Oman launches its International Financial Center

On 12 January 2026, Royal Decree No. 8/2026 establishing the International Financial Center of Oman (“IFC Oman”) and enacting its law was published in the Official Gazette of the Ministry of Justice of the Sultanate of Oman. The decree entered into force on the date of its publication.
IFC Oman is to be headquartered in Madinat Al Irfan, Muscat.

The law governing IFC Oman consists of two parts and sets out the general framework for the Center’s operation, including its governing bodies and their respective functions. It also provides an initial outline of tax incentives and lays the groundwork for the development of a dedicated legal framework within the Сenter.

IFC Oman will enjoy financial, administrative and legislative independence.

Its operations will be overseen by the IFC Oman Board and three independent bodies: the IFC Oman Authority, the IFC Oman Regulator and the IFC Oman Dispute Resolution Authority, each of which to exercise its powers independently. Each body will be responsible for managing and developing the Center’s regulatory regime within its respective mandate.

The Center’s legal framework is expected to comply with international standards and be based on English Common Law. The Center will operate its own judicial system. Courts of IFC Oman will be considered courts of the Sultanate of Oman, and their decisions will be binding nationwide.
IFC Oman will in many ways be similar to existing regional financial hubs, such as the Dubai International Financial Center (DIFC) and Abu Dhabi Global Markets (ADGM).

According to the published law, companies that are residents of the Center can be registered in two categories: companies providing financial services (such as banking services, Islamic finance, insurance, investment management, asset management, investment funds, etc.) and companies providing supporting services.

The launch of a center like this is a major leap forward for the Gulf Area, as it provides a broader range of options for investors seeking to set up financial structures in the region. Oman has not traditionally been a common choice for these purposes, and the creation of the Center marks an important milestone for the country that, over time, will enable it to compete with other international financial centers globally.

The law provides for the following tax incentives:

• Exemption from taxation on income earned by IFC Oman resident companies from qualifying activities (the list of qualifying activities will be published separately)
• Elimination of withholding tax on income earned in Oman by non-resident legal entities in the form of royalties, research and development fees, software use or licensing fees, dividends, interest, and fees for management or other services
• No tax is charged on income earned by non-Omani individuals from legal entities or institutions resident in the Center
• The right to apply a 0% VAT rate by residents of the Center (subject to certain conditions), reflecting the Center’s status as a special zone

These incentives will last for 50 years from the date the Law comes into force.

Additionally, non-Omani citizens who own real estate within the Center’s boundaries, as well as foreign employees working within the Center, will be granted residency in the Sultanate of Oman under conditions and procedures to be approved at a later date.

At this stage, it remains difficult to estimate when IFC Oman will become fully operational or how soon it will emerge as a viable alternative to other established financial centers.