Oman Announces Tax and Finance Incentives to Boost Joint-Stock Companies

Oman Announces Tax and Finance Incentives to Boost Joint-Stock Companies-

Oman has unveiled a new package of tax and financing incentives designed to encourage limited liability companies to convert into closed joint-stock companies, a move aimed at deepening the Sultanate’s capital market and strengthening corporate growth.

The initiative reflects Oman’s broader strategy to enhance corporate governance, improve competitiveness, and support businesses with strong potential to scale and expand across key sectors of the economy.

Incentives to Encourage Corporate Transformation-

The newly announced incentive package offers a range of financial and operational benefits for eligible companies. These include a two-year exemption from one-third of income tax, fast-track access to financing through the Development Bank, and a 10 per cent price preference in government tenders.

Additional incentives include the option to pay income tax in instalments and a six-month exemption from value-added tax. Together, these measures are designed to ease the financial burden of conversion and incentivise companies to adopt more advanced corporate structures.

Eligibility Criteria Focused on Sustainable Growth-

To qualify for the incentives, companies must meet specific requirements intended to promote long-term economic stability. These include a minimum capital threshold of RO 500,000, employment of at least 20 Omani nationals or compliance with approved Omanisation ratios, and full adherence to VAT regulations.

These conditions aim to ensure that participating companies are financially sound, contribute to local employment, and align with national economic objectives.

Strengthening Governance and Competitiveness-

Led by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), in coordination with relevant authorities, the programme seeks to improve governance standards, transparency, and long-term sustainability across targeted sectors.

The initiative aligns with high-level directives to strengthen Oman’s business environment and support companies capable of scaling their operations and competing more effectively in both local and international markets.

Active Promotion and Early Results-

MoCIIP has actively promoted the incentive programme through field visits and awareness meetings conducted via branches of the Oman Chamber of Commerce and Industry across several governorates. These efforts encourage companies to either convert their legal status or establish new closed joint-stock entities under the scheme.

According to the Oman News Agency, the initiative has already produced tangible results. Seven limited liability companies have converted into closed joint-stock companies, while 10 new closed joint-stock firms, including holding companies, have been established.

Building a Resilient Business Ecosystem-

The transition to closed joint-stock status has helped participating companies strengthen governance practices, improve transparency and regulatory compliance, and enhance financial resilience. These improvements position businesses to attract higher-quality investment and compete more effectively in regional and global markets.

Mohammed bin Salem Al Hashmi, Director of the Regulatory Establishments Department at MoCIIP, described the incentive programme as a strategic step toward reinforcing Oman’s business ecosystem. He noted that the conversion process raises governance and compliance standards, supports expansion and financial stability, and contributes to the development of the national capital market.

Supporting Economic Diversification-

By encouraging more companies to adopt joint-stock structures, Oman is advancing regulatory efficiency and supporting its long-term economic diversification goals. The programme underscores the Sultanate’s commitment to creating a dynamic, transparent, and investment-friendly business environment capable of sustaining growth well into the future.