Govt Incentives for Joint-Stock Firms: Explore Opportunities for Growth and Investment in Oman
Muscat – The Ministry of Commerce, Industry, and Investment Promotion has, in collaboration with relevant authorities, developed and implemented a set of incentives designed to facilitate the establishment of new companies and the conversion of existing limited liability companies into closed joint-stock entities.
This initiative aligns with the recent launch of a capital market stimulus program aimed at fostering sustainable growth for targeted companies while enhancing their competitiveness and capacity for expansion.
As a result of these efforts, seven limited liability companies have successfully transformed into closed joint-stock companies, and an additional ten closed joint-stock companies have been established, including holding companies. This transition has bolstered the competitiveness of these firms and promoted the adoption of best practices in corporate governance, thereby supporting their sustainability and financial stability, as well as improving their competitive edge in both local and international markets to attract high-quality investments.
Mohammed bin Salem al Hashmi, Director of the Regulatory Establishments Department at the Ministry, noted that the shift to closed joint-stock companies significantly enhances compliance and transparency while reinforcing governance principles. This positively influences the sustainability and financial stability of the companies, fosters their growth and expansion, and contributes to the advancement of the national capital market.
The incentives available to companies seeking transformation include a two-year exemption from one-third of income tax, expedited access to financing through the Development Bank, a 10% price incentive for tenders, options for income tax installment payments, and a six-month exemption from value-added tax.
Al Hashmi emphasized that eligible companies must have a minimum capital of RO500,000, employ at least 20 Omani staff or adhere to established Omanization ratios, and be compliant with value-added tax regulations. These criteria are designed to promote corporate growth, support the capital market in the Sultanate of Oman, and ensure financial and economic sustainability.
Special Analysis by Omanet | Navigate Oman’s Market
The recent initiative by the Ministry of Commerce, Industry and Investment Promotion to encourage the transformation of limited liability companies into closed joint-stock entities presents significant opportunities for businesses in Oman. By enhancing transparency and corporate governance, companies can attract quality investments and improve their competitive edge in both local and international markets. Smart investors and entrepreneurs should consider leveraging the provided incentives—such as tax exemptions and fast-tracked financing—to establish a robust foothold as the capital market evolves.
