Oman WT/TPR/S/201/Rev.1 
 Page 11 
 
 
II. TRADE AND INVESTMENT REGIMES 
(1) THE INSTITUTIONAL FRAMEWORK  
1. Oman's first Constitution was approved by its Su ltan in 1996.  It provides for a two-chamber 
Council, which consists of the Majlis al-Shura (Consultative Council) and the Majlis al-Dawla 
(State Council), and for the organization of the judi ciary, with the Sharia (Islamic Law) as the basis 
for national legislation.  Islam is named as the state religion.    
2. Prior to the Constitution, a State Consultative C ouncil (SCC) was established by the Sultan in 
1981, but it met infrequently.  In 1990, the Sultan esta blished a new Consultative Council.  Initially, 
this body was appointed, but the selection process has gradually evolved, culminating in 2004 in 
direct elections by universal suffrage.  The second body, the 53-member appointed State Council, was 
established in 1997 as a result of the constitution to act as the upper-house.  The last elections for the 
83-members of the Consultative Council were held in  October 2007.  Its power s are limited to making 
recommendations on legislation.  Under th e Constitution, associations are allowed.1 
3. According to Article 42 of the Constitution, legisl ative authority is vested in the Sultan, while 
executive authority is vested in the Sultan togeth er with the Council of Ministers.  The Sultan 
exercises his powers directly and through the Mini sters, answerable to him for general government 
policy;  each Minister is answerable for the busin ess of his Ministry.  The Sultan also appoints and 
dismisses the Prime Minister by Royal Order, a nd appoints and dismisses the Deputy Prime Minister 
and Ministers by Royal Decree.2  Moreover, he is the supreme commander of the armed forces.  The 
Sultan also has the right to propose laws, and is the ratification and promulgation authority.3  
According to Article 6 of the Constitution, after the sultan's death, the Royal family has three days to 
agree on his successor.4   
4. Headed by the Prime Minister (the Sultan), the Council of Ministers is entrusted with 
overseeing State interests, laying down and im plementing government po licy, and supervising 
government business.  Cabinet resolutions may only be passed when the majority of members are 
present and with the approval of the majority of those present.  The Cabinet also submits 
recommendations to the Sultan on economic, politi cal, social, environmental, and executive and 
administrative matters of concern to the Govern ment, and proposes draft laws and decrees for his 
approval.   
5. Under Article 60 of  the Constitution, the judici ary is an independent and separate body.  The 
system comprises the Sharia (religious) Courts;  the Criminal (magistrate) Courts;  and the Authority 
for Settlement of Commercial Disputes, a juridi cal-commercial body, replaced by the Commercial 
Court.  The Commercial Court has jurisdiction over commercial disputes between private sector parties, government departments or authorities, and general establishments.  Th e Court consists of a 
President and judges appointed by Sultani Decree, and includes primary circuits as well as an Appellate Circuit.  Taxation deci sions and labour disputes may be appealed to the Court, which 
provides a mechanism for independent review of administrative decisions.  All decisions of 
                                                     
 
1 Article 33 of the Constitution (Associations).  It is  forbidden to establish associations whose activities 
are inimical to social order, or are secret, or of a milita ry nature.  It is not permitted to force anyone to join any 
association.   
2 Articles 48 and 51 of the Constitution. 
3 Article 42 of the constitution (Par t four on the Head of State). 
4 The Defence Council is an extra-parliamentary body tasked with coordinating the actions of the 
country's various security forces.  Th e Palace Office Affairs Minist er currently serves as the head of the Defence 
Council. WT/TPR/S/201/Rev.1 Trade Policy Review 
Page 12 
 
