Tax Benefits
All Industrial projects are exempt from tax on profit for a period of five years, renewable for a further five-year period. There is no personal income tax in Oman.
Foreign Capital
Oman is keen to promote foreign investment and offers a variety of incentives.
Exemption from Duties
Manufacturing companies are exempt from customs duties on the import of machinery, equipment and spare parts as well as on raw materials and semi-processed inputs (for the first five-years of production). The exemption period on raw materials and semi-processed inputs can be extended on the recommendation of the Minister of Commerce and industry, and the approval of the Minister of Finance.
Loans
Based on Royal Decree 17/97, the government offers loans on extremely attractive terms for projects involved in agriculture, fisheries, health and traditional handicraft activities. This facility can be extended to other sectors subject to the approval of the Council of Ministers. Loans are offered at subsidised interest rates and repayment periods are highly competitive.
Facilities for Export
Oman is the only country in the Gulf region to offer export credit insurance. The Oman Development Bank’s Export Guarantee and Financing Unit (EGFU) promotes the export of Omani goods by:
Providing export insurance cover to manufacturers against commercial and political risks.