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Royal Decree 8/2026 issued by Sultan Haitham bin Tarik on January 12, 2026 established the International Financial Centre of Oman as a body with legal personality, financial and administrative independence subordinate to the Deputy Prime Minister for Economic Affairs. The decree, which entered into force upon publication in the Official Gazette the following day, applies an attached law that sets out the centre’s operational framework. According to the decree text, the centre seeks to position the Sultanate as a leading global financial hub based on stability, integrity and competitiveness.
The centre will be located in Madinat Al Irfan in Muscat, with licensed establishments required to operate within its boundaries although they may open branches or invest outside under applicable rules. A council appointed by royal order, including chairpersons of the IFC Oman Authority and the Regulatory Authority, will oversee operations and meet at least twice annually. Each authority maintains its own legal personality and operational independence, a structure detailed in analyses by Ernst & Young.
Omani legislation does not apply inside the centre except in specified areas such as criminal law, anti-money laundering rules, tax legislation and national security provisions, according to a Trowers & Hamlins overview of the decree. The framework aligns with English common law principles to create a predictable environment for international finance. KPMG noted in its summary that the centre will also facilitate entry visas and residence permits for non-Omani individuals and their families to support talent attraction.
Tax measures under the decree treat the centre as a designated special zone, offering exemptions from income tax for eligible activities for up to 50 years from the effective date. Non-resident legal persons and certain non-Omani natural persons receive relief from income and withholding taxes on specified transactions with centre entities. The value-added tax law will apply with exemptions or zero-rating for relevant supplies, details confirmed in an Ernst & Young assessment published later in January 2026.
An independent judicial system features a primary court with a single judge and a court of appeal with three judges, whose decisions are final, though additional courts may be created by further decree. These courts handle matters within the centre’s jurisdiction and issue judgments in the name of the Sultan. The setup forms part of a broader institutional structure designed to ensure swift dispute resolution aligned with international standards.
The initiative supports Oman Vision 2040 goals for economic diversification and increased contribution from the financial sector to gross domestic product. A KPMG overview from April 2026 indicated the centre aims to attract regional and international capital while fostering sustainable growth and local employment. Official materials from the IFC Oman website describe the decree as creating a sovereign legal foundation with clear boundaries from general Omani law to build investor confidence.