 
government departments or authorities affecting international trade can be appealed to the 
Commercial Court.  The public prosecution service has also been separated from the police, and an 
independent attorney-general appointed.5   
6. The National Committee (NC) was created by Cabinet Decision No. 3/2001 of 
11 February 2001 to deal with all WTO-related matters.6  It acts under the supervision of the Ministry 
of Commerce and Industry (MOCI).  Various governme nt departments and ministries participate in 
the three sub-committees of the NC, which deal with  market access issues, services, and TRIPS. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
7. Formulation and implementation of Oman's tr ade policy are the responsibility of the MOCI, 
in coordination with other ministries.  The private sector provides inputs to trade policy formulation 
through the Chambers of Commerce and Industry , which has ten specialized committees covering a 
vast array of economic issues, such as touris m, industry, construction, and labour.   
8. Trade policies are formulated and implemented by means of legal instruments.  Bills are 
prepared by the relevant ministries, and presente d successively to the Council of Ministers, the 
Consultative Council, and are then approved by  the Sultan through a Sultani Decree.  The 
Consultative Council has no legislative powers a nd can only make recommendations on the draft 
laws; in principle, laws cannot be promulgated unl ess approved and ratified by the Sultan.  Once a bill 
is signed by the Sultan, it becomes a Sultani decree and must be published in the Official Gazette  
within two weeks of promulgation;  it enters into  effect on the date of publication unless otherwise 
prescribed.7       
9. In order of importance, the Constitution is followed by Sultani Decrees, Ministerial and 
Administrative Decisions.  Treaties and internatio nal agreements conclude d by Oman have legal 
power in national courts.8  In the absence of statutory provisions, a judge may derive the bases of his 
judgement from Islamic Law (Sharia), followed by  ru les of custom, principles of natural law, justice, 
and good conscience.9   
10. Since becoming a Member of the WTO (section (4)(i) below), Oman has been reviewing and 
amending its laws, as well as establishing the adequate  monitoring institutions, to conform with its 
WTO obligations.  Several new laws have been in troduced, including a trade remedies law covering 
anti-dumping, subsidies and countervailing, and safe guard measures;  and other laws relating to 
intellectual property rights, i.e. on patents and u tility models, copyrights and neighbouring rights, 
trade marks, trade secret s, geographical indications, integrated  circuits, and industrial designs.  
According to the authorities, other laws such  as the Commercial Company Law (CCL) and the 
Investment Law are being revised.    
11. As a member of the Gulf Co-operation Coun cil (GCC), Oman had to harmonize its trade-
related legislation with that of the other memb ers (section (4)(ii)(a) below).  According to the 
authorities, this has been achieved to a large extent.  The authorities also confirmed that Oman, for the 
                                                      
5 WT/OMN/ACC/26, 28 September 2000. 
6 The NC comprises representatives from various minist ries and the private sector;  it is chaired by the 
MOCI.   
7 Article 74 of the Constitution. 
8 Article 72 of the Constitution (the application of  the Constitution shall not infringe the treaties and 
agreements concluded between the Sultanate of Oman  and other States and international bodies and 
organizations). 
9 Article 60 of the Constitution. Oman WT/TPR/S/201/Rev.1 
 Page 13 
 
 
time being, would not join the GCC common cu rrency proposed for 2010.  Thus far, 15 GCC 
resolutions had been adopted by Oman covering, inter alia , the extension of domestic treatment to all 
GCC nationals, customs-related issues, and industria l organization (section (5) below).  In general, 
investment in Oman is regulated by the foreign capital investment law, adopted by 
Sultani Decree No. 102/94;  and the law for the or ganization and encouragement of industry of 1978 
and the amendments thereto (the latest am endment being though Sultani Decree No. 1/79) 
(Table II.1).  According to the authorities, a ne w CCL has been drafted and is currently in the 
legislative process (section (5) below).  
Table II.1 
Main trade-related laws, 2008 
Legislation Issue 
GCC Common External Customs Tariff Tariff 
Commercial Company Law No. 4 of 1974 and it amendments Registration of companies 
Sultani Decree No. 39/1976, 20 October 1976 Es tablishment of Dir ectorate-General for 
Specification and Measurements (DGSM) 
Sultani Decree No. 1/1978, 3 January  1978 Duties and functions of DGSM 
Sultani Decree No. 1/79, 4 January 1979  Or ganization and encourag ement of industry  
Law No. 78/1986, 18 October 1986 Real estate brokerage 
Commercial Law (Sultani D ecree No. 55/90), 11 July 1990 Regulates commerce in Oman 
Sultani Decree No. 102/1994, 16 Oct ober 1994 Foreign capital investment  
Law No. 120/1994, 10 December 1994 Manage ment work professional advisory 
Sultani Decree No. 63/1998, 19 September 1998 Instru ment of ratification of the Paris Convention 
on the Protection of Industrial Property and the Berne Convention on Literary and Artistic Works  
Law No. 37/2000 on Copyright and Relate d Rights, 21 May 2000 Punitive measur es against copyright violators 
Sultani Decree No. 37/2000, 21 Ma y 2000 Copyright and related rights 
Sultani Decree No. 38/2000, 21 May 2000  Trade marks 
Sultani Decree No. 39/2000, 21 May 2000 Industrial design 
Sultani Decree No. 40/2000, 21 May 2000 Geographical indications 
Sultani Decree No. 41/2000, 21 May 2000 Lay out-designs (topographies) of integrated 
circuits, and industrial designs 
Ministerial Decision No. 71/2000, 19 July  2000 Important licensing procedures  
Law No. 82/2000 on Patents, 23 Sept ember 2000 Enforcement of IPRs 
Sultani Decree No. 82/2000, 23 September 2000 Patentability includes new inventions and 
innovative ideas that could be manufactured and are not contradictory to the provisions of Islamic 
Law or the rules of conduct  
Sultani Decree No. 109/2000, 15 November 2000 Pr ecious metals, whether imported or locally 
produced, must be hallmarked 
Cabinet Decision No. 3/2001, 11 February 2001 Establishment of WTO National Committee 
Ministerial Decision No. 130/2001, 29 Oc tober 2001 Omani quality regulation mark 
Economic Agreement between the GCC States 22nd Session, 31 December 2001 Economic Agreement between the GCC States 
Law No. 81/2002, 28 August 2002 Consumer protection 
Commercial Agency Law of 1977 as amended by Sultani Decree No. 66/2005, 
4 July 2005 Commercial agencies 
Sultani Decrees Nos. 45/2004 and 47/2004,  3 and 5 May 2004, respectively.  The 
Regulations of the Plant Quarantine Law were issued through Ministerial Decision 
No. 32/2006, 17 May 2006 Plant quarantine 
Sultani Decree No. 62/2006, 20 June 2006 Es tablishment of Oman's two free zones 
Sultani Decree No. 39/2006 on Oman's Implementation of the GCC Common Law 
on Anti-dumping, Countervailing Measures, and Safeguard, 2006 Anti-dumping, countervailing measures, and 
safeguards 
Sultani Decree No. 36/2008 promulgating the Tender Law, 24 March 2008 Government tenders 
Source: Information provided by the Omani authorities.  WT/TPR/S/201/Rev.1 Trade Policy Review 
Page 14 
 
