The short answer. Oman has no stand-alone franchise statute. Franchise agreements in Oman fall under the Commercial Agencies Law (Royal Decree 26/77, as amended), which means the agreement must be registered with the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) before it can be relied on locally. Since the Foreign Capital Investment Law (Royal Decree 50/2019) took effect in 2020, foreign investors can own 100% of a company in most sectors, with no minimum capital requirement. For international brands, that combination shapes the entry route: who holds the franchise registration, and whether the brand partners locally or builds its own operating company.
Oman is often the market brands enter after the UAE and Saudi Arabia, and it rewards that sequencing. Distribution, marketing and supplier relationships built in the wider Gulf usually carry across, and many regional operators already hold rights for several GCC markets. Investors comparing neighbouring markets can read our guides to franchise opportunities in Dubai and the UAE, franchising in Qatar and franchise opportunities in Kuwait.
The government’s Vision 2040 plan aims to diversify the economy into logistics, manufacturing, technology, food and tourism, among other sectors. Tourism and logistics in particular bring new retail and food-service demand around hotels, ports and the Duqm special economic zone. Earlier US Commerce Department guidance on Oman noted that fast-food restaurants dominate the franchise landscape, that car rental franchises are well established, and that interest is growing in family-oriented, recreational and educational concepts.
Because Oman does not have a separate franchise law, franchise relationships are treated as commercial agencies. Legal commentary on the law highlights several points that matter to franchisors:
Older US government guidance went further, warning that courts may not recognise an unregistered franchise in a dispute. The practical lesson is simple: registration is part of the deal timetable, not an afterthought. For the contract itself, our guide to master franchise agreement clauses covers term, renewal and termination drafting.
The Foreign Capital Investment Law allows 100% foreign ownership in most sectors and removed the minimum capital requirement that applied under the previous regime. A negative list still restricts foreign investment in certain activities. Company registration runs through Invest Easy, MOCIIP’s online portal, which brings several government agencies into a single window for business set-up.
The legal framework leaves brands with four practical routes into Oman.
| Route | How it works | Best suited to | Key point to check |
|---|---|---|---|
| Master franchise with an Omani partner | Local group holds country rights and the agency registration | F&B, retail and service brands that need local real estate access | Partner’s mall relationships and multi-brand experience |
| Regional GCC master franchise | A Gulf operator develops Oman alongside other GCC markets | Brands already signed with a regional group | Development schedule and priority given to Oman |
| Foreign-owned operating company | Brand or investor sets up a 100% foreign-owned company under the 2019 law | Brands wanting direct control of operations | Negative list, licensing and how the franchise is registered |
| Joint venture | Brand and Omani investor share ownership of the operating company | Capital-intensive concepts and phased rollouts | Governance, exit terms and registration holder |
The trade-offs between these structures are covered in more depth in our comparison of master franchise, area development and joint venture structures.
Based on the regulatory picture and the government’s diversification plans, these segments stand out for franchise investors:
Franchising in Oman also runs in the other direction. Omani concepts have begun to franchise outward, as with Dar Al Kunafa’s move into India and the Omani brands that presented at the Cairo franchise expo. For international investors, that outbound activity is a sign of a maturing local franchise community and a pool of operators who understand brand systems.
No separate franchise law exists. Franchise relationships are governed by the Commercial Agencies Law, Royal Decree 26/77, as amended.
Yes. Registration with the Ministry of Commerce, Industry and Investment Promotion is required for the arrangement to be recognised and enforceable locally.
The Foreign Capital Investment Law allows 100% foreign ownership in most sectors, subject to a negative list. Who can hold the commercial agency registration is a separate question, and it should be checked with local counsel.
For brands already active in the GCC, Oman is a logical next market with an established franchise culture in food service and growing demand in leisure, education and tourism-linked concepts. Success depends on choosing the right registration holder and local operating partner.
Data on the investment climate in this guide draws on the US State Department’s 2024 Investment Climate Statement on Oman.
This article is general information, not legal advice — confirm requirements with the regulator or local counsel before acting. Image: Inside Mall of Muscat, via Wikimedia Commons.
Email: info@vffranchiseconsulting.com | Hotline: +84 90 306 54 58
Author: Sean T. Ngo, CEO and Co-founder of VF Franchise Consulting.
