Prohibition of 28 new activities in Oman’s foreign investment laws

The Ministry of Commerce, Industry, and Investment Promotion has issued Ministerial Decision No. 435/2024, prohibiting foreign investment in 28 new activities, limiting these to Omani investors only. This decision is aimed at balancing the attraction of high-quality investments with encouraging entrepreneurial projects.

Under this decision, prohibited activities include the production of handicrafts from flowers and herbs, frankincense water and oil, leather and wood handicrafts, traditional handmade cosmetics and perfumes, pottery, and incense production. Additionally, activities such as skin care services, event and furniture rental, and freshwater aquaculture are now restricted to local investors.

The decision will take effect the day after its publication and does not affect existing investment projects unless approved in writing by the Minister of Commerce, Industry, and Investment Promotion. The aim of these changes is to strengthen Oman’s economy and create new job opportunities for Omani citizens.

Newly Restricted Foreign Investments Include:

• Handicrafts using flowers and herbs
• Frankincense water and oil production
• Leather and palm leaf handicrafts
• Wood, stone, and gypsum handicrafts
• Traditional cosmetics and perfumes
• Metal and aluminum handicrafts
• Fishing tools and bone-derived products
• Skin care services
• Event supplies and furniture rental
• Specialized retail in scrap building materials and drinking water
• Freshwater aquaculture, mailbox rental, and grocery stores

These updates are part of Oman’s ongoing efforts to refine its investment environment and prioritize the growth of local businesses.

source: Prohibition of 28 new activities in Oman’s foreign investment laws – Arabian Busines