Enhancing the Business Environment and the Competitiveness of Investment Zones Issuance of the Executive Regulations of the Special Economic Zones and Free Zones Law

The Regulations consolidate the unified legislative framework, simplify the investor journey, and support the attraction of high-quality and strategic projects

The Public Authority for Special Economic Zones and Free Zones has issued the decision on the Executive Regulations of the Special Economic Zones and Free Zones Law, which complete the legislative and regulatory framework established by the Special Economic Zones and Free Zones Law promulgated by Royal Decree No. 38/2025. The move aims to reinforce the efforts of the Government of the Sultanate of Oman to strengthen the investment environment, enhance the competitiveness of Special Economic Zones and Free Zones, and make them more attractive for drawing and localising high-quality and strategic projects.

Regulation No. 81/2026 represents a key milestone in translating the principles and provisions of the Law into a clearer implementation framework, which strengthens investor confidence, provides a more efficient and stable business environment, and regulates the journey of the investor and the project from land or property allocation and licensing, through operations, access to services, and enjoyment of the prescribed benefits, incentives, exemptions and facilitations, to the regulation of obligations, oversight, compliance and real estate development.

HE Qais bin Mohammed Al Yousef, Chairman of the Board of Directors of the Public Authority for Special Economic Zones and Free Zones, affirmed that the issuance of the Executive Regulations is an important step in completing what the Special Economic Zones and Free Zones Law set out to achieve in developing and unifying the legislative framework governing investment in Special Economic Zones and Free Zones, enhancing guarantees and regulatory clarity, and facilitating procedures, thereby raising the competitiveness of these zones and strengthening their ability to attract local and foreign investment and value-added projects.

His Excellency said that the Authority views legislation as a tool for improving the investor experience and raising the efficiency of the business environment, noting that the Regulations translate a number of the principles established by the Law into practical procedures built on simplifying the investor journey, strengthening the role of the One-Stop Shop, leveraging digital transformation, granting strategic projects greater flexibility, and preparing the regulatory environment for new and future economic sectors.

His Excellency explained that the Executive Regulations are an important step in preparing a more flexible framework for strategic projects, by setting clear criteria that enable these projects to be dealt with according to their nature and impact on the national economy. This framework strengthens the ability to respond to the needs of high-quality projects and offer them suitable facilitations, contributing to faster procedures and greater certainty for investors, and enhancing the attractiveness of the Sultanate of Oman's investment environment for value-added projects, in line with national priorities, plans and strategies.

He affirmed that clear regulatory frameworks for strategic projects support the Sultanate of Oman's ability to attract high-quality local and foreign investment and help consolidate its standing as an attractive destination for projects with economic impact, supporting the objectives of Oman Vision 2040 in diversifying the economy, enhancing the competitiveness of the business environment, and attracting value-added investment.

The One-Stop Shop: Simplifying Procedures and Empowering Operators

The Regulations consolidate the role of the One-Stop Shop as the main channel for delivering services to investors, extending the Law's provision that all services required by projects be provided, and that procedures for issuing approvals, permits, licences and certificates relating to the conduct of economic activities be facilitated and simplified through it.

The Regulations provide for submitting applications for land and property allocation, licences, approvals, permits and certificates through the One-Stop Shop, linking it electronically to the systems of relevant entities, alongside activating e-payment channels, data and systems integration, and protecting the confidentiality of investors' information and data.

The Authority coordinates with governmental and non-governmental entities to conclude agreements regulating the services associated with the One-Stop Shop, covering the scope of services, responsibilities, powers, timeframes for completing transactions, and monitoring and evaluation mechanisms, thereby supporting the transition to a more integrated model of investment service delivery.

The Authority is also working to empower the Free Zone operators and those who manage, operate and develop Special Economic Zones, granting them the widest possible scope of executive powers needed to complete investors' transactions and deliver services inside the zones, within the limits of the approved legal and regulatory frameworks and agreements. This brings services closer to investors, shortens referral and decision-making layers, and accelerates transaction completion, while preserving the Authority's regulatory and supervisory role and unifying service quality standards.

Automatic Licensing

Among the most notable provisions of the Regulations in simplifying the investment environment is the ability to issue licences automatically through the One-Stop Shop following automated verification that the data, documents and approved requirements are met, together with automatic licence renewal where the licensee's data is up to date and meets the prescribed conditions.

This reflects the Authority's orientation towards implementing digital services, whereby digital transformation is not limited to converting traditional procedures into electronic transactions but extends to redesigning services, leveraging data, linking systems and automating the verification of requirements, reducing the procedures borne by investors, shortening the transaction cycle, and increasing the speed and efficiency of service delivery.

