Oman: Revamps Real Estate Fees to Boost Investment

Arabian Business, 27 January 2025: In a significant move to encourage the investment landscape, the Housing and Urban Planning Ministry has revised real estate service fees, aiming to enhance service efficiency and provide greater value to beneficiaries.

These changes, affecting 85 government services, include the streamlining and merging of 47 service fees, the cancellation of 11, reductions in 8, and the introduction of 14 new services.

This initiative highlights a commitment to transparency in service pricing and application.

Among the notable amendments, the registration fees for real estate sales contracts have been halved from 2% to 1% for Omani individuals and companies, significantly reducing ownership costs.

Additionally, fees for real estate transactions through Islamic banks have been set at 0.5%, facilitating tailored financing solutions.

Mortgage registration fees are now capped at 0.5%, offering more flexible financing opportunities for investors.

The revised fee structure is part of a broader government strategy to attract investment and support the real estate sector.

It includes provisions for reimbursing amounts paid for changes in business activity type, providing financial relief to existing investors.

Adjustments have also been made to land use permit fees, with exemptions for agricultural lands converted for non-investment purposes within government planning zones.

Furthermore, certain e-government service fees have been eliminated, promoting digital transformation and reducing financial burdens on citizens.

To make property ownership more accessible, the decision exempts several groups from real estate ownership fees, including low-income earners, persons with disabilities, beneficiaries of the Family Income Scheme, and retirees with a monthly income below RO 300.

Enhanced regulation and transparency are also key aspects of the amendments, which cover fees for real estate brokerage licences, development services, valuation professionals, and services for real estate owners’ associations.

The ministry anticipates that these changes will increase beneficiary satisfaction to 90%, with clearer fee structures and simplified processes enhancing the user experience.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: Eases Restrictions on Part-Time Employment

The Arabian Stories, 19 January 2025: The Ministry of Labour has issued Oman Ministerial Decision No. 13/2025 regarding the governance of part-time work.

The decision outlines new regulations for the employment of minors, including students.

It applies to various categories of workers, including job seekers, students, retirees, and employees

The decision aims to provide greater flexibility for students seeking part-time work while ensuring their well-being and academic performance.

Article 2 of Ministerial Decision No. 13/2025 refers part-time work to employment with fewer working hours than those set for full-time employees in the same establishment or as defined by law.

The decision permits employers to hire workers for short periods, with conditions such as limiting employment to Omani nationals, and ensuring that working hours do not exceed 25 hours per week, with a minimum of four hours per day.

Part-time workers must be paid a minimum hourly wage of RO 3, although agreements for lower wages are permissible.

Employers are also required to offer occupational health and safety measures, provide training, and ensure payment of wages in accordance with the provisions of the Labour Law.

Part-time workers are also required to be registered in the Social Security Fund, with the required contributions made.

For students specifically, the decision establishes that they must be enrolled in a public or private school, be at least 15 years old, and obtain parental approval for part-time work.

The work must not interfere with their academic responsibilities or affect financial allocations from the educational institution.

Importantly, students are not required to seek approval from their school or higher education institution to take up part-time employment.

Furthermore, they will be provided with an experience certificate for the duration of their work.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: Early Pension Disbursement Announced Following Directives

The Arabian Stories, 14 January 2025: The Social Protection Fund has announced that an additional pension will be distributed ahead of the usual disbursement date, following the directives of the royal leadership.

This gesture reflects the ongoing commitment to the welfare of the Omani people.

The beneficiaries of this initiative include individuals receiving death pensions, retirement pensions, non-occupational disability pensions, and total occupational disability pensions.

The Social Protection Fund expressed its gratitude for the generosity and dedication to enhancing the quality of life for citizens across the nation.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: Issues Royal Decrees to Reform Penal Code and Tenant Laws

The Arabian Stories, 7 January 2025: Oman has issued two Royal Decrees yesterday, introducing significant amendments to key legal frameworks.

Oman Sultani Decree No. 11/2025 amending some provisions of the Penal Code.

