Oman establishes IFC to become alternative financial hub in the Middle East

Marie Chowdhry of Pinsent Masons was commenting after Oman issued Royal Decree No. 8/2026 which establishes the International Financial Centre of Oman (IFC Oman) as an independent jurisdictional and regulatory hub for financial institutions and investors. The move is a core pillar of Oman’s long-term economic diversification strategy and reflects the growing emphasis on building a stable, transparent and internationally competitive financial ecosystem.

Under the new law, IFC Oman will develop a new regulatory, legal, and judicial framework based on English common law and aligned with international standards, providing an environment designed to attract international financial services firms, investment managers, and supporting industries. IFC Oman will benefit from full administrative, financial and legislative independence from mainland Oman.

IFC Oman will be headquartered in Madinat Al Irfan in Muscat, with potential to expand to other locations in the future. A dedicated court system will operate within IFC Oman, initially comprising a Court of First Instance (CFI) and a Court of Appeal (CA). Judgments and arbitral awards recognised by these courts will be enforceable within IFC Oman and across the Oman’s national court system. The law also provides for the creation of additional courts at a later date, if required.

IFC Oman will be equipped to handle a wide range of domestic and international disputes involving Omani authorities, Omani-registered companies and international investors, establishing the centre as another potential forum for financial disputes in the Middle East. Three independent entities, the International Financial Centre of Oman Authority, the International Financial Centre of Oman Regulator, and the International Financial Centre of Oman Dispute Resolution Authority, will operate within the centre.

IFC Oman also offers considerable incentives to investors, including exemptions from income tax and VAT for Omani-based entities for the next 50 years when undertaking qualifying activities. The competitive fiscal package is in line the goals inherent in Oman’s 2040 vision, including economic diversification, investment attraction and fostering global partnerships.

In a statement, H.E. Abdulsalam Mohammed Al Murshidi, President of the Oman Investment Authority, said IFC Oman would “provide a secure and transparent environment for financial institutions and investors” and would help establish “Oman’s position as a leading financial hub distinguished by stability, integrity, and efficiency”.

The new centre follows a model similar to Dubai’s International Financial Centre (DIFC) which was established in 2004 and the Abu Dhabi Global Market (ADGM) established more recently in 2013, both of which operate independent legal and judicial systems. However, the Omani law does not specify how IFC Oman might approach cases of competing jurisdiction, particularly in relation to domestic onshore courts. This issue has arisen in the DIFC, prompting the establishment of a Joint Judicial Committee in June 2016 to resolve jurisdictional conflicts between the DIFC Court and the Dubai courts.