In line with the phases, the circular states that banks should conduct a comprehensive assessment, and based on this they should develop a detailed ESG implementation plan approved by the bank’s board to be submitted to CBO by 30 June 2025.

The circular contains an annex, which sets out the requirements and recommendations that banks should adopt to promote sustainable and green financial practices. Examples of these requirements and recommendations are that the bank’s board and senior management should oversee climate-related and environmental risks and how this oversight should be implemented.

There are many ESG requirements and recommendations set out by CBO that banks in Oman should be aware of, you can read the ESG circular on the link below:

These cases are:

1. When a non-profit association pays tax on the goods and services it receives that are directly related to charitable activities.
2. When a non-taxable person pays tax upon import in excess of the tax due.
3. When tax has been collected on imported goods in the event that they are re-exported and the GCC Unified Customs Law stipulates for the refund of the customs tax if it has been collected.

The schedule also contains a column detailing the procedures for claiming the VAT refund for each case.

The amendment entered into force yesterday, i.e. 30 October 2023.

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

Prior to the issuance of Decision 107/2023, obtaining environmental permits was governed by two separate instruments: the Regulation Governing Environmental Requirements for Service and Industrial Activities issued by Ministerial Decision 16/2010 and the Regulation Governing the Issuance of Environmental Permits issued by Ministerial Decision 48/2017, both of which have now been repealed by Decision 107/2023.

Even though Decision 107/2023 replaces two separate instruments, this new decision is actually shorter as the Environment Authority has simplified the regulation and also removed the actual table of classification of the activities (Class A, B, or C activities) from the decision stating that they will be issued by a separate instrument. It is unclear whether this instrument will be published in the Official Gazette.

The new regulation introduces a number of changes including not restricting Class B permits to activities taking place in the areas of the Public Establishment for Industrial Estates, free zones, and approved ports; modifying the fees and guarantees for obtaining permits—with the most significant change being the increase of the guarantee for the permit for mining gold and other metals from 30,000 Rial Omani to 50,000 Rial Omani; placing new limitations in regard to the grounds on which the authority may require a project owner to conduct an environment audit and other specialised studies; and imposing new obligations on the project owner including establishing an environmental register and providing environmental monitoring reports.

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

Mining licensees are now obligated to contribute 1% of their total annual production for local community development. This amount, calculated and collected by MEM, is passed to the Ministry of Finance within five working days and subsequently allocated every three months to the development budgets of the offices of the governors. It should be noted that in the event that the licence area includes more than one region, the social contribution is disbursed based on the assessment of the governor depending on the need of the region.

The amendments state that social contribution amounts are earmarked for sustainable and local community-based projects, which include supporting youth activities and environmental projects.

The amendments entered into force on 14 August 2023.

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

The decision defines the term “concealed trading” as enabling a person to engage in an activity that the laws of the Sultanate of Oman do not allow him to engage in, whether for his own account or in association with others. Accordingly, the decision identifies the parties involved in concealed trading: The concealer who is the person that enables concealment, and the concealed trader who is the person that benefits from the concealment.

The decision explicitly prohibits the practice of concealed trading and places an obligation on the ministry to encourage citizens and residents to contribute to limiting cases of concealed trading and to report them. Article 6 of the decision provides certain cases that constitute concealed trading. An example of these cases is the transfer of the revenue generated by the company to a personal account and not to the account of the company. The decision also states that a person who becomes aware of concealed trading must report such incidents to the ministry.

The decision also clarifies the administrative penalties that MOCIIP may impose when the provisions of the decision are violated, with the most severe penalty being a fine of 15,000 Rial Omani if the violation is committed for a third time along with the cancellation of the activity from the commercial registration, and if this penalty is imposed, it will not be permitted to re-register the activity except after one year passes from the date of its cancellation.

