Oman Property Investment in 2026

Historically reliant on hydrocarbon extraction and exports, Oman has embarked on a strategic shift to diversify its revenue streams. The government is actively promoting non-oil sectors, aligning with its Vision 2040 framework to foster long-term economic sustainability.

The tourism and real estate markets have gained strong momentum, attracting international investors. While the UAE remains the dominant player in regional property transactions, Oman presents a compelling alternative with a lower entry threshold, favourable investment conditions, and a significantly less competitive rental market.

This report explores Oman’s investment appeal and highlights key opportunities within the real estate sector.

Oman’s Strategic Investment Perspective

Under Vision 2040, Oman is accelerating the development of core non-oil industries, including logistics, maritime services, tourism, manufacturing, and real estate. These sectors, while not yet dominant, are playing an increasingly vital role in driving economic expansion, enhancing Oman’s regional competitiveness, and attracting foreign capital.

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Oman’s Investment Climate

Oman’s Economic Performance

While Oman continues to advance its economic diversification agenda, the oil and gas sector remains the principal revenue driver.

Oman’s 2025 budget underscores its continued reliance on hydrocarbon revenues, which are projected to contribute $19.7 billion — equivalent to 68% of total fiscal receipts — assuming an oil price benchmark of $60 per barrel.

2025 Fiscal Projections

Although marginally above the $19.4 billion target set for 2024, this remains below the actual revenue of $23.7 billion recorded in 2024. Oman’s fiscal deficit for 2025 is projected at $1.61 billion, with plans to bridge the gap through borrowing and reserves — highlighting the economy’s ongoing vulnerability to oil price fluctuations.

According to KPMG, non-oil revenues — including VAT and corporate income tax — are expected to rise by 5% and 4%, respectively, in 2025. However, their contribution remains secondary to hydrocarbon revenues.

Sovereign Credit Ratings and Fiscal Sustainability:

Oman reached investment grade with all three major rating agencies in 2025. Moody’s upgraded the sovereign to Baa3 in July, and Fitch raised it to BBB− in December; both assigned stable outlooks.

Regardless of credit ratings, Oman has consistently opened its economy to international capital, fostering an increasingly attractive investment environment.

Royal Decree 50/2019 on foreign investment removed minimum capital requirements, allowing foreign investors to own 100% of businesses across various sectors — excluding 70 industries where the Ministry of Commerce, Industry, and Investment Promotion (MOCI) retains restrictions.

In March 2022, the Muscat Stock Exchange lifted foreign ownership limits, simplifying corporate structuring and eliminating the need for partial Omani ownership. Alongside high oil prices, this contributed to the MSX index’s record 17.63% growth in 2024.

In January 2024, the Oman Investment Authority launched the «Future Fund» with a $5.2 billion budget, focusing on attracting direct foreign investment and supporting SMEs. Key reforms under this programme include enhancing labour market flexibility, improving institutional quality, and expanding renewable energy development — targeting 16% renewable energy production by 2025.

Oman’s population has been steadily growing, driven by expatriate migration, with foreign nationals making up approximately 44% of the Sultanate’s residents. According to the National Centre for Statistics & Information, Bangladeshi, Indian, and Pakistani nationals form the largest segment of the expatriate labour market.

Similar to Dubai, Oman’s economic expansion and development in industrial and construction sectors continue to attract labour migration, reflected in the demographic structure of the expatriate workforce.

A dominant presence of working-age males (predominantly 25–34 years old) reinforces this trend, indicating that expatriate demand for residential real estate is largely limited in qualitative terms.

In prime real estate markets such as Muscat and Salalah, expatriates constitute an even higher proportion of the population:

Population of Prime Property Markets in Oman

By 2025, Oman’s real estate sector is increasingly being viewed as a short-term rental asset class catering to the growing tourism market. According to national statistics, the Sultanate welcomed 3.5 million visitors by November 2024, marking a slight 1% decrease year-on-year.

The annual report from the National Centre for Statistics & Information notes a 3.6% increase in hotel guest numbers — from 2.07 to 2.14 million. If this trend continues, total visitor numbers could reach 4.1 million by the end of 2024. However, the government’s ambitious target of 6 million tourists by 2030 will require more strategic efforts to bolster the sector.

