Category: Law Updates

Last week, His Majesty established by Royal Decree 50/2026 a special economic zone named the Artificial Intelligence Special Zone. With the advancements of AI in our society, the need for this special zone is fundamental. Questions might be asked: What is the legal status of a special zone? How will it be operated? How is this zone different from the recently established International Financial Centre of Oman (IFCO)? We will discuss all this in this blog post.

The Legal Status of a Special Zone

The AI Special Zone is a special economic zone governed by the Law of Special Economic Zones and Free Zones, issued by Royal Decree 38/2025, exactly like the Special Economic Zone at Duqm.

A zone created by virtue of this law is granted specific benefits so that the zone is attractive to foreign investment. For example, companies doing business in the zone get up to thirty years of exemption from corporate income tax, customs exemptions for imported and exported goods, and exemptions from minimum capital requirements. Furthermore, land within the zone is allocated by lease or usufruct outside the constraints of the regular Land Law.

One of the key benefits of the zone will be the creation of a one-stop shop that handles all licensing and permits required for the operation of companies in the zone. The law places a strict deadline for issuing the licences and permits within the zone. For example, labour permits for non-Omani employees must be issued within five working days.

There are also other benefits, like a single comprehensive approval for strategic projects and residency for the owners of the company.

How will it be operated?

The law requires the AI Special Zone to be operated by an operator appointed by the Public Authority for Special Economic Zones and Free Zones. This operator has to be a company. The news outlets have reported that the government has appointed an Omani company called Afouq Investment and Development United to both establish and operate the zone.

How does it differ from IFCO?

One of the biggest announcements of the year was the establishment of the International Financial Centre of Oman, and it’s important to point out the differences between these two projects.

The AI Special Zone provides a number of specific exemptions and benefits, but it is still governed by Omani law. For example, Omanisation rules still apply in the AI Special Zone, the Commercial Companies Law also applies, and Omani courts have full jurisdiction over the zone. In particular, the Omanisation rules prohibit the hiring of non-Omani software engineers, and therefore, this prohibition will apply to companies working in the zone.

Unlike the AI Special Zone, IFCO is a totally independent legal jurisdiction in which Omani law does not apply and has its own court system. This means that the Omanisation rules categorically do not apply.

However, even though the AI Special Zone will still be bound by Omani law, the ability of the zone to attract the AI industry will depend on factors beyond the law, such as its ability to provide infrastructure and services, as well as other facilities that make the zone an attractive destination for the AI industry.

You can learn more about special economic zones, such as the AI Special Zone, by reading the Law of Special Economic Zones and Free Zones in full in English on the link below:

The National Geospatial Data and Information Law was published under Royal Decree 43/2026. Even though the title of the law includes geospatial data, the bulk of the law speaks to surveys and the production and use of the map of Oman.

The law gives the National Survey and Geospatial Information Authority, which is a department of the Ministry of Defence, broad oversight over geospatial matters in the country. For example, you need permission from the authority to conduct surveys, to produce any map or atlas, to export geospatial data outside Oman, or to use the maps of Oman commercially.

Failure to comply with this law results in penalties up to 3 years of imprisonment and fines up to 30,000 Rial Omani.

Entities affected by the law have 6 months from its entry into force to bring themselves into compliance. 

You can read the National Geospatial Data and Information Law in full in English on the link below:

The Financial Services Authority published in this week’s issue of the Official Gazette Decision E/7/2026 adopting IFRS S1 and IFRS S2, the international sustainability disclosure standards, for listed public joint-stock companies and financial institutions in Oman.

This decision is the latest in a series of moves by the FSA to align Oman’s financial sector with internationally recognised standards. Earlier last year, the FSA issued Decision E/2/2025, which made IFRS the mandatory model for preparing and auditing financial statements in Oman. The latest decision extends that same approach to sustainability, requiring companies to disclose how climate and sustainability-related risks affect their business.

Both standards must be fully applied from 1 January 2029, with the exception of scope 3 under IFRS S2, which covers indirect greenhouse gas emissions, and which must be applied from 1 January 2030. The FSA will also issue forms to guide companies through implementation. Failure to comply can result in penalties ranging from a warning to being struck off the Accountants and Auditors Register.

