Freehold ownership to drive SEZ investment
MUSCAT, JUNE 18
The opportunity for foreigners to own residential property on a freehold basis in Oman's Special Economic Zones (SEZs) and Free Zones is expected to significantly enhance the investment appeal of the Sultanate's expanding portfolio of industrial and economic hubs.
This provision is a key feature of the Law of Special Economic Zones and Free Zones, promulgated under Royal Decree 38/2025 on April 7, 2025, and effective from April 14, 2025.
Article 42 of the law, titled Land Allocation and Freehold Sale of Units, states: 'A real estate developer may sell the units of these projects to non-Omanis—whether they are natural or legal persons—as freehold, in the manner specified by the regulation.'
An explanatory note published by the Public Authority for Special Economic Zones and Free Zones (OPAZ) clarifies that land for real estate development projects within SEZs is allocated through usufruct rights. However, under the new law, developers may sell residential units within these projects to non-Omanis on a freehold basis.
'It permits real estate developers to sell project units to non-Omanis under the freehold system, a legal framework that allows buyers to fully and permanently own property without restrictions on the ownership period. In other words, individuals possess absolute ownership of the property and may dispose of it in accordance with the regulations set forth by the Authority,' OPAZ stated.
'This type of ownership presents an attractive option for investors and buyers seeking long-term stability and permanent property ownership,' the Authority emphasized.
Until now, freehold property ownership for foreigners was limited to Integrated Tourism Complexes (ITCs)—zones designated by the Ministry of Heritage and Tourism. As of mid-2023, around 19 ITCs were operational or under development across Oman, offering thousands of residential units for foreign investment. In March 2025, the Ministry announced that 13 additional ITCs are under development, with a further 12 in the pipeline, as part of efforts to strengthen investment in Oman's growing tourism sector.
With the extension of freehold ownership rights to SEZs and Free Zones, Oman is poised for a surge in foreign investment in residential real estate, particularly in high-growth industrial and logistics hubs.
OPAZ currently manages an extensive portfolio of 23 investment zones, comprising SEZs, free zones, industrial cities, economic cities, an airport free zone, and a dedicated IT park. Several more developments are in early planning or construction stages, aligning with Oman's national drive for economic diversification, industrial resilience, job creation, and foreign direct investment (FDI) attraction.
As of end-2024, the total volume of investments in OPAZ-managed assets rose by 10% to approximately RO 21 billion. The Special Economic Zone at Duqm (SEZAD) accounted for RO 6.3 billion, while free zones collectively attracted RO 6.6 billion. Meanwhile, industrial cities saw cumulative investments reaching RO 7.6 billion.
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