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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Oman: Expatriate Employment Contract Registration Deadline Extended

Times of Oman, 27 January 2022: Oman’s Labour Ministry has announced it has extended the registration period for employment contracts of expatriates.

The registration period has been extended to 31 August 2022.

Business owners and institutions have to complete the procedures for registering employment contracts by the deadline.

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Oman: Fast Track Initiative Launched to Attract Foreign Investment

Al Sharkalawsat, 16 January 2022: Oman’s Trade, Industry and Investment Promotion Ministry has launched a Fast Track initiative as part of the Invest in Oman programme.

It is aimed at speeding up the process of completing and finishing various investment projects.

It is also aimed at improving the business environment and attracting more foreign investment to the Sultanate.

The first phase of the initiative will focus on investment projects in the renewable energy sector, industry and mining, tourism, logistical services and food security.

Elsewhere, the Chairman of the Trade and Industry Chamber added the Chamber is working on establishing closed joint stock companies to develop and improve the promising economic sector across the Sultanate. For full story, click here.

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Oman: New Online Investment Licensing Service Launched

Times of Oman, 16 December 2021: Oman’s Commerce, Industry and Investment Promotion Ministry has announced it has launched a new service for companies covered by the Foreign Capital Investment Law.

The investment licensing service will be available online via the Invest Easy portal.

It will allow all companies who are subject to the Foreign Capital Investment Law to obtain licenses for their projects through self-service or service centres.

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Oman: Central Bank Issues Prizes on Deposit Accounts Circular

Atheer, 10 December 2021: Oman’s Central Bank has issued a Circular to banks authorised to operate in the Sultanate on awarding prizes to deposit accounts.

A similar Circular was issued in March 2009.

The Central Bank has decided to withdraw the prize scheme linked to deposit savings from 1 January next year.

Banks should develop appropriate plans for savings deposits and refine their money management strategies to ensure reasonable interest rates and profits are paid to depositors, without raising the interest rate on loans. For full story, click here.

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Oman: Crowdfunding Rule Changes Announced

Times of Oman, 21 November 2021: Oman’s Capital Market Authority has announced crowdfunding rule changes.

They have been approved as part of amendments to the Implementing Regulations to the Capital Market Law.

Under the amendments, licensing companies cannot specialise in managing crowdfunding platforms if their capital is less than 25,000 Riyals.

Companies wanting to engage in activities will be exempt from licensing fees of 155,000 Rials until January 2023. The aim is to stimulate the establishment of platforms and support owners of SMEs.

Licensed companies will have to provide an electronic system which allows four types of financing. These are donation, rewards, contribution to ownership and debt instruments.

Those operating these platforms will have to display all disclosures issued by the applicants for financing on the same platform.

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