Oman: New Banking Consumer Protection Guidelines

Oman Observer, 28 April 2022: The Central Bank of Oman (CBO) has issued a Financial Consumer Protection Regulatory Framework for licensed banks, and Finance and Leasing Companies (FLCs), in Oman.

The Framework follows the Central Bank’s strategy to protect customers and help support the economy and financial inclusion. It aims to ensure customers have access to financial services and help build consumer confidence in the sector. The framework covers five areas which are disclosure and transparency, fair treatment and business conduct, data protection and privacy, provision of dispute resolution mechanisms and provision of financial education and financial capability.

It covers the format and manner of disclosures in advertising and sales materials, disclosure of terms and conditions as well as requiring information on product risks, conflict of interests and key fact statements.

Contract notes and statements and notifications of changes in rates and terms and conditions are also covered. There are also requirements governing unfair terms and conditions, unfair practices, sales practices and considerations of product suitability.

In addition, customer data must be lawfully collected and used, and held securely. Internal complaints handling is also covered.

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Oman: Grace Period for Expatriate Work Permits Extended

Times of Oman, 1 April 2022: Oman’s Labour Ministry has announced the grace period for expatiate work permits has been extended.

They were due to expire on 31 March 2022.

They will now expire on 30 June 2022.

The grace period has been extended because of the ongoing fallout of the Coronavirus pandemic.

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Oman: Amendments to Implementing Regulations to Foreign Capital Investment Law Approved

Times of Oman, 4 April 2022: Oman’s Commerce, Industry and Investment Promotion Ministry has announced they have approved amendments to the Implementing Regulations to the Sultanate’s Foreign Capital Investment Law.

They have issued Oman Ministerial Decision No. 306/2022 to this effect.

Under the amendments, individuals, institutions and companies from inside or outside Oman can market investment opportunities in the country.

Article 1 of Oman Ministerial Decision No. 306/2022, states Article 5 of Oman Ministerial Decision No. 72/2020 will be amended to read ‘The Ministry may give licence to individuals, institutions and companies from inside or outside the Sultanate of Oman to market investment opportunities, attract investors and encourage them to invest in the Sultanate of Oman, in accordance with the rules to be determined by a decision of the Minister’.

It goes on to state Article 7 of Oman Ministerial Decision No. 72/2020 will be amended to read ‘The foreign investor or his representative may entrust one of the offices licenced by the Ministry to examine the investment licence application, and the requests for obtaining approvals, permits or licences necessary to establish the investment project, to indicate the extent to which they fulfil all the conditions and requirements legally prescribed for issuance. A certificate is issued to that by the office, which is valid and acceptable to the centre for a period of six months from the date of its issuance. However, the centre has the right to object to what is stated in this certificate, within 10 days from the date of its submission, and the objection must be justified’.

These offices may submit these applications to the Centre on the investor’s behalf and follow up on their completion.

A separate Ministerial Decision will be issued to specify the conditions and procedures for licensing these applications’ approval and their work mechanism as well as determining their obligations. Also reported in Atheer on 3 April 2022. For full story, click here.

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Oman: New Al Buraimi Economic Zone to be Established

Times of Oman, 1 April 2022: Oman’s Labour Ministry has announced the grace period for expatiate work permits has been extended.

They were due to expire on 31 March 2022.

They will now expire on 30 June 2022.

The grace period has been extended because of the ongoing fallout of the Coronavirus pandemic.

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Oman: New Al Buraimi Economic Zone to be Established

Times of Oman, 23 March 2022: Oman’s Sultan has announced it is going to establish a new Al Buraimi Economic Zone.

It will be established in the Al-Rawdah District.

Site visits will be carried out in the next few days to determine the location.

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Oman: Real Estate Ownership Changes Approved

Times of Oman, 9 March 2022: Oman’s Housing and Urban Planning Minister has approved real estate ownership changes in the country.

Under the changes, expatriates will be able to own properties in the Sultanate outside of Integrated Tourism Complexes.

A Ministerial Decision to this effect has been issued.

Foreign investors will be able to own properties worth over 250,000 Rials.

However, there are two tiers of ownership.

In the first tier, investors who buy properties worth more than 500,000 Rials will be offered first-class residency.

In the second tier, those who buy properties worth between 250,000 and 500,00 Rials will be offered second-class residency.

First-class residency enables investors to buy residential, commercial, and industrial properties, while second-class residency only allows investors to buy residential properties.

If an investor wants to buy a house which costs less than 250,000 Rials, they can do so through the existing Integrated Tourism Complex project or usufruct scheme.

Their ownership rights must comply with Oman Sultani Decree No. 29/2018 and Oman Ministerial Decision No. 292/2020. These pieces of legislation detail areas where expatriates cannot own property and the Implementing Regulations concerning foreign ownership of real estate.

Foreigners cannot own properties in Musandam, Buraimi, Dhahirah and Wusta governorates. Expatriates can also not own properties in the rest of the Dhofar region, with the exception of Wilayat Salalah. In addition, they cannot own properties in Liwa or Shinas wilayats.

In Masirah, Jabal Akhdar, Jabal Shams and any other landforms like mountains and islands which are considered to be of strategic importance, expatriates can also not buy properties.

