Table of Contents
- Executive Summary: Oman’s Real Estate Regulatory Landscape in 2025
- Key Legal Frameworks & Recent Amendments: What’s New This Year?
- Licensing, Permits, and Compliance Essentials for Stakeholders
- Foreign Ownership Rules: Breaking Down the Latest Changes
- Taxation, Fees, and Financial Reporting: 2025 Requirements
- Sustainability, Green Building Codes, and Urban Planning Policies
- Dispute Resolution and Enforcement: Navigating Legal Challenges
- Key Market Statistics and Trends: Facts Shaping Oman’s Property Sector
- Future Outlook: Regulatory Forecasts for 2026–2030
- Official Resources and Guidance: Where to Find Authoritative Information
- Sources & References
Executive Summary: Oman’s Real Estate Regulatory Landscape in 2025
Oman’s real estate regulatory landscape in 2025 is characterized by a continued commitment to modernization, transparency, and investor protection, reflecting the Sultanate’s broader economic diversification objectives under Vision 2040. The real estate sector remains a pillar of national development, with regulation evolving to balance domestic interests and foreign investment, especially as demand for property ownership and development increases.
Key legislative reforms have shaped the market in recent years. The Ministry of Legal Affairs codified major amendments to the Real Estate Law, notably the promulgation of Royal Decree 29/2018, which redefined property ownership rights for expatriates, enabling non-GCC nationals to purchase properties within Integrated Tourism Complexes (ITCs). This has contributed to a steady influx of foreign investment, with data from the Ministry of Justice and Legal Affairs indicating that real estate transactions by non-Omanis accounted for over 12% of the sector’s value in 2023, a figure projected to rise through 2025.
Regulatory oversight is centralized under the Ministry of Housing and Urban Planning, which enforces licensing requirements for developers and agents, registration of property transactions, and compliance with zoning and land use regulations. In 2024, the Ministry launched an electronic real estate portal to streamline registration and improve transparency, supporting the government’s anti-money laundering initiatives and compliance with international standards as monitored by the Capital Market Authority. The implementation of the Real Estate Brokerage Law (Royal Decree 22/2019) introduced licensing and training standards for brokers, strengthening consumer protection and market professionalism.
- The real estate sector contributed approximately 10% to Oman’s non-oil GDP in 2023, with continued growth expected as per Ministry of Housing and Urban Planning projections.
- Ongoing compliance inspections in 2024 have resulted in a 23% increase in enforcement actions against unlicensed agents and unregistered transactions, underlining the authorities’ commitment to regulatory integrity.
Looking ahead, Oman is expected to further liberalize property ownership for foreigners within designated economic zones and ITCs, and digitalization efforts are anticipated to expand. Legislative reviews scheduled for 2025 may streamline land allocation processes and enhance dispute resolution mechanisms through specialized real estate courts. Overall, Oman’s real estate regulatory framework in 2025 aims to foster a stable, transparent, and investor-friendly environment, positioning the sector for sustainable growth in the coming years.
Key Legal Frameworks & Recent Amendments: What’s New This Year?
Oman’s real estate sector is governed by a robust legal framework, with significant regulatory developments implemented in recent years to enhance transparency, foreign investment, and sustainable growth. The principal legislation is the Royal Decree No. 6/89 (Land Law), which outlines land ownership rights and restrictions. Over the past year, the Omani government has introduced pivotal amendments aimed at modernizing sector governance and aligning with Vision 2040 economic objectives.
A major milestone in 2024 was the promulgation of Royal Decree No. 29/2024, which amended aspects of the Land Law to facilitate greater transparency in land transactions and streamline the registration process. The decree also reinforced compliance requirements for anti-money laundering (AML) in real estate, obligating brokers and developers to adopt stricter Know Your Customer (KYC) practices in line with directives from the Ministry of Justice and Legal Affairs and the Capital Market Authority.
Another significant regulatory step is the introduction of the Integrated Tourism Complexes (ITCs) regime, which allows foreign individuals and companies to own real estate within designated projects. Recent amendments in 2025 have expanded ITC zones and imposed enhanced reporting requirements on developers, with the Ministry of Housing and Urban Planning setting annual compliance audits for large-scale projects. According to official statistics, ITCs accounted for over 14% of total real estate transaction value in 2024, reflecting growing foreign participation.
Furthermore, the government continues to restrict non-Omani ownership of land outside ITC and designated freehold areas, as reaffirmed in Circular No. 3/2024 from the Ministry of Housing and Urban Planning. Violations can result in fines, property forfeiture, or revocation of ownership rights.
