Dual-Class Licensing in Oman: Opportunities and Challenges

Why is it so hard for businesses to enter Oman’s regulated sectors today? That’s a question many entrepreneurs, especially foreign investors, are asking. You’ve got the capital. The business idea is solid. However, paperwork, license classifications, and approval delays can hinder even the best-prepared investors. The issue isn’t opportunity; Oman’s telecom and finance sectors are expanding. The issue is understanding Oman’s evolving dual-class licensing regulations.

Understanding this licensing system is an essential part of setting up a successful company in Oman, especially in regulated sectors. Before embarking on registration steps, investors must identify the appropriate license class that aligns with their business model and investment size.

At Jitendra Consulting Group (JCG), we guide foreign investors and entrepreneurs to set up confidently in Oman. Let’s walk you through how this licensing model works, where the openings lie, and what you should watch out for.

What is Dual-Class Licensing in Oman?

Dual-class licensing refers to Oman’s practice of creating two (or more) license types within one sector. Each class has different requirements, capital, business model, regulatory expectations, and allowed activities. The most visible examples are in banking, telecommunications, and infrastructure. For instance, the Central Bank of Oman now allows two types of digital banking licenses:

• Class One: Requires a minimum capital of OMR 30 million.
• Class Two: Requires a minimum capital of OMR 10 million.

Similarly, in April 2025, the Telecommunications Regulatory Authority (TRA Oman) awarded Class One licensing rights to the Satellite Communications Technologies Company for delivering public and satellite services under Royal Decree 40/2025. This kind of structured licensing is aimed at both regulating market entry and encouraging innovation. But if misunderstood, it can lead to compliance issues, stalled applications, or unexpected rejections.

Why Dual-Class Licensing is Growing in Oman

You may wonder, why this shift to dual-class or multi-tier systems now? Oman’s economy is going through major reforms. From oil dependence, it’s moving towards digital, tech-enabled, and investment-driven growth. To manage this transition without overwhelming regulators or compromising national priorities, licensing has become more selective.

Here’s what’s happening in practice:

• Class One is reserved for large players, often with high capital and regional/international partnerships.
• Class Two or Secondary Licenses give smaller players or niche providers a chance to enter without a massive investment upfront.

For sectors like telecom, this model allows the TRA to maintain high-quality national infrastructure while letting new players test ideas in sandbox-like settings. This makes the system selective yet inclusive, but only for those who understand how to position themselves correctly.

Oman Telecom Licensing: Structure, Scope, and Limits

In Oman’s telecom sector, the licensing regime has evolved rapidly. The Oman telecom regulatory framework is now tiered to differentiate large operators from smaller, innovative entrants. For example, in addition to Class One and Class Two, there are sometimes Class Three licenses dedicated to smaller experiments or for providing limited services like local network licensing. This setup helps the TRA keep control over public safety and quality, while not shutting out newer service providers. So if you’re planning to launch a 5G-backed app, satellite-based broadband, or IoT telecom solutions, your licensing path will depend on which class you fall into.

Moreover, Oman’s telecommunications market has opened slightly to foreign players, especially where technology is concerned. But regulatory approvals can be slow if your business model doesn’t match the license class criteria.

Opportunities in Dual-Class Licensing in Oman

Dual-class licensing might sound restrictive, but it has created some smart entry points for entrepreneurs. Here’s why it’s actually an advantage:

• Lower barrier to entry: You don’t need full capital if you qualify for a secondary license.
• Targeted growth: New players can start small and upgrade later without re-registering.
• Sector innovation: Licenses are often linked to specific technologies (like satellite, digital banking, or mobile services). This encourages vertical specialization.
• Policy support: Oman is slowly tailoring TRA Oman licensing policies to favor tech-first models. If your idea supports national digital goals, licensing becomes smoother.

And for foreign companies, if you’re ready to partner locally or build long-term, you can negotiate for access even in tightly regulated sectors.

Strategic Takeaways for Investors and Founders

Let’s be clear: Oman wants foreign investment. It’s not trying to block new ideas. But it expects investors to understand its system. Dual-class licensing is simply one of many tools being used to protect markets, build capabilities, and pace growth.

Here’s what we’ve learned working with clients:

• Don’t guess your license class. Confirm with regulatory authorities.
• Budget for more than just operations. Regulatory approvals need investment too.
• Align your idea with Oman’s national plans. Telecom and digital banking projects that support Vision 2040 get more attention.

Licenses are not just about access. They’re also about alignment—with Oman’s goals, with market needs, and with regulators’ comfort.

How Can Jitendra Consulting Group in Oman Assist You?

Choosing the right license class in Oman isn’t simple. Whether you’re launching a digital bank, satellite company, or telecom startup, every move must match the local framework. That’s where Jitendra Consulting Group (JCG) comes in. We help foreign investors identify the right license type, prepare documentation, meet capital rules, and get approvals without avoidable delays. Our team works directly with the TRA, CBO, and MoCIIP to ensure your business setup in Oman doesn’t lose momentum.

Want to avoid wasted time and blocked applications? Let us do the heavy lifting. Talk to our business advisors to get started the right way.

Frequently Asked Questions (FAQs)

What is the concept of dual-class licensing in Oman?

Dual-class licensing is a system adopted by Oman to create two or more license classes within a single sector (e.g., telecommunications or digital banking), where requirements, capital, and permitted activities differ for each class, aiming to regulate the market and encourage innovation.

What are the main license classes in Oman’s digital banking and telecom sectors?

In digital banking, there’s Class One (requiring OMR 30 million capital) and Class Two (requiring OMR 10 million capital). In telecom, in addition to the large Class One, there are other classes (like Class Two and Class Three) for smaller and innovative players or for limited services.

Why has Oman moved towards a dual-class licensing system?

Oman is adopting this system as part of its economic reforms to shift from oil dependency to digital and investment-driven growth. This helps manage the transition, protect markets, build capabilities, and encourage regulated innovation.

Does dual-class licensing make it easier or harder for foreign companies to enter the Omani market?

It can facilitate entry for smaller or specialized players through Class Two or Class Three licenses, which require less capital. However, it necessitates a precise understanding of the criteria to ensure compliance and avoid delays.

What are the most important tips for investors looking to set up a company in Oman’s regulated sectors?

It’s crucial to accurately identify the license class in consultation with authorities, allocate sufficient budget for regulatory approvals, and align the business model with Oman’s national plans and objectives (such as Vision 2040) to ensure support and attention.