Law Updates

New Omani Consumer Cooperatives Regulation

The Ministry of Commerce, Industry, and Investment Promotion has issued this month a new Regulation for Governing Consumer Cooperatives, which allows members of a specific community to establish a cooperative company with the objective of providing and selling goods to that community. Cooperatives that satisfy the requirements of this regulation are entitled to be allocated government land through usufruct.

The new regulation mandates that the cooperative takes the form of a closed joint stock company, requires the approval of the governorate in which it intends to operate, requires that natural persons own at least 75% of the shares of the company, and sets the shareholding of each natural person in the company to a maximum of 5% of its total shares. The regulation permits one strategic partner with expertise in the coop industry to own a maximum of 25%.

The regulation requires cooperatives to obtain a licence from MOCIIP in order for them to operate, and requires MOCIIP to coordinate with the Ministry of Housing and Urban Planning to allocate government land to such cooperatives through usufurct.

The regulation was published in this week’s issue of the Official Gazette and comes into force after three months.

You can read it in full in English on the link below: