Investing in Oman - Property tax & market insight
Cluttons has partnered with Trowers & Hamlins to produce a guide to investing in the property market in Oman.
This has been a cross team effort, working with Trowers & Hamlins in Oman to simplify the obligations for those investing in the Sultanate’s residential and commercial markets.
The document also includes an update on the residential and office markets in Oman and aims to provide a quick and easily digestible resource for all investors and purchasers.
Like many of its Gulf neighbours, Oman’s economy is still working its way through a challenging period, triggered by the shock collapse in oil prices in 2014. As the country continues to embark on a roadmap to wean itself off its dependence on oil revenues through diversification efforts and positive government intervention, the real estate market has been impacted by a reduction in overall demand. There remain, however, some pockets of activity and clear opportunities for landlords in both the residential and commercial sectors.
Oxford Economics is forecasting that GDP growth will fall to a nominal 0.4% this year, from 1.5% last year as government spending continues to ease, underpinning the slowdown currently being experienced. 2018 is, however, expected to be a stronger year, with GDP growth expected to surge by 5.2%; the strongest rate of expansion since 2015.
The rapid acceleration of economic growth is forecast to be fuelled to a significant degree by the introduction of natural gas production from the Khazzan gas field. In addition, stronger non-oil sector growth is projected as a result of an anticipated easing of fiscal pressures due to a turnaround in oil prices from about USD 45 per barrel at this time last year to around USD 55 per barrel in October 2017. A freeze on public sector recruitment is also forecast to aid the reduction in the budget deficit to 10.9% of GDP this year, from 21.1% of GDP in 2016.
With this in mind, we wanted to delve further in to the investment obligations for Oman.