Oman: Decision on List of Activities Prohibited from Foreign Investment Updated

Al-Watan, 2 September 2024: The Commerce, Industry and Investment Promotion Ministry has issued a decision to amend certain provisions of Oman Ministerial Decision No. 209/2020 on the specification of activities in which foreign investment is prohibited, limiting them to Omani investors only.

The aim is to stimulate local investment by allowing Omanis to establish projects in these activities and attract qualitative investments that enhance the business environment and competitiveness.

The decision, aligned with the Foreign Capital Investment Law, prioritises empowering small and medium enterprises that contribute to the Omani economy.

It serves as an incentive for Omanis to establish their own projects and create new job opportunities, as Omani investors can invest in all activities where foreign investment is prohibited.

This ensures that projects and activities related to national identity and Omani heritage remain unaffected.

Additionally, this decision regulates the foreign investment process by directing it towards activities that improve targeted sectors to achieve economic diversification.

It ensures that foreign investors benefit the national economy while achieving profitability during their operations.

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Oman: SPF Launches E-Portal for Employers to Verify Expat Worker Data and Update Wages

Times Of Oman, 27 August 2024: The Social Protection Fund (SPF) in the Sultanate of Oman has launched an electronic portal, www.spf.gov.om, to facilitate the provision of services to employers.

Starting from August 26, employers can verify the data of their expatriate workers and update their wages through this e-portal.

This move aligns with the government’s policies to transition to electronic governance and the SPF’s vision to provide transparent and distinguished services.

The SPF will issue monthly contribution invoices based on worker data and wages available on the portal.

The next invoice will be issued on 31 August 2024, with a payment deadline of 15 September 2024.

Employers are advised to familiarise themselves with the SPF e-portal and its functionalities, verify their workers’ data (both Omani and expatriate), update worker wages (if applicable) through the portal or relevant systems for government units, and regularly check the portal for any updates or notifications.

The registration and termination of employment contracts for Omani and expatriate insured persons at the SPF are automatically handled through bilateral linking of various systems.

For workers in government units operating the Mawred/Rio systems or those with a direct connection to the SPF, the process is seamless.

However, for workers in non-governmental sectors, including the private sector, the employer must ensure that the contracts are registered through the Ministry of Labour system.

Employers in non-governmental sectors and government units with a direct connection to the SPF must update the wages of their workers (Omani and expatriate) through the SPF’s electronic portal, ensuring prompt updates whenever there are changes.

For government units linked through the Mawred and Rio systems, wage updates should be made through those systems.

The contribution bill is calculated at the end of each month by the SPF based on the workers’ data and wages available on the Fund’s portal, making it crucial for employers to verify and update this information on a monthly basis.

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Oman: Financial and Administrative Control Authority Issues Warning

Shabiba, 15 August 2024: The State Financial and Administrative Control Authority has warned that there is no website other than their official website which was stated in a statement the Authority issue.

In addition, the Authority has stressed that it has no accounts on the social media platform other than those which are affiliated with the Authority which were also stated in the statement.

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Oman: Contractors Must Comply With Omanisation Targets

Oman Observer, 13 August 2024: The Ministry of Heritage and Tourism (MHT) has notified all contractors and suppliers who deal with it for various tenders regarding purchases and services to submit an electronic certificate issued by the Labour Ministry.

The certificates should prove that they are complying with requirements, including the Omanisation percentages approved by the government, provided that the certificate is valid for one month from the date of its issuance.

The certificate should be submitted when competing for government tenders and when requesting government services.

The ministry has also added that construction and service tenders will be awarded to companies that offer a 100% Omanisation rate in electricity, water, and maintenance services.

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Oman: More Services Added to Oman Business Platform

Shabiba, 28 July 2024: The Commerce, Industry and Investment Promotion Ministry has unveiled a series of enhancements and new facilities for investors and businesses through the Oman Business Platform.

These improvements aim to streamline processes, reduce bureaucracy, and create a more conducive environment for investment in Oman.

Among the key updates are simplified procedures for commercial registration services, including updating commercial register data and transferring ownership.

The ministry has also introduced improvements to license applications and registration processes for companies subject to the Foreign Capital Investment Law.

Notably, the ministry has reduced the number of required documents and prerequisites, contributing to a more user-friendly experience and enabling faster and more efficient transaction completion.