The Regulations also set clear timeframes for deciding on a number of applications and transactions, and regulate the giving of reasons for rejection decisions and grievances against them in the cases stipulated, enhancing transparency and clarity in regulatory procedures.

Greater Flexibility for Strategic Projects

In implementation of the Special Economic Zones and Free Zones Law promulgated by Royal Decree No. 38/2025 on attracting high-quality projects and granting strategic projects greater flexibility, the Executive Regulations set clear criteria for classifying a project as strategic and for the possibility of granting it the single approval.

The Regulations require that the investment cost of a strategic project be no less than 10 million Omani Rials, in addition to meeting one of the qualitative criteria reflecting the project's impact on the national economy, including transfer of knowledge and modern technologies, enhancing local content, supporting self-sufficiency and food and pharmaceutical security, or developing exports.

The Regulations also regulate the additional benefits, incentives and facilitations that may be granted to strategic projects in accordance with the Law and after completion of the prescribed approvals, providing greater flexibility in dealing with high-quality projects of economic and strategic impact.

Local Content, Value Addition and High-Quality Sectors

The Regulations continue to consolidate the approach adopted by the Law of linking investment benefits to the economic impact of projects, enhancing value addition and local content, and attracting high-quality activities.

Whereas the Law put in place the tools to link benefits and exemptions to projects' economic outcomes, the Regulations more clearly define the activities of a special nature associated with tax exemptions and regulate the procedures for applying to benefit from them through the One-Stop Shop.

This reflects the Authority's commitment to directing the regulatory environment and investment benefits towards projects that contribute more to economic diversification, knowledge and technology transfer, deepening local value chains, developing exports and enhancing local content.

Real Estate Development, Freehold Ownership and Zone Revitalisation

The Regulations also complete the provisions introduced by the Law to regulate real estate development projects in Special Economic Zones, which are an important addition to economic activities in these zones.

The Regulations regulate the licensing of real estate development projects, off-plan sales and freehold ownership of real estate units by non-Omanis in projects to which the prescribed provisions apply, in addition to regulating escrow accounts and the financial controls associated with protecting buyers' rights.

The Regulations strengthened the protection of buyers' funds by regulating escrow account requirements for real estate development projects, ensuring that appropriate financial and technical requirements are in place before units are marketed or advertised for sale, along with regulating the disbursements permitted from the escrow account so that funds are directed to their intended purposes and buyers' rights are preserved.

The Regulations also regulate a number of provisions on the residence of non-Omani investors and real estate unit owners, and their spouses and first-degree relatives, in accordance with the applicable controls and legislation.

These provisions help enhance the attractiveness of real estate development projects, diversify economic activities within the zones, and attract more residents and customers to them, supporting the development of public facilities and services and raising the level of economic and social activity in those zones – the same orientation the Law pursued when it introduced provisions on real estate development and freehold ownership.

The Regulations strengthened the governance and oversight framework by defining the obligations of projects and operators and regulating follow-up, inspection and administrative penalties.

This reflects the Authority's orientation towards building a regulatory relationship based on compliance, transparency and the remedy of violations, while avoiding disruption to projects wherever it is possible to rectify their status and continue their activity lawfully.

Completing the Legislative and Regulatory Framework

The Public Authority for Special Economic Zones and Free Zones affirmed that the issuance of the Executive Regulations is a key milestone within an integrated programme to complete the legislative and regulatory framework for the zones under its supervision.

In parallel, the Authority is preparing the regulations, decisions, instructions, guides, forms, and regulatory and executive tools required by the provisions of the Special Economic Zones and Free Zones Law and the Statute of the Public Authority for Special Economic Zones and Free Zones, achieving greater integration and consistency among legislative and regulatory instruments and limiting overlap in procedures and requirements.

This work also aims to enhance the clarity of roles and responsibilities among the Authority, operators, projects and relevant government entities, link legislation to procedures and digital systems, and retain the flexibility needed to accommodate the nature and specificity of each zone and its targeted economic sectors.

The Authority indicated that developing legislation, services and digital systems is an integrated and continuous path linked to investors' needs and the evolution of business models and future sectors, strengthening investor confidence, stability and regulatory clarity, raising service quality and delivery efficiency, and enhancing the Sultanate of Oman's standing as a regional and global investment destination.

The Authority will continue coordinating with relevant governmental and non-governmental entities to expand electronic integration and the scope of powers associated with services provided through the One-Stop Shop, helping reduce the time and effort required to obtain services and improving the investor experience.