Rent relief hope on horizon as businesses reopen in Oman

Muscat: Shopkeepers and business owners in Oman are hopeful that the new schemes planned for them to be able to pay their rents will help them.
The news was announced by Dr Ahmed bin Mohammed Al Saidi, the Minister of Health, and a member of the Supreme Committee to deal with COVID-19, who added that since many establishments had reopened, more schemes to help tenants and landlords would be announced soon.
Several establishments have only recently reopened, having been temporarily shut to stop the spread of COVID-19 in Oman. During this period, many businesses were exempt from paying rent, with the minister confirming that tenants did not have to pay the amount due to their landlords for the duration of their closure.
Renjit, an expat who’s been living in Oman for 27 years, and runs a laundry facility, said, “When we were closed, our landlord did not take money from us, and we are very grateful for this. Our rent is about OMR220 per month, but we hope that the government will provide us with the facilities to wait until the market recovers, so that we can then cover all our financial obligations with the income we get.
“Although we have reopened our shop, there are concerns about COVID-19 from the people who come to us to get their clothes washed,” he added. “Earlier, we used to get about OMR15 to 25 a day, but now we only get between four and 10 rials. It is tough to run things with this limited income, as we also need to send money to our families back home, and the four of us in this shop need to meet our expenses here as well.”
Salim, who works as a barber, added, “We are grateful that the government has decided to announce schemes to help us. Our monthly rent is OMR120, but during the pandemic, our landlord was kind enough to not ask us for this sum. That exemption was indeed required.
“But now because of the need to use globes, masks and disposable single-use items that cannot be utilised for more than one customer, my expenses have risen,” he admitted. “I hope we are given time for the market to stabilise. Earlier, I used to earn about OMR20 to 30, but now I manage only about four rials a day.”
Issuing clarification over the payment of rents by tenants to their landlords, the Minister of Health had said: “Myself and the other members of the Supreme Committee receive a lot of inquiries in this context, so I would like to clarify something. There is a law that governs the relationship between a lessor and a tenant, regardless of the type of establishment, whether it is a restaurant or a store, or any other.
“If it is closed under orders from the government due to an epidemic or any other given reason, during the period of closure, the tenant has the right to not pay rent to the lessor,” added Al Saidi. “This is the law, but unfortunately, neither the tenants nor the lessors are always aware of it.”
“The incentives and measures we have in place at the moment will continue for individual tenants, as well as commercial and industrial activities affected by COVID-19, until such time as the government considers the situation having returned to normal,” said the minister. “Some incentives will be announced during upcoming meetings of the Supreme Committee.”
Commenting on the minister’s words, Tariq Al Eisa’ei, a lawyer from Sohar, told Times of Oman that there were also laws governing the payment of rent under such circumstances.
“According to the Civil Transactions Law, within Article 550, it states that if there is a decision issued by the competent authorities that prevents the complete use of a leased space because of no wrongdoing by a tenant, then rent can be cancelled or dropped from the time it is prohibited to use this space,” he explained.
“If this impacts the benefit to the lessor, the rent due by the tenant can be waived, for a period announced by the former,” added Al Eisa’ei. “But this law has been organised in such a manner that only a judge can enforce its application. The judge will interpret these laws on a legal basis, and will issue his ruling at the Court of First Instance. If neither party is satisfied with the outcome, they can appeal again, in the Court of Appeal. If they are still not satisfied, they can wait until the Supreme Court announces its verdict.”
He added that although many establishments had been required to shut during the pandemic, the impact of business lost was different between them.
“There is a difference among those who have been fully, and those who’ve been affected partially by the pandemic,” said Al Eisa’ei. “The judge will pass his decision on the basis of the degree of damage suffered by the business during the period of closure. Laundry and barbershops for example have been closed for longer periods of time, and have been more affected by the pandemic, compared to, say, restaurants, which have only had a partial impact on businesses.”