Muscat – The Ministry of Commerce, Industry and Investment Promotion (MoCIIP), in coordination with relevant authorities, has introduced a new package of incentives aimed at encouraging the establishment of, or the conversion of limited liability companies into, closed joint-stock companies.
This initiative falls within the framework of the Royal Directives to launch the Capital Market Stimulus Programme in May, and seeks to support sustainable growth for targeted companies while enhancing their competitiveness and capacity to expand and develop their businesses.
In a statement to Oman News Agency, the ministry stated that it has been promoting the incentive programme through field visits to companies, as well as meetings held via the branches of the Oman Chamber of Commerce and Industry (OCCI) across several governorates. The aim is to encourage limited liability companies either to convert into closed joint-stock companies or to establish new companies under the third track of the initiative.
These efforts have led to the transformation of seven limited liability companies into closed joint-stock companies, alongside the establishment of ten new closed joint-stock companies, including holding companies. This has helped raise the competitiveness of these companies, promote best practices in corporate governance, support their sustainability and financial stability, enhance their ability to compete in local and international markets, and attract quality investments.
Mohammed bin Salem al Hashmi, Director of the Regulatory Establishments Department at MoCIIP, affirmed that the incentive programme for company transformation represents a significant strategic step in strengthening Oman’s business environment.
He noted that conversion into closed joint-stock companies contributes to improving compliance and transparency, enhances the application of governance principles, positively impacts sustainability and financial stability, supports growth and expansion, and contributes to the development of the national capital market.
Hashmi added that the initiative also strengthens the efficiency of regulatory bodies and prepares companies to operate within clearer regulatory frameworks, balancing market protection with investment promotion and supporting the objectives of economic diversification.
He explained that the incentive package for companies wishing to transition includes a two-year exemption from one-third of income tax, access to a fast-track financing facility through the Development Bank, a 10% price preference in tenders, income tax payment plans, and a six-month exemption from value-added tax (VAT).
He emphasised that companies eligible for the transition must have a minimum capital of RO500,000, employ at least 20 Omani nationals or meet the required Omanisation quotas, and commit to paying VAT. These criteria aim to promote company growth, support Oman’s capital market, and achieve financial and economic sustainability.