Oman Sultani Decree No. 12/2025 amending some provisions of Oman Sultani Decree No. 6/1989 regulating the relationship between owners and tenants of residential, commercial and industrial premises and registering their lease contracts.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: New Penal Code Amendments Bring Flexibility to Court Sentencing

The Arabian Stories, 7 January 2025: In a significant move towards judicial reform, a new Royal Decree in Oman has granted courts the power to suspend certain sentences, offering a more nuanced approach to justice.

Under Oman Sultani Decree No. 11/2025, courts can now stop the execution of fines or imprisonment sentences of less than three years, provided the convict’s character, history, age, or the crime’s context suggest a low risk of reoffending.

This progressive measure, however, excludes crimes related to state security, the state’s prestige, or terrorism and its financing.

The decree also permits the suspension of penal effects and additional penalties, except for confiscation, contingent upon the convict having a known place of residence.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: Labour Ministry Launches National Framework to Boost Workforce Efficiency

The Arabian Stories, 11 December 2024: Oman’s Labour Ministry has launched the National Framework for Job Competencies and the Human Resources Management Matrix.

The initiative is aimed at enhancing the capabilities of the government’s administrative system.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: New Wage Protection and Workforce Transfer Regulations

The Ministry of Labour in Oman issued two ministerial decisions to regulate wage protection and the temporary transfer of non-Omani workers within the private sector.

Analysis

The Ministry of Labour in Oman issued two ministerial decisions to regulate wage protection and the temporary transfer of non-Omani workers within the private sector.

Wage Protection System

The Ministry of Labour in Oman announced a new Wage Protection System (WPS) to electronically monitor the payment of wages in the private sector. The system mandates employers to transfer wages to employees’ bank accounts or financial institutions under the supervision of the Central Bank of Oman, as per the agreed employment contracts and within the legally specified timeframe.

Employers are required to update employment contracts to reflect any changes in wages and must transfer wages through the WPS within three days of the end of the wage period. The Ministry’s relevant department will oversee the implementation and monitoring of the WPS, maintaining a dedicated database.

Exceptions to the WPS include cases of labour disputes where the worker has stopped working for more than 30 days, suspension of the worker for reasons beyond the employer’s control for more than 30 days, and new employees who have not completed 30 days of service.

A committee will review exemption requests not covered by the specified exceptions. Administrative penalties for non-compliance include warnings, suspension of preliminary work permits, and fines of 50 Omani rials per employee, with increased fines for repeated violations. The decision also repealed the previous Oman Ministerial Decision No. 299/2023.

Workforce Transfer Regulations

The Ministry also introduced regulations for the temporary transfer of non-Omani workers between private sector establishments. Key conditions for transfer include not moving workers to nationalised professions, ensuring job compatibility, and obtaining worker consent. Workers must have completed at least six months with the current employer, and the work permit must remain active with more than six months until expiration. Transfers are limited to six months per worker annually, and both establishments must comply with nationalisation quotas and have no service suspensions or financial obligations to the Ministry.

The receiving establishment must not employ the worker beyond the transfer period and must honour all rights and obligations, including maintaining the worker’s previous wage and benefits through the WPS. If a worker leaves the receiving establishment, it must immediately notify the original employer and provide evidence of the departure. The original employer is required to report the worker’s departure following Ministry procedures. The transfer period will count towards the worker’s total service duration, ensuring the protection of their rights and continuity of service calculation.

The decision also stipulates the percentage of transferred workers should not exceed 50% of the total registered workers in either establishment, and the transfer must be officially registered with the Ministry using the approved form. The receiving establishment is responsible for not employing the worker after the transfer period and must bear all rights and obligations during this time, ensuring the worker receives at least the same wage and benefits as in the previous establishment.

For the full story, click here.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Oman: Issues New Ship and Port Security Regulations

The Arabian Stories, 3 December 2024: The Transport, Communications, and Information Technology Ministry has introduced new regulations for ship and port security, aiming to enhance maritime safety and security in Oman.

Oman Ministerial Decision No. 423/2024 outlines a comprehensive framework based on International Maritime Law and international agreements.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.