Oman: Approval of the Final Draft of the Law on Special Economic Zones and Free Zones

Al Watan, 30 October 2024: The Legislative and Legal Committee and the Economic and Financial Committee of the Shura Council have approved the final draft of the law on Special Economic Zones and Free Zones in Oman, referred by the government.

This is in preparation for presenting and discussing it during the upcoming regular sessions of the Council, in accordance with Article 72 of Oman Sultani Decree No. 6/2021 On the Issuance of the Constitution of the State, states that Draft laws prepared by the government shall be referred to the Council of Oman for approval or amendment, and then submitted directly to the Sultan for ratification and issuance.

During the meeting, the articles and provisions of the draft law were reviewed, in terms of legal drafting, as well as the opinion of the Economic and Financial Committee, which focused on studying its economic feasibility and its contribution to enhancing investment and providing facilities and incentives for investors in those zones.

Some amendments were made to a number of provisions of the law after the consensus of the honourable members of the two committees.

It is worth noting that the draft law on Special Economic Zones and Free Zones aims to unify the system of guarantees, advantages, incentives, exemptions, and facilities granted to economic activities.

It also helps develop policies for granting income tax exemptions to attract strategic projects in Oman.

Previously, the Economic and Financial Committee had hosted a group of experts and stakeholders from several government institutions to seek their views and benefit from their expertise in order to develop a perspective on the law.

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: New E-Commerce Regulations Aim to Protect Consumer Rights

The Arabian Stories, 27 October 2024: The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) has issued amended regulations under Article 33 of Oman Sultani Decree No. 66/2014, setting specific requirements for entities entering into remote contracts.

These regulations apply to any provider, advertiser, or agent based in Oman or with a representative in the country.

According to the new rules, these entities must obtain approval from the concerned authority, display products accurately in electronic formats, specify the location, date, and method of delivery for items, and establish a clear exchange and return policy that aligns with legal provisions.

The e-commerce regulations have been introduced with the aim of regulating the sector while protecting consumer rights.

Key objectives include fostering the development of e-commerce in Oman while upholding consumer rights and creating a safe and transparent e-commerce environment.

Another goal is to grant the Consumer Protection Authority access to account holders and websites and implement measures to protect consumer rights and address complaints.

Additionally, there is a focus on developing a comprehensive database of e-commerce practitioners in Oman, including both individuals and companies.

The objectives also include promoting trust between consumers and local e-commerce stores and attracting quality investments to boost the sector’s growth.

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: Biometrics Law Regulations Issued

The Arabian Stories, 20 October 2024: Regulations on Oman Sultani Decree No. 21/2024 (the Biometrics Law) have been issued.

These regulations aim to provide a structured framework for the collection, analysis, and preservation of biometric data, including fingerprint and genetic information.

The regulation defines key terms related to the Biometrics Law and emphasise that the competent director is responsible for the overall supervision of the biometric database, ensuring that data is collected and updated according to legal provisions.

Article 3 (Chapter Two) states that it is not permissible to modify any of the database data, unless an error is proven in the recorded data, requiring written permission from the director and a detailed report justifying any changes.

On collection and analysis of biological samples, the regulation states that employees who are designated to carry out biometric work will collect biological reference samples, including saliva and blood, in line with scientific methods. Individuals can also voluntarily submit samples for genetic fingerprinting, which will be recorded in the database for legal purposes.

DNA analysis is permitted only in specific cases for example where there are judicial orders or where unidentified samples have been found at crime scenes. The regulations also mandate strict preservation protocols for biological samples, ensuring confidentiality and appropriate storage conditions.

Once the legally stipulated preservation period has elapsed, the competent administration must destroy the biological samples using secure methods.

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: Ministry Issues Notice Regarding Lost Sea Passports

The Arabian Stories, 9 October 2024: The Transport, Communications and Information Technology Ministry in Oman has issued a crucial reminder for seafarers regarding the protocol for lost identity documents, specifically sea passports.

In the event of a lost sea passport, seafarers are urged to act swiftly.

The first step is to report the loss to the nearest Royal Oman Police station, providing full details of the missing document.

