The foreign investment has become one of the crucial tributaries of economic and social development of each country. This means, it contributes to achieve the goals of the state's economic and social development through utilising the available resources in implementing the major projects as well as attracting its administrative and technical expertees. In addition, it assists to avail of job opportunities for the citizens. However, the volume of investment in any country depends on what the state provides as benefits and incentives to foreign investors. Moreover, it offers adequate and effective safeguards which protect them from the difficulties that may be exposed to in the country. According to earlier mentioned, this study aims to identify the obstacles that encountered the foreign investment in the Sultanate and the legal protection legislated by the legislators. This study divided into three chapters. The first identified the non-commercial difficulties that might expose the foreign investor in the country. The second discussed the safeguards created by the Omani legislator that contributed in reducing these difficulties. It also highlighted its adequacy and suitability to the Sultanate's Policy in which it may encourage the foreign investment. In order to reach the desired goal, many of the Arab laws and international conventions has been studied in addressing these difficulties and compare it with the guarantees created by Omani legislator to get the recommendations that would contribute to providing legal protection for foreign investment in the Sultanate.