Tuesday, April 15, 2014

Legal Updates

Ministerial Decision issuing Executive Regulations of Al Mazyoona Free Zone

The Ministry of Commerce and Industry issued Ministerial Decision No. 3/2014 issuing regulations for the operations of Al Mazyoona Free Zone. We are in the process of analyzing the regulations and may have an article in the coming month.

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Friday, April 11, 2014

Leave Entitlement Under Labour Law

The Omani Labour Law (promulgated by Royal Decree 35/2003, as amended) (“OLL”) covers leave entitlements available to employees working in Oman.

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Tuesday, April 8, 2014

UN Convention Against Corruption and Anti-Money Laundering

Last month, we discussed Oman’s ratification of the UN Convention against Corruption (the “UN Convention”) endorsed by Royal Decree 64/2013; the existing legislations in Oman against corruption; and the measures to be adopted by the Government in the public sector, private sector and the judiciary to prevent corruption in accordance with the guidelines specified in the UN Convention. In this article, we summarise certain aspects of Oman’s existing legislation relating to anti-money laundering and discuss the link between provisions of the existing legislation and the UN Convention.

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Thursday, April 3, 2014

Mediation Process: An Overview

Although mediation remains a largely unexplored dispute resolution mechanism throughout much of the GCC, it could certainly be a useful method for disputing parties to reach an amicable and expeditious resolution. This article will provide an overview of the mediation process, the role of the mediator, and will briefly discuss some of the benefits to mediation.

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Tuesday, April 1, 2014

The Foreign Account Tax Compliance Act

FATCA stands for The Foreign Account Tax Compliance Act (“FATCA”) which was approved by the US Congress in March 2010. The law was scheduled to become effective from 1st January 2014, but the effective date has been postponed until 1st July 2014. This sweeping new law and its extraterritorial application is already influencing the behavior of Omani and other GCC banks and financial institutions and imposing structural, legal and commercial challenges on them to be compliant.

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Monday, March 31, 2014

Legal Updates

Ministerial Decisions Stops the Issuing of fresh visas to non-Omanis


The Ministry of Manpower issued two Ministerial Decisions No. 617/ 2013 and 618/2013 regulating certain professions. As per MD 617/2013, no work permits will be issued for a period of six (6) months to private sector companies whose core business activities are:  carpentry workshops, aluminum workshops, blacksmithing workshops and brick factories. This decision is not applicable to establishments registered under the excellent grade category and the international grade companies. The decision is effective from 1 January 2014.

MD 618/2013 provides that non-Omanis will not be issued work permits to work as car engineers, debt collectors, cashier and storekeepers.  MD 618/2013 does not specify any period of time for this restriction. The MD also does not specify that establishments registered under excellent grade category and international grade companies are excluded. The decision is effective from 1 January 2014.

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Friday, March 28, 2014

Warranties Under the Civil Code

The Omani Civil Code, promulgated by Royal Decree 29/2013, has provided clarity and guidance on several key facets of commercial and civil transactions. One key area relates to warranties.

This article provides an overview in this regard.

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Monday, March 24, 2014

Liability of Directors in Omani Companies

The Code of Corporate Governance

The Code of Corporate Governance (the “Code”) issued by the Capital Markets Authority and the Commercial Companies Law of Oman (promulgated by RD 4/74, as amended, “Company Law”) outlines the responsibilities of ‘Directors’ in Omani Companies and the liabilities which extend to them in this position. The Company Law applies to all joint stock companies and the Code is mandatory but only applies to public companies listed on the Muscat Securities Market.

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Friday, March 14, 2014

Focus On: DUQM Special Economic Zone

In 2011, the Duqm Special Economic Zone (“SEZ”) was created pursuant to Royal Decree 119/2011. The aim of the SEZ is to contribute to the country’s GDP, to enhance the employment opportunities for Omanis and more importantly to boost the social and economic development of Wilayat Duqm. Since 2011, the SEZ continues to offer many opportunities for both Omanis and foreign investors.

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Wednesday, March 12, 2014

Due Diligence - The Devil is in the Details

We continue our series of articles on acquisitions by looking at the topic of due diligence.

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