Following this, it is essential to notify the Transport, Communications, and Information Technology Ministry by visiting the General Directorate of Maritime Affairs at the Ministry’s General Diwan building.

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: FSA Issues Regulation for Health Co-Insurance

Oman Observer, 8 October 2024: The Financial Services Authority has approved a regulation for co-insurance in the health insurance sector under the Oman Law No. 12/1979.

The regulation aims to increase retention ratios of insurance premiums within Oman and reduce the need for reinsurance abroad.

It allows insurance companies without health insurance licences to obtain co-insurance licences, enabling them to act as reinsurers for health insurance products.

This move aims to improve the retention of health insurance premiums within Oman.

The regulation was issued after considering recommendations from an actuarial study on health insurance prices, prepared in collaboration with an international consultancy firm.

The FSA aims to create specialised health insurance companies to provide better services to customers, as many companies currently reinsure health insurance policies with specific reinsurers outside Oman to avoid potential losses.

However, this practice reduces the retention ratios within Oman and deprives the national economy of fund circulation.

The retention ratio in health insurance was 79% in 2023.

Companies with co-insurance licences will not be allowed to sell health insurance policies but can participate with licensed health insurance companies in bearing part of the insurance risks and pay financial consideration, which is the principle of co-insurance.

The FSA has prepared a regulation for licensing health insurance co-insurance, including clauses on work mechanisms, limits of co-insurance risks among insurance companies, obligations related to issuing co-insurance policies, terms and conditions for policy administration, and administrative penalties for violations regarding co-insurance licensing directives in health insurance.

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: Health Ministry Issues Circular on Maternity and Paternity Leave

The Arabian Stories, 2 October 2024: The circular directs health institutions, particularly those that provide services to pregnant women and childbirth, to streamline the process for workers across all sectors to obtain proof of their eligibility for maternity and paternity leave.

According to the provisions outlined in the circular, maternity leave allowance, effective from 19 July 2024, is granted for a period of 98 days, which is not limited to a specific number of births.

The law permits that up to 14 days of this leave can be taken before the expected delivery date.
Paternity leave is granted for a period of 7 days, provided that the child is born alive and the leave is taken within 98 days of the child’s birth.

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: MOCIIP Issues Decision on Commercial Loans

Oman Observer, 29 September 2024: The Ministry of Commerce, Industry and Investment Promotion has issued a Ministerial Decision setting the return due for obtaining a commercial loan or debt at 6% unless a lower percentage is agreed upon.

The decision was made based on the Commercial Law and a letter from the Oman Chamber of Commerce and Industry, in response to public interest requirements.

The decision states that this percentage may be exceeded in exceptional cases, such as long-term loans, loans directed to projects contributing to economic development, or loans associated with a high degree of risk, in coordination with the Oman Chamber of Commerce and Industry.

However, this return does not apply to loans provided by banks, finance companies, and asset leasing companies licensed by Oman’s Central Bank.

The decision will be published in the Official Gazette and will be effective for one year from the date of its publication.

It comes within the framework of the government’s efforts to ensure the flexibility of finance for businesses while enhancing governance principles and regulating the investment environment in Oman.

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 Cloud Computing Services Regulatory Bylaw

Oman Daily, 29 September 2024: The bylaw regulating cloud computing services and data centres in Oman sets out the legal framework for licensing and operating such services, including requirements for applicants, fees, and classifications of service providers.

The bylaw mandates that applicants for a cloud computing service licence must be legal entities with commercial registers limited to telecommunications, information technology, or related services.

It outlines a licensing process with the Telecommunications Regulatory Authority and specifies fees ranging from 100 to 1000 Omani Rials.

The licence duration is three years, renewable unless the licensee requests cancellation.

The bylaw prohibits licensees from altering their legal form without prior approval and classifies service providers into categories such as main providers, aggregators, resellers, and agents.

It also establishes four levels of information security for subscriber content and imposes obligations on service providers regarding data protection, breach notification, and cross-border data transfers.

Administrative sanctions, including warnings, fines, and license cancellation, are prescribed for violations of the bylaw’s provisions.

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/.