 
(3) POLICY OBJECTIVES  
12. Oman's main goal is to develop sound economic (including trade) policies with a view to 
increasing growth, diversifying the economy away  from oil, and creating more employment 
opportunities for all its citizens.  The Government's  emphasis is gradually shifting towards natural 
gas, which has been discovered in large quantities si nce the late 1980s, and dive rsification plans have 
focused largely on the export of liquefied natura l gas (LNG) and gas-based industries, such as 
petrochemicals.   The policies are thus aimed at expanding trade by removing or reducing barriers to 
imports and exports, and by securing greater market access for Omani products and services. 
13. The Government recognizes the importance of trad e and investment to its overall goals.  To 
this end, it lays emphasis on the role of the private sector in resource development as well as in 
activating the economy.  However, its approach to pr ivatization has been cautious (Chapter III(4)(iii)).  
Efforts are being made to promote and attract invest ments in:  infrastructure, oil and gas (exploration, 
production, transport, educational services, tec hnology innovation, service and maintenance, and 
downstream industrial projects), tour ism (advertising, public relations, tour operators, hotel operators, 
restaurants), information technology (consulting,  data-center management, training call centers, 
software development, and business-process outsour cing), venture capital, financial services, and 
logistics.   
14. Oman is in favour of trade liberalization thr ough the multilateral framework.  It also believes 
that its membership of the WTO sends a strong message to potential foreign investors about its 
commitment to a rules-based system.  At the sa me time, regional agreements, such as the GCC and 
the Pan Arab Free Trade Area (PAFTA), as well as bila teral free-trade agreements, such as with the 
United States, are also being pursued, as Oman believes that they are complementary to the 
multilateral trading system.   
(4) TRADE AGREEMENTS  
(i) WTO 
15. Oman deposited its instrument of ratificati on of accession and became a Member of the WTO 
on 9 November 2000.  It is a signatory to the WT O's Information Technology Agreement (ITA), and 
is an observer to the Government Procurement Agreem ent.  It has not been involved in any dispute 
under the WTO Dispute Settlement Mechanism, either directly or as a third party.  Oman's trade-
related notifications to the WTO are presented in Table II.2. 
16. Oman grants at least most-favoured-nation (MFN) treatment to all its trading partners.  It is a 
strong believer and advocate of the multilateral trading system.  Oman is participating actively in the 
current round of multilateral trade ne gotiations and has particular interest in NAMA and services.  As 
a developing country, Oman strongly believes that  the special needs and interests of developing 
countries and LDCs should be full y taken on board, including through less than full reciprocity in 
commitments.  Oman is also participating activ ely in the "recently-acceded members" (RAMs) Group 
and is a Member of the WTO Arab Group.  The authorities believe that they made extensive 
commitments during their accession process and are calli ng for additional flexibilities to be granted to 
the RAMs in the DDA.  Oman believes that all Me mbers stand to make substantial gains from the 
DDA and strongly supports any efforts to bring the negotiations to a successful conclusion as soon as 
possible.   Oman WT/TPR/S/201/Rev.1 
 Page 15 
 