Key source markets for Omani tourism in 2024

In 2024–2025, Oman remains a key destination for Gulf tourists, particularly during the hot summer months. The coastal regions of Salalah and Muscat serve as a seasonal retreat for UAE residents, benefiting from a more temperate climate compared to Dubai and Abu Dhabi. Meanwhile, European and North American visitors collectively account for approximately 14.5% of the total inbound tourism market.

Oman Real Estate Market

The impact of oil and gas revenues on Oman’s real estate market is reflected not through direct price dependency on oil but through fluctuations in development activity.

When oil prices are high, construction volumes increase, leading to a rise in the number of building permits issued. Conversely, during periods of declining oil prices, development activity slows, mirroring the broader macroeconomic trends of the country.

Economic growth driven by strong oil revenues can lead to higher disposable incomes, supporting demand for mid-range and premium residential properties. In contrast, a drop in oil prices can cool developer activity and dampen private investor demand, as seen in the market correction at the end of 2023 and early 2024.

This trend persisted throughout the second half of 2024, with villas emerging as the fastest-growing segment. Despite a slow start, private homes ended the year with a 2.5% annual price increase, fully rebounding from the previous correction.

In 2025, the total value of Omani real estate transactions edged down 0.4% to OMR 3.37 billion (about $8.76 billion). Sale-contract value rose 16% to OMR 1.27 billion (about $3.30 billion), while the number of sales slipped 1.6% to 67,074. Mortgage-contract value fell 8.2% to OMR 2.09 billion (about $5.44 billion), although the number of contracts rose from 20,680 to 22,677.

Oman Real Estate Market in 2025

While this growth is partly due to a low base effect — two years ago, foreign investors were just beginning to explore the market — 2024 saw a broader trend towards diversification within the Gulf region. Oman emerged as a compelling alternative to Dubai, largely due to its lower entry costs.

Investors primarily target properties for short-term rentals, particularly in prime coastal locations, where demand is driven by European and Gulf tourists.

The average budget for foreign property buyers in Oman in 2024 was $204,000, though opportunities exist at lower price points. For instance, apartments in Jebel Sifah, Muscat, are available within the $115,000 — $150,000 range.

In the short term, Oman remains attractive due to its tax advantages: property rental and sales are tax-free, VAT is set at 5%, and property registration fees stand at 3%.

Key benefits over Dubai include the absence of a minimum investment threshold for residency and a streamlined process for obtaining a residence permit with minimal compliance requirements (in Dubai, rapid residency approval is only available for ready-built properties). Additionally, Oman offers a simplified bank account opening process.

Prime Developments & Locations in Oman

In 2025, international investors are focusing on two key locations in Oman: Muscat and Salalah.

Median Rental Rates for Apartments in Muscat in 2025:

Muscat, the capital of Oman, is a vast coastal area along the Gulf of Oman. The term «Muscat real estate» often encompasses both urban developments and suburban properties within a 20—40-minute drive from the city centre.

One of the most sought-after projects in the area is AIDA, Muscat’s largest resort-style community, positioned as a prime investment destination.

AIDA is among the region’s most ambitious developments, set to establish a competitive Gulf resort hub that attracts both local and international investors.

The project has already gained the trust of leading global operators. Trump Hotels and Marriott have chosen AIDA for branded residences and villas, while Trump International Golf Club is developing a $500 million golf course within the community.

Investing in AIDA offers strong rental potential, with benefits including full property ownership and a corporate tax exemption for up to 25 years, as the project is located within a free economic zone.

Tranio’s specialists will help you find real estate in Oman and other Gulf markets. Contact us for a tailored selection of the best investment opportunities.

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Median Rental Rates for Villas in Muscat by District in 2025

Strategically located on Oman’s northern coastline, just a 45-minute drive from Muscat, Jebel Sifah is emerging as the second most sought-after investment destination in 2025. Developed by Muriya — a joint venture between OMRAN Group and Orascom Development Holding — the area is positioned as a premier residential and investment hub.

With a 9-hole golf course, a superyacht marina, the boutique Sifawy Hotel, and a variety of restaurants and leisure activities, Jebel Sifah attracts a steady influx of visitors.

The area sees approximately 1,200–1,400 visitors per week, while beach clubs such as The Bank and Dunes Beach Club operate at 90–100% capacity during peak hours, as per Besttime data. These strong visitor numbers reinforce Jebel Sifah’s appeal to both private investors and corporate entities.

