Tuesday 07 / May / 2024
Muscat: A number of officials, businessmen and writers in the Sultanate of Oman have praised the Ministerial decision No. 412/2023 on combating the commercial concealment activities (the hidden trade) in the Sultanate of Oman, in cooperation with a number of government entities, due to its economic and social repercussions on business and society in the country, while the decision comes as a response for the successive appeals of citizens over the past years to combat this phenomenon.
The officials, businessmen and writers, emphasised that the decision will significantly contribute to avoiding the adverse effects of hidden trade on the national economy and local markets, which include the increasing cases of commercial fraud, the impact on the organising of the labour market, the unequal competition with entrepreneurs and small and medium enterprises, the tax evasion, and the scam on the in force
procedures.
They also stressed that the decision to combat hidden trade also came to contribute to the implementation of the executive regulations of the Foreign Capital Investment Law, which will enhance the creating of an attractive investment environment and appropriate conditions for it in the Sultanate of Oman by detailing the necessary procedures for registering foreign institutions and companies as well as determining the conditions, controls and dates that necessary for issuing approvals, permits or licences related to investment projects in implementation of the provisions of the Foreign Capital Investment Law.
The ministerial decision aims at regulating commercial businesses, creating a suitable business environment for Omani and foreign investors, organising financial transfers outside the Sultanate of Oman, reducing unequal competition for entrepreneurs and small and medium enterprises, and reducing cases that result from hidden trade activities, as well as it will contribute to finding a clear definition of hidden trade in order to curb and to reduce the practice of prohibited economic activities, creating a business environment based on fair competition and equal opportunities, supporting small and medium enterprises, and limiting the acquisition of expatriate labour for some economic activities.
Dr. Rajab bin Ali Al-Owaisi, an expert in social and educational studies at the State Council, stressed that the decision to combat hidden trade is considered as an ambitious direction that keeps pace with national policies to build a promising economy and a stable national labour market, as the issuance of this decision, by the Ministry of Commerce, Industry and Investment Promotion, which will come into force after 90 days from the date of its publishing in the Official Gazette, has come in line with the government’s directions regarding the issuance of Labour Law No. (53/2023) and its role in stabilising the business environment in the Sultanate of Oman, and in creating an attractive investment environment and appropriate conditions for it in the Omani labour market.
He added that the issuance of decision to combat hidden trade has also come in line with the national efforts to localise some professions and jobs in the labour market and private sector companies in order to be exclusively for Omanis, while the Ministry of Commerce, Industry and Investment Promotion in a previous period has issued a ministerial decision, prohibiting foreign investment on many economic activities , including retail, some services, beauty, entertainment and a lot of other activities.
Al Owaisi pointed out that, the decision to combat hidden trade also affirms the keenness of the Ministry of Commerce, Industry and Investment Promotion within the framework of its follow-up to the economic situation and its response to the successive appeals from citizens over the past years to stop the hidden trade phenomenon and to put in place fixed procedures that ensure, over time, the total elimination of the phenomenon and its negative effects on the business environment. and on the stability of the work environment and its economic and social repercussions on national employees, entrepreneurs and the Omani society as a whole in light of the instability that may result from it and from the increase in monopoly.
He clarified that the hidden trade contributes to the emergence of some harmful economic practices that distort the image of the labour market and reduce the interest of serious citizens and resident business owners who have a presence in the labour market and limiting their desire to continue in light of the risks and imbalances that resulting from practicing the hidden trade.
Dr. Rajab Al Owaisi added: With no doubt, such serious measures contribute to create a safety space that preserves the national gains achieved in this path, whether through the investment law, the bankruptcy law, the anti-monopoly law and other laws that constitute a safety station to maintain a high degree of economic balances,which in turn contributes to raising the ceiling of foreign investment and maximizing the presence of serious foreign investors. At the same time, the citizen and foreign investor feels more stability, confidence and reassurance that the hidden trade, which is considered the archenemy of the success of serious investment, small and medium enterprises and companies operating according to regulations and laws and by flooding the labor market with activitiesIt is not practiced by specialists and is not relied upon by those concerned, while it causes great harm to the life and security of the citizen in a number of professions and works particularly in the fields of electricity, water and gas connections, or those fields concerned with health, medical, pharmaceutical, food and public life necessities.
Al-Owaisi also pointed out that the clear provisions of the decision to combat hidden trade, the stability of its procedures, the smoothness of its handling of data in the various influential and active sectors, will contribute to create community mobilisation and social awareness that strengthen the implementing of the provisions of the decision, and establishes an advanced stage of integration between the government and the citizen, while this promising historic decision and the opportunities it delineates will enhance the stability of the labour market.
He also clarified that the decision distinguishes with the clarity of the penalties, the efficiency of procedures, the reference of its tools, and its interactive frameworks, that in light of the presence of legal and judicial control of specialists from the Ministry and other agencies in the control of facilities and also in light of the presence of a plurality of means of reporting and tools for accessing the problem.
He stressed that the decision drew guidelines that begin with the individual’s awareness of his responsibilities and duties, the importance of preserving society, and strengthening the efforts seeking to enable the citizen to play a greater role in the economy of the next stage, as the decision clarified the penalties against whatever contravene the provisions of the decision and its articles, as well as the explanations and clear and adequate answers that the decision carried in its articles and provisions will contribute to preventing any unilateral interpretations, justifications, and moody ideas.
