As reported by Medium, Oman is garnering increasing attention worldwide. Despite being established just over half a century ago, Oman has often been overshadowed by its more prominent neighbors, such as the UAE and Saudi Arabia. However, this situation has recently changed. Oman has emerged as a more popular tourist destination, and government-initiated investor residency programs have created opportunities for affluent foreigners looking to purchase property, establish businesses, or obtain resident visas in Oman.
As per Medium, the discovery of oil in Oman in the 1970s marked a significant turning point for the country. Revenue generated from oil sales facilitated Oman’s transition from a medieval state to modernity, characterized by the development of infrastructure, schools, businesses, and other key sectors. Oman shifted from an isolationist stance to actively welcoming tourists. Presently, it stands as a significant oil producer, ranking 21st globally in oil reserves and daily output. However, with oil reserves gradually diminishing, Oman has taken steps to diversify its economy, following the example of its prosperous neighbors. The World Bank reports that foreign direct investment in Oman reached $3.72 billion in 2022. Efforts are underway to establish free economic zones and logistics hubs near strategic ports, with a focus on economic diversification, investment in green energy, infrastructure expansion, transportation development, and tourism promotion.
Oman’s appeal lies in its comparatively lesser-known status compared to neighboring countries like the UAE. The nation has preserved traditional Arabian architecture, forts from pirate eras, and unexpectedly picturesque mountains despite its desert landscape. Oman boasts a unique national character influenced by African culture, offering less competition and numerous untapped market niches. Furthermore, the Omani government is actively creating flexible and secure conditions to attract foreign investments and facilitate business operations, including real estate purchases as stated by Medium.
The increasing expatriate population is a testament to Oman’s allure. From September 2022 to May 2023, the expatriate population surged by 33%, from 1.63 million to 2.17 million, marking the highest figure in Oman’s history.
Oman’s Real Estate Market
The booming residential and commercial real estate market in Oman, as expressed by Medium, is fueled by the rising expatriate and tourist numbers. Foreigners have the opportunity to purchase properties such as apartments, villas, and townhouses in special Integrated Tourist Complexes (ITCs). Currently, 12 ITCs are under construction, collectively valued at 3.9 billion Omani riyals. These include Al Mouj Muscat, Shangri-La’s Barr Al Jissah Resort and Spa, and others. ITCs are self-contained communities offering a mix of hotels, residences, and diverse retail and entertainment facilities.
Properties worth considering, as mentioned by Medium, include apartments in Murooj Lanes or Marsa Gardens in Al Mouj Muscat, or villas in Golf Beach Residences and Muscat Bay.
Investor Residency Program in Oman
As per Medium, launched in 2021, Oman’s resident visa program allows for obtaining a 5 or 10-year visa, permitting various privileges without the need for a sponsor. These include work authorization, business establishment, ownership of different property types, opening a bank account, issuance of resident cards for immediate family, visitor visas, and hiring domestic staff.
For a 5-year visa, an investment ranging from 250,000 to 500,000 Omani riyals in real estate, business, or government bonds is required, with renewal every two years. On the other hand, a 10-year visa demands a minimum investment of 500,000 Omani riyals, allowing investment in one or several residential units, bonds, or a company, with renewal every three years. The first category visa also permits acquiring industrial and commercial assets beyond residential properties outside ITCs, which are transferable to others.
According to Medium, as of August 2023, Oman’s Ministry of Commerce, Industry, and Investment Promotion has issued 2,700 resident cards since the program’s inception.
Is it Worth Investing in Oman Real Estate in 2024?
Investing in Oman’s real estate in 2024 is indeed worthwhile. As stated by Medium, Oman presents a stable economy and a government committed to fostering favorable conditions for investors. It boasts a transparent and secure business environment along with robust infrastructure.
Particularly for rental purposes, investing in Omani real estate proves to be lucrative. Rental rates are witnessing an upward trend, with cities like Muscat and Salalah offering rental yields ranging between 6–10%. These figures position them as the 6th and 7th highest among MENA countries, as reported by Medium.
