What Is a Law?

Think of a law as the foundation. It is primary legislation: the binding rules issued at the highest level of Oman’s legislative system. Laws are issued by His Majesty the Sultan by royal decree, after the draft has been presented to Majlis Oman, which is made up of Majlis Al-Dawla and Majlis Al-Shura. They take effect on the date the decree sets, usually the day after publication in the Official Gazette.

A law deals with substance: what rights and obligations people have, which institutions enforce them, and what offences and penalties apply. Under the Basic Statute of the State, there is no crime and no penalty except by law, so criminal liability always has to come from a law, never from a regulation alone.

What a law usually will not do is get into the operational detail. It hands that job on to a regulation. Royal Decree 53/2023, which issued the current Labour Law, is a good example: it directs the Minister of Labour to issue the executive regulation and the decisions needed to put the law into practice.

What Is a Regulation?

If the law is the foundation, the regulation is the instruction manual. A regulation is secondary legislation: binding, detailed rules made under a law to put it into effect. It is issued by ministerial decision of the competent minister or authority, and only where a law gives them that power. The type you will meet most often is the executive regulation, which implements one specific law.

The Commercial Companies Law, issued by Royal Decree 18/2019, shows how this works. Its regulation came through Ministerial Decision 146/2021 of the Ministry of Commerce, Industry and Investment Promotion. Look at its preamble and you will see it cites the Commercial Companies Law as its legal basis, as every regulation must.

This is where the practical answers live: procedures, documents, fees, deadlines and technical standards. But a regulation can only reach as far as its law allows. Public joint stock companies, for instance, fall outside that regulation and follow separate rules issued by the Capital Market Authority.

How They Differ

Start with where each one comes from. A law is issued by His Majesty the Sultan by royal decree, after presentation to Majlis Oman. A regulation is issued by a minister or competent authority by ministerial decision, and only because a law has given them the power to do so.

They also do different jobs. A law decides the rules: who holds which rights and duties, who enforces them and what happens if they are broken. A regulation shows how those rules work day to day, through procedures, forms, fees and timelines.

Then there is rank, which matters most when things go wrong. A law draws its authority from the Basic Statute of the State; a regulation draws its authority from the law. So a regulation cannot contradict the law, add obligations the law does not allow or stray into matters the law never delegated. If the two clash, the law wins.

They change at different speeds, too. Amending a law takes another royal decree, but a regulation can be updated by ministerial decision. That is why regulations shift more often, and why it pays to check them regularly.

Finally, do not expect them to arrive together. More than two years passed between the Commercial Companies Law and its regulation. To bridge gaps like this, the decree issuing a new law usually keeps older regulations in force as long as they are consistent with the new law, as Royal Decree 53/2023 did for the Labour Law.

The Bottom Line

Whether you run a business or advise one, read the law and its regulation as a pair. The law tells you what you must do; the regulation usually tells you how. Check that the regulation rests on a proper legal basis, and make sure you are working from the latest version of both. Read one without the other and you only have half the picture.

Written by:

Layan Al-Dhakhri

Layan is a legal intern at Decree. She has previously interned in the aviation sector and in local and international law firms. She is interested in corporate law. She holds a LLB from Cardiff Metropolitan University.

Royal Decrees

Royal decrees sit at the top of Oman’s legislative pyramid, just beneath the Basic Statute of the State. They are issued by His Majesty the Sultan and are the vehicle through which laws are issued, international agreements are ratified, ministries and public bodies are created or restructured, and senior officials are appointed.

When a royal decree issues a law, the law itself is usually attached to the decree. The decree’s own short articles handle the practical matters: repealing older legislation, keeping existing regulations in force until replacements are issued, and naming the minister responsible for issuing implementing rules. Draft laws generally pass through the Council of Oman before they reach this stage.

A royal decree takes effect according to its own terms: some from the date of issuance, others from the day after publication in the Official Gazette, and some after a set number of months or years. No ministerial instrument can override a royal decree.

Ministerial Decisions

A ministerial decision is the formal legal instrument used by ministers to issue executive regulations, procedural guidelines, licensing conditions, fee structures, and administrative appointments. Ministerial decisions are issued by ministers, or by heads of public authorities with equivalent powers, to put laws into practice.

