As the free zones/special economic zones in Oman continue to grow and attract foreign as well as local investors, we thought of doing an overview of the free zones – their incentives and limitations.
Wednesday, July 10, 2013
Free Zones in Oman - An Overview
Monday, July 8, 2013
Internal Auditors - Role and Functions
The Commercial Companies Law makes it mandatory for various forms of companies to have auditors. While the appointment of an external auditor is mandated in respect of a limited liability company if the company has ten or more partners or a capital of over OMR 50,000 or if the partners representing at least one-fifth of the capital require it, joint stock companies are generally required to have both external and internal auditors.
Thursday, June 27, 2013
The Executive Regulations of the State Audit Law - An Analysis
The State Financial and Administrative Audit Institution (the “Institution”) in the Sultanate of Oman is an independent entity reporting directly to His Majesty the Sultan. It is a governmental institution and has the very critical job of supervising financial and administrative funds belonging to or managed by the State. It is also responsible for protecting public funds, properties and interests by virtue of the State’s Financial and Administrative Audit Institution Law promulgated by RD 111/2011 (the “State Audit Law”) and RD 112/2011 issuing the law on Safeguarding of Public Property and Preventing of Conflict of Interest (the “Law on Public Funds”).
In keeping with the State Audit Law and the Law on Public Funds, the Institution has now issued a Ministerial Decision on 3 April 2013 introducing the new State Audit Executive Regulations (the “Regulations”).
Monday, June 24, 2013
Construction Contracts - Avoiding Common Pitfalls
Over the past decade, our Muscat-based Construction Dispute Resolution Team has advised on numerous disputes between parties to construction contracts. On review of the reasons for why construction contracts ended in dispute, we have identified a number of common themes, and how to avoid these problems.
It is often simple in retrospect (and outside of the pressure to meet project milestones/manage workforce) to identify where problems in a construction project arose. The challenge to running an efficient and financially successful project is to identify the risks at the outset, and put robust procedures in place to avoid potential problems arising. Although some of the recommendations set out below may seem obvious and straightforward, it is telling that, in many of the construction disputes that have crossed our desks, these issues were routinely neglected or poorly executed.
Thursday, June 13, 2013
Important Legal Updates this Month
Omanisation in Insurance Private Sector
Ministerial Decision No. 192/2013 issued by the Ministry of Manpower specifies that the Omanisation percentage in the insurance private sector shall be 65% of the total manpower of the establishment. The Decision is effective from the date following its publication in the Official Gazette.
Amendment to Provisions regulating Collective Negotiation, Peaceful Strike and Shutdown
Ministerial Decision No. 189/2013 issued by the Ministry of Manpower amends some of the provisions regulating collective negotiation, peaceful strike and shutdown. The Decision stipulates setting up of a Committee to facilitate the negotiation procedures. It also provides timelines for settlement of collective labor disputes by the Committee.
Executive Regulations of State Audit Law
Executive Regulations to the State Audit Law (promulgated by Royal Decree No. 111/2011) are issued under Decision No. 13/2013 by the State Audit Institution (“SAI”). The Executive Regulations detail the functions of the SAI, its powers, responsibilities and the rules of enforcement.
Tuesday, June 11, 2013
Related Parties and Approval of Related Party Transactions
CMA Circular 14 of 2012 made changes to the definition of an “independent director” and also led to amendments to the definition of a “related party”.
Monday, June 3, 2013
The Board of Directors' Report
To help ensure the effectiveness of the internal regulations of management of public joint stock companies in Oman, the Capital Market Authority (“CMA”) issued Administrative Decision 4/2002 which requires the board of directors of public joint stock companies to produce a directors’ report for each financial year.
The directors’ report provides an opportunity for the shareholders to review inter alia the company’s performance as well as fiscal information for the past year and to better understand the direction the business will take in the future.
Thursday, May 30, 2013
Impetus to Omanisation in Banking
The Central Bank of Oman (“CBO”) recently issued Circular no. BM 1105 dated 31 March 2013 (“2013 Circular”) which grants further clarity and impetus to Omanisation in the banking sector.
With the overall Omanisation requirement of 90%, the banking sector is one of the highest localized sectors in Oman. According to recent statistics issued by the CBO, most banks in the Sultanate have achieved an overall Omanisation ratio of over 92.5%.
Tuesday, May 28, 2013
Leave Nothing to Chance - The Case for Bespoke Arbitration Clauses
Most projects/transactions thankfully do not end in dispute but, when they do, the first thing a legal adviser will look and hope for in the subject contract is a bespoke and carefully drafted dispute resolution clause. If, at the time of drafting a contract, parties carefully consider the likely type and value of dispute that may arise under the contract, and put thought into how they would like to exit the contractual relationship in the event of a dispute, then the chance of resolving any future dispute economically and successfully is greatly increased.
Internationally, arbitration is becoming a preferred method of dispute resolution. Even in jurisdictions with trusted and efficient (but often overly prescriptive and increasingly costly) court systems, contract parties are increasingly choosing arbitration for the flexibility it can bring to resolving disputes.
Tuesday, May 21, 2013
When Having an Auditor is Required for an Omani LLC
Under the CCL, all Omani joint stock companies are required to have an auditor review
their accounts.
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