Sunday, October 25, 2015

Legal Update - New Regulation on the Public Establishment for Industrial Estates

Royal Decree 32 of 2015 (the “RD”) promulgates the new Public Establishment for Industrial Estates Regulation (the “New Regulation”) which repeals Royal Decree 4 of 1993 which promulgated the regulation that used to govern the Public Establishment for Industrial Estates (“PEIE”).  The RD was issued on July 21, 2015 and came into effect on July 27, 2015.

It is evident from the wording of the New Regulation that emphasis is given to social development and it is intended to go hand-in-hand with the planned economic development to achieve a comprehensive and sustainable economic and social development.


Thursday, October 15, 2015

IPOs from a Family Business Perspective - Pre-IPO Legal Due Diligence

The GCC region has a high number of family run businesses. Recently Oman has witnessed a growing interest amongst such businesses to opt for an IPO. To initiate an IPO, an internal decision must be made by the shareholders. Once the decision has been made to pursue the IPO, the legal advisor has an important role to carry out comprehensive legal due diligence with the cooperation of management and shareholders. Due diligence is critical to examine the business’s legal risks such as its corporate and tax position, major contractors with suppliers and customers, and debts and liabilities. 


Monday, October 5, 2015

Mining and Mineral Activities in Oman

Together the Mining Law and Executive Regulations govern mining activities in Oman. There are various types of mining licence which include: (1) exploration; (2) drilling; (3) mining of which there are six categories; (4) sustenance; and (5) mining concession. Any license holder has the right to carry out exploration, drilling, development or mining operation in accordance with the license issued, as outlined in the Client Bulletin. The Ministry of Commerce and Industry is responsible for granting licenses and also suspension and cancellation of any right to mining.


Thursday, October 1, 2015

Purchasing a Business in Oman: Asset Purchase or Share Purchase?

To acquire a business in Oman through an Asset Purchase the purchaser will need to have a legal presence and commercial registration in Oman, whereas a Share Purchaser does not. A Share Purchaser may also be administratively quicker and cheaper than an Asset Purchase. In addition, there are other concerns that may affect an Asset Purchaser such as assigning lease contracts and the transfer of employees and maintaining Omanisation requirements.