MUSCAT – Signed by Her Excellency Dr. Rahma bint Ibrahim Al Mahrouqi, Minister of Higher Education, Scientific Research and Innovation, the decision replaces previous regulations dating back to 2002 and aims to regulate land use more effectively while ensuring alignment with national development goals.
Under the updated framework, the usufruct contract period has been set at 50 years and is extendable up to 99 years. Unlike the previous system, where land could eventually be transferred to institutional ownership, the new regulations state that the land will remain under the usufruct system and will not be converted to private ownership even after construction.
The decision also introduces an annual usage fee of 100 baisas per square meter, with a maximum cap of RO 10,000 per year. Institutions that begin construction will benefit from a five-year exemption starting in the second year.
Read More
- Oman participates in meeting of GCC financial, economic cooperation committee
- Oman calls for stronger cultural awareness as global influences rise
- Oman launches advanced spine endoscopy system at Khoula Hospital with OMIFCO support
- Muscat records highest number of traffic accidents as Oman sees overall drop in 2025
- Labour Ministry reminds employers of mandatory written employment contracts under Oman’s Labour Law
The new conditions also enforce stricter timelines, requiring institutions to begin construction within two years of signing the usufruct agreement, failing which the contract may be terminated. Previously, a three-year window was granted. Institutions facing space constraints may now apply for additional plots within the same area, a provision not included in the earlier regulations.
Unlike the previous framework, the new decision does not include explicit provisions allowing borrowing secured against usufruct rights, although such borrowing was previously permitted provided it supported educational purposes. Applications for land use will continue to be submitted to the Ministry of Higher Education, Research, and Innovation before being referred to the Ministry of Housing and Urban Planning. The decision also clarifies that any matters not covered will remain subject to Royal Decree No. 81/5 and its executive regulations.
These revised conditions are expected to ensure better governance of land allocated for educational development, while enhancing the sustainability and accountability of non-governmental higher education institutions in the Sultanate.