 
Table II.2 
Selected notifications to the WTO, April 2008  
WTO Agreement Description of 
requirement Periodicity Most recent notification Comment 
Agreement on Agriculture  
Articles 10 and 18.2 Export subsidies Annual G/AG/N/OM N/2, 14 February 2004 No export subsidies in 2003 
Article 18.2 DS:1 and 
DS:2 Domestic support Annual G/AG/N/OMN/4, 12 April 2006 List of DS measures for 
years 2004 and 2005 
Article 18.2 DS:1 and DS:2 Domestic support Annual G/AG/N/OMN/3, 14 Fe bruary 2004 List of DS measures in 2003 
Article 18.2 DS:1 and 
DS:2 Domestic support Annual G/AG/N/OMN/1/Rev.1, 
4 February 2004 List of DS measures for 
years 2000-02 
Agreement on the Implementation of GATT Article VI  
Article 18.5 Laws and 
regulations Once, then 
changes G/ADP/N/1/OMN/1, 1 April 2001 No laws and/or regulations 
Agreement on the Implementation of GATT Article VII  
Article 22 Customs valuation Once G/VAL/N/1/OMN /1, 9 January 2001 Customs valuation law in 
force 
Under Decision A.3 and A.4  Customs valuation Once G/VAL/N/3/OMN/1, 9 January 2001 Application of the Decisions 
on treatment of interest 
charges in the CV of 
imported goods and on 
valuation of carrier media bearing software for data processing equipment, as from 9 November 2000 
GATT 1994  
Article XVII:4(a)) State trading 
enterprises Annual G/STR/N/9/OMN, 24 January 2004 State trading activities 
Agreement on Import Licensing Procedures  
Article 1.4(a) and 
8.2 (b) Import Licensing 
Laws and 
regulations Once, then 
changes G/LIC/N/1/OMN/1, 9 January 2001 Import licensing procedures  
Article 7.3 Import licensing Once, then 
changes G/LIC/N/3/OMN/1, 2 March 2005 No import licence 
requirements 
Agreement on Rules of Origin  
Article 5 Para. 4 of 
Annex II Rules of origin Once  G/RO/N/32, 30 April 2001 No RO requirements for non-
preferential transactions 
Two preferential ROs:  GCC 
and Pan Arab Free-Trade 
Area; no judicial or admin rulings pertaining to these ROs 
Agreement on Subsidies a nd Countervailing Measures  
Para. 1 of Article 1 
specific under 2 Subsidies Annual G/SCM/N/123/OMN, 3 March 2005 Maintains no subsidies  
Article 32.6 Countervailing 
measures Semi-
annual G/SCM/N/1/OMN/1, 1 April 2001 No  laws and/or regulations 
Agreement on Safeguards   
Article 12.6 Safeguards Once, then 
changes G/SG/N/1/OMN/1, 1 April 2001 No laws and/or regulations 
Agreement on the Application of Sanitary and Phytosanitary Measures  
 Responsible 
agencies  G/SPS/N/OMN/25, 17 December 2007  
G/SPS/N/OMN/20, 25 October 2007 Agencies responsible are the 
Directorate General of 
Animal Health and the Director General for 
Specification and 
Measurements for food 
safety 
Table II.2 (cont'd) WT/TPR/S/201/Rev.1 Trade Policy Review 
Page 16 
 
