HIGHLIGHTS

Oman Clarifies Foreign Property Ownership Rules: Residency Reforms Do Not Expand Buying Rights

Oman has clarified that its recent residency reforms do not give foreigners the right to buy property anywhere in the country. The clarification came after confusion arose from new visa rules for foreign property owners and a separate law restricting foreign ownership in strategic areas.

On 25 June 2026, the Ministry of Housing and Urban Planning confirmed that the recent amendments to the Foreigners Residence Law relate only to residency benefits and do not change Oman's property ownership laws. The clarification followed reports suggesting that the country had opened its real estate market to foreign buyers nationwide.

Foreign Property Ownership Remains Restricted

Under Omani law, foreign nationals cannot freely purchase land or real estate across the Sultanate. Property ownership remains limited to areas specifically permitted by law.

Foreigners may acquire property only in:

• Integrated Tourism Complexes (ITCs) approved by the government;
• Designated future cities, including Sultan Haitham City, Al Thuraya City, and Al Jabal Al Aali; and
• Certain integrated residential developments such as Surouh.

The Ministry emphasised that these restrictions remain fully in force despite recent legal reforms.

Two Legal Ways Foreigners Can Hold Property

Foreign investors currently have two recognised methods of acquiring property rights in Oman.

The first is full ownership within Integrated Tourism Complexes (ITCs). Buyers may own residential units or land within these projects and are generally allowed to sell, mortgage, inherit, or transfer the property.

The second is through registered usufruct rights in multi-storey buildings. Under this system, foreigners do not own the land itself but receive long-term rights to use and occupy a residential unit. These rights are subject to conditions relating to property value, nationality quotas, age requirements, and residency rules.

What Changed Under the New Residency Rules?

The Royal Oman Police issued Decision No. 87/2026, which came into force on 22 June 2026, amending the Executive Regulations of the Foreigners Residence Law.

The amendments make it easier for eligible foreign property owners to obtain residency.

The key changes include:

• Sponsor-free residence visas for eligible foreign property owners;
• A dedicated Property Owner Visa without the need for a local sponsor;
• Eligibility for spouses and first-degree family members to receive linked residence permits;
• Visa validity ranging from six months to one year, with renewal available;
• Permission to stay in Oman for up to three months per visit; and
• Automatic cancellation of the residence permit if the linked property is sold or transferred.

The reforms also broaden the categories of people who may sponsor foreign residents and relax certain age restrictions for dependants of investors and property owners.

Importantly, these amendments deal only with immigration and residency procedures, not ownership rights.

New Registry Law Does Not Expand Ownership

A new Real Estate Registry Law, introduced in May 2026, modernises Oman's property registration system.

The law allows electronic registration, recognises digital property records, and provides legal protection for off-plan developments and preliminary registrations.

However, the Ministry has clarified that the Registry Law does not expand the areas where foreigners may purchase property. It improves the registration process but leaves existing ownership restrictions unchanged.

Restrictions on Strategic Areas

Adding to the legal changes, Oman enacted another law, published on 19 June 2026, which will take effect on 19 November 2026.

The legislation prohibits non-Omanis from owning land in several strategically important locations, including Musandam, Al Buraimi, Al Dhahirah, Al Wusta, most parts of Dhofar, Liwa, Shinas, Masirah Island, Jebel Akhdar, and Jebel Shams, as well as areas near military installations, royal palaces, archaeological sites, and other sensitive locations.

Foreign nationals who already own property in these restricted areas must dispose of their holdings within two years, with a possible one-year extension in certain circumstances.

Why the Clarification Matters

The Ministry's clarification removes widespread misunderstanding created by simultaneous legal reforms.

While Oman is encouraging foreign investment through easier residency procedures, it has not liberalised its real estate ownership regime. The government continues to balance investment promotion with national security and land management considerations.

These reforms also support Oman Vision 2040, which seeks to diversify the economy by attracting international investors while maintaining regulatory control over land ownership.

Conclusion

Oman's latest reforms provide greater residency benefits for eligible foreign property owners, including sponsor-free visas and simplified residence procedures. However, they do not allow foreigners to purchase property throughout the country.

Foreign ownership remains confined to designated developments such as ITCs and approved residential projects, while new restrictions on strategic areas will further limit ownership from 19 November 2026. The government's clarification underscores that residency reforms should not be mistaken for a broader opening of Oman's real estate market.

Reference

• Economic Times Legal (29 June 2026)
• Oman Observer
• Gulf News
• Times of Oman
• Muscat Daily
• Business Standard
• Lexis Middle East
• Mondaq – Buying Property in Oman: Legal Guide for Foreign Investors
• News of Bahrain