INFORMING THE PUBLIC
Y&S gives an overview of the implications of Oman's recently enacted laws that will drive investment into the country.
BIOGRAPHY
Mohammed Al Yahyaei is the Managing Partner and Senior Attorney at Al Yahyaei & Salt Law Firm. He specializes in both commercial law and employment law. He graduated in law studies from the Sultan Qaboos Academy in Nizwa. Prior to establishing his law practice, Al Yahyaei worked for the Royal Oman Police. Al Yahyaei holds an LL.M in commercial law from the University of Sultan Qaboos. He is an excellent speaker and delivers lectures in law. He has guided the law firm forward, step by step, to become one of the leading law firms of Oman. The firm has several branches not only in Oman but also in Dubai, Abu Dhabi, and Iran.
What are the firm's key areas of focus?
Y&S positions itself as an experienced Omani law firm able to provide commercially relevant legal support and advice in line with international best practice. Our areas of expertise are litigation and dispute resolution, corporate-commercial, oil and gas, employment law, banking and finance (including regulatory and securities law), intellectual property, telecommunications, healthcare, insurance, property and real estate, consumer protection, and criminal law. We are privileged to count a number of major Omani and international banks and corporations amongst our client base.
What is your assessment of the new FDI Law aimed at improving the foreign investment structure in Oman?
Whilst it is our understanding that the new Foreign Capital Investment Law offers a number of incentives to non-Omani investors and expands the investment sectors open to such investors, the executive regulations to be issued by the Ministry of Commerce and Industry will be key to assessing the impact of this law and the extent to which it will improve the foreign investment environment in Oman. This new law will not affect existing legal provisions and legislation with respect to GCC investments, the Special Economic Zone at Duqm, the Public Establishment for Industrial Estates (Madayn), or free zones. The law provides that Omani courts will have jurisdiction to hear disputes between an investment project and third parties on an expedited basis.
What are the main implications of the new PPP Law and the Privatization Law for Oman's business environment?
It must be noted that the executive regulations for these laws have yet to be issued. As such, the below implications are based on a partial view of Oman's PPP and privatization regulatory regime. First, the Public Authority for Privatisation and Partnership (PAPP) is responsible for overseeing PPP projects in Oman and awarding tenders, so it will have a great deal of power in this business landscape, as a specific appeals process will be created for disputes relating to the tender process, project award, or project implementation. Nonetheless, the applicable government ministry will remain responsible for the management of a PPP project. Second, any PPP project must have Ministry of Finance approval prior to launching, with such approval given if the concerned project conforms to Oman's strategy and development plans. As these requirements are not defined, PPP projects may be undertaken in a wide array of areas. Third, PPP projects shall not be subject to the Omani Tenders Law, and direct approaches may be undertaken for certain PPP projects without a tender, subject to the Council of Ministers' approval. PPP projects may have a duration of up to 50 years, which is generous by regional market standards. Fourth, in the case of privatizations, Omani employees must be transferred and remain on the same terms of employment as pre-privatization for a period of five years. Lastly, and most importantly, the PPP Law and the Privatization Law both clearly state that 100% foreign ownership is allowed. It is unclear what minimum share capital requirements shall apply and what limits shall apply on government participation but we await issuance of the related executive regulations. There will be, understandably, controls on the share capital of project companies (including in respect to the creation of security or sale of shares).
How can the Sultanate further develop the skills of its lawyers and legal consultants?
Oman's legal landscape features legal practitioners who are practising law and students who are studying law in various colleges. Both face international and national issues. Now is the proper time to establish training entities to develop the skills of those who handle extensive legal work, whether arbitrators, legal advisors, or litigators. We have put this goal in our strategic plan and hope to commence it shortly.
INFORMING THE PUBLIC
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