A minister can act only within the scope granted by a law or royal decree, and a decision must not contradict its parent legislation.

Ministerial decisions that set general rules are published in the Official Gazette and bind everyone they address, such as companies, individuals and government bodies. For most businesses, these are the instruments that shape day-to-day compliance, because they hold the operational detail that laws leave out.

Circulars

Circulars are administrative instructions. A ministry or authority uses them to explain how it will apply existing rules, set procedures for its staff, announce deadlines, or clear up points that have caused confusion. They are usually not published in the Official Gazette, and instead they are posted on the issuing body’s website or sent directly to the sector concerned.

In principle, a circular cannot create new legal obligations or amend a law or decision. In practice, it often signals exactly how a regulator will act, so ignoring one is risky, especially where a regulator has legal power to issue binding instructions to the entities it licenses, as the Central Bank of Oman does for banks.

How they fit together

The order of authority runs from the top down:

1. The Basic Statute of the State
2. Laws and royal decrees
3. Ministerial decisions and regulations
4. Circulars and administrative instructions

When two instruments conflict, the higher one prevails, and among instruments of the same rank a later one generally prevails over an earlier one. A circular that contradicts a ministerial decision should give way to the decision, and a decision that contradicts a law should give way to the law.

The practical lesson is to read these instruments as a chain. Start with the royal decree and the law it issues, check the ministerial decisions that implement it, then look at any circulars for how the regulator applies them today.

Written by:

Layan Al-Dhakhri

Layan is a legal intern at Decree. She has previously interned in the aviation sector and in local and international law firms. She is interested in corporate law. She holds a LLB from Cardiff Metropolitan University.

Equality before the Law

Equality forms the foundation upon which all the other rights are built. Article 21 of the Basic Statute of the State states that all citizens are equal before the law and have equal public rights and duties. No one may be discriminated against on grounds of sex, origin, colour, language, religion, sect, place of residence, or social status. In practice, the same rules apply to everyone, whether they are a government minister or a shop owner. Article 15 of the Basic Statute adds that the state guarantees equal opportunities among citizens and equality between women and men.

Freedom of Opinion and Expression

Article 35 guarantees freedom of opinion and expression. This freedom allows people to share ideas, discuss public matters, and contribute to the development of society. It covers expression through speech, writing, and all other means, and article 37 extends similar protection to the press, printing, and publishing. However, like most rights, these freedoms operate within the limits of the law. Article 37 prohibits content that leads to discord or hatred, threatens state security, or offends human dignity. Sharing a view on a new policy is protected; stirring up hatred is not.

The Right to a Fair Trial

Everyone has the right to go to court to protect their rights. Under article 30, the state must make courts accessible and ensure cases are decided quickly. Article 26 provides that no one may be punished except under a law that existed when the act was committed. In addition, article 27 states that any accused person is presumed innocent until proven guilty in a legal trial that provides the guarantees needed for a defence. Furthermore, as stated by article 28, the accused has the right to appoint a person capable of defending them. These protections help ensure that judgments are based on evidence and law, not rumours or pressure.

The Right to Education

Article 16 recognises education as a right for every citizen. Its aims include building the Omani character, preserving national identity, and encouraging innovation. Education is compulsory throughout the primary level, and the state encourages private schools under its supervision. It also commits to combating illiteracy and to giving everyone equal access to higher education based on merit. For families, this means every child is entitled to an education that prepares them for life.

The Right to Work

Work is both a right and an honour under article 15, and every citizen may choose their work within the limits of the law. No citizen can be forced to work except under a law, to perform a public service, for a specific period, and for fair pay. The State must pass laws that protect workers and employers, regulate their relationship, and ensure safety and health at work. Article 14 adds that the state aims to provide citizens with work opportunities.

Conclusion

Understanding these five fundamental rights is essential to knowing the protections that the Basic Statute of the State guarantees. Equality, free expression, fair trials, education, and work shape how people live, learn, and resolve disputes. However, these are only some of the many rights the Basic Statute of the State provides, and reading it in full is the best way to understand the complete range of protections it offers.

Written by:

Layan Al-Dhakhri

Layan is a legal intern at Decree. She has previously interned in the aviation sector and in local and international law firms. She is interested in corporate law. She holds a LLB from Cardiff Metropolitan University.