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Oman Imposes Ban on Commercial Activities; Cancels Eid Prayers

Oman announced that it is cancelling Eid prayers and Eid souqs and gatherings of any kind in public places, which include beaches and parks during the Eid Al Fitr holidays, which falls on the 13^th through 16^th of May this year.

This also includes a ban on family gatherings and any kind of mass celebrations during Eid.

Commercial Activities Banned, Eid Prayers Cancelled in Oman

Moreover, the country has also suspended the attendance of all employees at workplaces. In line with this, employees are to be working from home during this period. The process takes effect starting Sunday, May 9, for all units of state administrative apparatus and other public legal activities, the Khaleej Times reported.

Meanwhile, the Supreme Committee in Oman has also urged the private entities to implement the process of working online and reducing the number of employees to be present in offices.

#عاجل

اللجنة العليا تصدر قرارات جديدة. pic.twitter.com/ypLjepG9sA

— وكالة الأنباء العمانية (@OmanNewsAgency) May 2, 2021

In line with this announcement, the GCC country will also ban the movement of people and vehicles from 7 pm to 4 am from May 8 until May 15, the state news agency said on Sunday, citing the Supreme Committee for Combating Coronavirus.

Moreover, the government will ban all commercial activity all day during the same period, with the exemption of food stores, gas stations, health institutions, and pharmacies. Delivery services for all goods are also exempted from this ban.

Oman Enacts 5% VAT on Goods and Services

On Friday (April 16), Oman enacted the 5% value added tax (VAT) on several goods and services.

This comes after a six-month transitional period for the application of the tax on most goods and services in addition to goods imported into the Sultanate, with some exceptions specified in the law.

5% VAT Enacted on Goods and Services in Oman

The Oman government has expanded the list of goods subject to zero-rate VAT from 93 basic food commodities to 488. Food commodities subject to zero-rate VAT are vegetables, fruits, legumes, grains, dates, spices, oils, fish, red meat and poultry, among others, The National reported.

In line with this, services such as education, health care, and financial services will be exempt from VAT.

The Sultanate is expected to generate about 400 million Omani riyals ($1 billion) in revenue annually, which is equivalent to 1.5 per cent of the total value of the gross domestic product through the new tax scheme.

Meanwhile, all six Gulf countries agreed to introduce a 5 per cent VAT in 2018 after a slump in oil prices hit their revenues. Saudi Arabia, the UAE and Bahrain have already introduced the tax, with Riyadh tripling it in the previous year.

Oman’s economy was hit hard by the coronavirus pandemic and low oil prices. The sultanate’s economy has shrunk by 6.4 per cent in 2020 but is estimated to make a modest recovery to 1.8 per cent growth this year, according to the International Monetary Fund in February.

According to experts, the Oman government will use the tax revenue to develop infrastructure, provide rebates and fiscal benefits to worst-hit industries and offer relief to pandemic-hit businesses.

Oman to Enforce 5% VAT Starting April 16

Oman is all set to roll out the 5% Value Added Tax (VAT) across the country. Oman is the third in the Arab world to introduce the 5% VAT following the UAE and Saudi Arabia, which both implemented the taxation scheme back in 2018.

The new regulation is expected to generate 1.5% of Oman’s gross domestic product (GDP) and generate approximately 400 million Omani riyals annually.

Oman Next to Enforce 5% VAT After UAE, Saudi Arabia

According to Saud bin Nasser Al Shukaili, Oman’s Director of Taxation, all the preparations and requirements needed to implement VAT are in place. This includes the promulgation of tax-related regulations and the operation of tax computer systems and electronic devices, as well as electronic linking with relevant authorities, Gulf News reported.

The Heath of Tax Authority also approved the Executive Regulations for the Value Added Tax (VAT) Law.

It noted that the five per cent applies to most goods and services, but certain sets of goods and services offered are exempt. In addition to products that are exempt by law, tariffs are also levied on goods imported from the Sultanate.

The list of VAT-exempt products and services includes medical, educational, financial services, basic food and supplies for people with special needs, and other products and services.

“All the necessary preparations and requirements for the implementation of the value-added tax decided on April 16 have been completed in terms of issuing legislation related to tax, operating the tax computer system, and electronic linking with the authorities concerned with the application and strengthening the human cadre in the agency,” Al Shukaili said.

Al Shukaili, emphasized that the VAT is necessary for the current global economic climate, and will approximately generate 1.5 per cent of the value in GDP. “OMR 400 million is expected to be collected annually from the application of this tax,” he added.