This decision comes into force as of tomorrow. You can read the text of the decision in full on the link below:

Financial Services Authority: Decision E/7/2026 Adopting the Two International Standards on Sustainability Disclosures

His Majesty issued last week a royal decree establishing the International Financial Centre of Oman (IFCO) as a new financial free zone. IFCO will operate as an independent legal jurisdiction with its own executive authority, regulatory body, and court system that is not subject to oversight by the Council of Ministers, the Council of Oman, or the Omani judiciary. The location of IFCO is designated by royal decree as Madinat Al-Irfan. This blog post explains what a financial free zone is, the criteria for registering a company in IFCO, why companies might wish to register there, the key limitations for operating out of IFCO, and the next steps before this new financial free zone actually operates.

The Ministry of Labour published in this week’s of the Official Gazette Ministerial Decision 574/2025 Issuing the Governance Regulation for the Work of Domestic Workers and Their Equivalent, which marks a significant regulatory shift, enlarges the scope of protection, and enhances the rights of domestic workers. This decision replaces the former Ministerial Decision 189/2004 regarding the Terms and Conditions of Employment for Domestic Workers.

A new amendment to the Law of the Official Gazette was published in this week’s issue of the Official Gazette that makes changes to the law to reflect the current practices of the Ministry of Justice and Legal Affairs.

The amendment makes it clear that the Official Gazette is to be published electronically, and that the MJLA can, if it wishes, publish it in a paper format as well. The amendment also stipulates that the MJLA may published certain items from the Official Gazette before the full publication of the issue. These two practices are already adopted by the MJLA and these amendments merely add a legal basis for the practices of the ministry.

Another change that is not based on current practices is the removal of the mention of the Directorate General of the Official Gazette from the law and its replacement with a generic term for the “competent division”. This suggests that the MJLA might be in the process of a restructuring that would move the mandates relating to the Official Gazette into another administrative division within the ministry.

You can read the full text of the new amendments to the Law of the Official Gazette on the link below:

You can also read the consolidated version of the Law of the Official Gazette on this link:

The Ministry of Commerce, Industry and Investment Promotion published in this week’s issue of the Official Gazette an amendment to the Executive Regulation of the Foreign Capital Investment Law that makes it an obligation for every company established by a foreign investor to recruit at least one Omani employee.

Companies subject to this law are required to comply with this obligation within a year from the date of the commencement of the commercial activity of such company.

Existing companies have up to 6 months to comply with this obligation starting from the date of renewal of the commercial register, or the issuance or renewal of the work license, whichever occurs first.

It is worth-noting that even though this is a new obligation under the Executive Regulation of the Foreign Capital Investment Law, the Ministry of Labour has previously issued instructions in the form of a circular requiring both foreign investor companies and local companies to employ at least a single Omani national.

The new amendment to the Executive Regulation of the Foreign Capital Investment Law enters into force today. You can read it full in English on the link below:

You can also view the consolidated version of the Executive Regulation of the Foreign Capital Investment Law on the link below:

The Ministry of Heritage and Tourism published in this week’s issue of the Official Gazette the Regulation of the Rules and Systems of Real Estate in Jebel Sifah Resort.

This regulation supplements the Executive Regulation of the System of the Ownership of Real Estate in Integrated Tourism Complexes by adding new obligations to developers, buyers, and owners in Jebel Sifah Resort. Some of the new key obligation for developers under the new regulation include obligations to use an escrow account, appoint an independent audit office, and insure all units.

This new Jebel Sifah Resort Regulation enters into force tomorrow. You can read it in full in English on the link below:

A new Law Combatting Human Trafficking was issued in this week’s issue of the Official Gazette replacing the Law Combatting Human Trafficking of 2008.

The Law Combatting Human Trafficking of 2025 adds new detailed definitions for human trafficking concepts that were not defined in the previous law, such as sexual exploitation and forced labour. The law also criminalises new trafficking activities such as deporting and detaining of humans in the context of human trafficking. The punishments under the law have also been increased so that the maximum prison sentence for general offences is increased from 7 to 10 years.

The Law Combatting Human Trafficking of 2025 has already entered into force. You can read it in full in English on the link below:

The Ministry of Labour published in yesterday’s issue of the Official Gazette Ministerial Decision 523/2025 Regarding the Governance of Remote Work which sets the general rules for remote work in Oman.