
Oman: Details Protected Sectors Off-Limits to Foreign Investment
Times Of Oman, 12 July 2025: Oman has outlined specific economic sectors that remain exclusively reserved for national investors, whilst maintaining its open-door policy for foreign investment across most of the economy, according to legal experts.
A representative from the Law Firm detailed the comprehensive list of protected activities that foreign investors cannot enter under recent Ministerial Decisions.
The restricted sectors include the manufacture and retail of traditional Omani products such as halwa, traditional headwear (kummah), daggers (khanjars), and traditional textiles. Craft production using materials like leather, wood, silver, and pottery is also reserved for Omani nationals.
The protection extends to various service sectors, with foreign investment prohibited in areas including Arabian clothing tailoring, specific vehicle repair services, driving schools, and basic retail operations such as grocery shops and fresh produce sales.
Additional restrictions apply to labour recruitment, real estate brokerage, customs clearance, and certain transport services. Recent amendments have further expanded the protected list to include mobile coffee shops, skin care services, plant nurseries, and event supply rentals.
It’s also noted that existing foreign investments in newly restricted sectors may continue operating but cannot be transferred to new foreign owners without ministerial approval.
Outside these protected areas, Oman continues to welcome foreign investment through its Foreign Capital Investment Law, offering investors benefits including tax incentives and land access options through the Investment Services Centre.
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