Introduction
In Muscat, or, indeed, in Oman generally, billboards announcing new real estate projects / tourism developments become more and more commonplace. This is not surprising given that real estate / tourism is not just a central pillar of Oman Vision 2040, but also ties in with its other objectives.
With a view to supporting the drivers of Oman Vision 2040 and the real estate market as a whole, on 13 May 2026 the Real Estate Registry Law (Royal Decree 56/2026)(New Law) was issued, replacing the previous law that has been in place since 1998.
The New Law came into effect following its publication in the Official Gazette No.1648 dated 17 May 2026 and the Ministry of Housing and Urban Planning (MoHUP or Ministry) is granted the right to issue and execute ministerial regulations in accordance with the economic development demands and in light of the growth of Oman Vision 2040, which also includes the right granted for electronic registration of real estate data and necessary documentation which supports digital transformation.
The new law: key provisions & aims
The main goal of the New Law is to regulate the real estate industry in respect of ownership and enhancing smoother and more stable transactions.
Foreign investment & title deeds
Strengthening foreign investor attraction to the real estate market in Oman, where documents such as title deeds can be issued in English upon request directly from the Ministry, forms a major part of the New Law.
Additionally, it has been established that the title of deed is considered the only proof of real estate ownership.
Off-plan registration
The New Law permits the buyer to purchase and register units under constructions which is crucial for off-plan investors to be allowed an early registration of ownership and rights before the completion of the project.
Given the above preliminary registration, the New Law formalizes a secure legislation to protect interests which will improve housing financing accessibility and makes real estate developments in Oman more robust. Additionally, financial institution's ability to register mortgages over off-plan units/projects allows the financial institutions to have registered security and enforceable collateral before the project is complete.
Protection of property transferred to minors
One of the notable provisions introduced by the New Law is Article 16, which seeks to safeguard minors' assets, by permitting the imposition of restrictive conditions for disposition of assets gifted or donated to minors.
The public sector & private sector involvement
As stipulated in the New Law, the MoHUP has the ability to authorise public or private sector entities to engage in the registration of documents and finalisation or facilitation of real estate transactions as a service.
This collaborative provision translates into reducing administrative bottlenecks and utilizing the government or private sector services increases efficiency.
Abolishment of settlement committee
The Settlement Committee established in the old law, and which was responsible for real estate disputes has now been removed.
Penalties for non-compliance
The New Law introduces significantly higher penalties for non-compliance. For example, the submission of incorrect statements was subject to a 200 RO fine and no imprisonment. This has now changed in that any submission of forged documents to register estates will be subject to imprisonment for 6 months to 3 years and / or a fine of no less than OMR 1,000 and not exceeding OMR 30,000.
Registration
The New Law ratifies the registration of rights in properties. All dispositions regarding the rights in rem must be registered with the Secretariat of the Real Estate Registry. Failure to register a real estate transaction will render rights in rem ineffective and will result in personal obligations between the parties as stipulated in Article 10 of the New Law. Consequently, if the property remains unregistered, the seller legally remains as the owner of the property, which exposes the buyer to the risk of having duplicated transactions by the seller. Furthermore, the property will not hold the official title deed that serves as ownership proof as stipulated in Article 35.
Article 10 of the New Law includes the protection of financial interests by the mortgage registration requirements, noting that failure to register mortgages with the Secretariat of the Real Estate Registry will eliminate the right to enforce it.
An additional notable provision requires annotation of claims involving real estate in respect to margin of the real estate folio failure to annotate may result in incurring fines from OMR 100 and not exceeding OMR 300.
The New Law brings transparency to records and dispute procedures, as stipulated in Article 13 any court order or seizure must be recorded in the registry, whereas Article 22 states that claims in respect of property rights is to be noted on the property folio. This provision supports the protection of financial institutions and buyers to ease the due diligence in flagging the status of the ownership of the property.
The Minister of Housing and Urban Planning will issue executive regulations supplementing the New Law, at which stage the impact of the New Law can be fully determined.
Conclusion
The New Law signifies a strategic development in the real estate sector in Oman, which is central to Oman Vision 2040. The whole impact of the New Law remains to be seen once its executive regulations are issued by the Ministry, but it already demonstrates a step in the right direction.
