Can Foreigners Own Property in Oman? The 2026 Legal Guide

Foreigners can own freehold property in Oman, but only within government-approved Integrated Tourism Complexes (ITCs). Outside those zones, non-GCC foreign nationals are limited to usufruct rights of up to 99 years, and even those rights are subject to specific conditions. This is the legal reality as of June 2026.

The Core Legal Framework

Two Royal Decrees define the boundaries.

Royal Decree No. 12/2006 issued the Law on Foreign Ownership of Real Estate in Integrated Tourism Complexes. This is the instrument that permits non-Omani individuals and corporate entities to hold freehold title, meaning full ownership of both the built unit and the land beneath it, within approved ITC projects. The title is registered in the buyer's name at the Ministry of Housing and Urban Planning (MOHUP) and is evidenced by the Mulkhiya, Oman's official title deed. The ITC framework was created specifically to attract foreign capital and develop mixed-use tourism communities.

Royal Decree No. 29/2018 issued the Law on the Prohibition of the Ownership of Land and Real Estate by Non-Omanis in Certain Places. This is the restriction side of the equation. It explicitly bans foreign ownership in certain governorates and areas, including Musandam, Buraimi, Dhahirah, and Al Wusta, as well as most of the Dhofar region outside of Wilayat Salalah. It also establishes the general rule that outside designated zones, foreigners cannot hold title to land.

Together, these two decrees draw the map: freehold ownership for foreigners is permitted only within the ITC perimeter; everything outside that perimeter is off-limits for direct foreign title, with narrow usufruct exceptions.

Freehold Ownership Within ITCs

Within an approved ITC, a foreign buyer holds the same ownership rights as an Omani national for that specific property. This includes the right to sell, lease, mortgage, gift, and pass the property to heirs. There is no time limit on the ownership. The ITC must hold a current licence from the Ministry of Heritage and Tourism, and the developer must hold a real estate development licence under Royal Decree No. 29/2018 (the development-regulation provisions of that decree complement its restriction provisions).

Approved ITCs as of mid-2026 include Al Mouj Muscat, Muscat Hills, Muscat Bay (formerly Saraya Bandar Jissah), Jebel Sifah, Hawana Salalah, The Sustainable City Yiti, AIDA, Uptown Muscat by Wujha, and The Residence Mandarin Oriental Muscat, among others across Muscat and Dhofar governorates.

Where undeveloped land is purchased within an ITC, the buyer must commence construction within four years of title registration. Failure to do so may result in reversion of the land to the state.

Usufruct Rights Outside ITCs

Usufruct in Oman dates to Royal Decree No. 5/81. It grants the right to use and benefit from a property without owning the land itself. The usufruct period for foreigners can extend up to 99 years and is inheritable. It can also be mortgaged, sold, or subleased.

Ministerial Decision No. 357/2020 extended usufruct rights to allow expatriates who have resided in Oman for at least two years to acquire usufruct interests in approved multi-storey, mixed commercial and residential buildings outside ITC areas. This is a narrower right than ITC freehold: it applies to approved building types, not to land, and it does not trigger the same residency visa benefits.

For most foreign buyers, the practical relevance of the usufruct route is limited. ITC freehold is the dominant structure for foreign residential investment.

GCC Nationals

GCC nationals, citizens of Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE, have broader property rights than other foreigners. They can purchase property outside ITCs in most areas of Oman, though certain restricted zones apply to them as well. GCC nationals also pay the lower 1 percent registration fee that applies to Omani citizens, rather than the 3 percent rate charged to non-GCC foreign buyers.

The Residency Link

Owning property within an ITC entitles the foreign buyer, their spouse, children, and first-degree relatives to apply for an Omani residency permit. The permit tiers are:

- Investment of OMR 100,000 or more: 5-year renewable residency permit.

- Investment of OMR 200,000 or more: 10-year renewable Golden Residency permit.

These rules were introduced and expanded from 2021 onward as part of Oman's effort to attract long-term foreign capital. The residency is not automatic on purchase but is applied for following registration of the title deed at MOHUP. Family members are included at no additional investment threshold.