Русский
Russian businesses are increasingly interested in Oman as a business jurisdiction than the traditionally popular United Arab Emirates, whose status as the Middle East’s standard hub for registering companies and conducting settlements could be at risk from a tightening of Western regulatory requirements and sanctions compliance.
More frequent requests are being seen to register companies, open bank accounts and obtain resident visas in Oman according to lawyers and consultants that have been asked.
They see Oman as a more predictable alternative, especially for cross-border settlements, as UAE banks have tightened their policy towards Russian clients in the last few months. There have been cases where accounts have been blocked without explanation, while Oman remains neutral.
In trying to reduce sanctions risks, Russian businesses are looking for neutral jurisdictions with simplified capital requirements and which are friendly to non-residents. Oman is less integrated into the Western financial system than the UAE, which lowers the risk of accounts being blocked. The UAEs’ reputation as a safe haven for Russian investors has been affected by the imposing of secondary sanctions by the USA for violating American anti-Russian sanctions.
The agreement on the avoidance of double taxation on December 28, 2023 has made Oman attractive to Russian businesses as. Oman is particularly attractive for medium and large businesses focusing on manufacturing projects aided by developed special economic zones and the ports of Salalah, Duqm, Sohar and Muscat, which bring convenient logistics.
Oman is turning into a key link in the expanding logistics chains between Russia, India, China and Africa, and it is there that Russians are most frequently setting up companies and settlement offices for transit operations, signing contracts and trans-shipping commodities. Oman’s special economic zones offer foreigners preferential terms, and buying real estate has an added advantage by making them eligible for a resident visa and to open a bank account.
In summation, while every country has its pluses and minuses, Oman is a strategically rational location for businesses that interact with international markets and are sensitive to Western sanctions risks.
Reading Further