Oman Announces Temporary Border Closure to Curb Spread of COVID Variant

Oman Announces Temporary Closure of Land Borders to Curb Spread of COVID-19 Variant

In light of the identification of the new COVID-19 variant, Oman announced that it will temporarily close its borders for a week.

State News Agency ONA announced on Sunday, January 17, that closure will take effect the next day starting at 6 PM (1400 GMT). It noted that the closure may also be extended.

Oman to Close Borders Again to Prevent Spread of New COVID-19 Variant

The article posted by the Arabian Business said that the committee reviewed the report of the specialized technical team on the spread of the new Covid-19 strain and means of protecting all individuals of society against the disease, in general, and the new variant in particular.

“A growing rate of lenience has been observed among citizens and individuals in implementing precautionary measures approved by the authorities concerned. It has been noticed that social events drew about large gatherings in tents and other venues, making it possible for the virus to spread among segments of society,” the report noted.

Oman had recently reopened its land, air, and sea borders on December 29 after the government temporarily shut these borders off due to the new fast-spreading strain of coronavirus, which appeared in the United Kingdom.

To date, Oman has recorded 131,790 cases and 1,512 deaths during the pandemic, with 124,067 recoveries.

Oman Announces Reopening of Borders Starting December 29

As the COVID-19 vaccines are being distributed in most parts of the world, Oman announced that it will reopen all of its borders on December 29 after temporarily closing for one week.

ALSO READ: [WARNING] Break Lockdown Rules in Oman and Face Hefty Fines, Jail Time

On Sunday (December 27), the Supreme Committee tasked with tackling COVID-19, said the borders will be opened at 12am on Tuesday, December 29.

Oman to Allow Entry via its Borders Starting December 29

In line with this, the committee also emphasized that PCR tests will be mandatory for travelers coming to Oman from any part of the world, the Gulf News reported.

It also noted that the government has removed the quarantine procedures for visitors coming for less than 7 days to Oman.

This development comes at the heels of the country kicking off the first phase of vaccinations for its citizens. In the Middle East, Bahrain, Saudi Arabia, and the UAE have also rolled out COVID-19 vaccinations for residents.

The said ban had been imposed following the announcement of a new covid-19 strain found in London and other parts of the world. In relation to this, the government urged all residents and citizens to refrain from traveling unless deemed absolutely necessary.

Oman Minister Announces Plan to Amend Labor, Taxation, and Subsidy Laws

Minister Announces Oman’s Plan to Amend Labor, Taxation, and Subsidy Laws

Oman has announced plans to revise its labor laws, introduce new taxation schemes and put an end to “long-standing” subsidies while ensuring that low-income families are well taken care of, Oman’s prime minister said on Saturday, December 5.

ALSO READ: Oman Releases List of Visas Not to be Renewed for Expats

Recently-appointed Minister of Foreign Affairs Sayyed Badr Al Busaidi revealed during the IISS Manama Dialogue summit in Bahrain that significant changes to labor policy including the abolishment of a requirement that expatriate workers need permission to transfer to a new employer, which is known as the no-objection certificate (NOC).

Oman’s Labor, Taxation, and Subsidy Laws to See Major Changes – Minister

According to the National Center for Statistics and Information (NCSI), the number of expatriates working in Oman has gone down by 17 percent by end of October this year, the Gulf News reported.

The total number of expats working in the Gulf state stands at 1,435,070 compared to 1,712,798 last year.

Figures from the NCSI revealed that 1,138,478 expatriates were working in the private sector till the end of October 2020. The data also showed that there have been 42,895 foreign workers in various government sectors, while 253,697 people were registered in the family and dependents sector.

[WARNING] Break Lockdown Rules in Oman and Face Hefty Fines, Jail Time

The Royal Oman Police on Sunday (October 18), announced that those who are caught violating lockdown rules could face fines of up to OMR3,500, as well as possible jail time.

The advisory was released after the Ministry of Health has registered 1,657 new coronavirus cases and 30 deaths in Oman, bringing the total cases up to 109,953 including 95,624 recoveries and 1,101 deaths.

OMR 3,500 Fine and Possible Jail Time Await Those Who Break Lockdown Rules in Oman

Major Mudhar Al Mazrui of the Royal Oman Police explained that fines for COVID-19 rules start from OMR 100 for not wearing masks, which might reach up to OMR3,500 for not respecting the rules and regulations, The Times of Oman reported.