To bolster digital transformation, 2024 saw the launch of the National Real Estate Registry Portal, which digitizes title deeds and land transactions. This initiative, managed by the Ministry of Housing and Urban Planning, aims to reduce fraud and processing times, improve investor confidence, and enhance regulatory compliance.
Looking forward to 2025 and beyond, Oman is expected to further refine its real estate regulations—particularly in environmental standards for new developments and in expanding foreign investment channels—while maintaining rigorous compliance oversight. Regulatory authorities signal that ongoing amendments will prioritize sustainable urban expansion, transparency, and investor protection to support economic diversification goals.
Licensing, Permits, and Compliance Essentials for Stakeholders
The real estate regulatory landscape in Oman is shaped by a framework of laws, executive decisions, and oversight mechanisms designed to ensure transparency, protect stakeholders, and support sustainable development. As of 2025, the cornerstone of real estate regulation remains Royal Decree 6/2018, which established the Ministry of Housing and Urban Planning (MoHUP) as the principal authority overseeing licensing, permits, and compliance. The MoHUP supervises the issuance of all real estate brokerage licenses, project approvals, and permits for construction and development activities.
Licensing is mandatory for real estate brokers, developers, and valuation professionals. The Ministry of Housing and Urban Planning requires brokers and agencies to register and renew their licenses annually, demonstrating compliance with professional standards and ethical codes. Developers must obtain project-specific permits, including environmental clearance and land use approvals, before marketing or selling properties. In 2023, the MoHUP introduced a digital portal for permit applications to streamline and increase transparency in approvals, with more than 80% of new applications now processed electronically as of early 2025.
Compliance is enforced through regular inspections and audits. The Ministry of Justice and Legal Affairs supports the enforcement of the Real Estate Brokerage Law (Royal Decree 21/2017), which sets out penalties for unlicensed activities, misrepresentation, and client fund mismanagement. Violations can result in fines, license suspension, or criminal prosecution. In addition, the Oman Real Estate Association, under MoHUP guidance, provides ongoing training and compliance support for licensed professionals.
Foreign ownership remains regulated under Royal Decree 29/2018, which restricts non-GCC nationals to purchasing property within Integrated Tourism Complexes (ITCs). In 2024 and 2025, the government is reviewing these provisions to potentially expand zones for foreign investment, aiming to attract more capital while maintaining oversight through strict eligibility and reporting criteria (Ministry of Housing and Urban Planning).
Looking forward, the Omani government is prioritizing a digital transformation in real estate administration, targeting 100% online permit processing by 2026 and introducing blockchain-based property registries. These reforms aim to further reduce processing times, minimize fraud, and enhance investor confidence. Stakeholders must keep abreast of changing compliance requirements, particularly as the regulatory environment continues to adapt to economic diversification initiatives under Oman Vision 2040 (Oman Vision 2040).
Foreign Ownership Rules: Breaking Down the Latest Changes
Oman’s real estate sector has undergone a series of regulatory evolutions in recent years, with a significant focus on foreign ownership rules. As of 2025, these changes are central to the Sultanate’s broader economic diversification agenda and its efforts to attract foreign investment while safeguarding national interests.
Traditionally, foreign ownership of real estate in Oman was highly restricted. The primary channel for non-Omani nationals to purchase property was through Integrated Tourism Complexes (ITCs), where freehold ownership is permitted. ITCs are designated zones—such as The Wave (Al Mouj Muscat), Muscat Hills, and others—where foreigners can own, lease, and inherit property, and owners are eligible for long-term residency permits. The legal basis for this system is set out in Royal Decree 12/2006 and its subsequent amendments, with regulatory oversight by the Ministry of Housing and Urban Planning.
In a notable shift, Oman introduced the Usufruct Law (Royal Decree 125/2008), which allows foreign companies and expatriates to obtain long-term usufruct rights (up to 99 years) on land and property in designated areas. More recently, in 2021, the government expanded the scope of foreign ownership by launching the “Foreign Ownership Outside ITCs” initiative, allowing non-GCC nationals to purchase real estate in multi-storey residential and commercial buildings in specified locations. This development, overseen by the Ministry of Housing and Urban Planning, is part of an ongoing strategy leading up to 2025 to stimulate real estate demand and urban development in key cities such as Muscat and Salalah.
Compliance requirements for foreign buyers remain robust. Transactions are subject to approval by the Ministry, and property registrations must comply with the Real Estate Register Law (Royal Decree 2/1998). Due diligence, anti-money laundering (AML) checks, and proof of legal funds are required. Additionally, the Real Estate Development Law (Royal Decree 30/2018) establishes licensing standards for developers and project oversight—including mandatory escrow accounts for off-plan sales, enhancing buyer protection (Ministry of Housing and Urban Planning).