You can read the full text of the new decision in English on the link below:

Previously, the only primary legislation dedicated to schools was Royal Decree 68/77 Establishing Private Schools, which consisted of 6 articles only. This royal decree has now been repealed by the royal decree promulgating the School Education Law. Other provisions governing school education can be found in secondary legislation—such as the Governance Regulation of Private Schools—which continue to operate to the degree that they do not contradict with the School Education Law.

The law encompasses many provisions that create a holistic framework for school education, including mandating the Ministry of Education to achieve the objective of education set out in the law, dedicating a whole part to special education, setting out provisions in relation to the educational environment in Oman, defining the rights and duties of students, and governing career progression for teachers, the managerial structure of schools, and pedagogical research, as well as student and school evaluation.

Interestingly, the law introduces criminal offences. For instance, parents who fail to enrol their child in school under specific circumstances (irrespective of nationality) can be sentenced to up to 3 months in prison and fined up to 1,000 Rial Omani, or sentenced to one of these two punishments. Even students, in certain circumstances such as cheating in exams, may face imprisonment for up to 30 days and a fine of up to 500 Rial Omani, or one of these two punishments, without prejudice to the Law on Juvenile Accountability.

The new School Education Law entered into force on Monday, 22 May 2023. It can be read in full in English at the link below:

Judicial enforcement officers are individuals granted legal authority to investigate crimes, identify perpetrators, and gather evidence for the purpose of investigation and prosecution. Given that the Labour Law plays a crucial role in driving the economy, it is important for private sector companies to be aware of the designated judicial enforcement officers within the Ministry of Labour.

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

1. Relationship with International Law

Article 3 of the Maritime Law makes a reference to the relationship between domestic and international maritime law by stating not only that international law provisions are an integral part of the maritime legal framework in Oman, but it also states that in the case of conflict between the international and domestic provisions, the international provisions prevail. This is one of the most explicit references to the supremacy of international law over domestic law in Oman, it was not stated in the previous law, and it goes beyond the recognition of international agreements as having the mere power of law in Oman if ratified in accordance with article 93 of the Basic Statute of the State.

2. Governance of Shipbuilding

Chapter 5 of part 2 of the new law introduces for the first time in Oman a framework for governing shipbuilding, which can be seen as a signal by the Omani government of its intention to promote the development of the shipbuilding industry. One notable requirement established by this chapter is that the construction of the ship must be supervised by an international expert organisation.

3. Agents and Brokers

Part 5 of the new law introduces a framework for defining the responsibilities of ship agents, cargo agents, and freight forwarders that was not found in the old law. A noteworthy provision of this part is article 136 which stipulates that the law of the port where the transaction with these agents and brokers takes place is the one that applies to the transaction, unless the parties agree otherwise.

4. Tourist Transportation

Chapter 3 of part 6 of the new law goes beyond carriage of goods and carriage of persons, which are the types of carriage traditionally governed by maritime law, and treats tourist sea travel as a distinct form of maritime transportation that grants specific rights to commuters and passengers, and imposes specific obligations on tour operators.

5. Marine Wreck

The new law dedicates a whole chapter to marine wrecks as chapter 5 of part 7 provides detailed provisions for dealing with marine wrecks including the consequences that result from such events, and new stricter obligations on the shipowner or master to notify the maritime authority of the wreck immediately; and to recover, remove, or refloat the ship within 30 days from the date of sinking, stranding, or abandonment of the ship. This law provides for situations where this period may be reduced by the maritime authority.

The five provisions identified above are merely some of the new changes introduced by the Maritime Law, those working in the logistics and maritime industry need to review this law in full to understand the full scope of the changes.

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

Part 1 of the Maritime Law introduces definitions and general provisions related to the application of the law, determines the scope of application and exemptions, states the relationship between the local law and international maritime treaties, and determines the responsibilities of the Ministry of Transport, Communications, and Information Technology (“MTCIT“) with regard to maritime transport.