“This can be done if your case goes to the courts, and the judge can double the punishment as well. You can also go to jail if your cases reach the courts. We are very serious this time in applying all the rules and punishments,” he added.

In line with this, Oman’s Public Prosecution, in collaboration with other government authorities, has administered punishments to those found guilty of violating the rules of the movement ban.

Moreover, judicial courts in Al Buraimi and South Sharqiyah on October 16, ruled that nine people who had flouted these regulations had to pay a fine of OMR1,000.

In line with this, citizens who were found breaking lockdown rules were also sentenced to six months in jail, while deportation orders were issued for the expatriates involved.

Al Mazrui further noted that the ROP had to bring in this lockdown after many in the country were found violating the regulations enacted to stop the spread of the coronavirus in Oman.

Explaining the current situation, Al Mazrui noted: “We could have avoided this if everybody had followed the rules, but according to the statistics we have seen from the Ministry of Health, we were really in need of introducing more curbs, in order to decrease the number of cases, as well to give a break to those working in the medical sector.”

Meanwhile, Dr. Sofiya Al Mughery, a medical officer at the Ministry of Health, agreed with what the ROP said in terms of providing a breather to hospitals in the country dealing with a large caseload of COVID-19 patients.

“The number of admissions to hospitals had really overloaded them, especially when we talk about the ICUs. The burden was very, very high on them, and the lockdown was imposed to control the pandemic by reducing the spread of the virus through infection and to prevent the healthcare system from collapsing,” she explained.

“We all knew that the dramatic rise in the numbers of confirmed cases we have of COVID, as well as the death toll, grew due to the pandemic. As a medical professional, I think the decision taken to impose a lockdown is very timely and very precise,” Al Mughery noted.

ALSO READ: Expats Can Now Buy Properties in Oman

Expats Can Now Buy Properties in Oman

Good news for expats based in Oman! The Ministry of Housing and Urban Planning issued a resolution on Sunday, October 18, allowing expats in Oman to purchase apartment units in multi-storey buildings in the Governorate of Muscat.

The ministry noted that the new system aims to keep pace with global trends to control the movement of funds and their use in the real estate sector in the Sultanate, resulting in various economic benefits as well as a more competitive business environment attractive to investors in the real estate sector.

Oman Approves Resolution Allowing Expats to Purchase Apartment Units in Buildings

In a report shared by the Times of Oman, expats who have stayed in Oman for at least two years are now allowed to own flats and offices in Muscat according to the Ministry of Housing and Urban Planning.

The landmark decision became possible due to a ministerial resolution, easing controls on selling residential real-estate units, and for lands allocated towards residential and commercial uses in some parts of the capital region.

According to a statement from the Ministry of Housing and Urban Planning, “Specifications of the usufruct multi-story residential and commercial buildings will be within the specified sites for sale, and licensed by the Ministry of Housing and Urban Planning after completion of the allocation and construction of the project.”

The decision was proclaimed after the ministry has conducted studies with organizations involved in the country’s real estate market, to stimulate the property sector in the country, which will help promote economic diversification and increase streams of revenue.

It noted that fees incurred by the seller should be three percent of the unit value when applying for usufruct registration, with fees for the beneficiary calculated at five percent of the residential real estate unit value upon registration.

Moreover, the contract can last for up to 50 years, and then be subsequently renewed, such that the total term of this period, after its extension, lasts for a maximum of 99 years.

These properties will be in specified sites and should be licensed by the Ministry of Housing and Urban Planning.

Sales of units shall not exceed 40 percent of the units in multi-floor commercial-cum-residential buildings or 20 percent of a single nationality.

It also noted that it is not allowed to have more than one owner from each nationality in each building. The rest will be floated for purchase by citizens.

Among the areas under the usufruct scheme for expats are phases one, two, and three in Wilayat of Bausher; phase two in Al Khuwair and Wattayah; phases one and two in Ghala Heights, in addition to phase five of South Al Mawaleh, phase two of Al Khoudh, and phase seven of South Al Mabella in Seeb. Al Misfah (phase two) has also been included.

In Wilayat Amerat, phase one of Al Hashiyah, Al Amerat and Al Mahaj, and Al Nahda (phases two, three, four, and five) are also included under this scheme.

ALSO READ: Gov’t Sets New Fees to Apply for Omani Citizenship

Plan Your Holidays: Oman Likely to Observe 2 Long Weekends Next Month

As the year nears its end, citizens and residents of Oman can expect to get extra time off to relax and unwind, as there is likely to be two long weekends next month.

