Oman strengthens real estate regulations to boost investor confidence

Muscat: The Ministry of Housing and Urban Planning is intensifying efforts to regulate and develop Oman's real estate sector through a comprehensive legislative and regulatory framework aimed at improving market efficiency, strengthening investor confidence and safeguarding buyers' rights.The initiative supports the Sultanate's urban development objectives by creating a more competitive, transparent and sustainable real estate market. At the heart of the reforms is the Real Estate Regulation Law, which unifies the legal framework governing key real estate activities, including property development, off-plan sales, real estate brokerage, valuation, joint property management and escrow accounts. The law is designed to enhance governance, improve transparency and provide a stable environment for local and foreign investment.Nasser Khamis Al Siyabi, Director General of Real Estate Development at the Ministry of Housing and Urban Planning, said that trust is the foundation of a strong real estate sector and that compliance with regulations is essential for protecting the interests of developers, investors and buyers alike.Speaking to the Oman News Agency (ONA), Al-Siyabi said developers must complete all licensing and registration procedures before advertising, promoting or selling any real estate project. This ensures that projects meet legal, technical and financial requirements and gives buyers confidence that developments are ready for implementation under approved regulatory standards.He said the regulations governing real estate development help ensure that only projects meeting all legal requirements are marketed, contributing to greater market stability and increased investor confidence.Al-Siyabi added that the Real Estate Development Services Center is working to simplify and accelerate licensing procedures by coordinating with relevant government entities, improving the investment experience while ensuring compliance with regulatory requirements.He explained that licensing real estate development projects involves three key stages:Obtaining a licence to carry out real estate development activities in Oman.Securing a project licence, including opening an escrow account with a local bank, enabling the sale of off-plan units in accordance with approved regulations.Obtaining a permit for advertising and promotion, allowing developers to market projects through media platforms, exhibitions and other promotional channels.According to Al-Siyabi, adherence to these procedures not only ensures regulatory compliance but also improves project readiness, enhances credibility and allows developers to market projects within an organised investment environment that protects all stakeholders.He noted that the Real Estate Regulation Law imposes legal penalties for several violations, including undertaking real estate development activities, implementing projects or advertising developments without the required licences, as well as violating escrow account regulations.Al-Siyabi urged prospective homebuyers and investors to verify that both the developer and the project are licensed and officially registered with the Ministry before making any purchasing or investment decisions, helping to ensure legal compliance and protect their rights.He reaffirmed the Ministry's commitment to continuously improving the regulatory environment to strike a balance between encouraging investment and protecting investors and buyers, ultimately supporting sustainable growth in the real estate sector and contributing to the national economy.The reforms come as Oman's property market continues to expand. The value of real estate transactions rose 5.4 per cent to OMR1.434 billion by the end of June 2026, compared with OMR1.360 billion during the same period last year.Foreign real estate investment transactions exceeded OMR60 million, while Gulf investors accounted for more than OMR13 million in property investments. More than 190 real estate companies were registered with the Ministry by the end of June 2026.According to the National Centre for Statistics and Information, real estate activities contributed approximately OMR1.08 billion to Oman's gross domestic product in 2025, underlining the sector's growing role in the country's economic diversification strategy.