The Oman Authority of Partnership for Development (the “Authority”) was established by RD 9/2014 and is affiliated with the Ministry of Commerce and Industry (“MOCI”). It was set up to ensure that offset obligations are applied to all large civilian and military procurement contracts with foreign companies and Omani companies where foreign content is involved. These offset obligations are applied through the Partnership for Development (“PFD”) program established by the Authority. Various other offset programs linked to large military procurement contracts have been applied successfully by other GCC member States for decades, including notably in the UAE and Saudi Arabia. They have also been used successfully by other countries including but not limited to Turkey, The Netherlands, Spain, Morocco and Indonesia.'
What is an Offset Obligation?
Offsets span a range of compensation arrangements required by a foreign government as a condition for the purchase of defence or civilian goods or services from a foreign supplier. The arrangements are usually wide ranging such as investments in local industries, local production requirements and various joint ventures. When countries spend a large part of their government budget buying defence equipment from foreign suppliers or awarding mega infrastructure projects, they demand that the suppliers enter into offset agreements in order to gain economic benefits from their expenditures.
Tuesday, January 26, 2016
Offset Obligations Under the Oman Authority Of Partnership For Development
Wednesday, January 20, 2016
Choosing Your Arbitration Rules
As many readers would be aware, on 23 November 2015, Peter Wolrich, Partner, Curtis Paris, and Jean- Claude Najar, Counsel, Curtis Paris presented a publication titled “ICC International Arbitration Toolkit: How to run a cost-effective and time-efficient arbitration.”
The speakers are well qualified to speak on the publication, given their extensive involvement with the ICC. For those that were unable to attend, the publication provides practical tools and tips for making time-efficient, cost-effective decisions at key points in a dispute, from pre-arbitration through settlement considerations to the hearing itself.
One question from the audience was in relation to choosing the type of arbitration one might specify in a contract. As the panel explained, appointing bodies charge fees on different bases, and this may be a factor in any decision made. For example, the costs payable to arbitrators and the ICC in relation to arbitration in accordance with the ICC Arbitration Rules will be calculated primarily based upon the amount in dispute. On the other hand, the costs payable in relation to an arbitration in accordance with LCIA rules will be determined using hourly rates. Hence, it may ultimately be cheaper to have a complicated construction dispute decided via the ICC Arbitration Rules, whereas it may be cheaper to have a straightforward claim decided via the LCIA Arbitration Rules.
Wednesday, December 23, 2015
When An Employee Discloses Confidential Information or Makes False Disparaging Remarks About An Employer
This article provides a brief summary as to the basis upon which an employer can terminate an employee’s service in the event the employee commits a breach of confidentiality or makes disparaging remarks about the employer.
In short, and perhaps unsurprisingly, an employer can fire an employee for disclosing confidential
information or for making disparaging remarks about the employer in public.
In a recent Omani Court case, an employer had been notified by a third party about one of its employees who was heard making disparaging remarks about the company in a public place. Moreover, the third party also stated that they had overheard the employee misuse confidential information.
Friday, December 18, 2015
Terminating An Employment Contract For Gross Misconduct: An Employer's Practical Guide
Whilst Omani Courts are generally inclined to be highly protective of employees, a recent Appeal Court decision has re-affirmed the long-recognized position that an employer can terminate the employment of an employee who has committed acts considered by the Omani Labor Law to be acts of gross misconduct without having to pay damages (indeed, the Omani Labor Law provides that in the specified cases the company need not provide notice or pay end-of-service gratuity either). An act of gross misconduct can include, for example, using a false identity, intoxication or assault at the workplace, or continued absenteeism.
Pursuant to Article 40(9) of Royal Decree 35/2003 (as amended) (the “Labour Law”), an Employer is authorized to dismiss an Employee without prior notice should that Employee “commit a major violation of his duty agreed upon in his employment contract.” The law does not define what constitutes a “major violation” and Omani Courts have interpreted the definition in a wide manner.
Monday, December 14, 2015
Importation Of Food Into Oman – What You Need To Know
In order to avoid potential problems in the clearance of your merchandise, understanding Omani customs laws is very important. This article sets out the rules and regulations that are relevant for an importer of food products.
Importation of food products into Oman is governed by the Uniform Customs Law (“UCL”) of the Arab Gulf Cooperation Council (“AGCC”) issued by Sultani Decree No. 67 of 2003.