This contributes to blocking the pretexts generated by tampering with the public right or from trying to influence national economic policies and their stability through these abuses and ideas resulting from hidden trade.
For his part, Engineer Said bin Nasser Al-Rashdi, CEO of the Insurance House, said: “The hidden trade is an old continuous phenomenon and its difficult to curb it, as it is deep rooted, except with a serious firm decision followed by serious implementation on the ground, as the decision to combat hidden trade issued by the Ministry of Commerce Industry and investment promotion will contribute to support local traders, particularly small shops, which will have a fair share of the market after disposing of the hidden trade that was negatively affecting them.
Engineer Said Al-Rashdi added: “There is no doubt that this decision, along with the previous decisions that facilitate the registration of the foreign investor and his actual possession of his trade, will rid us of violations of illegally leasing commercial records, as the dealings between the consumer and the merchant will be more transparent and in conformity with the laws and regulations in force in the Sultanate of Oman, so we hope that the Ministry will work to guarantee the rights of consumers in a way that enhances their ability to face the challenges that may arise from the fact that some foreign investors who work without a guarantor or a local sponsor receive sums of money and then scape to their countries, leaving behind customers who will not receive goods or recover their rights.”
Hazza bin Saleh Al-Balushi pointed out that, the hidden trade is considered an incurable disease in various countries globally, as well as it is one of the most serious challenges facing countries, as it is a scourge whose movements and impact cannot be monitored easily, as it directly negatively affects the country’s economy through pressures that may It is practiced behind the scenes, especially when it is very large and has high returns, depending on the type of activity and its extent and strength.
Hazza Al Balushi added: “Perhaps the efforts of the Sultanate of Oman in the past years were the focus of attention, but this phenomenon was steadfast in the face of all those efforts for that, and after the decision to combat hidden trade issued by the Ministry of Commerce, Industry and Investment Promotion and with the help of other parties, we can say that it is a bold and effective step that will contribute to address this issue and eliminating it, as the decision is considered the impregnable injection against the hidden trade, rather, it will work to address this issue from all aspects in order to preserve the Omani society from the effects of the hidden trade, by following up on the implementation of the decision with the support of the authorities and through comprehensive monitoring of activities and establishments in all their forms, including ensuring the validity of data and information in documents and licenses, in addition to educating community members through various media outlets about hidden trade and the penalties and penalties resulting from violating the text of this decision.”
Hazza Al Balushi stressed that the citizen must provide assistance to the concerned authorities and report cases of concealment in order to take legal measures. Thus, the Omani citizen or small and medium enterprises can then practice various activities amid a legal regulation based on legislation, legal foundations and comprehensive control in various fields.
He pointed out that, the hidden trade had a prominent role in standing up to the aspirations of many job seekers, because the full-time and work-loving citizen became in a state of fear and anxiety from the competition of expatriates, and the citizen did not have the ability to stand in front of them or compete with them, and this created a difficult environment for job seekers injoining the market for fear of losing.
He said: “What is mentioned in this regard is the saying of the late Sultan Qaboos bin Said bin Taimour in his meeting with citizens at (Seeh al-Shamkhat on 1/27/2013) where pointed out the subject of hidden trade and stressed on its seriousness, saying: “... most of all, and I hereby say clearly, it is to move away from the hidden trade activities, as it is not in the interest of our sons and daughters, nor in the interest of the adults who see benefit from the expatriate in return for the small money they receive from the expatriate, while this is completely harmful to the national economy, and we must be aware of this matter and give it all attention because it is a loss for this country” .So this is clear evidence of the danger of hidden trade and its wide impact on the state’s economies and growth.”
Abdullah bin Ahmed Al-Dhuhli, a businessman, said: “With no doubt, the hidden trade practised by some foreign individuals in cooperation with some citizens has multiple negative effects.
Al-Dhuhlii pointed out that the decision issued by the Ministry of Commerce and Investment Promotion to combat hidden trade will curb this phenomenon, which has grown in the recent period in all various commercial activities and has had a clear impact on work output and quality, as well as a significant impact on institutions and activities that operate in accordance with the law and in accordance with applicable quality standards.
He added: “Therefore, efforts must be combined among the people of society to combat this phenomenon in order to preserve the country’s economy, the outputs and quality of work, and to preserve the serious Omani and foreign investors alike who work in accordance with the system and the law, explaining that, the phenomenon of hidden trade will compete with these investors due to the absence of fair competition standards, which will inflict financial losses on committed institutions and push them to exit the market in favour of these absurd groups.
Al-Dhuhli emphasised that it has become necessary for every individual in this society to be responsible and has an important role to play in combating such wrong practices, and to be careful not to allow a foreigner to use his name or commercial register to practice hidden trade, pointing out that, the latest decision No. 412/ 2023 issued by the Ministry of Commerce and Investment Promotion came at the right time to address the phenomenon of hidden trade, support serious investors, pave the way for them, and combat those who tamper with the market and trade under the umbrella of hidden trade.
It is worth noting that the hidden trade leads to unfair competition for the owners of small and medium enterprises and enhances the monopoly of foreigners for some commercial activities, while most of the profits of the hidden trade are transferred abroad and increasing the number of cases of commercial fraud.
