Oman: Obtaining Residency Through a $130,000 Property Investment

Oman is commonly nicknamed the Switzerland of the Middle East, and with good reason. Oman's diplomatic endeavors, geography, and political temperament makes it one of the most neutral countries in the Arab and Islamic worlds. Due to its peaceful aura and beautiful landscapes with cultured and kind people, some expats would like to move to this serene country. We previously covered the Oman borderlands highway and bus service connection to Dubai. Now we are going to present an overview of the whole country.

Here are some general facts about the country, and after that we will discuss the rules and requirements of purchasing real estate in the Sultanate of Oman.

Above: Sultan Qaboos Palace, Old Muscat, Oman

Photo credit: Angelo D'Amico, uploaded to iStock January 2017

Oman's Ancient Land and Maritime Silk Roads Heritage: The Land of Incense

There was the ancient history of Oman, with this land associated with the Biblical Queen of Sheba, who traded incense throughout the known world of antiquity. Her story is mentioned in the Holy Quran Sura 27. The history of modern-day Oman begins with the Portuguese explorers arrival in the country. The Portuguese were later expelled by the natives and Oman prospered, the British Empire came later and established a protectorate over the Gulf region.

Oman gained independence from Great Britain in 1951, but the first Sultan of Oman, Said bin Taimur, was later deposed by his son, Qaboos bin Al Said, in 1970. Sultan Qaboos became one of the most beloved leaders in Oman and in the Arab world, and he kept himself at the helm up until 2020, where he passed away after 50 years of rule.

Under Sultan Qaboos rule, Oman went under significant cultural and economic developments that were nicknamed “The Omani Renaissance”, with education, infrastructure and healthcare becoming extremely well developed.

The Omani economy and its currency the Omani Rial is generally very stable, with a large percentage of tax revenue coming from oil and gas, although recent efforts went into diversification, such as tourism, logistics, and manufacturing. But the most valued resource of all of Oman is its own people, who are known throughout the globe as a kind, hospitable folk, with a unique cultural heritage due to the many influences of Persian, Arab, and East African factors, with Islam being the dominant religion in the country-- although their sect is called the Ibadi, which is slightly different than the generally known Shia or Sunni branches.

Now, with the general facts presented, let's move on to Omani real estate requirements.

Sultan Qaboos Mosque

Photo Credit: Anna Skvortsova uploaded to iStock November 2017

Omani Real Estate 101: Restrictions on Foreign Land Ownership

Foreigners can purchase and own real estate in Oman, although not all of Oman is available for foreign property buyers. Foreigners can only attain property in zones known as Integrated Tourism Complexes, or if they have special deeds from the government.

They are special areas and thus are zoned out, but they are allowed to have 100% property rights over the land and can utilize their property for residential or commercial purposes in these special zones. However, hoarding the land and not utilizing it will lead to the plot being seized and then auctioned by the Omani government within 4 years.

Foreign investors would also be pleased to hear that usufruct rights exist in Oman for foreigners, with certain commercial properties allowing said foreign investors to attain leasehold rights over said properties, and utilizing their income as they wish for four years--although said investors must have lived in Oman for over two years.

Beachfront restaurant, Salalah Dhofar, Oman

Photo credit: Benedek, uploaded to iStock June 2023

Foreign Owners Can Pass on Omani Property and Usufruct Rights to their Heirs

There are also some restrictions, with investors not allowed to purchase more than one property under this law. The property must also have a multi-story building and be in the ITC zones or be licensed by the government. In order to prevent monopolization or excessive conglomeration by foreigners, no more than 40% of the units in a building can be bought by foreigners, and from that 40%, there cannot be more than 20% of the units purchased by persons of the same nationality. Prices can vary greatly, with a minimum of $90,000 to $116,000 for the purchase price, and it varies slightly on the location of the property.

Usufruct rights can be renewed every four years, with a maximum limit of 99, they can also be passed down through heirs that the owner have willed to his children.You can also become a resident in the Sultanate of Oman by buying property, such residency by investment basics were already published here regarding Saudi Arabia and Turkey, Oman is no different.

By attaining a real estate investment in the designated zones or the specially licensed places, temporary residency is attainable by the buyer and his immediate family through ownership of the property. Resident visa renewability is not going to change as long as you own the property and fill out the necessary paperwork, providing your up-to-date passport info and so forth. The minimum investment for the right to have renewable temporary residency is $130,000 while attaining a five year visa requires over $500,000.

Muscat Bay, Oman

Photo credit: Anna Skvortsova uploaded to iStock November 2017

Legal Requirements to Apply for Omani Residency Via Investment

Regarding legal paperwork, there are many of them, and we recommend consulting with lawyers in Oman or other Gulf-based law firms familiar with this process.

1. Passport or ID that can be accepted by the Omani government.

2. A purchase agreement between the buyer and the seller, and appropriately notarized by a notary.

3. Attaining and completing a registration form with the government, from the Ministry of Housing

4. Attaining a valid form of residence from the Ministry of Interior.

5. A bank statement in Oman

6. A survey plan of the property that has been OK'ed by the appropriate government agencies.

7. A permit from the Ministry of Environment and Water.

8. A building permit or zoning certificate from the municipality.

9. A certificate of ownership from the Ministry of Economy.

10. A deed of sale issued by the government

Fishing village of Sur, Oman

Photo credit: Travel Photography, uploaded to iStock May 2022

These are the general facts and overview of the situation of the real estate market in Oman. Regarding price ranges in the best neighborhoods of Muscat, we can discuss this subject in more in detail soon.