Company Registration and Activity Laws in Duqm (SEZAD)

Companies in the Special Economic Zone at Duqm are governed mainly by the Special Economic Zones and Free Zones Law (Royal Decree 38/2025) and its Executive Regulations (OPAZ Regulation 81/2026), with OPAZ as regulator and SEZAD managing the zone. The law allows 100% foreign ownership, no minimum capital (subject to approval), customs-free trade and a 10-year income tax exemption for new enterprises that can be extended for qualifying activities; companies already licensed keep their earlier incentives, including SEZAD's 30-year renewable exemption.

This guide explains the rules — what the law gives you, what it requires, and where general Omani law still applies. For practical steps see Duqm procedures and documents; for money see Duqm registration costs.

The legal framework in layers

What Royal Decree 38/2025 changed

• It was issued on 7 April 2025, published on 13 April 2025 and took effect on publication.
• It repealed the 2002 Free Zones Law and conflicting provisions, creating one framework for special economic zones and free zones.
• It confirmed a digital one-stop shop for licences, permits and services.
• It provided for a customs directorate in each special economic zone and an on-site branch of the Directorate General of Passports and Civil Status for visas and permits.
• It allowed developers to sell units in licensed projects to non-Omanis on a freehold basis.

What the 2026 Executive Regulations add

Issued in September 2026, the regulations:

• route applications for land, property, licences, approvals, permits and certificates through the one-stop shop, linked electronically to other government systems;
• allow automatic issue and renewal of licences when data and documents pass digital checks;
• set time limits for decisions on certain applications and require reasons for rejections, with a grievance procedure;
• give a more flexible track to strategic projects based on their nature and economic impact;
• regulate real estate development, off-plan sales, escrow accounts and residency for property owners and their families.

Ownership and capital rules

• Ownership: up to 100% foreign ownership, with no Omani partner or sponsor required.
• Capital: SEZAD states that no minimum capital is required for a local company or foreign branch; the 2025 law exempts enterprises from minimum capital rules subject to approvals.
• Company forms: you can register the forms recognised in Oman, most often an LLC, SPC or foreign company branch. Their internal rules (directors, shareholders' meetings, accounts) follow the Commercial Companies Law.
• Commercial agencies: SEZAD lists exemption from the Commercial Agency Law.
• Currency and profits: no currency restrictions; capital and profits can be repatriated freely.

Tax and customs rules

Income tax exemption

Outside the exemption, Oman's corporate income tax rate is 15%. You must still register with the Oman Tax Authority and file returns. See our Oman tax guide.

Personal income tax

Oman has no personal income tax today, but from 1 January 2028 a 5% tax will apply to resident individuals' annual income above OMR 42,000 (Royal Decree 56/2025). Plan senior salaries with this in mind.

Customs

Goods used to build and operate projects in the zone are exempt from customs duty, and products exported from the zone are not subject to duty. SEZAD allows most goods to be imported without prior permits (explosives and chemicals excepted). Goods moving from Duqm into mainland Oman are treated as imports.

Land and real estate rules

• Land for projects is granted under usufruct agreements of up to 50 years, renewable for similar periods. Land is not sold.
• Plots are allocated after SEZAD evaluates your application; you have three months to review the site and agreement before signing.
• Land utilisation fees vary by activity and use and follow SEZAD's tariff.
• Assignment of usufruct rights or using them as security requires SEZAD's approval under the agreement terms.
• Separately, non-Omanis may buy freehold units in licensed real estate developments in special economic zones, with escrow protections under the 2026 regulations.

Labour and Omanisation rules

• Omanisation (the share of Omani nationals in your workforce) must be kept at the rate set by the SEZAD Board. Published figures have varied over the years, so confirm the current rate for your activity before planning headcount.
• Expatriate manpower applications are handled through the zone; SEZAD has stated processing within five working days, and later reduced several labour services to one day.
• Employment contracts, wages, leave and end-of-service benefits follow Oman's Labour Law; Omani staff must be registered with social insurance.

See our work permit guide for visa categories.

Environmental and building rules

• Industrial and construction projects need an environmental permit before work starts; heavy and petrochemical industries face the longest review.
• Building permits, civil defence approval and a building completion certificate are required before an industrial licence is issued.
• Industrial waste must be handled under Oman's national environmental standards.

Investor protections

Oman's Foreign Capital Investment Law (Royal Decree 50/2019, in force since January 2020) protects foreign investors throughout the country:

• investment projects cannot be seized, expropriated or frozen except by court decision, or expropriated for public benefit under the expropriation law with fair compensation paid without delay;
• a usufruct or lease contract cannot be suspended unless a court orders its termination;
• investors may transfer funds related to the project into and out of Oman;
• a licence can only be revoked with justification and written warning, giving the investor 30 days to respond.

Key compliance obligations

1. Keep the activity within the scope of your licence; add activities formally.
2. Renew the commercial registration, licence and usufruct payments on time.
3. Meet Omanisation targets and keep payroll records.
4. Register for tax and file annual returns, even during an exemption.
5. Keep audited accounts as required by the Commercial Companies Law.
6. Hold valid environmental and civil defence approvals for your facility.

Oman Register can confirm which incentive regime applies to your project and set up the compliance calendar for your Duqm company. For the zone overview, visit the Duqm Special Economic Zone page.