Oman: To Standardise Insurance Coverage Rules

Times Of Oman, 13 August 2025: The Finance and Insurance Committee of Oman’s Chamber of Commerce and Industry (OCCI) has met to propose a unified insurance policy aimed at standardising coverage across the sector.

The committee examined bank charges affecting business borrowers. The review will incorporate data from the Central Bank of Oman, with particular focus on fees affecting small and medium enterprises, which comprise 80% of Oman’s business market.

The committee put forward several new initiatives, including a proposed joint seminar with the Oman Commercial Arbitration Centre to showcase dispute resolution services. Plans were also discussed for a dialogue session addressing financing challenges and personal loans supporting Omani employment in SMEs.

A new training programme for insurance sector workers was also proposed, featuring both short and long-term courses, including a professional insurance diploma.

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Oman: New Market Rules for Companies

Times Of Oman, 11 August 2025: Oman’s Financial Services Authority has unveiled a new regulatory framework for a Promising Companies Market, establishing a dedicated sub-market within the Muscat Stock Exchange.

The newly implemented regulations introduce simplified listing requirements designed specifically for private, family-owned, and small to medium-sized enterprises. Key features include flexible initial requirements, with companies needing to demonstrate specified annual growth rates and maintain a minimum number of shareholders.

Under the new framework, eligible companies must meet standardised criteria and pay fixed, published fees to gain market access. The regulations outline specific listing mechanisms and disclosure requirements tailored to growth-stage companies. It also includes provisions for companies to transition gradually to the main market as they mature.

The initiative creates a specialised financing channel that allows qualifying businesses to access capital through a regulated exchange environment. Companies interested in listing can explore these new financing options through the designated market platform.

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Oman: Tightens Enforcement of Building Permit Requirements

The Arabian Stories, 4 August 2025: Muscat Municipality has announced strict enforcement of building regulations, warning property owners and developers that unauthorised construction will face penalties, including possible demolition orders.

The municipality states that all construction activities within the Governorate of Muscat must obtain official permits before work begins. This includes any modifications or extensions to existing structures.

The authority emphasises that violations of building codes will result in financial penalties, with serious breaches potentially leading to mandatory removal of unauthorised constructions.

The announcement forms part of the municipality’s regulatory oversight of urban development within the governorate, with enforcement focusing on compliance with local construction laws and standards.

Property owners, developers, and contractors have been instructed to ensure all necessary permits are in place before initiating any building work.

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Oman: New Mandatory Annual Pay Rises for Private Sector Workers

The Arabian Stories, 27 July 2025: The Omani Ministry of Labour has implemented new regulations requiring private sector employers to provide annual salary increases based on employee performance ratings.

Under Sultani Ministerial Decision No. 317/2025, Omani workers who have completed six months of employment will be eligible for yearly increments each January, with increases determined by their performance appraisal scores.

The new payment structure establishes clear percentage increases tied to performance ratings: Excellent performance: 5% basic wage increase, Very Good performance: 4% increase, Good performance: 3% increase, Acceptable performance: 2% increase, Weak performance: No increase.

Employers failing to comply with the new regulations face penalties of RO 50 per violation, with fines multiplied by the number of affected employees.

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Oman: Professional Licenses Required for Logistics Work

Oman Daily Observer, 22 July 2025: As part of efforts to regulate the labour market and ensure that professions are practiced according to approved professional standards, the Ministry of Labour has announced that there will be a mandatory requirement to obtain a Professional Practice License for all designated professions in the logistics sector, from 1 September 2025.

These will include truck driver, tractor-trailer driver, water tank driver, waste transport driver, food delivery person and food delivery supervisor.

The requirement will apply to both Omani and expatriate drivers and across various sectors.

The professional practice licenses will be available from the sectoral skills unit for the logistics sector. Applications should be submitted via the skills unit’s website. No work permit will be issued or renewed for these occupations after the deadline without this certification.

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Oman: Details Protected Sectors Off-Limits to Foreign Investment

Times Of Oman, 12 July 2025: Oman has outlined specific economic sectors that remain exclusively reserved for national investors, whilst maintaining its open-door policy for foreign investment across most of the economy, according to legal experts.

A representative from the Law Firm detailed the comprehensive list of protected activities that foreign investors cannot enter under recent Ministerial Decisions.

The restricted sectors include the manufacture and retail of traditional Omani products such as halwa, traditional headwear (kummah), daggers (khanjars), and traditional textiles. Craft production using materials like leather, wood, silver, and pottery is also reserved for Omani nationals.

The protection extends to various service sectors, with foreign investment prohibited in areas including Arabian clothing tailoring, specific vehicle repair services, driving schools, and basic retail operations such as grocery shops and fresh produce sales.

Additional restrictions apply to labour recruitment, real estate brokerage, customs clearance, and certain transport services. Recent amendments have further expanded the protected list to include mobile coffee shops, skin care services, plant nurseries, and event supply rentals.

It’s also noted that existing foreign investments in newly restricted sectors may continue operating but cannot be transferred to new foreign owners without ministerial approval.

Outside these protected areas, Oman continues to welcome foreign investment through its Foreign Capital Investment Law, offering investors benefits including tax incentives and land access options through the Investment Services Centre.

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Oman: IBAN required for Domestic Bank Transfers

Khaleej Times, 2 July 2025: With effect from 1 July 2025, Oman will require the use of the International Bank Account Number (IBAN) for all domestic financial transactions.

Financial institutions have notified their users of the change and advised them to update their beneficiary details by including the IBAN to prevent payment failures. Beneficiaries in Oman will have to be re-registered using the IBAN to align with the new banking regulations.

The IBAN system is essential for seamless cross-border payment transactions, functions as an international standard for identifying bank accounts worldwide, helping mitigate delays and errors in monetary transfers. The implementation of IBAN for domestic use in Oman aligns with practices in other jurisdictions in Europe, the Middle East, and parts of the Caribbean.

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