According to official statistics, as of 2024, foreign investments in ITC properties accounted for over 25% of new high-end real estate transactions in Muscat, and the government anticipates this share to increase with the expanded ownership rules (Ministry of Housing and Urban Planning). Looking ahead, Oman’s Vision 2040 envisages further liberalization, with gradual expansion of eligible zones and digitalization of property registration. Nonetheless, authorities maintain restrictions on foreign ownership in strategic and border areas to ensure national security.
The coming years are expected to see further clarification and possible relaxation of eligibility criteria, but with continued emphasis on regulatory compliance and transparency. Foreign investors are advised to consult the official guidelines and remain abreast of policy updates from the Ministry of Housing and Urban Planning to ensure lawful and secure participation in Oman’s real estate market.
Taxation, Fees, and Financial Reporting: 2025 Requirements
In 2025, the regulatory landscape for real estate taxation, fees, and financial reporting in Oman continues to develop in alignment with broader economic diversification and transparency goals outlined in Oman Vision 2040. The Ministry of Housing and Urban Planning oversees primary regulations, while fiscal measures are coordinated with the Ministry of Finance and Tax Authority.
- Property Transfer and Registration Fees: Oman imposes a real estate transfer fee of 3% of the transaction value, payable by the buyer at the time of property registration. This fee structure remains unchanged for 2025 and applies to both Omani and eligible foreign buyers, with some exemptions for family transfers. Registration is managed by the Ministry of Housing and Urban Planning.
- Rental Income and Corporate Tax: Rental income earned by companies is subject to Oman’s standard corporate income tax rate of 15%. Individual landlords who are not conducting real estate as a business remain outside the tax net as of 2025, but the government continues to study the expansion of personal income tax as part of fiscal reforms (Tax Authority). Corporate taxpayers must file annual returns, with mandatory electronic filing and compliance with International Financial Reporting Standards (IFRS).
- Value Added Tax (VAT): Oman introduced VAT at 5% in 2021. Residential property sales and leases are exempt, while commercial property transactions are taxable. Developers and real estate companies must ensure VAT compliance, with proper invoicing and reporting to the Tax Authority.
- Financial Reporting and Audit Requirements: Real estate companies are required to maintain IFRS-compliant accounts and submit audited financial statements annually. The Capital Market Authority enforces additional disclosure and governance requirements for listed real estate entities.
Recent data indicates steady activity in the real estate sector, with total transaction values in 2024 exceeding OMR 3 billion (Ministry of Housing and Urban Planning). Compliance monitoring has intensified, with digital systems for tax and fee payments reducing processing times and improving transparency.
Looking ahead, regulatory authorities signal ongoing enhancements in digitalization, tax enforcement, and anti-money laundering controls. Investors and companies should anticipate further alignment with international standards and periodic reviews of fee and tax structures to support fiscal sustainability and sectoral growth.
Sustainability, Green Building Codes, and Urban Planning Policies
Oman’s real estate sector is undergoing significant transformation, particularly in areas of sustainability, green building codes, and urban planning policies. The government recognizes the importance of sustainable development, both to enhance quality of life and to align with global environmental commitments. As of 2025, several regulatory frameworks and strategic initiatives set by the government are shaping the industry’s approach to sustainable real estate.
The Ministry of Housing and Urban Planning (MHUP) is the principal authority overseeing real estate regulation, including urban planning and land use. In 2021, the MHUP launched the National Urban Development Strategy 2040, which establishes a long-term vision for sustainable urban growth, integrated infrastructure, and green space preservation. The strategy mandates stricter urban planning policies, with an emphasis on compact cities, mixed-use developments, and protection of natural resources.
In alignment with Oman Vision 2040, the government is gradually adopting green building codes and sustainability standards. The Oman Environmental Services Holding Company (be’ah) and MHUP collaborate to encourage waste reduction, energy efficiency, and eco-friendly construction materials in new projects. Pilot programs in Muscat and emerging economic zones have begun to implement these standards, although nationwide mandatory adoption is still in progress.
Compliance is increasingly monitored through digital permitting systems and regular site inspections. The MHUP has begun issuing guidelines for environmental impact assessments (EIA) in urban developments, requiring developers to integrate renewable energy solutions—such as solar panels and water recycling—into large-scale projects. The implementation of the Building Code of Oman, currently under review, is expected to introduce explicit energy efficiency and water conservation requirements for new buildings by 2026.
