The Wage Protection System is a framework created by the MOL that makes it a legal requirement for all employers in Oman to transfer the salaries of their workers using a specific electronic system through banks and other financial institutions licensed by the Central Bank of Oman. The objective of this system is to ensure that the salaries of workers are paid on time and that there is an electronic record of the transfer of the salaries.

Key changes in the new system include reducing the timeframe for transferring the wages of workers from 7 days to 3 days and introducing new grounds for the exemption from using the wage protection system such as situations where a worker is suspended from work for a reason not attributable to the employer for a period exceeding 30 days.

The new Wage Protection System has already entered into force. You can read it in full in English on the link below:

While the exact provisions can vary, most BITs share several common elements, including the duty to offer foreign investors treatment that is not less favourable than the treatment offered to national investors or investors from other states (national treatment and most-favoured-nation treatment), offer investors fair and equitable treatment, protect their investments against expropriation, and give investors the right to use several dispute resolution mechanisms.

National Treatment and Most-Favoured-Nation Treatment

A key provision in BITs is that the state has a duty to treat foreign investors and their investments at a standard that is not less favourable than the treatment it offers its own national investors or the investors of any other state. This concept has a wide scope and can relate to matters such as legal protections and access to markets in a manner that prevents discriminatory practices that target foreign businesses, including the payment of taxes. The objective of this clause is to create a level playing field and promote fair competition.

Protection Against Expropriation

Expropriation relates to the confiscation by the government of the private property of others. BITs typically include provisions to protect investors from unlawful expropriation of their investment by the government and set conditions for permitting expropriation if it is done for a public purpose, is non-discriminatory, and adheres to due process. Additionally, any expropriation must be followed by prompt, adequate, and effective compensation. In addition to this being translated in article 24 of the Foreign Capital Investment Law, Oman has a comprehensive framework for this in the Law on the Expropriation for Public Benefit.

Dispute Settlement Mechanism

The most critical feature of a BIT is the dispute settlement mechanism that allows an investor to enforce their rights against the host country if the country fails to meet its obligations under the treaty. A standard BIT would allow the investor to make a claim at their choice of venue, including making a claim through an arbitration process before the International Centre for Settlement of Investment Disputes (ICSID).

Conclusion

BITs provide a powerful mechanism for protecting and enforcing the rights of foreign investors. Oman traditionally used to sign these treaties frequently with other states, but the number of new treaties has been declining with the most recent one being Oman-Hungary BIT which was ratified in 2022.

Written by:

Amjad Al-Yahya’ei

Amjad is a legal intern at Decree. He has previously interned in an investment company and in the public utilities sector. He is interested in corporate law, investment law, and dispute resolution. He holds an LLB from the University of Liverpool.

The Oman Net Zero Centre will not be an independent government entity, but a department in the MEM at the level of a directorate general. The decision details the mandates of Oman Net Zero Centre which include preparing and updating the national plan for transition to net zero, providing support and advice to relevant entities and institutions with the aim of achieving net zero targets, preparing the national plan to enhance energy consumption efficiency, approving and registration application for trading in carbon credits, among other functions.

You can read this MEM decision in full in English on the link below:

While the actual Law on the Management of Pastures and Livestock included criminal fines for those who violate the law, the original Executive Regulation of the Law on the Management of Pastures and Livestock of 2005 did not grant the ministry the power to issue smaller administrative fines to hold those who commit small offences accountable for their violations. The new amendment changes this by giving this power to the MAFWR by allowing it to impose administrative penalties, such as issuing a warning, ordering the removal of the violation, or cancelling the licence if a licensee violates any of the provisions of the regulation. The new amendment also gives the ministry the power to impose a fine not exceeding 2,000 Rial Omani for each violation with the opportunity to double this fine if the violation is repeated.

You can read this regulation in full in English on the link below: