Real estate sector calls for creation of support fund in Oman

Muscat: Real estate developers and property renters in Oman have requested for creation of a fund to provide them financial relief during these tough, unprecedented times.
The request was made to the Oman Chamber of Commerce and Industry (OCCI), during a meeting organised by the body to ask people involved in the real estate sector about the challenges they have faced during the COVID-19 pandemic, so that solutions may be found to ease their difficulties.
The creation of this fund is one of many solutions suggested by property owners and tenants, with the suggested means of funding being contributions from private organisations and members of the public, similar to the recently-established Job Security Fund.
Other solutions suggested included an alternative method for dealing with rent defaulters, making it easier for renters to pay their money online, and for shopping centres and malls to pay a percentage of the money earned from sales as rent, as opposed to the fixed rental fees currently imposed on them.
The meeting was organised by the Oman Chamber of Commerce and Industry as part of its attempts to solve the problems encountered by the various economic sectors in the country.
It was held by the OCCI’s SME, and its Real Estate Development and Contracting committees, and focused on reducing the burdens faced by tenants who rented properties in the country. One of the suggestions made during the meeting was to distinguish between the different categories of tenants and landlords.
Tenants would be distinguished on the basis of the property they were renting, and the purpose for which they’d decided to rent it, such as residential, commercial, industrial, or tourist activities.
The aim of the meeting was also to come up with clear, practical solutions that counter the negative impacts faced by the real estate market. As part of this, a number of financial models were looked at.
A number of challenges facing all parties involved in the real estate were identified, including the financial responsibilities faced by SMEs in terms of paying their rent, their concerns over what legal and financial aid would be provided them, and how the new regulations and proposals were to affect tenants.