The Ministry of Commerce and Industry (MoCI) will implement the Foreign Capital Investment Law issued under Royal Decree 50/2019, beginning Thursday, January 2, 2020.
This is in accordance with the provisions of Article 5 of the decree which says that the law will come into force six months from the date of its publication in the official gazette. The new law will help in making the environment for investment attractive and create appropriate conditions for it. This is in view of the competition among various counties to attract investments. For the purpose, incentives, privileges and guarantees are being given to help stabilise foreign investments in the sultanate.
Eng Ibrahim bin Said al Mamari, chief executive officer of the Investment Services Center in MoCI, said that the provisions of the new law will be applicable on every non-Omani natural or legal person who sets up an investment project in the sultanate, using his capital and assets for the project which is economically feasible for the country.
He said that the Foreign Capital Investment Law has many incentives and benefits to encourage investments in the sultanate because of their impact on economic development. “The law allows the investor to establish a company in one of the permitted activities and own the entire capital of the company.”
There is no limit on the capital for the companies established under this law, provided the foreign investor adheres to the timetable submitted by him to implement his project in accordance with the economic feasibility study. It does not allow any fundamental changes in the investment project without the ministry’s approval. Eng Mamari said, “The investment law will play an important role in attracting foreign investments.
It will help in flow of capital for establishment of companies to execute big projects in the sultanate. It will help in improving the level of efficiency of operating companies and transfer of economic expertise and modern investment technologies. This will lead to the diversification of economy and have an overall positive impact.”
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