GLOBAL LEGAL ADVISORS
Oman's changing legal landscape, thanks to new laws regarding PPPs and FDI, are bringing more opportunities for legal advisors in the country.
How has the Omani demand for legal services changed?
BEN EWING When the market suffers, typically the demand for litigation services goes up; when the market is in a growth period, we see a great uptake of corporate advisory services. Six years ago, players did not always believe in the benefit of legal services, but that attitude is beginning to change. The Omani market is slowly beginning to recognize that it is much more cost effective and risk reducing to retain lawyers to review and negotiate your contracts up front than it is to attempt the drafting and/or negotiating in-house (without any real proper legal training or expertise) and then ending up having to go through the court system or arbitration, which is time-consuming and expensive. It is interesting to note that the new PPP law has introduced a mandatory requirement for external consultants to advise the process.
ANDREW FIGGINS If we go back five years, there was more corporate advisory work then dispute resolution work. We predominantly saw local litigation in the contentious side of our business, which is handled by our associated law firm, Yaqdhan Al-Busaidi Advocates & Legal Consultants. With the drop in oil prices, we saw problems with payments on infrastructure projects and fewer settlements arranged at the end of a contract. Therefore, some contractors and sub-contractors decided to take legal action, and we saw growth in arbitration under the Omani arbitration law and international rules, be it ICC or LCIA. The corporate advisory side has also seen an expansion in large-scale M&A deals as companies consolidate assets and portfolios. There is also growth in regulatory reform work. For example, the government is privatizing part of its interest in the electricity sector. Another growth area is renewable energy, particularly solar. Overall, there has been growth over the past five years in the complexity of the transactions on both corporate and dispute legal services.
How will the concept of free zones change the ease of doing business in Oman?
BE Free zones allow for trade from or within the free zone itself; when you import the goods or services into Oman (or bring them “onshore"), they are subject to taxes. Many people from outside the region are unfamiliar with how free zones work and think that you can trade onshore in Oman from a free zone in exactly the same manner as through an onshore entity. The new FDI law, which came into force at the beginning of 2020, permits 100% ownership of onshore companies in Oman, so there is some interesting interplay between free zones and onshore companies. Some of the key USPs for free zones are their geographical position, supporting logistics, and current infrastructure. Free zones have certainly been set up well enough to cope with the influx of investors, in terms of infrastructure; however, the availability of free space can often be limited. Meanwhile, there is uncertainty as to whether some areas of industry for onshore Omani companies may be restricted from 100% foreign ownership. Article 14 of the Foreign Capital Investment Law provides that the Ministry of Commerce and Industry can issue a “list of prohibited activities" for which 100% foreign ownership will not be possible. It remains to be seen if the ministry will publish such a list and if so which types of activities will be prohibited.
What will be the legal impact on the energy sector of Oman's efforts to become a regional logistics hub?
AF There is considerable focus on the special economic zone (SEZ) in Duqm. The port there is already bringing in substantial cargo and materials for the oilfields inland and many other projects. For the client, it makes for a shorter journey. Many of our clients are coming to invest in the infrastructure set to grow from the SEZ in Duqm. We have clients wanting to invest in warehousing, the haulage business, and freight forwarding, to name but a few. Anything that facilitates a smooth delivery of what our clients in the energy sector need will be a good thing.
GLOBAL LEGAL ADVISORS
TABLE OF CONTENTS
Focus: Future foreign policy
Friends to all, enemy to none
In championing the late Sultan Qaboos' non-interference foreign policy, the new ruler of Oman, Sultan Haitham bin Tariq Al Said, is determined to work for friendship and peace, justice and harmony, and coexistence and positive constructive dialogue.
read articleInterview
David Kalife, CEO, Oman Oil Marketing Company (OOMCO)
Despite Oman's fuel market slowing down, OOMCO increased its sales volume of lubricants by 36% in 2019 and is constructing a greenfield bunker terminal at the Port of Duqm. The company has transformed while growing its expertise in Marketing and Digital.
read articleInterview
Azzan Al Busaidi, CEO, Ithraa
Azzan Al Busaidi is an expert in competitiveness and economic growth. He was appointed CEO of Ithraa in 2019 after 17 years spent covering managerial roles in the organization. Al Busaidi was previously Ithraa's director general of planning and studies and is a strong advocate of the potential of digitization. He holds an MBA from the University of Strathclyde and a BSc in Economics from Sultan Qaboos University.
read articleInterview
Qais bin Mohammed Al Yousef, Minister of Commerce, Industry & Investment Promotion & Former Chairman, Oman Chamber of Commerce and Industry
Private Omani companies will be able to benefit greatly from the Fourth Industrial Revolution by enhancing their local value-added strategies and upskilling the workforce.
read articleInterview
Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
The Central Bank of Oman's job is to ensure there is adequate liquidity in the system and that banks remain robust and resilient to meet the credit requirements of all segments without undermining financial stability.
read articleB2B
Capital markets
CMA and MSM are supporting Vision 2040 by providing financing to government companies that intend to go public, financing expansion of existing and new IPOs, and widening the investors base in Oman by enhancing and developing the investment funds and insurance industries.
read articleInterview
Khalid Al Balushi, CEO, Khazaen Economic City
International investors and business owners can benefit from Khazaen Economic City's strategic location and its close proximity to the main gateways of the country to import, process, manufacture, distribute locally, and export their goods and services.
read articleFocus: Port 4.0
Destined for greatness
Investments in world-class infrastructure have generated huge rewards for Oman. The goal now is to leverage technology as a disruptive enabler, build human capacity across the public and private logistics sectors, and drive operational efficiencies to build an integrated logistics business environment that is benchmarked against the world's best.
read articleFocus: Gap in tourism services
All bases covered
An amalgamation of local companies and unique experiences in Oman has created an original flavor that is further differentiating Oman's tourism offering from other countries and in the process attracting scores of tourists from all across the world.
read articleB2B
Engineering design
Renardet Engineering Consultants and Design Unit Engineering are recognized experts in their fields. While the former is an international company strongly committed to excellent engineering consultancy services and environmental practices, the latter is an Oman-based team of architects and engineers that incorporates local culture and traditions.
read articleB2B
Construction materials
Oman's construction sector is facing a host of challenges, but Hempel Paints and Al Maha Ceramics are confident that a mix of forward-thinking business models, unique products, and strong government initiatives will help them through turbulent times and generate positive returns in the long run.
read articleInterview
Salim Razvi, CEO, Oman Academic Accreditation Authority (OAAA)
Focusing on higher education institutional accreditation, program accreditation, and the updating and maintaining of the Oman Qualifications Framework, OAAA is helping further advance higher education in the Sultanate.
read article