Dentons US LLP

01/27/2021 | News release | Distributed by Public on 01/27/2021 05:43

Oman issues a list of activities prohibited from foreign ownership under the FCIL

January 27, 2021

Further to our February 2020 client alert on Oman's new Foreign Capital Investment Law (FCIL), Ministerial Decision 209/2020 has recently been issued listing 70 activities that must not be undertaken by a company that is subject to the FCIL (New MD). These are generally activities that are less likely to be of interest to international investors. The New MD does not apply to a company which is not subject to the new FCIL, such as wholly Omani, GCC and US-owned companies.

The New MD expands on and gives a legal basis to the informal 'negative list' of 37 restricted activities published by the Ministry of Commerce, Industry and Investment Promotion early last year.

Below is an unofficial translation of the list of restricted activities.

No. Activity
1 Manufacture of Omani halwa (Omani dessert)
2 Tailoring of Arab men wearing apparel
3 Tailoring of non-Arab men wearing apparel
4 Tailoring of Arab and non-Arab ladies wearing apparel
5 Tailoring of sports clothing
6 Tailoring of military uniform
7 Manufacture of Omani kimma (Omani cap)
8 Manufacture of women's abaya (gown)
9 Manufacture of Omani khanjar (traditional dagger)
10 Transport and sale of drinking water
11 Motor vehicle electrical repair and recharging of batteries
12 Repairing and cleaning motor vehicle radiators
13 Repairing punctured tyres and metal wheels
14 Wheel balance
15 Motor vehicle service stations
16 Replacement of motor vehicle oils
17 Repairing car air-conditioner
18 Repairing motor vehicle exhaust pipe
19 Car cleaning and polishing
20 Wholesale of fruits and vegetables
21 Wholesale of cooking gas
22 Liquefied petrol gas filling stations
23 Retail sale of fresh fruit, vegetables and dates in specialised stores
24 Retail sale of honey in specialised stores
25 Motor vehicle fuel stations
26 Diesel fuel stations
27 Retail sale of telephones and their accessories in specialised stores
28 Retail sale of mobile telephones and their accessories in specialised stores
29 Retail sale of souvenirs, paintings and gifts in specialised stores
30 Retail sale of flowers and natural plants in specialised stores
31 Retail sale of pottery and handicrafts in specialised stores
32 Retail sale of cooking gas in specialised stores
33 Retail sale of silverware and gifts in specialised stores
34 Retail sale in specialised stores of cards of telecommunications services licensed in the Sultanate
35 Retail sale of traditional weapons in specialised stores
36 Retail sale of animal feed in specialised stores
37 Retail sale of bags in specialised stores
38 Retail sale of ceremony requirements in specialised stores
39 Retail sale of fireworks in specialised stores
40 Retail sale of Omani khanjar (traditional dagger) in specialised stores
41 Retail sale of empty gas cylinders in specialised stores
42 Retail sale of wedding cards in specialised stores
43 Retail sale of handcraft products in specialised stores
44 Retail sale of beekeeping supplies in specialised stores
45 Pilgrim and umra performers' transport
46 Road transport by trucks of cooking gas cylinders
47 Loading and unloading of goods
48 Customs clearance offices
49 Valuation of cancelled vehicles
50 Insurance commission agent
51 Real estate brokerage (auctioneer offices)
52 Manpower recruitment offices
53 Employment offices
54 General cleaning of buildings
55 Photocopying and typing services
56 Transactions clearance offices
57 Making and installation of neon signboards
58 Managing and operating fuel stations
59 Driving schools
60 Specialised rehabilitation centres
61 Elderly people care centres
62 Orphanages
63 Rehabilitation centres
64 Other library and archives activities
65 Washing all kinds of clothes and textiles, except what is carried out in tourist establishments
66 Ironing of clothes, except what is carried out in tourist establishments
67 Laundry and steam ironing (dry cleaning), except what is carried out in tourist establishments
68 Hair cutting, styling and shaving for men, except what is carried out in tourist establishments
69 Hairdressing and cosmetic treatment for women, except what is carried out in tourist establishments
70 Hair cutting and styling for children, except what is carried out in tourist establishments

Please see our previous update on Oman Foreign Capital Investment Law here.