There are less than 20 official holidays declared by the Omani government at the beginning of the year. And the two upcoming holidays in November will be the last for this year.

Oman Likely to Observe Two Long Weekends in November

Residents and citizens of Oman will be able to enjoy the extra days off over the occasion of the country’s National Day, which is observed on November 18, as shared in a report by the Times of Oman. Celebrations will be observed on November 18 and 19 (Monday and Tuesday).

Furthermore, a holiday will also be observed on the birthday of the Prophet Muhammad (PBUH) on the 12th of Rabi Al Awwal, the report added.

The date of the Prophet’s birthday is determined by the lunar calendar and will be officially announced after the sighting of the moon.

As per Oman’s Ministry of Endowments and Religious Affairs calendar, the tentative date for the Prophet’s birthday will be on Saturday, November 9, 2019.

As such, there‘s a possibility that November 10, 2019, could be a public holiday.

According to the report, historically the two National Day holidays are generally clubbed with the weekend in Oman.

In line with this, neighboring countries such as the UAE will observe a one-day holiday on the occasion of Commemoration Day on Saturday, November 30.

Since there aren’t a lot of holidays in the Sultanate, having an extended weekend is a luxury.

Though small, Omanis celebrate their National Day with much pride by going out in the streets to watch fireworks, show off their cars, and join in revelry with friends and family members in singing and dancing.

For Omanis, November 18 is one of the immortal days in the history of Oman as it portrays the glory and pride of the major achievements in the last 40 years and will bring the country towards further development and growth.

Also in commemoration of Sultan Qaboos’ achievements for the country, the people have celebrated their National Day on their leader’s birthday, which is on November 18. And as part of the celebrations, people in different parts of the country usually perform a ‘loyalty march’ and parade through the streets with large portraits of Sultan Qaboos, while singing celebratory songs in praise of the leader.

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First E-Mall Soon to Open in Oman

Online shopping, though very popular in most parts of the world, is still not as big in places such as Oman. However, all that is about to change with the announcement of the first home-grown fully-integrated shopping portal in the Sultanate.

Though still in its infancy, much talk and excitement is building up in the Gulf country as the first e-mall in the Sultanate will soon be introduced in the retail market.

First Omani E-Mall to be Launched Soon

The up and coming shopping portal, Jeeblee Online, is the first-of-its-kind Omani firm to allow consumers to purchase online, according to the Ministry of Commerce and Industry, as shared in a report by the Muscat Daily.

The announcement regarding the e-mall launch was made at the Oman E-Commerce Conference, which was held this week.

As per reports, the E-mall has 60 local and international brands and promises to deliver goods to consumers within 24-48 hours in Oman.

In a tweet, Ali al Lawati, owner of the Jeeblee Online, shared, “The first E-mall in the sultanate has been unveiled. The platform will have a lot of brands and bring shopping to the fingertips of the people.”

The two-day conference where the retail project was announced was attended by executives in the field of e-commerce from across the world.

In terms of retail performance, Oman’s total wholesale and retail trade has seen a steady rise of 2.3 percent compound annual growth rate (CAGR) from 2012 to 2017.

With the Sultanate’s overall economic growth, it has drawn significant investments in the retail sector. Though the current retail landscape in the Sultanate is largely dominated by standalone units, the concept of organized retail in the form of malls and shopping centers are gaining prominence.

At present, the e-commerce market in Oman accounts to only 1% of total sales. It is still a budding market and has ample opportunities to grow in the future.

On the other hand, the global e-commerce market is about to reach US$ 2 trillion by 2020 and have a share of 7.8% of all sales. In developed nations, e-commerce share ranges from 45-80%.

China and India have seen a revolution in e-commerce industry in the past decade. Many companies are established during this time and became billion-dollar companies.

In Oman, however, more than 20% of the population has only made at least one (1) online purchase in 2014. Despite Oman having one of the highest smartphone usages in the Middle East, only 8% of the population engaged in mobile shopping. Most of the items purchased online in Oman are groceries and music products.

According to research, e-shopping Omani consumers spend most of their money on:

Clothing
Airlines
Groceries(Food)
Travel
Beauty Care
Medicine
Coupons
Hotels

Of note, important factors that influence consumer preferences in the Sultanate include ease of use, pricing, customer service, and financial inclusion.

These are just some of the things which e-commerce leaders should look into so as to ensure the success of their business ventures in a relatively new and conservative market such as that of Oman’s.

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