Wednesday, April 29, 2009

Doing business in Oman: Alternative Energy

A study on renewable energy sources commissioned by the Authority for Electricity Regulation (AER) has found that the level of solar energy density spread throughout Oman is among the highest in the world, capable of generating more than enough electricity to meet domestic requirements and allowing for the export of any surplus. It also identified wind energy potential in coastal and mountainous areas of Salalah comparable to inland Europe where large numbers of wind turbines are operational.

The study has recommended the creation of a national authority to administer clean development mechanisms to assist renewable energy investment and policies. The international consultant conducting the study also assessed the potential of biogas, geothermal and wave energy.

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Monday, April 27, 2009

FTA Alert: GCC-South Korea FTA

Leaders from the GCC and South Korea recently held talks in an effort to finalize a GCC-South Korea Free Trade Agreement (FTA) by the end of this year. The GCC is South Korea’s second largest trading partner, just after China. The FTA is expected to result in a 400% increase in South Korean investments in the UAE, with similar increases expected in Oman.

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Thursday, April 23, 2009

Focus On: Hormuz Oil Spill

In the early morning of March 20, 2009, two U.S. Navy vessels, the USS New Orleans (an amphibious assault ship) and the USS Hartford (a nuclear powered submarine), collided in a highly unusual incident in the Strait of Hormuz, between Oman and Iran. Both ships were damaged, and 15 soldiers were injured, though none of them seriously.

Neither ship was disabled by the damage sustained and the nuclear reactor aboard the Hartford remained uncompromised. The USS New Orleans, however, ruptured its fuel tanks and spilled 25,000 gallons of diesel fuel into the Arabian Gulf.

While diesel fuel was visible from the surface shortly after the accident, an aerial search conducted by the U.S. Navy that day found that the spill had disappeared from view. A Navy spokesman suggested that due to its low density, the fuel had likely dissipated.

Others sources speculated that the spill could have taken a trajectory toward Musandam, a popular resort destination in Oman considered by some to be an ecotourism treasure.

At this point in time, there have been no reports of environmental damage in the area around Musandam. Nevertheless, the incident raises the question: who may be held liable for environmental or ecological damage resulting from accidents at sea?

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Tuesday, April 21, 2009

FAQ: What is a credit bureau?

Many recent news articles have reported on the opening of the first private credit bureau in Oman. These reports raise the questions of what exactly credit bureaus do and what does the opening mean for Oman?

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Monday, April 13, 2009

Associate Sarah Hestad to Speak About IP in Oman

Curtis Oman will be presenting at an upcoming seminar and workshop regarding intellectual property protection on April 13th and 14th at the Knowledge Oasis Muscat. Associate Sarah Hestad from the Oman office will give a presentation on practical considerations for protecting intellectual property in Oman. She will also outline the local legal framework for copyrights, trademarks, patents, and trade secrets and discuss case studies and examples for how companies protect their intellectual property in Oman. This is the first seminar of its kind in Oman. Other presenters include a senior official from the European Patent Office and a senior official from the Intellectual Property department of Oman's Ministry of Commerce and Industry. For more information about the seminar, please click here.



Thursday, April 2, 2009

Doing Business in Oman: End of Service Benefits

Companies and employees both should be aware of their rights and obligations when an employee leaves the company. For example, depending on the individual circumstances, the company will probably be required to pay an “end of service benefit” to the employee. Article 39 of the Labor Law (Royal Decree 35 of 2003) states that expatriate employees are generally entitled to an end-of-service gratuity payment on the termination of their employment contract and provides the calculation for the gratuity. The gratuity is calculated as follows:

Length of Employment

Gratuity

1 to 3 years

15 days basic salary
for each year of service

3 years or more

1 month basic salary
for each year of service


The gratuities are calculated based on the final basic salary, and any fraction of a full year is paid on a pro rata basis. No end of service benefit applies to employees who have been employed for less than a year.

If the employer establishes and operates a separate fund scheme approved by the government, then the expatriate employee may be entitled to receive the higher of the amounts payable under Article 39 or the separate fund payments, but not both.

Foreign companies operating in Oman or seconding employees to Oman should take steps to avoid possible “double dipping” by employees. This could happen to if an employee attempted to take advantage of a pension scheme operated by the employer outside of Oman, as well as the benefits payable under Article 39.

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