Oman has signed a free trade agreement with the United States and, therefore, imports of nearly all U.S. products are duty-free, provided the products are for consumption in Oman. The UCL imposes a five percent ad valorem duty on almost all products imported from non-GCC countries. However, live animals, fresh fruits and vegetables, seafood, grains, flours, tea, sugar, spices and seeds for planting are exempt from customs duty. Tobacco, pork, and alcohol products are assessed at 100% customs duty.
When a shipment reaches Oman, the importer on record (i.e., the owner, purchaser, or licensed customs broker designated by the owner, purchaser, or consignee) will file entry documents for the goods with the Directorate General of Customs (“Directorate”). Documents that are required to be submitted to the Directorate include:
Wednesday, December 9, 2015
What Does The EU's Proposed "Investment Court System" Mean For The Rest Of The World?
On 12 November 2015, the European Commission transmitted its proposal for an Investment Court System (“ICS”) that would replace the investor-State dispute settlement (“ISDS”) mechanisms in its future trade and investment agreements, starting with the Transatlantic Trade and Investment Partnership (“TTIP”) agreement being negotiated with the United States. Although the ICS proposal may, for now, be a matter between the EU and US, it constitutes a major reform initiative that should be of interest to other States and their investors.
What is the European Commission Proposing?
The current ISDS system provides for foreign investors to submit disputes concerning the host States’ treatment of their investments for resolution by international arbitration tribunals. These tribunals are established on an ad hoc basis, typically with each side appointing one arbitrator and the presiding arbitrator appointed by agreement or by an independent institution, such as the International Court of Justice. The decisions of the tribunals are binding, and are generally subject to very limited and decentralized appellate review.
Friday, December 4, 2015
Welcome to Dominic Pilkington
We are pleased to announce that Dominic Pilkington has joined the Litigation Team as Counsel.
Mr. Pilkington has over 20 years’ experience in building and construction law, construction disputes, arbitration, mediation and adjudication. Further, prior to becoming a qualified lawyer, Mr. Pilkington was a qualified civil and structural engineer.
Mr. Pilkington has worked extensively in both Australia and Dubai, advising and assisting major developers, contractors, and energy and resources companies in relation to various major construction and infrastructure projects, particularly in relation to disputes that have arisen during the course of such projects.
Monday, November 30, 2015
Legal Updates - November 30, 2015
Royal Decree 35/2015: The Law on Regulating the Profession of Pharmacology and Pharmaceutical Establishments
RD 35/2015 promulgates the law regulating the profession of pharmacists and pharmacies (the “Pharmacy Law”). The Pharmacy Law introduces a number of measures designed to protect Omani pharmacists from foreign competition and to prevent the formation of monopolies in the pharmaceutical sector.
Such measures include limiting the number of pharmacies an individual may open to one, restricting the number of branches that any given pharmacy may open, and stipulating the minimum distance between pharmacies.
Article 11 provides that either the owner of any pharmaceutical establishment or one of his partners must be an Omani partner. The Minster of Health may waive the requirement for a pharmaceutical qualification in areas where pharmaceutical services are scarce.
It is hoped that the law will help Omani pharmacists find jobs in pharmacies, increase the availability and distribution of pharmaceutical services over a greater area, and encourage investment in the sector.
Monday, November 23, 2015
Law of Muscat Municipality
In line with new plans for a complete restructuring of the strategies and objectives of Muscat Municipality (the “Municipality”), 3812015 came into effect on the 13 October 2015, thereby replacing the RD 8/1992.
The new law aims to achieve greater efficiencies. It specifies that the Municipality shall achieve its objectives by utilizing the funds allocated to it by the State, the profits incurred from its investments and the general revenue that the Municipality collects from fees and charges.
Monday, November 16, 2015
Enforcement of Omani Court Judgments and Arbitration Awards in Commercial Disputes Process and Procedure
The Enforcement Department is a separate authority within the Omani Primary Courts which overlooks all aspects of enforcement.
Each Primary Court in the country is furnished with at least one enforcement judge who is also a member of the Primary Court judge panels.
Enforcement judges have jurisdiction to review all disputes, applications and requests in relation to enforcement of judgments / awards as well as any preliminary and emergency applications in ongoing commercial cases involving matters under their jurisdiction.
