Thursday 26 / December / 2024
Muscat: With an aim to provide more opportunities for small and medium enterprises (SMEs) owned by Omanis, the Ministry of Commerce, Industry and Investment Promotion on Sunday updated the regulations for foreign capital investments.
The new decision of the Ministry of Commerce, Industry and Investment Promotion prohibits certain activities from receiving foreign investments and limits them exclusively for Omani investors.
It aims at providing opportunities to Omani-owned SMEs to maintain and preserve national identity. The ministry further said that this list will be updated at each stage to keep pace with the economic developments.
The decision aims at maintaining a balance between attracting qualitative investments and encouraging projects of entrepreneurs as the government seeks to empower SMEs to boost the economy, said the ministry.
The ministerial decision No.364/2023 updates the list of prohibited activities for foreign investment and limits them to only Omani investors.
Article 1 stipulates that the activities mentioned in sequence numbers (60) and (63) be cancelled from the list of activities in which foreign investment is prohibited, attached to the aforementioned Ministerial Decision No. 209/2020. The sequence of the items contained therein shall be rearranged accordingly.
Activity No. 60 in the Ministerial decision No. 209/2020 for specialised rehabilitation centres and Activity No. 63 involves rehabilitation homes where the foreign investor can now invest.
Article Two stipulated the attached activities are added to the list of activities in which foreign investment is prohibited, attached to Ministerial Resolution No. 209/2020. Bringing the total number to 96 activities for Omanis.
Article three said that this decision shall be published in the Official Gazette and shall come into effect from the next day to the date it is published.
The ministry further said that the new activities in which foreign investment is prohibited include operating poultry hatcheries (except projects with large production capacity), beekeeping, honey and wax production, marine fishing, slaughtering, rabbits and birds production (except projects with large production capacity), printing activity using copiers, computers and other office machines such as photocopiers or thermal copiers, transporting and selling non-potable water, and renting cranes operated by a worker.
The new activities in which foreign investment is prohibited also include, renting construction machinery and equipment, renting construction or demolition equipment, livestock except for projects with large production capacity, fish and marine animals, fish products, retail sale in stores of meat products, retail activity in stores specialising in fish and other seafood and their products, retail activity in stores of natural herbs, and retail activity in stores of medicinal herbs.
The activities in which foreign investment is prohibited also include the activity of retail sale in stores of birds, pets, ornamental fish and their accessories, the activity of towing vehicles, buying and selling lands and real estate and dividing them, managing and renting owned or leased real estate (residential and non-residential), and the activity of building management (owned or leased), property valuation activity, building management activity (based on a fee or contract), real estate owners association management activity, and pet care services activity.
Article No.3 of the decision also stipulated that whatever contradicts this decision or contradicts its provisions shall be repealed, while Article No 4 of the decision stressed that, it shall be implemented on the day following the date of its publishing in the Gazette.
It should be noted that the list of prohibited activities for the foreign investors, which were previously banned, included making of Omani sweets, Omani daggers, retail sale in stores of Omani daggers, traditional weapons, handicraft products, and detailing tailoring and knitting Arab and non-Arab men’s and women’s clothing, tailoring of sports and military clothing, tailoring of the Omani KOMA, tailoring of women’s Abayas, transporting and selling drinking water, repairing vehicle electricity, charging batteries, repairing and cleaning vehicle radiators, repairing tires and metal wheels, repairing vehicle scales, Vehicle washing and lubricating stations, changing vehicle oils, repairing car air conditioners, repairing sound exhaust for vehicles, cleaning and polishing cars, wholesale of fruits and vegetables, wholesale of cooking gas and liquefied petroleum gas filling stations, retail sale in stores of honey, vehicle fuel stations, and diesel filling stations.
Activities prohibited for foreign investors, which were previously banned, also include retail activity in stores of phones and their accessories, retail sale in stores of souvenirs, antiques and paintings, retail sale in stores of natural flowers and plants, retail sale in stores of pottery and handicrafts, and retail in stores of the sale of cooking gas, retail sale in specialised stores of silver and gifts, retail sale in stores of cards for telecommunication services licensed in the Sultanate of Oman, retail sale in stores of animal feed, and retail sale in stores of sacks.
The previously banned activities also include retail activity in stores of wedding supplies, retail sale in stores of fireworks, retail sale in stores of empty gas cylinders, retail sale in stores of wedding cards, and retail sale in stores of apiary supplies. , transportation of pilgrims and Umrah performers, transportation by trucks of cooking gas cylinders, loading and unloading of goods, customs clearance offices, valuation of canceled vehicles, commission insurance agent, real estate brokerage, labor offices (recruitment), employment offices, general cleaning of buildings, copying services and printing of documents and documents, and tracking offices transactions, installation and assembly of neon signs, management and operation of fuel filling stations, specialised rehabilitation centres, homes for the elderly, orphanages, rehabilitation homes, and other activities related to libraries and archives.
The previous decision also specified the activities in which foreign investment is prohibited, except for those that take place in tourism facilities, such as washing all types of textiles, washing and ironing clothes with steam (dry cleaning), hair cutting and styling for men and children, and the types of cosmetics for women.
