MUSCAT: This year, a regulatory decision to allow leasehold of properties for foreign individuals will be issued, the Implementation Support and Follow-up Unit (ISFU) annual report released on April 30 reveals.

Currently, 100 percent foreign ownership of property in Oman is not allowed.

Under the session “Allowing 100% Foreign Ownership of Property”, the ISFU report claims that “in 2019, the aim is to issue the regulatory decision to allow leasehold of properties for foreign individuals and define the permitted scope.”

The idea of opening the real estate market to expatriates was developed with the goal of attracting foreign expenditure and revitalising the real estate market, both of which are expected to have a positive impact on the Sultanate’s economy.

This initiative began its journey at The Financial Affairs and Energy Resources Council, though after all preliminary endorsements were acquired from the Cabinet of Ministers, the Ministry of Housing (MoH) took ownership.

According to ISFU, foreign ownership of property will attract foreign capital to the local market and replenish the domestic real estate market.

“Overall, this will have a positive impact on the investment environment in the Sultanate,” the report added.

There were several challenges to overcome to see this initiative passed, the first of which was a debate on whether the directive would be issued in the form of a ministerial decision or a royal decree.

A ministerial decree would only allow leasehold of properties without actual ownership. Conversely, a royal decision permitting foreign ownership of properties is the sole approach for foreigners to own freehold real estate outside of Integrated Tourism Complexes (ITCs).

ISFU offered their guidance throughout the process and strongly encouraged the initiative owner to pursue the issuance of the ministerial decision and follow up the issuance of the royal decree.

The Implementation Support and Follow-up Unit (ISFU) plays a fully autonomous role in providing support and assistance to entities as they implement their specific projects and programmes.

Based on a clear governance structure and key performance indicators (KPIs), these projects and programmes are in place to contribute to a stable, dependent and sustainable economy for Oman’s future.  The ISFU was established on October 17th, 2016 by Royal Decree No. 50/2016 and reports to the minister of Diwan of the Royal Court. Support for the governmental entities is effectively structured through a carefully planned process that starts from the beginning of the sectorial labs and is adhered to throughout the implementation. 

The key areas of support are gathering and analysing pertinent data in coordination with all stakeholders and isolating implementation challenges and finding solutions by using a clear follow-up mechanism.