The Sultanate of Oman realized that foreign investment is a means to achieve its main aim which is to reduce the dependence on oil and diversification of economy. Foreign Investment Law of the Sultanate stipulates the following: • The right of foreign investors to freely initiate the approved economic activity, and transfer the imported capital with the due profits in the project outside.
• The protection of foreign investments from confiscation or ownership removal unless it is in line with the general interest. In this case, a fair compensation for that is to be paid.
• Any disputes between the foreign investment projects and other parties should be transferred to jurisdiction or any international arbitration.
• The Sultanate has agreements to protect the investments with a number of countries. The Government amended the laws of customs in 2000 aiming at creating a good investment atmosphere in the Sultanate through the reduction of customs percentage on the companies of foreign of liability, where % 12 percentage of texts are imposed on the foreign liability companies where the liability percentage reaches % 70 on all the joint ventures companies apart from the scope of foreign liability in it, which is the same percentage applicable to the companies fully owned by Omanis.
• The registration of foreign investment projects in the Sultanate is governed by the regulations of foreign capital investment law of the year 1994 and its amendments, and also according to the regulations of international laws through the establishments of joint venture Omani companies or fully owned ones by foreign persons.
• According to the law, any person who is interested in establishing an investment project in the commercial, industrial, or tourist field in the Sultanate of Oman or owns a share in an Omani company's capital can get licenses from Ministry of Commerce and Industry.
• The license is to be given after meeting some conditions which include the necessity to practice commercial business through an Omani company of a capital no less than OR (150000), excluding the companies operating in the field of information field which can be registered with a capital amounts to OR (20000) with fully owned percentage of the companies shares.
• In most cases, the foreign partnership percentage is allowable by percentage of % 70. Foreign liability in an any Omani company is allowed by percentage of % 100 in some commercial activities stipulated in the joining agreement to World Trade Organization.
• The foreign companies and establishments which practice commercial activities in the Sultanate of Oman through a branch which is excluded from the requirements of foreign capitals investment law, where the foreign company can establish a branch for it only in the following cases:
•The establishments or companies which practice commercial business in the Sultanate of Oman in accordance with special agreements or contracts with the government.
• The companies which can be established in accordance by a Royal Decree.
• The companies which practice commercial business and the Ministerial Council confirms its importance for the national economic