plan. 8. Timeframe and Costs On average, setting up a business in Oman takes around 15 working days, depending on government approvals and documentation processing. The estimated cost breakdown is as follows: Document Drafting | OMR 200 | One-time fee Commercial Registration | OMR 250 | Valid for 3 years Tax Certificate | OMR 100 | Valid for 1 year Service Fees | OMR 400O | One-time fee Municipality License | OMR 100+ | Depending on activity Investor Visa | OMR 450 | Valid for 2 years Employee Visa | OMR 400 | Valid for 2 years Total estimated cost: OMR 950+ (excluding additional government fees for approvals and licensing). Final Thoughts Oman is an interesting destination for setting up a business! If you're interested in setting up a company in Oman, feel free to contact me.
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 December 2024: Reviewing My Oman Investment As 2024 comes to an end, I’m taking a closer look at how my 1-bedroom studio apartment in Hawana Salalah, Oman is performing. With property prices reportedly rising, I’m evaluating my ROI from both rental income (day-to-day operations) and capital gains (how much I could sell it for). Operational ROI: I purchased the studio apartment in 2019 for USD 110,000, and here’s how it’s been performing operationally in 2024:
This translates to a Gross ROI of around 22%, which I’m genuinely happy with. That’s much more than I ever imagined. After factoring in all operational expenses, my Net ROI lands between 8-12%. For those interested in short-term rentals, this shows how properties in Salalah can be a steady income generator. Valuation Update: The Hawana Salalah real estate market has steadily grown, attracting more international buyers and tourists. Determined to get accurate and up-to-date information, I went the extra mile to understand current prices. I dug deep into various market reports, reached out to multiple local agents, and contacted the destination's representatives directly to make sure I had reliable data. Here’s how the average price per square meter (USD) has changed over the years:
In 2019, I purchased the apartment for USD 110,000, with a size of 54.1 square meters and an average price of USD 2,034 per sqm. Fast forward to 2024, with the average price rising to USD 3,360 per sqm, the current estimated value of my apartment is approximately USD 181,776. This represents a Capital ROI of 65.25%, meaning the apartment’s value has increased by an impressive 65.25% over five years, solely from capital appreciation. Should I Sell? Operationally, there’s potential to increase annual revenue to $30,000 (up from the current $24,000 per year I’m generating). But doing so would require additional effort—like offering more personalized guest experiences and closer coordination with my co-host. While feasible, it involves a time commitment I’m not sure I want to make long-term since I have so many other dreams and projects. Still, for someone committed to the operations, a $20,000-$30,000 annual income is easily attainable from a property like this. On the other hand, the current market valuation makes selling an attractive option. The impressive 2024 price increase hints at strong momentum, but how long will it last? It’s tempting to lock in gains now while reinvesting elsewhere. My goal is also to diversify my investments and reduce geopolitical risks. But to understand the upside potential of a city like Salalah, I thought it makes sense to make a global comparison: Hawana Salalah compared to other cities When compared to major global cities, Hawana Salalah still offers impressive value for money and significant growth potential. From this perspective, it might be wise to hold onto the property for now.
Hawana Salalah offers a mix of luxury, stability, and strong growth potential. With rising demand, expanding tourism, and ongoing development, it’s a market full of opportunities. Investors can enjoy high rental yields and increasing property values, making it a great time to buy, rent, or sell. If you’re interested in this market or if you have any questions, feel free to reach out - I’m happy to share my insights. Email: [email protected]  Equinix has opened a new data center in Salalah, Oman, in partnership with Omantel. The center, called SN1, is a large facility that will host 125 server racks in its first phase and is designed to be a key hub for global internet connections. It's also connected to undersea cables, making it important for international data traffic between continents like Asia, Europe, Africa, and Australia.
This new data center will help improve global connectivity and is part of Equinix's strategy to build a network of highly connected centers worldwide. Omantel is also working to attract top tech companies to the region and plans to bring in more undersea cables by next year to further strengthen Salalah's position as a global connection point. This is Equinix’s second data center in Oman, after one in Muscat, and it will be managed by Equinix while being connected to Omantel’s infrastructure. Other companies, like Ooredoo, are also building data centers in Salalah. Equinix is an American company, headquartered in Redwood City, California, USA. It is a global provider of data center and colocation services, operating a network of data centers around the world. Equinix focuses on helping businesses connect with each other and with their customers by providing secure, reliable, and high-performance data infrastructure. The company has a significant global presence with facilities across North America, Europe, Asia-Pacific, the Middle East, and Latin America.  Salalah's Dhofar Municipality has announced a project to develop the Taqah waterfront, aiming to boost tourism and enhance the area's aesthetic appeal.
The project will cover 92,650 square meters along a 2,973-meter coastline and will include amenities like sea-view restaurants, an administrative office, a walkway, a dedicated bicycle path, seating areas, playgrounds, sports equipment, and green spaces with 350 trees. Public squares with fountains and sculptures, shaded seating areas, restrooms, and prayer areas will also be part of the development. The construction tender was opened on July 30 and closed on August 27, targeting local contractors. This development is expected to make the Taqah waterfront a major attraction, supporting the local economy and improving residents' quality of life, aligning with Dhofar Municipality's broader goals to enhance infrastructure and promote sustainable tourism. It will be interesting to see how the Taqah waterfront development compares to the Dahareez project, especially in terms of design, amenities, and its impact on tourism and the local community. Both projects seem to aim at enhancing the coastal areas, but will they look and feel different?  The Salalah Free Zone (SFZ) has welcomed 13 new projects in the first half of 2024, showcasing its continued growth and importance in Oman's economy.
