Oman has established the International Financial Centre (IFC Oman) under Royal Decree No. 8/2026, granting it legal and financial independence and its own judicial system. The centre offers up to 50 years of tax incentives and aims to attract international investment while supporting economic diversification.
The Sultanate of Oman issued Royal Decree No. 8/2026 on 12 January 2026, establishing the International Financial Centre of Oman (IFC Oman).
Effective 13 January 2026 upon its publication in the Official Gazette, IFC Oman will operate with legal personality and financial independence, reporting directly to the Deputy Prime Minister for Economy and Finance. The move forms part of Oman’s strategy to position itself as a global financial hub and advance economic diversification under Oman Vision 2040.
IFC Oman will be located in Madinat Al Irfan, Muscat, with the option for licensed establishments to operate branches outside the center or hold shares in local companies under applicable Omani legislation. Certain promotional, marketing, and advisory activities conducted by licensed establishments outside IFC Oman but within the Sultanate will still be governed by IFC Oman regulations. Governance will be overseen by a Council appointed by Royal Order, comprising the Chairpersons of the IFC Oman Authority and the Regulatory Authority, with authority to invite non-members to meetings without granting voting rights.
The centre will feature its own judicial system, including a Primary Court, Court of Appeal, and the possibility of additional courts or a dispute resolution tribunal for mediation and arbitration. Tax incentives under Royal Decree No. 8/2026 include:
- Exemption from income tax for entities engaged in eligible activities as defined by IFC Oman regulations.
- Exemption from income tax/withholding tax for nonresident legal persons on income from royalties, service fees, management fees, dividends, and other transactions with IFC authorities or establishments.
- Exemption for non-Omani natural persons on certain transactions with IFC authorities or establishments, including income generated outside Oman.
- Recognition of IFC Oman as a designated special zone for VAT purposes, allowing for exempt supplies and supplies with a 0% tax rate.
These incentives apply for a maximum period of 50 years from the decree’s effective date. IFC Oman will also facilitate entry visas and residence permits for non-Omani individuals and their immediate family members, encouraging foreign investment and talent.
The law allows two primary categories of activities: regulated financial services—including banking, Islamic banking, insurance, investment management, asset management, capital markets, and advisory services—and ancillary services that support financial institutions, all requiring licensing from IFC authorities. Licensed establishments may also conduct certain activities outside IFC boundaries while retaining IFC regulatory treatment.
Businesses and investors are encouraged to assess opportunities under IFC Oman, including potential tax efficiencies, licensing pathways, and compliance obligations, as the executive regulations for the centre are expected to be issued in due course.
