Executive Regulations issued for Special Economic Zones and Free Zones Law

Muscat: The Public Authority for Special Economic Zones and Free Zones (Opaz) has issued the decision on the Executive Regulations of the Special Economic Zones and Free Zones Law, which complete the legislative and regulatory framework established by the Special Economic Zones and Free Zones Law promulgated by Royal Decree No. 38/2025.

The move aims to reinforce the efforts of the Government of the Sultanate of Oman to strengthen the investment environment, enhance the competitiveness of Special Economic Zones and Free Zones, and make them more attractive for drawing and localising high-quality and strategic projects.

Regulation No. 81/2026 represents a key milestone in translating the principles and provisions of the Law into a clearer implementation framework, which strengthens investor confidence, provides a more efficient and stable business environment, and regulates the journey of the investor and the project from land or property allocation and licensing, through operations, access to services, and enjoyment of the prescribed benefits, incentives, exemptions and facilitations, to the regulation of obligations, oversight, compliance and real estate development.

Qais Mohammed Al Yousef, Chairman of the Board of Directors of the Public Authority for Special Economic Zones and Free Zones, affirmed that the issuance of the Executive Regulations is an important step in completing what the Special Economic Zones and Free Zones Law set out to achieve in developing and unifying the legislative framework governing investment in Special Economic Zones and Free Zones, enhancing guarantees and regulatory clarity, and facilitating procedures, thereby raising the competitiveness of these zones and strengthening their ability to attract local and foreign investment and value-added projects.

He said that the Authority views legislation as a tool for improving the investor experience and raising the efficiency of the business environment, noting that the Regulations translate a number of the principles established by the Law into practical procedures built on simplifying the investor journey, strengthening the role of the One-Stop Shop, leveraging digital transformation, granting strategic projects greater flexibility, and preparing the regulatory environment for new and future economic sectors.

Al Yousef explained that the Executive Regulations are an important step in preparing a more flexible framework for strategic projects, by setting clear criteria that enable these projects to be dealt with according to their nature and impact on the national economy. This framework strengthens the ability to respond to the needs of high-quality projects and offer them suitable facilitations, contributing to faster procedures and greater certainty for investors, and enhancing the attractiveness of the Sultanate of Oman's investment environment for value-added projects, in line with national priorities, plans and strategies.

He affirmed that clear regulatory frameworks for strategic projects support the Sultanate of Oman's ability to attract high-quality local and foreign investment and help consolidate its standing as an attractive destination for projects with economic impact, supporting the objectives of Oman Vision 2040 in diversifying the economy, enhancing the competitiveness of the business environment, and attracting value-added investment.

The Regulations consolidate the role of the One-Stop Shop as the main channel for delivering services to investors, extending the Law's provision that all services required by projects be provided, and that procedures for issuing approvals, permits, licences and certificates relating to the conduct of economic activities be facilitated and simplified through it.

The Regulations provide for submitting applications for land and property allocation, licences, approvals, permits and certificates through the One-Stop Shop, linking it electronically to the systems of relevant entities, alongside activating e-payment channels, data and systems integration, and protecting the confidentiality of investors' information and data.

The Authority coordinates with governmental and non-governmental entities to conclude agreements regulating the services associated with the One-Stop Shop, covering the scope of services, responsibilities, powers, timeframes for completing transactions, and monitoring and evaluation mechanisms, thereby supporting the transition to a more integrated model of investment service delivery.

The Authority is also working to empower the Free Zone operators and those who manage, operate and develop Special Economic Zones, granting them the widest possible scope of executive powers needed to complete investors' transactions and deliver services inside the zones, within the limits of the approved legal and regulatory frameworks and agreements. This brings services closer to investors, shortens referral and decision-making layers, and accelerates transaction completion, while preserving the Authority's regulatory and supervisory role and unifying service quality standards.

Among the most notable provisions of the Regulations in simplifying the investment environment is the ability to issue licences automatically through the One-Stop Shop following automated verification that the data, documents and approved requirements are met, together with automatic licence renewal where the licensee's data is up to date and meets the prescribed conditions.

The Regulations also set clear timeframes for deciding on a number of applications and transactions, and regulate the giving of reasons for rejection decisions and grievances against them in the cases stipulated, enhancing transparency and clarity in regulatory procedures.

The Regulations also complete the provisions introduced by the Law to regulate real estate development projects in Special Economic Zones, which are an important addition to economic activities in these zones.

The Regulations regulate the licensing of real estate development projects, off-plan sales and freehold ownership of real estate units by non-Omanis in projects to which the prescribed provisions apply, in addition to regulating escrow accounts and the financial controls associated with protecting buyers' rights.

The Regulations strengthened the protection of buyers' funds by regulating escrow account requirements for real estate development projects, ensuring that appropriate financial and technical requirements are in place before units are marketed or advertised for sale, along with regulating the disbursements permitted from the escrow account so that funds are directed to their intended purposes and buyers' rights are preserved.

The Regulations also regulate a number of provisions on the residence of non-Omani investors and real estate unit owners, and their spouses and first-degree relatives, in accordance with the applicable controls and legislation.