About Ministry

The first financial device was established in January 1941. Before 1971, financial affairs were managed by the Sultan himself. The Finance Department continued during the stage of formation of the administrative Apparatus of the State in 1970 under the same name; initially composed from three departments, namely, the Central Treasury, the Accounts Audit and the Central Accounts- to which customs and financial planning later adhered.

The first financial device was established in January 1941. Before 1971, financial affairs were managed by the Sultan himself. The Finance Department continued during the stage of formation of the administrative Apparatus of the State in 1970 under the same name; initially composed from three departments, namely, the Central Treasury, the Accounts Audit and the Central Accounts- to which customs and financial planning later adhered.

This organization lasted until 1984, when the Royal Decree No. 27/1984 approving the Organizational Structure of the Deputy Prime Minister's Office for Financial and Economic Affairs was issued. The Office combined two apparatuses; one for financial and the other for economical affairs, along with the undersecretary of financial affairs and (6) public administrations of (19) departments in addition to the Department of the Executive Committee of the Reserves Fund. In 1985, the Ministry of Finance and Economy was introduced under the Office of the Deputy Prime Minister for Financial and Economic Affairs by Royal Decree No. 64/1985 issued on 22 / August / 1985. This modification has been reflected in the new organizational structure of the Office of the Deputy Prime Minister for Economic and Financial Affairs as both the financial and the economic activities emerged in the organizational divisions of the office: Ministry undersecretaries, Directorates General, and the State's General Reserve Fund. Royal Decree No. 47/1994 has provided for the jurisdictions of the Ministry of Finance and Economy, which covered all aspects of financial and economic works, and in particular the proposition to implement financial and economic policies and plans as well as to examine and assess the economic and financial performance and to develop and enhance foreign relations.

The first administrative body for Ministry of Finance was established in 1941 under the name of Financial Affairs Directorate, and was managed by His Majesty the Sultan personally until 1971. This directorate continued with the same name during the establishment of the State’s Administrative Apparatus in 1970, and was initially consisted of three departments: Central Treasury Department, Accounts Audit Department, and Central Accounts Department to which customs and financial planning section was added later.

The Law Regulating the State's Administrative Apparatus, promulgated by Royal Decree No. 26/1975, determining the competences of the Ministry of Finance and its organizational structure, which consisted of four departments: Treasury Department, Investment and Income Department, Budget and Final Account Department, and Administrative Affairs Department. In 1980, the Royal Decree No. 1/1980 was issued, whereby the State General Reserve Fund was established under the Directorate General of Finance. In the same year, the Royal Decree No. 40/1980 was issued to reorganize the Directorate General of Finance, where some of its departments were upgraded to directorate general and Finance Office in Salalah was established.

However, financial tasks continued to be administered through the Directorate General of Finance until the promulgation of Royal Decree No. 87/1982, determining the competences of the Deputy Prime Minister for Financial Affairs. This organization lasted until the issuance of Royal Decree No. 27/1984, approving the organizational structure of the Office of the Deputy Prime Minster for Financial and Economic Affairs, contained two administrative bodies; one for financial affairs which included Executive Committee of the Reserve Fund and the other for economic affairs.

In 1985, the Royal Decree No. 64/1985 was issued, modifying the organizational structure of the Office of the Deputy Prime Minister for Financial and Economic Affairs, and thus the Ministry of Finance and Economy was established. In this organizational structure, two activities stood out for finance and economy, consisted of the Ministry’s Undersecretaries, Directorates General, and State General Reserve Fund. In 1991, the Royal Decree No. 4/1991 was issued, appointing a Secretary General for Tax, so that the General Secretariat for Taxation became one of the organizational divisions of the Ministry of Finance and Economy. Later, the competences of the Ministry of Finance and Economy were determined by Royal Decree No. 47/1994.

In 1995, the Royal Decree No. 69/1995 was issued, modifying the ministerial structure, whereby the financial activity was separated from the economic activity, establishing an independent ministry for each activity, and thus the name of previous Ministry was changed to Ministry of Finance. In 1996, the Royal Decree No. 39/1996 was issued, determining the competences of Ministry of Finance and its organizational structure which was modified later by the Royal Decree No. 41/2008, dividing the Directorate General of Income and Investment into two directorates named as General Directorate of Income and General Directorate of Investment.

In 2019, the Royal Decree No. 66/2019 was issued, establishing the Tax Authority under the supervision of the Council of Ministers. However, the first article of Royal Decree No. 103/2020 issued in 2020, amending some provisions of the two Royal Decrees related to the establishment of Tax Authority and the adoption of its organizational structure, as the phrase “be subordinate to the Council of Ministers” stated in the first article of Royal Decree No. 66/2019 is hereby replaced with the phrase “shall be subordinate to the Minister of Finance”.

Later, the Royal Decree No. 61/2020 was issued to establish the Oman Investment Authority, which determined the subordination of the Authority to the Council of Ministers and the phrases “State General Reserve Fund” and “Oman Investment Fund”, wherever they occur in laws and royal decrees, are hereby replaced with the phrase “Oman Investment Authority”.