Establishing a Business in Oman

Foreign investors can set up businesses in Oman, provided they meet certain regulatory requirements. The Ministry of Commerce and Industry issues licenses for commercial, industrial, and tourism ventures, as well as for shareholders in Omani companies.

A minimum capital requirement of $390,000 applies, except for IT businesses, which can be registered with as little as $52,000.

Oman’s Free Zones

Oman offers several free zones designed to attract businesses with favourable tax policies and regulatory incentives. Companies operating within these zones benefit from customs exemptions, no minimum capital requirements, and reduced Omanisation quotas (minimum percentage of Omani nationals in the workforce).

Key free zones in Oman:

• Salalah Free Zone;
• Port of Salalah;
• Sohar Industrial Port;
• Sohar Free Zone;
• Al Mazunah Free Zone;
• Musandam Free Zone;
• Duqm Special Economic Zone.

Corporate Tax in Oman

Corporate tax in Oman applies to local businesses, branches of foreign companies, and individuals engaged in commercial activities within the Sultanate:

• standard corporate tax rate: 15%;
• reduced rate for small businesses: 3%.

Value-added tax (VAT) is levied at a standard rate of 5% on goods and services.

Tax exemptions apply for five years, with a possible extension of up to an additional five years, for businesses engaged in manufacturing, mining, exporting, tourism, agriculture, fisheries.

Dividend income and securities transactions are tax-exempt, while rental income is subject to a flat tax of 3%.

Non-residents without a permanent establishment in Oman, who earn income from local sources — such as software licensing, management fees, or R&D services — are subject to a withholding tax of 10% on gross revenue.

In 2025, the Omani government plans to introduce personal income tax, with a progressive rate between 5% and 9% for foreign residents.

Oman Residency by Investment

Foreign investors can obtain residency in Oman by investing in real estate or a commercial enterprise. The minimum investment threshold for LLCs, public joint-stock companies, or government bonds is $648,000.

Residency by Investment in Real Estate

Investors from CIS countries can qualify for Omani residency through real estate purchases without a predefined minimum property value. For example, properties within Integrated Tourism Complexes (ITCs) can be acquired for as little as $135,000 or less to secure residency.

Applicants must be over 21 years old and valid health insurance covering the duration of residency is required.

Programme Benefits

Oman’s residency programme simplifies processes like opening a bank account in local banks and enables the investor’s family members to receive a visa through the investor’s sponsorship. Unlike Dubai’s residency programme, Oman does not impose a minimum investment threshold, allowing applicants to obtain residency through an expedited process with minimal compliance requirements.

Holders of Omani residency visas have the freedom to work and run businesses in Oman without the need for a local sponsor. Furthermore, expatriates with Omani residency can own various types of property — residential, industrial, and commercial — outside the initially restricted Integrated Tourism Complexes (ITCs).

Residency Application Requirements

To obtain a residence permit, investors are required to provide proof of investment in real estate or a company in Oman. In addition to this, the application package must include the following documents:

• completed application form and two photos;
• valid passport (with at least six months of validity at the time of submission);
• health insurance;
• certificate of no infectious diseases;
• police clearance certificate;
• bank statement.

Application Procedure

Applications for Omani residency can be submitted online via the government’s electronic services portal or through Omani consulates. In the latter case, applicants must schedule an appointment, attend an interview, and have their passport stamped. Upon arrival in Oman, the investor will receive their residency card from the immigration office.

Living in Oman: Pros and Cons

Infrastructure

Oman boasts a well-developed road network, regarded as one of the best globally. However, public transportation in Muscat and other regions is limited, making car ownership essential.

Cost of Living

The cost of living remains stable, with expenses for rent, fuel, and shopping generally lower than in Europe, the UAE, or the US.

Strategic Location

Muscat’s proximity to Dubai offers easy access to the UAE and other Gulf countries, with direct flights to Moscow from Muscat’s international airport.

Crime Rate

Oman is widely regarded as one of the safest countries in the Gulf region, with a notably low crime rate. The authorities respond promptly and efficiently to any incidents, contributing to the sense of security felt by both residents and visitors.

Architecture

The architecture and atmosphere of Muscat stand in contrast to Dubai’s bustling cityscape, offering a picturesque environment with white low-rise buildings, wide boulevards, abundant greenery, and mountains in the heart of the city.