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As part of its investment-friendly strategy, Oman’s Ministry of Housing and Urban Planning has revamped its real estate fee system, significantly simplifying processes for investors.
The recent reforms affected 85 government services, including consolidating 47 fees into fewer categories, cancelling 11 fees, reducing 8 fees, and introducing 14 new services. A key change was the reduction of the property registration fee from 2% to 1% for Omani individuals and companies. This reduced ownership costs and boosted demand.
Additionally, fees for real estate transactions via Islamic banks were lowered to 0.5%, opening new Sharia-compliant financing opportunities. A 0.5% cap was also introduced for mortgage registration fees, providing more flexibility in financing.
The reform package not only reduced fees but also introduced business compensations to help investors manage financial risks. Land use permit fees were also adjusted, with fee exemptions granted when agricultural land is converted for non-commercial use.
Another notable reform was the removal of certain e-service fees, enhancing digital processes and reducing bureaucratic barriers. Special categories, such as people with disabilities, pensioners with incomes below OMR 300, and beneficiaries of income support programs, are now exempt from several fees.
The reform also introduced new licensing rules for real estate agents, appraisers, and developers, enhancing market regulation and transparency. According to the ministry, these changes are expected to boost user satisfaction to 90% by providing a clear fee structure and streamlined processes.
These reforms have already shown results, attracting more foreign investors, lowering transaction barriers, and supporting the sustainable development of Oman’s real estate sector.
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