Oman: Consultation on New Bonds and Sukuk Regulation

Oman Daily Observer, 1 April 2024: Oman’s Financial Services Authority has announced it has issued a public consultation on a new Bonds and Sukuk Regulation.

If approved, it will regulate the long-term debt market in the Sultanate.

It will offer flexibility in structuring diversified financing products such as Green and Sustainable Bonds and Sukuk and Waqf Sukuk. It will also provide for special types of bonds and Sukuk customised to the financing needs of an investor and an issuer of a security.

These green products will improve green and sustainable financing in line with green and sustainable financing requirements approved by the Authority’s Board of Directors.

It also includes a chapter on disclosure rules, specifically disclosures related to green and sustainable bonds and sukuk. An issuer will have to implement the rules and terms and conditions of these disclosures to improve the integrity of the capital market and encourage conventional investors and those interested in sustainability issues to invest in these securities.
Along with the issuing of the Commercial Companies Law (Oman Sultani Decree No. 18/2019) and the Securities Law (Oman Sultani Decree No. 46/2022), the Bonds and Sukuk Regulation has been proposed to bring the national market into line with the latest global practices and standards.
It will enable debt instruments to be designed to be one of the main financing options to provide an appropriate investment environment and allow additional alternative instruments for local and foreign investors.

It has been proposed in line with three strategic objectives. The first is related to providing resilient and innovative financial instruments. The second is related to issuing flexible legislation and the third is the sustainable usage and investment of resources and natural wealth.

The Regulation has been proposed to encourage innovative and diversified financing products in line with the nature of financing needs of projects.

The Regulation will also allow conventional bonds and Sukuk to be issued.

The Regulation will incentivise Waqf Sukuk to help the development of the Waqf sector, specifically in terms of activating monetary Waqf and development of Waqf institutions, be they civil or charity institutions too.

The aim is to expand the base of subscribers and participants in Waqf activity.

Bonds and Sukuk can be issued in Oman in any convertible currency and the Authority will accept prospectuses in English for private placement.

The Regulations also contain provisions on special purpose companies, financial trusts, Sharia compliance, agents of beneficiaries or issuers, and general meetings.

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Oman: Biosignatures Law Issued

Oman Daily Observer, 26 March 2024: Oman’s Sultan has issued Oman Sultani Decree No. 21/2024 approving the Biosignatures Law.

They issued the Decree after presenting it to the Council of Oman.

The Inspector General of Police and Customs will be responsible for issuing the Implementing Regulations to the Law.

Anything which contravenes or contradicts the Law is repealed.

The Decree will be published in the Official Gazette and will come into force the day after it is published.

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Oman: Financial Services Authority to be Established

Times of Oman, 25 March 2024: Oman’s Sultan has issued three Decrees including a Decree establishing the Financial Services Authority.

Under Oman Sultani Decree No. 20/2024, the Financial Services Authority will have its own legal personality, financial and administrative independence.

It will also report to the Cabinet and will be headquartered in Muscat.

It may establish branches in other governorates following a Decision from its board of directors.

All allocations, origins, rights, obligations and assets of the Capital Market Authority will be transferred to the Financial Services Authority.

All employees of the Capital Market Authority will also be transferred to the Financial Services Authority, along with their financial grades.

The Chairman of the board of directors of the Financial Services Authority will issue the regulations and decisions required to implement the Decree.

Until they do, the current laws, regulations and decisions will continue to be applied without prejudice to the new Decree.

Under the Decree, responsibility for regulating the profession of accounting and auditing will be transferred from the Commerce, Industry and Investment Promotion Ministry to the Financial Services Authority.

The phrase Financial Services Authority will replace the phrases Ministry of Commerce, Industry and Investment Promotion and Section of Professions and Crafts at the Department of Corporate Affairs at the Ministry of Commerce, Industry and Investment Promotion and the Director General of the Directorate General of Commerce wherever they appear in Oman Sultani Decree No. 77/1986 (the Law Regulating the Profession of Accounting and Auditing).

The phrase Minister of Commerce, Industry and Investment Promotion wherever it appears in Oman Sultani Decree No. 77/1986 will also be replaced with the phrase Chief Executive Officer of the Financial Services Authority.

The board of directors of the Financial Services Authority will be responsible for structuring the Committee referred to in Article 24 of Oman Sultani Decree No. 77/1986. It should have two or more accountants as members.

The phrase Capital Market Authority, wherever it appears in legislation will be replaced with the phrase Financial Services Authority. The phrases Chairman of the Board of Directors of the Capital Market Authority and Chief Executive Officer of the Capital Market Authority will be replaced, wherever they appear in legislation with the phrases Chairman of Board of Directors of the Financial Services Authority and Chief Executive Officer of the Financial Services Authority.

Anything which contradicts or contravenes the Decree will be repealed.

The Decree will be published in the Official Gazette and come into force on its issued date.

