- Commercial units in ITCs and approved projects can be held freehold
- Usufruct and free-zone routes for sites outside freehold zones
- 100% foreign ownership available across most sectors
- Sponsor-free residency for a property-owning company’s representative
Commercial property in Oman for foreign investors
Oman’s commercial market is smaller and less speculative than Dubai’s, which is precisely its appeal to a certain kind of investor: assets are priced off income rather than off momentum, tenants are often government-linked or long-established trading houses, and the state is actively courting foreign capital under Vision 2040. Since the Foreign Capital Investment Law, 100% foreign ownership is available across most sectors without a local partner, and the 2026 residency amendments extended sponsor-free residency to the legal representatives of property-owning companies.
This page covers the asset classes open to foreign investors, the legal routes to hold them, the free zones, how income and residency attach, and what we check before a company commits. For residential buy-to-let, see apartments; this page is about offices, retail, hospitality, logistics and whole buildings.
Asset classes and where they sit
| Asset | Where | Ownership route | Typical buyer |
|---|---|---|---|
| Retail and F&B units | The Walk at Al Mouj, resort retail at Jebel Sifah and Hawana Salalah, neighbourhood centres in Sultan Haitham City | Freehold within the ITC or project | Operators; income investors |
| Offices and serviced units | Mixed-use buildings in designated zones; business parks | Freehold where designated; usufruct elsewhere | Companies setting up in Oman; investors |
| Hospitality | Hotel rooms and branded residences in resorts; hotel sites | Freehold units; usufruct for sites | Income investors; operators |
| Whole buildings and projects | Residential or mixed-use blocks for development or letting | Freehold in zones; usufruct outside | Developers; family offices |
| Logistics and industrial | Free zones at Sohar, Duqm, Salalah and Khazaen | Long-term lease within the zone | Trading and manufacturing companies |
How foreign companies hold property
Inside integrated tourism complexes and approved projects, commercial units are sold freehold to foreign individuals and companies in the same way as homes, with title registered and inheritable. Outside those zones, a foreign-owned company holds sites under usufruct: a registered, long-term and renewable right to use and develop the land for an approved purpose, transferable with consent. In the free zones, companies lease land or built space from the zone authority on long terms with customs and tax advantages attached.
The choice of route is driven by the site, not by preference, and each has its own approval chain. We map it before any offer is made. See usufruct and long leases, approved freehold areas and business setup in Oman for company formation.
Free zones and special economic zones
Oman’s zones are where most industrial and logistics investment lands. The Special Economic Zone at Duqm is the largest, built around a deep-water port and refinery on the Arabian Sea; Sohar Port and Freezone serves the north and the UAE border; Salalah Free Zone sits on the Indian Ocean container hub; and Khazaen, west of Muscat, is a logistics and light-industrial zone near Sultan Haitham City. Zone companies typically enjoy full foreign ownership, customs exemptions and corporate tax holidays for a set period, with long-term land leases rather than freehold.
For a trading or manufacturing business the zone decision is a logistics and tax decision first and a property decision second. Our investment advisory service works alongside your accountants and the zone authority on it.
Income, tax and holding costs
Corporate income tax applies to company profits at the standard rate, with zone holidays and small-business rates where applicable; there is no capital gains tax as a separate head, and no annual property tax. Value added tax applies to commercial rents and most supplies. Personal income tax does not apply today; a 5% tax on personal income above OMR 42,000 a year is scheduled from 2028, relevant to individuals who hold income-producing property in their own name. Service charges, insurance and management are the main holding costs. We work with your tax adviser on the structure; see tax and compliance guidance.
Residency for owners and company representatives
Royal Oman Police Decision No. 87/2026, in force since 22 June 2026, extends sponsor-free residency to foreign nationals licensed to invest in Oman and to the legal representatives of companies that own real estate, as well as to individual owners of residential units. An investor who holds property through an Omani company can therefore reside in Oman on that basis without an employer sponsor. Investment of OMR 250,000 or OMR 500,000 in qualifying property or business supports the five- and ten-year Investor Residency tiers. See the Investor Residency Programme and the residency overview.
Whole-project and development opportunities
The most interesting commercial enquiries we receive are from developers and family offices that want to build rather than buy: a neighbourhood plot inside Sultan Haitham City under licence, a hotel site in a resort, or a mixed-use block in a governorate town under usufruct. Egyptian, Gulf and increasingly South Asian developers have entered the market this way since 2024. These are bespoke transactions with the Ministry of Housing and Urban Planning, the master developer or the zone authority as counterparty, and they begin with a feasibility and approvals study rather than a brochure. Our land and plots page covers the plot framework; contact us for the development pipeline.
Due diligence on commercial assets
- Ownership route confirmed: freehold designation, usufruct term and permitted use, or zone lease terms
- Title, encumbrances and any existing tenancies reviewed
- Lease covenants, rent review and break clauses analysed against market
- Building condition, services capacity and compliance certificates
- Service charge, insurance and management costs modelled
- Corporate structure, licensing and tax position agreed with your advisers before offer
How we work on commercial mandates
- MandateYou set the sector, return target, hold period and structure; we agree a search brief and fee basis.
- SourcingOn- and off-market assets from developers, master developers, zone authorities and private owners.
- AnalysisIncome, costs, route to ownership and exit, in a model you can interrogate.
- TransactionOffer, due diligence, approvals and completion with your legal and tax advisers.
- Asset managementLetting, service charge and tenant management after completion, if required.
Related pages
Business Setup in Oman
Company formation and licensing for investors who want to operate, hold assets or qualify for investor residency…
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Usufruct & Long Leases
Options outside freehold areas: long-term rights to use and develop property that are registered, financeable and…
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Land & Plots in Oman
Serviced villa plots inside approved freehold communities and larger development parcels under long-term usufruct, for…
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Investment Advisory
Straightforward guidance on locations, developers, yields and exit, so the property you buy does the job you bought it…
ExploreFrequently asked questions
Can a foreign company own commercial property in Oman?
Do I need an Omani partner?
Does owning commercial property give me residency?
What yields do commercial assets produce?
Which free zone should I choose?
Can I buy a hotel or hotel rooms?
Is VAT charged on commercial property?
How long does a commercial purchase take?
Page reviewed 2 November 2026. Availability, prices, payment terms and residency rules are confirmed in writing before you commit and may change.