A Growing Hub of Activity The Salalah Free Zone is currently home to 145 companies, with 64 active projects. Industrial projects make up 56% of these, with logistical and commercial projects accounting for 14% and 30%, respectively. In 2024, the Free Zone added 13 new projects, focusing on value-added industries. These new projects include producing raw materials from frankincense, packaging products like soap and frankincense oil, and more. New Projects Overview The new projects in the Salalah Free Zone cover various industries:
The Salalah Free Zone’s ability to attract and support new projects demonstrates its strong infrastructure and business-friendly environment.  Trump Resort to Open in Oman by 2028
A new Trump-branded resort is set to open in Oman (near Muscat) by December 2028. The Trump Organization, luxury developer Dar Global, and Oman’s state-run Omran Group are collaborating on this $500 million project, which will be part of the AIDA mixed-use complex near downtown Muscat, expected to complete its first phase by 2027. The 140-room Trump International Oman will feature an 18-hole golf course, a private beach, a members-only club, multiple restaurants and bars, banquet and meeting facilities, a spa, and a nightlife venue called Cliff Hanging Night Club. *** Salalah Port Boosts Capacity with $300 Million Expansion and New High-Tech Cranes Salalah Port in Oman has increased its container handling capacity from 5 million TEUs to 6 million TEUs per year by investing $300 million in 10 new high-capacity ship-to-shore cranes. These new electric cranes can handle large ships with a depth of 26 containers and a lift height of 58 meters, making them suitable for the largest container vessels. The port has also improved its electricity network with a high-capacity substation and high-voltage feeder lines to support additional power needs and incorporate renewable energy, aiming for net-zero carbon emissions by 2040. *** Oman Plans to Introduce Personal Income Tax for High-Earners, a First in the GCC Oman is planning to introduce a personal income tax on high-earning citizens and expatriates, which would make it the first country in the GCC (Gulf Cooperation Council) to do so. The proposal, discussed for over a decade, is now under review by the State Council. The tax aims to diversify Oman’s revenue sources and reduce reliance on oil. It would likely apply to Omanis with a global income of $1 million or more and expatriates earning over $100,000 in Oman. Proposed tax rates are 5% to 9% for expatriates and a flat 5% for Omanis. In contrast, the UAE and Saudi Arabia avoid taxing individuals to attract international companies and skilled workers.  I've been tracking the progress of Hawana Salalah for many years now.
Just today I received some new numbers. The past year has been nothing short of phenomenal for this destination, showing significant strides in both real estate and hospitality. Real Estate First off, let’s talk real estate. Hawana Salalah has seen an incredible boost in its real estate market. Net sales have shot up by a whopping 70.4%, climbing from USD 7.881 million in Q1 2023 to USD 13.431 million in Q1 2024. Even the number of units sold went up by 33.3%, with 32 units finding new owners. The main reason is that they have launched a huge new real estate project last year: "Amazi Beach". If you want to learn more about it and hear my personal opinion, just contact me. And if you’re curious about prices, the average selling price per square meter increased by 5.6%, now sitting at USD 2,571.76. Keep in mind, this is just an average price. Depending on the unit and location, the price could be much more or much less. Hotels: Now, let’s switch gears to hospitality. The hotels in Hawana Salalah have also been rocking it. They’ve maintained stellar operational performance, with occupancy rates soaring to 92% in Q1 2024, up from 85% the previous year. Total Revenue Per Available Room (TRevPAR) jumped by 13.6% to reach USD 188.7. This is also good news for all the home owners who are not permanently living in Oman and list their apartments on Airbnb, Booking.com or Agoda. Final Thoughts: Hawana Salalah is truly a rising star, and its growth trajectory shows no signs of slowing down. The significant jumps in sales, occupancy rates, and revenues are clear indicators. It’s not just a great spot for vacationers but also a promising area for investors. I'll keep an eye on this destination, Stay tuned for more updates. And if you have any questions or just want to get in touch with me just contact me.  Salalah Free Zone recently signed five agreements totaling RO 44 million, initiating five new investments across various industries. These agreements span from Oman to Hong Kong, Jordan to Kuwait, showcasing the free zone’s expanding global partnerships. Significant investments include establishing factories for:
The Sultanate of Oman is set to make history with its ambitious vision of establishing the first-ever spaceport in the Middle East, expected to be operational by 2030.
This groundbreaking initiative was unveiled as part of an investment agreement signed between the National Satellite Services Company (Nascom) and Omantel, marking the creation of a new space services company named 'Etlaq' at the prestigious Middle East Space Conference in Muscat. This strategic move aims to position Oman as an attractive destination for international space exploration companies. The vision aligns with global trends, as major players in the aerospace industry, such as Blue Origin and Virgin Galactic, explore the Middle East, including the United Arab Emirates (UAE), as potential launch sites for their space tourism flights. As Oman ventures into the realm of space exploration, Etlaq is poised to play a crucial role in shaping the future of the region's involvement in this rapidly advancing industry. The spaceport's development signifies Oman's commitment to becoming a key player in the global space race, offering a promising outlook for the nation's space endeavors in the years to come.  Oman Air has achieved the top position globally for on-time performance, leading the world's airlines with an impressive 92.3%. Other Gulf carriers also ranked high, with Qatar Airways securing the third spot at 85.11%, and Saudia ranking ninth with 81.29% on-time arrivals.
Source: Cirium, a leading provider of aviation analytics, annually publishes on-time performance ratings. |