The Sultan also issued Oman Sultani Decree No. 18/2024 amending the Sultanate’s Criminal Procedures Law. It will be published in the Official Gazette and come into force on the day after it is pubished.

In addition, the Sultan issued Oman Sultani Decree No. 19/2024 promulgating the Sultan Qaboos University System.

The Vice Chancellor of the University will be responsible for issuing the regulations and decisions required to implement the Decree.

Until they do, the existing regulations and decisions will remain in force without prejudice to the new Decree.

Oman Sultani Decree No. 19/2024 repeals Oman Sultani Decree No. 71/2006. It also repeals anything which contradicts or contravenes the Decree.

The Decree will be published in the Official Gazette and come into force the day after it is published.

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Oman: New Building Codes to be Drafted

Oman Daily Observer, 11 March 2024: Oman’s Housing and Urban Planning Ministry has signed a cooperation agreement with the International Code Council to draft new building codes in the Sultanate.

Under the agreement, six comprehensive building codes will be drafted. They will be drafted to take national considerations into account.

They will cover safety standards, sustainability, and technology integration and will be drafted by 2026.

They will also be based on the 2021 and 2024 International Codes.

The aim is to improve building safety and construction standards in the country.

It was signed for Oman’s Housing and Urban Planning Ministry by its Housing and Urban Planning Minister, Dr Khalfan bin Said al Shueili and for the International Code Council by its Senior Vice President of Global Operations and Solutions, Judy Zakreski.

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Oman: State of Emergency Law Amended

Shabiba, 3 March 2024: Oman’s Sultan has issued a number of Decrees including Oman Sultani Decree No. 13/2024 amending the State of Emergency Law.

It will be published in the Official Gazette and come into force the day after it is published.

The Sultan also issued Oman Sultani Decree No. 14/2024 on the determination of the competences of the Social Development Ministry and adopting its organisational structure.

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Oman: Independent Quality Checks Should be Carried Out on Fuel

Oman Daily Observer, 20 February 2024: A growing number of people in Oman are calling for independent quality checks to be carried out on fuel to ensure it is not contaminated.

The calls have grown following concerns over the quality of M91 fuel dispensed by some fuel stations in the Sultanate.

Drivers can lodge contamination concerns at their local fuel station.

In response to the calls, the Commerce, Industry and Investment Promotion Ministry held a joint meeting with stakeholders to discuss consumer concerns and the calls for independent quality checks.

OQ has acknowledged responsibility for fuel quality and distribution. It has undertaken to investigate complaints, update consumers on fuel quality and damage causes and share laboratory test results.

However, that has not placated some of those who have expressed concerns.

Some have questioned OQ’s dual role as supplier and quality arbiter. They have called for an independent body to ensure objectivity.

Others have called for specific reasons for fuel quality issues to be publicly disclosed.

They have also called for complete transparency in communication with recipients and complainants.

The Ministry has authorised OQ to submit quality certificates for each product.

A joint complaint resolution mechanism has also been established and fuel companies have to receive complaints via designated channels.

These complaints must include relevant details like the fuel station’s name and location and batch number.

OQ has to track product quality, review certificates and re-examine samples together with the Ministry and Consumer Protection Authority.

Technical teams will launch investigations where there are compliance failures.

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Oman: Postal Sector Law Being Drafted

Oman Daily Observer, 12 February 2024: Oman’s Transport, Communications, and Information Technology Minister has announced a postal sector law is being drafted.

The announcement came as the first Arab Postal Leaders Forum got underway in Muscat.

They added the government has developed the regulatory framework in this area in line with the best global practices.

The law is being prepared together with all relevant entities.

A general policy is also being drafted to act as a roadmap to align global and local trends.

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Oman: Statements of Bank Assets and Liabilities Regulations Amended

Al Watan, 11 February 2024: Oman’s Central Bank has issued a Decision amending the statements of bank assets and liabilities of licensed banks in the Sultanate regulations.

Oman Central Bank Decision No. MM/201/06/23/22/2024 amends Oman Regulation No. 20/09/1980.

Under the Decision local banks must submit statements of their assets and liabilities, including a profit and loss account and all their operations and branches within the Sultanate of Oman, within their annual budget, provided that they are audited by independent auditors to the Central Bank during the first quarter of each year.

Local banks must electronically display the summary statement dating back to 31 December the previous year throughout March through the channel they conduct banking business through.

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Oman: E-commerce Regulations Implementation Begins

Oman Daily Observer, 5 February 2024: Oman’s Commerce, Industry and Investment Promotion Ministry has announced the implementation of the e-commerce regulations has begun.

The regulations are contained in Oman Ministerial Decision No. 499/2023. The regulations stated that they would be implemented 90 days after they were published in the Official Gazette.

They have been introduced to align the Sultanate with international developments in this area.

They were introduced together with the Transport and Communications Ministry, Information Technology Ministry, the Royal Oman Police represented by the General Directorate of Customs, the Consumer Protection Authority, the Central Bank, the Telecommunications Regulatory Authority Asyad Group and the ITHCA Group.

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