 
WTO Agreement Description of 
requirement Periodicity Most recent notification Comment 
Article 7 Annex B Sanitary and 
phytosanitary 
measures Ad hoc G/SPS/N/OMN/21/Add.1 and 
G/SPS/N/OMN/24, 26 November 2007 G/SPS/N/OMN/21, 3 August 2007 
G/SPS/N/OMN/20, 30 July 2007 Emergency measures 
Agreement on Technical Barriers to Trade  
Article 2.9.2 Proposed 
technical 
regulations  G/TBT/N/OMN/26, 4 December 2007 
G/TBT/N/OMN/22 and 
G/TBT/N/OMN/23, 11 October 2007 G/TBT/N/OMN/21, 4 October 2007 
G/TBT/N/OMN/18 and 
G/TBT/N/OMN/19, 26 September 2007 New technical regulations 
Article 5.6.2 Proposed 
conformity 
assessment procedures (CAP)  G/TBT/N/OMN/25, 30 November 2007 
G/TBT/N/OMN/24, 12 October 2007 New CAP being introduced 
Agreement on Trade-Rela ted Investment Measures  
Article 5.1 Measures not in 
conformity with 
the Agreement Once G/TRIMS/N/1/OMN/1, 
10 December 2000 None 
Agreement on Trade-Related Aspect s of Intellectual Property Rights  
Articles 63.2; 70.8 and 
70.9 Copyright and 
neighbouring 
rights Once, then 
changes IP/N/1/OMN/1, 13 March 2002 
IP/N/1/OMN/D/1, IP/N/1/OMN/G/1, 
IP/N/1/OMN/I/1, IP/N/1/OMN/L/1, IP/N/1/OMN/P/1, and IP/N/1/OMN/P/2,18 July 2001 Laws and regulations under 
the TRIPS Agreement 
Source: WTO documents.  
(ii) Regional agreements 
(a) Gulf Cooperation Council (GCC) 
17. The GCC was created on 25 May 1981 by Bahrai n, Kuwait, Oman, Qatar, Saudi Arabia, and 
the United Arab Emirates.  The main objectives of the GCC are regional cooperation and integration 
in all economic, social, and cultural affairs, includi ng trade, industry, investment, finance, transport, 
communications, and energy.  Its specific objectives are to achieve a common market, with equal treatment of GCC citizens (35 million in 2006) in each member country in respect of freedom of 
movement, work, residence, ownership of real esta te, movement of capital, as well as financial and 
monetary coordination, including adoption of a common currency. 
10  
18. At the December 2005 summit in Abu Dhabi, G CC leaders endorsed five macroeconomic and 
budgetary convergence criteria for monetary union by 2010.  The convergence criteria include a cap 
on budget deficits relative to nati onal gross domestic product, a public  debt to GDP ratio, inflation 
rates, national interest rates, and adequacy of fore ign exchange reserves.  Technical details, including 
rates and ratios, are currently under discussion be tween Ministers of Finance and central bank 
governors.  The authorities confirmed that Oman ha d suspended its participation in those meetings 
and would not for the time being join the GCC common currency area proposed for 2010. 
19. The GCC member states set up a free-trade area in 1983, whereby originating goods have 
been exempt from customs tariffs.  That agre ement was notified to the GATT, under the enabling 
clause, on 11 October 1984.  Since January 2003, th e GCC states have been in the process of setting 
up a customs union:  a common external tariff is in  place (Chapter III(2)(iv));  and the GCC Common 
Customs Law of 2003, which is implemented in Oman under Sultani Decree No. 67 of 2003, provides 
                                                      
10 GCC online information.  Viewed at:  http://www.gcc-sg.org/index_e.html. Oman WT/TPR/S/201/Rev.1 
 Page 17 
 
 
for origin rules (Chapter III(2)(iii)).  However, pract ical details on certain trade issues have yet to be 
addressed, including full harmonization of the list of  products subject to rates higher than 5%, 
standards, and technical regulations. 
20. In 1988, the GCC and the European Communiti es (EC) concluded a Cooperation Agreement 
under which their Foreign Ministers hold a Joint Council/Ministerial meeting once a year.  The 
objective of this agreement is to facilitate trade rela tions, and to contribute to strengthening stability in 
the region.11  The GCC is also negotiating a free-trade agreement with the EC.12  On 6 July 2004, the 
GCC and China signed a framework agreement on economic, trade, investment, and technical 
cooperation;  and a free-trade ag reement is also under negotiation.13  The GCC is negotiating free-
trade agreements with Australia, China, EFTA states, India, Japan, MERCOSUR, New Zealand, 
Pakistan, Singapore, and Turkey. 
(b) Pan Arab Free-Trade Area (PAFTA) 
21. Under the Pan Arab Free-Trade Area (PAFTA) Treaty14, signed on 19 February 1997, and in 
force since 1 January 1998, all trade barriers am ong its members were eliminated without exception 
on 1 January 2005.  Nonetheless, non-tariff barriers, in  particular, standards, lengthy bureaucratic and 
administrative procedures at the borders, transit f ees, and certificates of origin, are still reported as 
costly/lengthy procedures.  The treaty also provi des for origin rules (Chapter III(2)(iii)).  The 
principal entity responsible for implementing the programme is the Economic and Social Council of 
the League of Arab States (LAS).  The PAFTA was no tified to the WTO by Saudi Arabia in 2006.  In 
recent years, the PAFTA has contributed modestly to increasing inter-arab trade.   
(iii) Bilateral agreements 
22. Oman has signed bilateral economic cooperation ag reements with 20 countries.  It concluded 
a free-trade agreement (FTA) with the United States, signed on 19 January 2006, covering trade in goods, IPRs, and services.  The FTA has not ente red into force, pending the adoption of new 
legislation relating to intellectual property.  The FTA is to eliminate virtually all tariffs on agricultural 
and non-agricultural products.  It is also to allo w exports of 50 million s quare metres (annually over 
ten-years) of Omani cotton or man-made fibre appa rel goods to the US market without the 35% rules 
of origin criterion, and liberalize a number of ser vices subsectors (including consultative professional 
services) beyond Oman's WTO commitments.
15  According to the authorities, with the exception of 
the ongoing bilateral negotiations between some G CC Members and the United States, all future 
bilateral agreements will be negotiated at the GCC level, not by individual members. 
(iv) Other preferential arrangements 
23. Oman does not participate in the Global System of Trade Preferences (GSTP) among 
developing countries;  it neither provides nor receives trade preferences under the Generalized System of Preferences (GSP).   
                                                     