Statistically, the urban population is projected to reach 80% by 2040, driving demand for sustainable housing and infrastructure (National Centre for Statistics and Information). In 2023–2024, over 30% of new major development permits included some form of green building certification or sustainable planning component, indicating growing compliance and developer awareness.
Looking ahead, Oman’s real estate regulatory environment is forecast to tighten further, with expanded enforcement of green building codes and urban planning standards. Developers and investors should anticipate stricter compliance checks, higher upfront costs for sustainable features, and increasing incentives for eco-certified projects. The drive towards sustainable urbanization is poised to reshape both the regulatory landscape and market dynamics in Oman’s real estate sector through 2025 and beyond.
Dispute Resolution and Enforcement: Navigating Legal Challenges
The real estate sector in Oman is governed by a structured legal framework that seeks to resolve disputes and ensure enforcement of contractual and regulatory obligations. In 2025 and the coming years, dispute resolution in the Omani real estate market continues to be shaped by the country’s evolving judicial processes, new regulations, and institutional reforms.
The primary legislation governing real estate transactions and disputes includes the Civil Transactions Law and the Law on Ownership of Real Estate for Non-Omanis. Disputes commonly arise over issues such as property boundaries, delayed delivery, title defects, or breach of contract. Parties typically attempt amicable settlement first, but unresolved issues proceed to adjudication before the Omani courts or, increasingly, through arbitration as stipulated in contracts.
The Omani judicial system has established specialized commercial courts to expedite real estate and commercial disputes, which has resulted in reduced case backlogs and improved efficiency. According to annual reports, the average time to resolve commercial disputes has shortened, with a growing adoption of digital case management systems improving transparency and procedural speed (Ministry of Justice and Legal Affairs).
Arbitration remains a favored mechanism for real estate disputes, especially in high-value or cross-border transactions. Oman is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating the enforcement of arbitral decisions domestically (Ministry of Justice and Legal Affairs). The Oman Commercial Arbitration Centre, established in 2018, is expected to play an even larger role in 2025 as businesses seek faster, confidential, and specialized dispute resolution (Oman eGovernment).
Enforcement of judgments and arbitral awards is handled by the Execution Courts, which have been strengthened by recent reforms to streamline procedures and ensure compliance with court orders. The Ministry of Justice and Legal Affairs continues to oversee regular updates to enforcement mechanisms, focusing on digitalization and efficiency. For instance, electronic notification systems and asset-tracking tools are now routinely used to trace and seize assets in the enforcement process (Ministry of Justice and Legal Affairs).
Looking ahead, Oman’s Vision 2040 initiatives prioritize the modernization of legal infrastructure, including further enhancements to dispute resolution and enforcement in the real estate sector. There is a clear policy direction toward increasing investor confidence through legal predictability, transparency, and the efficient handling of disputes—key factors for domestic and foreign stakeholders in the Omani property market (Oman Vision 2040).
Key Market Statistics and Trends: Facts Shaping Oman’s Property Sector
The regulatory landscape governing Oman’s real estate sector has evolved significantly in recent years, with a strong focus on transparency, foreign investment facilitation, and sustainable urban development. Regulatory oversight is primarily exercised by the Ministry of Commerce, Industry and Investment Promotion and the Ministry of Justice and Legal Affairs, alongside the Oman Investment Authority for broader investment policy.
A landmark change was introduced with Royal Decree No. 29/2018, establishing the Real Estate Development Law, which set out the requirements for licensing developers, registering real estate development projects, and protecting buyers through escrow mechanisms. In 2023, further amendments tightened compliance requirements for developers, including enhanced disclosure obligations, and introduced penalties for non-compliance, aiming to boost investor confidence and market stability (Ministry of Justice and Legal Affairs).
Foreign ownership is permitted in Integrated Tourism Complexes (ITCs) and designated areas, with the Government of Oman in 2024 expanding the number of ITCs to stimulate international investment. Foreign nationals may now also own usufruct rights for up to 99 years in certain zones, broadening market access. Notably, the Ministry of Commerce, Industry and Investment Promotion reported a 12% year-on-year increase in property registrations by non-Omanis in 2024.
Compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations is a key ongoing concern. In 2023, the Capital Market Authority issued guidelines for real estate brokers and developers regarding client due diligence and transaction reporting, aligning with international standards.
Looking ahead to 2025 and beyond, further regulatory updates are anticipated to support Vision 2040 goals, including digitalization of land registries and streamlined online permit applications. The government is also considering the introduction of a Real Estate Regulatory Authority to centralize oversight and enhance dispute resolution, as outlined in recent policy papers by the Ministry of Commerce, Industry and Investment Promotion.