Part 2 is divided into seven chapters that cover various aspects related to the ship. Chapter 1 outlines the circumstances under which a ship can acquire or lose Omani nationality and requires Omani ships to hoist the flag of Oman. Chapter 2 specifies the documents that must be kept on the ship. Chapter 3 grants authority to the MTCIT to inspect ships and sets out procedures for this. Chapter 4 governs ship ownership, including joint ownership and liability. Chapter 5 regulates shipbuilding, with the requirement of an expert international body to supervise construction. Chapters 6 and 7 govern registration and removal of registration.

Part 3 deals with the property rights in ships and the types of legal attachments that can be imposed on ships. The part determines two main types of property rights: maritime liens and mortgages. Additionally, there are two types of legal attachments: precautionary attachment and enforcement attachment.

Part 4 identifies the persons involved in maritime transport and outlines their respective duties and responsibilities. These individuals are the shipowner, its operator, its master, and its seafarers. The part is divided into four chapters, with the first chapter focusing on the shipowner and operator. The subsequent two chapters focus on the roles of the master and seafarers, respectively. Chapter 4 focuses on the maritime employment contract, which is applicable to both the master and seafarers, in a similar manner to the Labour Law but with specific details relevant to the nature of maritime transport.

Part 5 is dedicated to agents and brokers: The ship agent, the cargo agent, and the freight forwarders. This part is divided into four chapters. The first chapter contains the general provisions that apply to these persons, with article 136 being the most critical provision. This article specifies that when conducting transactions with these persons, then the law of the port where the transactions are made applies unless the parties agree otherwise. The rest of the chapters deal with the roles and responsibilities of each of the identified persons separately.

Part 6 is dedicated to the utilisation of the ship and is probably the most fundamental part. It is divided into four chapters. Chapter 1 governs ship chartering and is further divided into sections. The first section contains the general provisions on ship chartering and the subsequent sections outline the provisions governing each type of charter independently. The types of ship charter are bareboat charter, voyage charter, and time charter. Chapter 2 regulates the contract of carriage by sea. As practitioners in the industry would know, there are two kinds of contracts of carriage by sea, one for goods and one for persons. Two independent sections are dedicated to setting out the rules for each type of contract. Additionally, the new law introduces a new type of carriage regulated by section 3 of this chapter, which is maritime tourist transport. Finally, chapter 4 deals with towage, pilotage, and navigational aids.

Part 7 deals with marine accidents and aims to provide a comprehensive framework for investigating and managing such incidents. It builds upon and updates the provisions of the repealed 1981 laws. Conveniently, this part is structured in a logical and practical way reflecting the reality of measures taken against marine accidents. Chapter 1 defines marine collisions and outlines their consequences. Chapter 2 covers the process of maritime rescue operations. Chapter 3 focuses on the investigation of marine accidents and outlines the procedures to be followed. Chapter 4 addresses the provisions for general average losses. Finally, chapter 5 governs shipwrecks and sets out the obligations of all stakeholders in relation to these incidents.

Part 8 pertains to marine insurance, this is a critical aspect of maritime transport that mitigates risks by ensuring that businesses operate with appropriate coverage. The part is divided into two chapters for ease of reference. Chapter 1 provides the requirements of insurance in general and comprises five sections. Section 1 outlines the necessary requirements of the insurance contract. Section 2 sets out the obligations of the insurer. Section 3 sets out the obligations of the insured. Section 4 covers the process for the settlement of damages. Finally, Section 5 closes out this part by defining the prescription period for lawsuits arising from the insurance contract. Chapter 2 focuses on specific provisions for different types of marine insurance, dedicating a section to each type, which are ship insurance, cargo insurance, and liability insurance.

Finally, Part 9 contains the punishments for violation of the law and governs the authority of the minister of MTCIT to determine administrative penalties. This part is also a step forward in modernising the law, as the previous laws did not have a section dedicated to punishments. The introduction of this part makes it easy to understand the consequences of violating the provisions of the law.

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