 
11 European Commission (2003). 
12 See WTO (2004) for details. 
13 Xinhua Financial Network , 7 July 2004. 
14 The PAFTA members are: the GCC countries plus Egypt, Iraq, Jordan, Lebanon, Libyan Arab 
Jamahiriya, Morocco, Palestinian Authority, Sudan, Syrian Arab Republic, Tunisia, and Yemen. 
15 Ministry of Commerce and Industry (2006b). WT/TPR/S/201/Rev.1 Trade Policy Review 
Page 18 
 
 
(5) INVESTMENT FRAMEWORK  
24. The overarching goal of the Government of the Sultanate of Oman is to promote private 
sector (foreign and domestic) investment with a vi ew to gradually achieving diversification away 
from oil (as the dominant source of income) towa rds manufacturing, agriculture, fisheries, and 
services (including tourism).  Other objectives incl ude job creation for the expanding, well-educated 
local workforce;  the development of Omani mana gement skills and technical expertise;  access to 
foreign markets, through foreign private-sector mark eting channels;  and fore ign equity participation 
in large capital-intensive projects.  Omani inv estment law stipulates that projects with foreign 
investment are not to be expropriated or confiscated, except in the case of public interest, e.g. State or 
national emergency, and against compensation.  Re patriation of capital and profits is allowed freely.16 
25. The Commercial Companies Law, wh ich, according to the authorit ies is being revised, allows 
incorporation in Oman in the form of general partnershi p, limited partnership, joint-venture,          
joint-stock company, limited-liability company, or holding company.  Each form is available to 
foreign investors subject to the Foreign Capital I nvestment Law.  According to the Foreign Capital 
Investment Law, non-Omanis may only conduct cross-border business thro ugh companies licensed 
and registered in Oman, or by virtue of special contracts issued by Sultani Decree. 
26. All foreign investments require approval under th e Foreign Capital Investment Law;  foreign 
investment in companies with capital of RO 150, 000 or less is banned.  The Law allows foreign 
investors to own up to 49% of companies with minimum capital of RO 150,000 (US$390,000);  this share can be increased to 65% by the Minister of Commerce and Industry upon recommendation by 
the Foreign Capital Investment Committee.  In prac tice, foreign ownership is allowed up to 70% as 
per Oman's WTO commitments and implementing regul ations.  The investment law, which is being 
finalized, will reflect this provision.  Subject to approval by the Cabinet of Ministers, upon 
recommendation from the Minister of Commerce and Industry, foreign ownership of 100% may be 
accepted in projects with total capital exceeding RO  500,000 (US$1.3 million), provided the project 
contributes to the national economy.
17  Projects are evaluated on a case-by-case basis.  Foreign 
accounting and auditing companies are required to ha ve a local Omani partner who owns not less than 
35% of total capital.  Land ownership for foreigne rs is generally prohibited in Oman, except in 
designated touristic areas where freehold is allowed,  and in the industrial estates, including Rusayl, 
Sohar, Raysut, Nizwa, Buraimi, and Sur.18 
27. Major efforts have been made by the Mini stry of Commerce and Industry (MOCI), in 
collaboration with the relevant ministries and gove rnment institutions, to streamline and facilitate 
licensing procedures.  The one-stop shop, one of MOCI 's key strategic projects, is intended to bring 
together all the services (public and private) required by an investor. 
28. The Oman Centre for Investment Promotion and Export Development (OCIPED) serves as an 
inquiry point for investors.  OCIPED's main tasks include assisting investors in obtaining approvals, 
registering companies, obtaining up to 100% owne rship, and facilitating business contact meetings, 
and advising them on the incentives available for their projects, as well as helping firms market and promote their products.  OCIPED was established in  1997 with the objective of promoting inward 
                                                     
