Oman’s Real Estate Revolution: A Guide to Royal Decree 79/2025
The Sultanate of Oman has officially launched a new era for its property market. For decades, real estate rules were scattered across many old laws, making things complicated for buyers, investors, and developers. As the country races toward Oman Vision 2040, the government realized it needed a modern, unified system to support its rapid urban growth.
The solution is Royal Decree No. (79/2025).
This isn’t just a small update. It is a complete legislative overhaul that replaces laws from as far back as 1980. The new law is designed to do three main things: protect your money, force developers to be professional, and ensure buildings are well-maintained for years to come.
One Law, One Strong Regulator
Before this law, if you wanted to understand land grants, you looked at one decree. If you wanted to check brokerage rules, you looked at another. It was a mess of “legislative fragmentation”.
The new law changes everything. It repeals old regulations like the Land Law (5/80), the Brokerage Law (78/86), and the Escrow Account System (30/2018). In their place, it creates one integrated framework.
Most importantly, it gives the Ministry of Housing and Urban Planning real power. The Ministry is no longer just an observer; it now has judicial enforcement authority. This means it can inspect projects, audit developers, and punish anyone who breaks the rules. It acts as a powerful watchdog to ensure the market is fair for everyone.
Stricter Rules for Developers
For investors, the biggest fear is always a “ghost project”, a development that takes your money and never gets built. The new law attacks this problem directly with strict rules for developers:
- No License, No Sales: A developer cannot start selling or building without a valid license from the Ministry. This filters out shaky companies before they even enter the market.
- Your Money is Protected: Developers must open a separate Escrow Account for every single project. When you pay for an off-plan property, your cash goes into this secure bank account, not the developer’s personal wallet. The developer can only withdraw money to pay for actual construction work on that specific project.
- Financial Guarantees: Before launching, developers must prove they have the financial strength to finish the job. They cannot just rely on your down payments to fund the entire build.
- Transparency Reports: Developers must submit regular reports to the Ministry about their progress. They can’t hide delays or financial trouble anymore.
- Cleaning Up Old Contracts: Even if a project started before this law, the developer has to register all sold units and contracts within six months. This ensures that older buyers get the same protection as new ones.
The End of Unprofessional Brokers
Real estate agents are the bridge between you and your investment. In the past, the quality of this bridge was inconsistent. The new law professionalizes the entire industry.
- Mandatory Licensing: You cannot work as a real estate broker or marketer without an official license.
- National Registry: All legal brokers will be listed in a national database. If someone isn’t on the list, they aren’t a legal broker.
- Code of Ethics: Brokers are now legally required to be honest, transparent, and protect your interests. If they lie to make a sale or hide important details, they face heavy fines or lose their license. This shifts the market from “buyer beware” to “broker beware”.
Protecting Your Property Value
The law understands that buying a property is just the start. The real value depends on how well the building is maintained over the next 10, 20, or 30 years.
To solve this, the law mandates the creation of Owners’ Associations for all jointly owned properties and multi-unit developments.
- Legal Independence: These associations are legal entities with their own financial and administrative rights.
- Clear Responsibilities: They are responsible for managing common areas like lobbies, pools, elevators, and gyms.
- Ministry Oversight: The Ministry supervises these associations to ensure they don’t overcharge you for service fees and that the money is actually spent on maintenance. This prevents buildings from falling into disrepair and protects your investment’s resale value.
Why This Matters for Oman Vision 2040
This law is a key piece of the Oman Vision 2040 puzzle. The country wants to diversify its economy away from oil, and real estate is a major part of that plan. By making the market transparent and safe, Oman hopes to attract more foreign and local investors.
When you know your money is in an escrow account, your broker is licensed, and your building will be well-maintained, you are much more likely to invest. This law creates the stable foundation needed for that growth.
