Executive summary

On 12 January 2026, Oman issued Royal Decree No. 8/2026 (Decree), establishing the International Financial Centre of Oman (IFC Oman). This new financial center will operate with legal personality and financial independence, reporting directly to the Deputy Prime Minister for Economy and Finance. The Decree, effective 13 January 2026 upon its publication in the Official Gazette, marks a significant step in Oman's strategy to enhance its position as a leading international financial hub.

Background

The establishment of IFC Oman is a pivotal development in Oman's economic landscape, aligning with the broader goals of Oman Vision 2040. By fostering a competitive and innovative financial environment, IFC Oman aims to provide a boost to the country's integration into the global economy while supporting local employment and economic diversification.

Key features of IFC Oman

IFC Oman aims to:

• Strengthen Oman's reputation as a stable and reputable international financial center
• Support sustainable economic diversification and boost the financial sector's contribution to the gross domestic product
• Attract both regional and international capital, positioning Oman as a prime investment destination aligned with international standards

Location and regulatory framework

IFC Oman will be located in Madinat Al Irfan, Muscat, with all establishments required to operate within its boundaries. Licensed entities may also establish branches outside IFC Oman or acquire shares in local companies, adhering to the Omani legislation and the IFC Oman regulations. The Regulatory Authority may authorize licensed establishments to conduct their activities outside Oman. Notably, certain promotional, marketing and advisory activities conducted by licensed establishments outside IFC Oman but within the Sultanate of Oman, will still be governed by IFC Oman regulations.

Governance structure

The Council, consisting of a board of directors that is appointed by Royal Order, including the Chairpersons of the IFC Oman Authority and the Regulatory Authority, will oversee the operations of IFC Oman. Each authority within IFC Oman will maintain legal personality and operational independence, helping to ensure effective governance and accountability. The Council shall set its own procedures and meets at least twice a year, or as needed, at the invitation of the Chairperson or their delegate. The Council may invite nonmembers to attend its meetings, without granting them voting rights.

Judicial authority

IFC Oman will feature its own judicial system, comprising a Primary Court and a Court of Appeal, with the option to establish additional courts as needed, by Royal Decree. These courts will handle matters arising under IFC Oman's jurisdiction, ensuring swift and fair resolution of disputes.

Tax incentives and exemptions

To attract investment, IFC Oman will offer:

• Exemption from income tax for entities engaged in eligible activities as defined by IFC Oman's tax regulations
• Exemption from income tax/withholding tax for nonresident legal persons on income (such as royalties, service fees, management fees, etc.) earned from transactions with IFC Oman authorities or establishments
• Exemption from income tax/withholding tax for a non-Omani natural person on certain transactions with IFC Oman authorities or establishments, whether generated within or outside Oman
• Treatment of IFC Oman as a designated special zone to implement the provisions of the Value-Added Tax (VAT) Law concerning exempt supplies and supplies with a 0% tax rate

The tax exemption provided under Royal Decree No. 8/2026 will apply for a maximum period of 50 years from the date the decree comes into effect.

Support for non-Omani residents

IFC Oman will facilitate the issuance of entry visas and residence permits for non-Omani individuals and their immediate family members, providing a welcoming environment for foreign investment and talent.

Implications

Businesses and investors should assess potential opportunities presented by IFC Oman, including the potential for tax incentives and a supportive regulatory environment. As IFC Oman prepares to launch its operations, stakeholders should stay informed about the evolving regulatory landscape and engage with IFC Oman to benefit from potential strategic advantages.