 
16 WT/OMN/ACC/26, 28 September 2000. 
17 As a general rule, an investment is considered as contributing to the national economy (economic 
development of Oman) if:  it is located outside the capital area;  transfers technology;  applies a new technology;  
and contributes to improving existing infrastructure.   
18 Freehold is generally for 25 years;  for Integrat ed Tourism Complexes (ITC) and similar projects it is 
for 50 years.   Oman WT/TPR/S/201/Rev.1 
 Page 19 
 
 
investment and the development of non-oil exports.  The Minister of Commerce and Industry is the 
Chairman of OCIPED.  
29. Foreign investment is allowed in most activities;   those restricted to Omanis comprise real 
estate brokerage services;  employment placement services;  investigation and security services;  
tourist guide services;  internal waterway transportation services;  taxi transportation services;  and 
small businesses, such as electric and electroni c household appliances maintenance and repair, 
barbering, tailoring, laundry, ladies hair dressing, driving instruction services, typing, translation, 
small auto repair, calligraphy, photocopying, printing and publis hing (including ne wspapers and 
magazines), Hajj and Omra services, and upholstery services.    
30. In 2007, the World Economic Freedoms Index ranked Oman the 18th most open economy, out 
of 141 countries;  the Arab Economic Freedom  Index ranked Oman as the most open in the 
Arab world in 2006.  Furthermore, the Global Peace Index for 2007, published by the Economist Intelligence Unit, placed Oman in the 22
nd position among 121 countries.  Under the Law for the 
Organization and Encouragement of Industry of 1978 , investors can benefit from incentives, such as 
low interest rate loans to industrial firms in all sectors by Oman Development Bank;  exemption from 
customs duties on imports of equipment and raw ma terials required for production;  exemption from 
income tax for a period of five years, renewable for further five–year period.  There are no restrictions 
on capital repatriation, currency exchange, or tran sfer of dividends.  Other incentive schemes are 
available to investors, in particular in Al-Maz una Free Zone (AMFZ) a nd Salahah Free Zone (SFZ) 
(Chapter III(3)(v)).  However, under the "Omanizati on" programme, companies must give priority to 
Omanis (Chapter I(4)). 
31. There are no restrictions on investment abroad by Omani nationals .  Oman has signed several 
investment framework agreements (Table II.3);  it is a member of the Multilateral Investment 
Guarantee Agency.  It has signed double taxation agreements with Algeria, Azerbaijan, Belarus, 
Canada, China, Croatia, Egypt, France, Germany, India, Iran, Italy, Korea, Lebanon, Mauritius, 
Moldova, Morocco, Mozambique, Pakistan, Philippines,  Russia, Seychelles, Singapore, South Africa, 
Sudan, Syria, Thailand, Tunisia, Turkey, United Kingdom, Ukraine, and Yemen.  
Table II.3 
Bilateral investment treaties, April 2008  
Country Final signature Country Final signature 
Netherlands 19 September 1987 Austria 1 April 2001 
Tunisia 19 October 1991 Morocco 8 May 2001 
Italy 23 June 1993 Iran 2 December 2001 
France  17 October 1994 Ukraine 14 January 2002 
China  18 March 1995 Jordan 3 March 2002 
Sweden 13 July 1995 Korea  8 October 2003 
United Kingdom  25 November 1995  Croatia 4 May 2004 
India 2 April 1997 Belarus 10 May 2004 
Finland 27 September 1997 Switzerland 17 August 2004 
Pakistan 9 November1997 Syria 14 September 2005  
Egypt 25 March 1998 Lebanon 11 April 2006 
Brunei Darussalam 8 June 1998 Bulgaria 2 February 2007 
Yemen 20 September 1998 Turkey  4 February 2007 
Sudan  25 October 1999 Germany 30 May 2007 
Algeria  9 April 2000 Singapore  10 December 2007 
Source: Information provided by the Omani authorities. WT/TPR/S/201/Rev.1 Trade Policy Review 
Page 20 
 
