All the industrial projects are exempted from tax on profit for a period of five years, renewable for a further five-year period. There is no personal income tax in Oman.
Oman is keen to promote foreign investment and offers a variety of incentives.
Exemption from Customs Duties
Manufacturing companies are exempted from customs duties on the import of machinery, equipment and spare parts, in addition to raw materials and semi-processed inputs (for the first five years of production). The exemption period on raw materials and semi-processed inputs can be extended on the recommendation of the Minister of Commerce and industry, and the approval of the Minister of Finance.
Commercial banks are the primary source of short, medium and long term credit. Oman Development bank provides finance to corporate small and medium size companies and small projects. The maximum lending is RO one million.
Oman is the only country in the Arab Gulf region to offer export credit insurance. The Oman Development Bank’s Export Guarantee and Financing Unit (EGFU) promote the export of Omani goods by:
Providing export insurance cover to manufacturers against commercial and political risks.
Assisting the producers in commercial bank borrowings with an interest subsidy scheme.
Offering export financing at attractive interest rates.