Duration of usufruct rights extended up to 99 years

Muscat: The Official Gazette has published the details of the amendments approved by Royal Decree 59/2022, which was issued last week

The royal decree had amended some provisions of Royal Decree No 5/81 on regulating the Sultanate of Oman’s land use and development, and its executive regulation.

The decree stated that the text of Article (4) of the executive regulations regulating the use of the aforementioned lands of the Sultanate of Oman shall be replaced by the following text:

“The usufruct period is within the limits of the project’s needs for a period not exceeding 99 Gregorian years, subject to renewal at the request of the owner for the lands of citizens, and at the request of the usufructuary if the land is governmental in accordance with the provision of Article (1) of Royal Decree 81/5, regulating the use of the lands of the Sultanate of Oman.”

The Council of Ministers may specify a period of usufruct exceeding that period as per the needs and nature of the investment project.

Article (2)

A final paragraph shall be added to Article (5) of the Executive Regulations regulating the usufruct of the aforementioned lands of the Sultanate of Oman, the text of which is as follows:

The Minister of Housing and Urban Planning may grant the usufruct of state-owned lands through a public auction in accordance with the procedures to be determined by a decision of the Minister.

Article 4 (old one)

The period of usufruct shall be within the limits of the project’s needs and not to exceed 30 years, subject to renewal. The renewal shall be at the request of the beneficiary in the case of government lands and the owner of the lands of citizens. The provisions of paragraph (b) of Article (1) of Royal Decree No. 5/81 shall apply to renewal applications for government lands.

According to the Ministry of Housing and Urban Development, “The usufruct system contributes to enhancing the competitive environment and creating added values such as bringing in expertise and modern technologies, supporting the national economy, and promoting 262 investment opportunities for small and medium enterprises.”

It added, “The Royal Decree 59/2022 will help stimulate investment and projects, enhance the level of services to supplement the social environment, and guarantee sustainable land use.”