- Royal Decree No. 29/2018 provides the legal foundation for real estate development and buyer protection.
- Foreign property registrations grew by 12% in 2024 following policy liberalization.
- Ongoing reforms target digital transformation and stricter compliance with AML/CTF standards.
- Further regulatory enhancements and centralization of oversight are expected by 2026.
Future Outlook: Regulatory Forecasts for 2026–2030
Looking ahead to 2026–2030, Oman’s real estate regulatory landscape is poised for gradual but significant transformation as the country continues to align its economic diversification goals with international standards and investor expectations. The government’s Vision 2040 framework, which emphasizes sustainable development and private sector participation, is expected to drive key regulatory reforms affecting land ownership, transparency, and compliance mechanisms.
Recent amendments, such as Royal Decree 29/2018 and subsequent updates, have already introduced clearer procedures for foreign ownership in Integrated Tourism Complexes (ITCs), aiming to attract international investment while maintaining oversight on strategic land use. These trends are likely to continue, with the Ministry of Housing and Urban Planning signaling intentions to further liberalize restrictions under specific conditions, especially for projects contributing to economic diversification and national employment targets. For example, ongoing digitization initiatives are expected to streamline property registration and licensing, reducing processing times and increasing market transparency by 2027–2028 (Ministry of Housing and Urban Planning).
Compliance requirements are also set to tighten. The Real Estate Brokerage Law (Royal Decree 90/2020) established a licensing regime for brokers and agents, and more robust enforcement is anticipated, including mandatory continuing education and anti-money laundering (AML) compliance programs. Enhanced monitoring by the Capital Market Authority is likely, particularly as real estate investment funds (REIFs) gain prominence as alternative investment vehicles. The authority’s recent guidelines on real estate financing and investment structures set the stage for more sophisticated regulatory oversight through 2030.
Key statistics reflect the sector’s growing complexity: As of late 2024, foreign buyers accounted for over 15% of new ITC property registrations, up from 10% in 2021, while digital land registry transactions increased by 40% year-on-year (Ministry of Housing and Urban Planning). These figures are projected to rise as regulatory reforms are implemented and confidence in legal protections improves.
Overall, the 2026–2030 period will likely see Oman balancing openness to investment with prudent regulation. Authorities are expected to introduce further updates to the Land Law and related statutes, with consultative processes involving stakeholders, to ensure that real estate development supports long-term national priorities, including urban sustainability and social integration. Continued collaboration with legal and professional bodies will be crucial to maintain compliance and adapt to emerging market risks, ensuring that Oman’s real estate sector remains both dynamic and well-regulated.
Official Resources and Guidance: Where to Find Authoritative Information
Navigating the regulatory landscape of Oman’s real estate sector requires access to authoritative and up-to-date information, especially as the nation continues to evolve its legal framework in alignment with Vision 2040 objectives and growing foreign investment. Several official bodies and resources serve as the primary reference points for legal, compliance, and procedural guidance.
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Ministry of Housing and Urban Planning (MoHUP):
The Ministry is the principal regulator overseeing property ownership, development approvals, land allocation, and urban planning. It publishes all key real estate laws, executive regulations, and circulars—such as the Land Law (Royal Decree 5/1980, as amended) and the Law on Ownership of Real Estate by Non-Omanis (Royal Decree 29/2018). The MoHUP also maintains a digital portal for e-services, licensing, and guidance for developers and buyers. See: Ministry of Housing and Urban Planning. -
Capital Market Authority (CMA):
For those interested in real estate investment funds, the CMA regulates the Real Estate Investment Trust (REIT) framework and ensures compliance with capital market laws. The CMA’s website provides regulations, circulars, and a list of licensed REITs and fund managers. Visit: Capital Market Authority. -
Ministry of Justice and Legal Affairs:
This Ministry is responsible for the publication and interpretation of all Omani laws and royal decrees, including those affecting real estate, mortgages, and dispute resolution. Its website features a searchable database of legal texts and updated amendments relevant to property transactions. Access: Ministry of Justice and Legal Affairs. -
Oman Chamber of Commerce and Industry (OCCI):
The OCCI provides practical guidance, business environment updates, and regulatory alerts to local and foreign investors, with specific resources for the real estate sector and its legal requirements. See: Oman Chamber of Commerce and Industry. -
Municipal Authorities:
Local municipal websites in Muscat and other governorates offer details on planning permissions, building codes, and compliance checklists, which are crucial for project implementation and ongoing operations. For Muscat: Muscat Municipality.
For the most reliable updates as Oman refines its real estate regulations in 2025 and beyond, these official resources should be regularly consulted for new laws, compliance procedures, and policy developments.