 
ANNEX II.1:  AID FOR TRADE 
1. Oman has benefited from a range of trade-related technical assistance activities since its 
accession to the WTO.  Nevertheless, it continues to face significant challenges in the context of the 
changing international environment.  In respon se to the latter, Oman has been implementing a 
development strategy aimed at, inter alia , reducing its high dependence on crude oil and natural gas.  
This is being done by promoting downstream industr ies and tourism; improving education and health 
services, and modernizing the infrastructure; and addressing some structural problems, including the dominant positions of state-owned companies in ke y activities.  In this regard, the development 
strategy has been accompanied by structural refo rms to create a more business-friendly environment, 
and increase the role of the private sector in  the economy (Chapters II(5) and III(4)(iii)).  The 
authorities believe that past technical assistance ac tivities, and further assistance in other areas could 
help Oman achieve greater integration into the global economy. 
2. According to the Joint WTO/OECD database,  during 2001-06, Oman benefited from trade-
related assistance funded by interna tional institutions and bilateral donors.
1  Grants and concessional 
loans to Oman have been increasing from US$7,000 in 2001 to US$905,000 in 2006.  Assistance in 
trade development was low until 2006.  The significan t increase was mainly the result of two projects.  
The first project, estimated at US$300,000, was funded by the United States, for designing and implementing a trade promotion strategy.  The second project was funded by Japan (some US$67,000) for market analysis and development.  The trend was similar for assistance granted under 
the heading of trade policy and regulations.  Betw een 2002 and 2005, an estimated annual average of 
US$90,000 was spent on trade policy and regulation ar e estimated;  however, in 2006 and as a result 
of several projects, the figure increased to US$425, 000.  This was largely due to two projects funded 
by the United States on trade facilitation (US$3 00,000).  The major donors of gross official 
development assistance (ODA) to Oman over 2004-05 were the United States, Japan, the Republic of 
Korea, and UNIDO.
2 
3. Technical assistance granted by the WTO has been delivered mostly through regional 
activities and workshops, and trade policy courses, but  also through national workshops or technical 
missions.  National technical assistance activities were focused on sanitary and phytosanitary 
measures and technical barriers to trade notifications, anti-dumping, market access issues, trade-related aspects of intellectual property rights, tr ade in services, development of trade negotiating 
skills, dispute settlement. 
4. The Task Force on Aid For Trade (AFT), estab lished pursuant to the mandate agreed by 
Ministers at the 6
th WTO Ministerial Conference held in Hong Kong, China in December 2005, 
identified the following broad categories for interv ention:  trade policy and regulations;  trade 
development;  infrastructural development;  produc tive capacity building;  adjustment to cushion the 
effects of trade liberalization; and other trade-related assistance needs.3  A major area of emphasis for 
                                                      
1 Assistance was granted for trade and investment;  trade facilitation;  dispute settlement;  trade and 
environment;  agriculture;  customs valuation;  market analysis and development;  training on negotiations;  
regional trade agreements;  rules;  sanitary and phytosanitary measures;  services;  tariff negotiations (non-agricultural market access);  tariff reform s;  technical barriers to trade;  mainstreaming trade into development 
plans;  trade promotion strategy design and implementation;  trade-related aspects of intellectual property rights;  
and transparency in gov ernment procurement. 
2 Joint WTO/OECD TRTA/CB database, "Beneficiary Country:  Oman" .  Viewed at: 
http://tcbdb.wto.org/benef_country.aspx. 
3 The first two categories (trade policy and regulations, and trade development) are to follow the 
definition of the Joint WTO/OECD database;  other categories fall under the AFT only if the activities in Oman WT/TPR/S/201/Rev.1 
 Page 21 
 
 
Oman is trade policy and regulations.  The Govern ment attaches great importance to building human 
capacity to formulate and implement trade policy.   
5. There is a need for targeted technical assistance, which could be organized around a series of 
seminars/workshops and studies, in pertinent areas such as financial, telecommunication (technical 
aspects), tourism, distribution, and construction servi ces;  management of industrial estates;  SPS and 
TBT (in particular on risk assessment);  training  officials on the WTO Agriculture Agreement;  
analysis of market access opportunities and chal lenges for certain commodities, such as fish;  
familiarizing customs officials with the Customs Valuation Agreement (including implementation);  
raising awareness among academicians in Oman on th e WTO and working with them to achieve the 
long-term objectives of sustainable capacity building;   and enhancing the know ledge of and providing 
assistance in trade facilitation and customs administrative matters.    
 
 
                                                                                                                                                                     
question have been explicitly identified as trade-related priorities in the recipient country's national development 
strategy.