Omani Riyal: The Omani Riyal is pegged to the US$ at a rate of OR0.384, one Omani Riyal is US$2.604. It is therefore steady purchasing currency where source funds are held in a dollar related form.

Economic climate: There is still no personal income tax in Oman. A uniform corporate tax rate of 12 per cent applies. Prior to this announcement all companies with 70 per cent plus foreign ownership were subject to the top rate of corporation tax at 30 per cent. This is in keeping with the GCC trend to encourage overseas investment. An Omani delegation has also visited Dubai to review the Dubai economic model for tourism and real estate development.

Capital gains tax: Capital gains tax does not exist in Oman and any other form of housing tax is yet to be defined n ongoing legislation, but is unlikely in the near term.

Popular areas: The Dhofar region is set to become a tax-free tourist location as major reforms are introduced to encourage foreign investment in Oman. Luxury golf property is planned in Muscat, which will also be highly attractive to potential expatriate owners.

Price ranges: Prices on current developments range from US$221,340 for luxury two-bedroom apartments to US$781,200 for five-bedroom luxury villas.

Budgetary guide: Two-bedroom luxury apartments of 180 square metres: US$221,340. Penthouses of around 295 square metres: US$455,700. Three-bedroom luxury villas (250 square metres) range from US$416,640 to US$744,740, while 275 square metre, four-bedroom luxury villas can be found for anything between US$437,470 to US$781,200. Five-bedroom luxury villas comprising 325 square metres range from US$585,900 to US$781,200.

Overseas investors: Legislation permitting foreign ownership on specific real estate projects has now been passed, allowing freehold ownership by all nationalities in so-called tourist designated areas. This allows foreigners to buy for either investment or occupation purposes. All owners will be granted residency visa rights.

Service fees: There is no service fee structure as such. A structured payment system is designed to incorporate all fees. According to this, US$2,604 is payable on application for reservation, a balance of 15 per cent is payable 21 days from reservation application, 15 per cent on completion of property foundations, 20 per cent on completion of roofing, 20 per cent on completion of electrics and plumbing and the last 30 per cent on final handover of the property.

Mortgages: Alliance Housing Bank is the main provider of long-term residential mortgages on commercial terms in the Oman market. Standard loans are offered on a variable rate linked to the bank´s base lending rate, normally over 25 years. Originally, only Omani and other GCC nationals were eligible for mortgage loans, however banks have now indicated they will extend this facility to qualifying foreign buyers.

Information: www.alliance-housing.com (Alliance information); www.observer.guardian.co.uk (British national newspaper with specialist articles on Oman); www.fxhistory.com (currency exchange).