These measures are expected to significantly support the investment climate in Oman, making it more attractive for both local and foreign investors.

The ministry’s efforts align with the Oman’s broader strategy to diversify its economy and attract investments across various sectors.

By improving the ease of doing business and providing a supportive regulatory framework, Oman aims to position itself as a preferred destination for businesses seeking to establish or expand their operations in the region.

Investors and entrepreneurs can look forward to a streamlined and efficient process through the Oman Business Platform, enabling them to focus on their core business activities while benefiting from the government’s commitment to encourage a conducive investment environment.

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Oman: FSA Implements Unified Life Insurance Policy for Borrowers

Atheer, 25 July 2024: The Financial Services Authority (FSA) has confirmed the implementation of a new unified template for life insurance policies for borrowers.

This policy aims to standardise the terms and provisions governing the contractual relationship between borrowers, banks, and insurance companies.

Effective 1 June 2024, all parties involved in the insurance relationship, including insurance companies, banks, and borrowers, are required to comply to the provisions outlined in Oman Capital Market Authority Decision No. H/4/2024.

The FSA has emphasised the importance of compliance with the new policy.

The CEO of the Financial Services Authority had previously issued a decision to introduce the new unified template for life insurance policies for borrowers, establishing a legal framework to regulate the contractual relationship between the borrower, the bank, and the insurance company.

The document provides a unified framework for the terms and conditions of insurance coverage contracts offered by insurance companies to borrowers from financial institutions.

In the event of death or permanent total disability, the insurance company will bear the remaining balance of the loan, ensuring financial protection for the borrower and their heirs.

One of the key features of the document is that it guarantees the protection of the rights of life insurance policyholders for borrowers by specifying the basic and optional benefits of insurance coverage.

This initiative enhances the social safety net for citizens and residents in Oman by facilitating access to appropriate financing while providing protection for the borrower and their beneficiaries.

The document also states that insurance companies cannot reject a claim on the pretext of non-disclosure of any diseases after four years from the policy’s effective date.

The implementation of the unified life insurance policy for borrowers is expected to bring transparency, standardisation, and enhanced protection for all parties involved in the insurance relationship.

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Oman: Tightens Labour Market Regulations to Prioritise Omanisation

Al-Roya, 24 July 2024: Oman has unveiled a comprehensive set of stringent labor market regulations aimed at boosting Omanisation in the private sector.

The Labour Ministry has issued a statement outlining several measures to be implemented.

Firstly, all government entities and state-owned companies will be prohibited from contracting with private sector establishments that fail to comply with the prescribed Omanisation percentages.

Additionally, private sector establishments must obtain an electronic certificate from the Ministry of Labour, confirming their compliance to labour standards and Omanisation requirements.

Furthermore, the Ministry has added more than 30 new professions to the list of jobs restricted for non-Omanis.

All private sector establishments will be mandated to employ at least one Omani citizen in suitable professions and jobs, subject to forthcoming guidelines from the Ministry.

A financial package has also been approved to support the Ministry’s initiatives aimed at increasing Omanisation rates.

The Labour Ministry will review work permit fees, with incentives for compliant establishments and doubled fees for non-compliant ones.

Moreover, intensified inspection campaigns will be conducted to ensure private sector compliance with labour market regulations.

The Ministry will provide further details on these decisions before their implementation in September 2024 and has urged all stakeholders to cooperate in the national interest.

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Oman: State Council Discusses Draft Law on Arbitration in Disputes

Oman Observer, 10 July 2024: The State Council Office has discussed its Legal Committee’s proposal on the “Draft law on documentation” and a proposal on amending some provisions of the Law on Arbitration in Civil and Commercial Disputes.

The members of the State Council’s Office have discussed the Economic and Financial Committee’s proposal on “the framework for developing the government’s performance management system and criteria for placement in leadership positions”.

The meeting has also looked into a proposal on “the role of plant extracts in enhancing the local economy”.

The meeting has reviewed the Council of Ministers’ reply to observations and views made by the State Council and the Majlis Ash’shura about the “Draft of State Budget 2024”.

The members have elaborated on two studies conducted by the State Council: One titled ‘Legislative and regulatory determinants for e-commerce’ and the other titled ‘Arts and their role in supporting the national economy’.

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