The establishment of the International Financial Centre of Oman (IFC Oman) through Royal Decree No. 8/2026 (Royal Decree) issued by His Majesty Sultan Haitham bin Tarik marks a significant inflection point in Oman’s economic and regulatory evolution.
Framed as a cornerstone of Oman Vision 2040, the IFC Oman represents not merely the creation of another financial freezone, but the deliberate construction of a parallel legal and financial ecosystem designed to attract, deploy and retain global capital.
The law consciously adopts many of the structural features associated with leading international financial centres, while retaining a distinctly Omani legal character. The result is a framework that is promising, sophisticated, and at this stage deliberately open‑textured.
At its core, IFC Oman is designed to attract foreign investment. Investors favour jurisdictions with predictable rules, independent dispute‑resolution systems and transparent licensing processes, which is why central to IFC Oman's design is its full legislative, administrative, and regulatory autonomy. By operating independently with its own laws, regulator and administrative systems it offers a more flexible, predictable and business‑friendly environment built on modern legal and financial standards. These standards are aimed at a diverse range of stakeholders such as global commercial and Islamic banks, investment firms and other specialised financial institutions.
This article considers what the IFC Oman regime creates, why it matters for investors and financial institutions, and which aspects of the framework will ultimately determine its success.
IFC Oman as a distinct jurisdiction
At the heart of the IFC Oman is a clear legislative choice: IFC Oman is not merely a regulatory zone, but a separate legal environment.
Article 7 of the Royal Decree provides that Omani legislation does not apply within IFC Oman except where expressly stated. This carve‑out is extensive, with only limited legislations – such as criminal law, AML/CFT, tax legislation and national security and emergency laws – continuing to apply automatically.
This approach aligns IFC Oman with financial centres such as Dubai International Financial Centre, Abu Dhabi Global Markets, and Qatar Financial Centre where legal certainty is achieved through insulation from broader domestic law. It is also expected that IFC Oman will adopt a common law legal framework which will operate entirely in English, similar to other financial centres in the region.
This sends an important signal to international investors that disputes will be governed by a predictable, self‑contained legal regime rather than by shifting domestic regulatory interpretation.
Establishments, licensing and regulatory reach
One of the most significant and nuanced features of IFC Oman is the distinction it draws between 'establishments of the centre' which are "any establishment registered, licensed, or authorised to operate or practice any of its activities within the boundaries of the centre or through it, in accordance with the legislation of the centre", and 'licensed establishments' which are "establishments of the centre licensed by the regulatory authority of the centre to practise financial services or ancillary services activities".
This distinction matters because not every entity operating in IFC Oman will be regulated as a financial institution. While under Articles 24 and 25 licensed establishments fall under the supervision of the regulatory authority of the IFC Oman (Regulatory Authority), other entities – including holding companies, special purpose vehicles, service providers and ancillary businesses may operate through registration alone.
This layered structure provides flexibility for deal structuring, fund vehicles and holding arrangements, while allowing the regulator to focus its attention on activities that genuinely carry prudential or conduct risk.
Equally important is Article 8, which allows certain activities (inter alia holding promotional and marketing meetings for products or services or providing special or general offers) of licensed establishments conducted outside the IFC Oman to be deemed, in law, to have taken place within it. This provision has far‑reaching implications. Properly implemented, it allows institutions to market, structure and execute transactions across borders while anchoring the legal and regulatory consequences in the IFC Oman. While the regulations regarding these activities are yet to be formulated, for international banks, funds and sponsors, this could become one of IFC Oman's most commercially valuable features.
Governance: Separation of policy, regulation and adjudication
The IFC Oman framework is built around a clear separation of institutional roles.
Under Article 12, the Board of IFC Oman functions as the strategic and policy authority, responsible for issuing regulations, approving frameworks and overseeing the centre’s development.
Whereas under Article 16, the authority of IFC Oman acts as the operational arm – maintaining registers, administering infrastructure, enforcing compliance and managing the day‑to‑day functioning of the freezone.
Finally, under Article 25 the regulatory authority is responsible for licensing, supervision, anti-money laundering oversight and market conduct. Its remit extends not only to financial institutions but also to designated non‑financial businesses and professions operating within IFC Oman.
This separation mirrors best practices in international financial regulation and is designed to promote both independence and accountability.
Courts, dispute resolution and enforceability
The most consequential element of the IFC Oman framework is its dispute resolution architecture set out in Articles 40 to 45. The Royal Decree establishes (i) a primary court composed of a single judge and (ii) a court of appeal composed of three judges, whose judgments are final.
These courts have jurisdiction over disputes arising under the laws of IFC Oman and over disputes where parties have expressly submitted to its jurisdiction. Judgments are issued in the name of His Majesty the Sultan, reinforcing its constitutional standing.
Separately, Article 31 creates a dispute resolution tribunal responsible for overseeing arbitration and mediation mechanisms. Importantly, this tribunal is not itself a court — a distinction that will be critical in practice.
Of particular note is Article 48, which establishes a framework for mutual enforcement between the courts of IFC Oman and the courts of the Sultanate of Oman. This provision is fundamental to investor confidence, as it enables judgments and recognised arbitral awards to be directly enforced beyond the geographical confines of IFC Oman.
The practical operation of this enforcement bridge will be a key indicator of the IFC Oman’s long-term credibility.
Tax certainty and investor protection
From an investment perspective, two provisions stand out.
First, Article 55 provides for tax exemptions of up to 50 years, subject to conditions and implementing regulations. While the scope of these exemptions will depend on future regulations, the signal to long‑term capital providers is clear: IFC Oman is intended to be a stable and predictable tax environment.
Second, Article 56 provides express protection against nationalisation, confiscation or expropriation, save pursuant to judicial process or tax enforcement. This provision places IFC Oman firmly within the mainstream of international investment protection standards.
Looking forward
The legal architecture of the IFC Oman is strong. However, as with all financial centres, success will not be determined by statute alone.
Three key factors will be decisive: (i) the clarity and commercial soundness of implementing regulations; (ii) the speed and consistency of regulatory decision‑making; and (iii) the credibility and independence of the courts in early test cases.
If these elements align, IFC Oman has the potential to evolve into a serious platform for regional capital flows, structured finance and cross‑border investment. At this early stage, the direction of travel is encouraging. The next phase – implementation will determine whether IFC Oman becomes a regional reference point.
Our firm has been closely monitoring the policy changes and early decisions shaping IFC Oman's establishment. With decades of experience in Oman and the wider Middle East, our local and international experts are well placed to guide businesses in understanding potential implications, anticipate regulatory developments and make informed decisions. Please get in touch with our Oman team for further information.