Locations near high-priority installations like security and military facilities, archaeological and historic structures and areas designated as agricultural land will also not be able to be bought by expatriates.

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Oman: Muscat International Airport Free Zone to be Established

Oman’s Sultan has issued Oman Sultani Decree No. 10/2022 to establish a free zone at Muscat International Airport and Sohar and Salalah airports.

They will be established in the designated land plot according to the relevant layouts and concession agreements.

The Council of Ministers will determine the Operating Party for these free zones from companies who report to the Oman Investment Authority. These companies may seek the assistance of departments and companies specialising in the development, marketing, management and operation of those free zones.

Both the Operating Party and companies will be granted the incentives and privileges specified in Oman Sultani Decree No. 56/2002 (the Law on Free Zones).

The Operating Party and companies will be granted a 15-year Income Tax waiver for each separate project. This can be extended for an additional five years. The waiver is not valid for banks, financial institutions, insurance and reinsurance companies or projects providing telecommunications, land transport or contract services.

The waivers will be issued by a Decision of the Chairman of the Tax Authority and in line with the rules, regulations and procedures approved by the Board of the Public Authority for Special Economic Zones and Free Zones, following the approval of the Ministry of Finance.

The operating companies will pay amounts owed to the Operating Party in return for the services the Operating Party provides to them. The Operating Party has to specify the value of the service fee and the method of its collection once the Board of the Public Authority for Special Economic Zones and Free Zones has approved it.

The Operating Party will stick to governing aerial affiliation regulations and requirements for safety and security of civil aviation under the supervision of the Civil Aviation Authority.

The Operating Party has to work with the Public Authority for Special Economic Zones and Free Zones to achieve the measures considered necessary for the safety of individuals, operating companies, installations, goods and commodities within the purview of each zone. They also have to fully cooperate with the Public Authority for Special Economic Zones and Free Zones to observe the regulations governing environmental and security protection.

The Decree will be published in the Official Gazette and come into force the day after it is published.

Also reported in Shabiba on 2 March 2022. For full story, click here.

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Oman: Contractual Changes Announced for Public Sector Employees

Times of Oman, 27 February 2022: Oman’s Labour Ministry has announced public sector employees in the Sultanate will be offered fixed-term contracts.

They will be offered these contracts instead of open-ended contracts.

In addition, either the employer or employee can terminate the employment contract before its duration ends.

Employees can also be denied their annual bonuses if they are considered to have performed poorly at work.

The Decision was issued in line with Oman Sultani Decree No. 89/2020, establishing the Labour Ministry and determining its areas of competency.

Article 4 of the new Decision states: ‘Either of the two parties may terminate this contract before the end of the contractual year without giving reasons, provided that the other party is notified of this no less than three months prior to their termination. During this time, the second party will remain in service.

The first party may waive the right of the second party to continue working after they have been notified of termination, or will require them to continue working until the end of their notice period, if circumstances so require, provided this does not conflict with the interest of the work, and provided that this notice period is fully calculated within the actual service period of the second party.

The second party is entitled to periodic bonuses on the first of January each year, in the category prescribed to their pay grade, and equivalent to their financial allocations, provided that at least six months have passed since the date on which the contract was issued.’

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Oman: Personal Data Protection Law Approved

Times of Oman, 9 February 2022: Oman’s Sultan has approved Oman Sultani Decree No. 6/2022 promulgating the Personal Data Protection Law.

The Transport, Communications and Information Technology Minister will be responsible for issuing the Implementing Regulations to the Law and any other relevant Decisions.

Until the Regulations and any other Decisions are issued, the existing regulations and decisions will continue to apply.

Article 3 of Oman Sultani Decree No. 6/2002 repeals Chapter Seven of the Electronic Transactions Law (Oman Sultani Decree No. 69/2008) and anything else which contravenes or contradicts its provisions.

It will be published in the Official Gazette and come into force 365 days after it is published. Also reported in Atheer on 9 February 2022. For full story, click here.

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Oman: Structural Guidelines and Regulations Manual of Buildings at Duqm Issued

Times of Oman, 8 February 2022: Oman’s Public Authority for Special Economic Zones and Free Zones has announced it has issued Structural Guidelines and Regulations Manual of Buildings at Duqm.

They include the minimum structural design requirements for projects in the Special Economic Zone at Duqm as well as general provisions.

They provide detailed technical guidance and guidelines for the structural design of buildings.

They include general guidelines for building designs, structural submission procedures and the best internationally applicable and approved codes and standards in the Sultanate, to comply with Duqm regulations, design programmes, data analysis, structural design criteria, durability and performance criteria, geotechnical examination requirements or soil tests and building supervision requirements.

They are aimed at providing instructions, requirements and the minimum requirements for building designs which will give engineers a general idea and appropriate guidance on the basic requirements of structural designs. The use of these guidelines will increase the quality of designs and construction and provide information to architects, consultants, and engineering offices dealing with Duqm.

They will be circulated to all investors, developers, engineering design companies, consultants and contractors to comply with.

The Authority are also preparing an integrated manual for the urban and architectural requirements at the special economic zones and free zones. This will be a reference point for urban and architectural requirements in the areas affiliated with the Authority.

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