Oman Property Ownership for Foreigners: Laws, Rights, and Requirements
September 15, 2025By ODBW Feature by Swathi Suresh
Share this article
Over the past two decades, Oman has gradually opened up its property market to foreign nationals — but under carefully defined rules. For those considering investing in real estate in Oman, understanding the types of ownership allowed, the restrictions in place, and the required documentation is essential. This article lays out what you need to know. Foreigners in Oman can acquire real estate under two main legal frameworks: Integrated Tourism Complexes (ITCs) These are master-planned tourism and mixed-use developments combining residential, commercial, and resort components. Foreigners may acquire property in ITCs, often with 99-year usufruct rights (a form of long leasehold) or, in some cases, full title (with certain formalities). These developments are designed to attract investment, tourism, and international buyers. Popular ITCs include Al Mouj Muscat, Muscat Bay, Salalah Beach Resort, Shangri-La’s Barr Al Jissah, Muscat Hills, Saraya Bandar Jissah, and Jebel Sifah. Usufruct Rights Outside ITCs Since around 2020, Oman has extended certain usufruct schemes to foreigners even outside traditional ITCs — in particular, in multi-storey buildings in Muscat and potentially other governorates. These rights allow them to use, live in, or earn income from the property (but not necessarily own the land outright). Such schemes come with eligibility criteria. Key Eligibility Requirements & Restrictions If you’re a foreign national considering property in Oman, here are some of the important conditions and limits you need to know: Age and Residency: Must be at least 23 years old and have lived in Oman for a minimum period (usually two years). Type of Building: For property outside ITCs under the usufruct scheme, the property generally needs to be in a multi-storey building with four or more floors, in a zone licensed by the Ministry of Housing & Urban Planning. Minimum Value of Property: There are thresholds for the minimum price of properties foreign buyers can purchase. E.g., in Muscat Governorate, the minimum is around OMR 45,000; in other governorates, about OMR 35,000. Quantity & Nationality Caps: There are limits to how many units in a building can be owned by expatriates. For instance, no more than 40% of units in a building may be held by foreign buyers under certain schemes, and no more than 20% of units may be held by nationals of any single foreign country.
Required Documents & Legal Process Foreign buyers must satisfy certain paperwork and legal formalities, which typically include: • Purchase Agreement (“Akad al-Shei”) — legally binding and notarized.  • Title Deed / Deed of Sale issued by appropriate authority.  • Registration Form with the Ministry of Housing & Urban Planning.  • Proof of Identity (passport, visa / Omani ID, residency papers).  • Certificate of Residence, bank statements, financial documentation proving ability to pay, as well as site plans or surveys of the property.  • Building/Zoning Permits and, in some cases, environmental permits, depending on the nature and location of the project. 
It’s highly recommended to engage a local lawyer when purchasing property, to ensure contracts are properly drafted, legal rights verified, and compliance ensured.
Risks & Limitations While the legal framework provides opportunities, foreigners should be aware of limitations: No Freehold Land Ownership: Outside ITCs especially, foreigners typically don’t own the land freehold; they acquire usufruct or lease-based rights for a fixed term.  Lease / Usufruct Renewal: Usufruct or lease terms can often be up to 99 years, but renewals may be subject to government approval or conditions. The risk is that if you don’t comply with certain obligations (e.g. construction deadlines), the government has the right to take back the land or revoke the lease.  Mortgage Availability Limited: Some banks in Oman allow mortgages for foreigners (e.g. Bank Muscat, Bank Dhofar, National Bank of Oman), but criteria are strict, and availability is less widespread than for citizens.  Restricted Zones: There are areas, especially those strategic, environmentally sensitive, or of national heritage, where foreign ownership or foreign-held usufructs are prohibited or heavily restricted. Examples include mountainous zones, agricultural land, proximity to military bases or archaeological/historical sites. Recent Policy Developments & Why It Matters Oman continues updating its policies to attract long-term foreign investment, aligning property ownership rights more closely with norms in other Gulf nations. The expansion of usufruct rights beyond traditional tourism zones is one such measure.  These property reforms tie into broader economic diversification goals under Oman Vision 2040, as real estate is seen not just as a way of living, but as a magnet for capital, talent, and tourism. What Foreign Buyers Should Do Do due diligence: verify that the property is in an approved zone, check the title and legal status, ensure the developer has required permits. Get legal counsel: a local lawyer familiar with ownership, zoning, taxes, municipality requirements. Understand your rights and obligations under the usufruct or lease, especially construction deadlines or maintenance obligations. Check financing options early, and be clear about what banks will or will not finance. Be aware of cultural, regulatory, and logistical issues: foreign ownership is permitted, but it involves navigating Oman’s particular legal, municipal, and environmental systems. In summary, Oman offers foreign property ownership — especially through ITCs and regulated usufruct schemes — under clearly defined rules. The opportunities are expanding, but so are the legal and procedural obligations. For foreigners seeking property here, success comes with understanding the frameworks, meeting the requirements, and ensuring compliance every step of the way.
