Violating the PDPL can result in fines ranging from 500 Rial Omani to 500,000 Rial Omani depending on the nature of the violations as specified by the provisions of articles 25 to 29 of the PDPL.

Minor Violations

The smallest penalty under the PDPL is a fine between 500 and 2,000 Rial Omani if a person violates article 14 of the law, which requires a data controller to notify a data subject in writing of a specific set of information prior to processing the personal data.

Moderate Violations

The next scale of penalties is a fine between 1,000 and 5,000 Rial Omani, which is imposed if a person violates articles 15, 16, 17, 18, 20, or 22 of the law. Examples of such violations would be the failure to appoint an external auditor to verify that the processing is conducted in accordance with the law.

Serious Violations

If a person violates the provisions of article 13, a fine will be imposed against them between 5,000 and 10,000 Rial Omani. This article is violated if a data controller fails to put in place controls and procedures required to comply with data processing requirements, such as controls for determining the risks that a data subject is exposed to when their personal data is processed.

Major Violations

Higher fines are imposed for those who violate the provisions of articles 5, 6, 19, and 21 that range between 15,000 and 20,000 Rial Omani. Violations that can result in such fines include processing sensitive personal data, such as the processing of fingerprints, without the prior permission of the MTCIT.

Grave Violations

The biggest fine under the law, and probably one of the biggest fines in the whole Omani legal system, is the fine imposed when someone violates the provisions of article 23, which can result in a fine between 100,000 and 500,000 Rial Omani. This fine will be imposed when a person processes personal data outside the Sultanate of Oman in violation of the law.

Conclusion

The penalties imposed under the Personal Data Protection Law are extremely serious and can go up to 500,000 Rial Omani. It is highly recommended that all companies make themselves familiar with the Personal Data Protection Law by reading it on the link below:

Written by:

Wedd Al-Zadjali

Wedd is a legal intern at Decree. She has previously interned in a local law firm as well as in a telecom company. She holds a BSc in Criminal Justice and Criminology from the University of Portsmouth.

Bereavement leave in Oman is governed by the Labour Law of 2023, which entitles employees to paid leave in specific family circumstances, including the death of a close relative. Employers are legally required to grant this leave where applicable, ensuring employees can take time off without loss of income or job security. Unlike the Labour Law of 2003 which provided a leave category called “special leave” that can be used by employees as bereavement leave, the Labour Law of 2023 has a specific and exhaustive list of cases of family deaths that qualify as bereavement leave and give the employee the right to a specific number of days of leave ranging from two days to ten days, depending on the degree of kinship, in addition to the widowhood leave for Muslim women of 130 days.

Under article 84 of the Labour Law of 2023, if the spouse, son, or daughter of an employee passes away, the employee is entitled to ten days of fully paid leave. If the father, mother, grandfather, grandmother, brother, or sister of the employee passes away, the employee is entitled to three days of paid leave. If the uncle or aunt of an employee passes away, the employee is entitled to two days of paid leave.

In addition to these standard rules that apply to employees of any gender and nationality, article 84(8) grants a Muslim woman 130 days of leave if her husband dies. This is done in compliance with the Islamic rules for Iddah that last for a period of four months after the death of her husband. If the female employee is not Muslim, this period is reduced to 14 days.

It is important to note that bereavement leave is a special category of leave that cannot be waived by contract and that is offered to the employee in addition to their annual paid leave. If the death incident relates to an employee outside those stipulated by article 84, the leave would not fall under these categories and the employee would have to consume their annual paid leave to attend the funeral.

You can learn more about bereavement leave and other employees’ rights by reading the Labour Law on the link below:

Written by:

Badriya Al-Bulushi

Badriya is a legal intern at Decree. Prior to interning at Decree, she interned in a local law firm. She holds an LLB in Law and Criminology from Cardiff University.

Lunch breaks form an essential part of Oman’s labour framework. They are are designed to safeguard employee welfare, maintain balanced working conditions, and promote sustainable productivity. Article 70 of the Labour Law expressly provides that workers are entitled to a one-hour daily rest and eating break. This period is excluded from the calculation of actual working hours, and this was confirmed in Supreme Court (Labour Circuit) Contestation 766/2017 where the court held that the legally mandated one-hour break is not counted toward overtime calculation.

The fact that the lunch hour is not counted towards working hours means that when the Labour Law stipulates that the maximum working hours are 40 hours per week, these 40 hours do not include the lunch break, and this means that the lunch break is an additional time on top of the 40 hours.

Another key attribute of the lunch break hour is that it is mandatory, which means that the employer cannot agree with the worker not to have a lunch break so that the worker can leave work early, or to agree with him to have the lunch break as a shorter period than one hour.

If we combine this with the fact that the Labour Law also prohibits making the worker work for more than six continuous hours, this means that it is also not possible for the employer to agree with the worker to work for eight hours and have the lunch break hour at the end of the eight hours, effectively removing all legal grounds for the worker to demand to leave work early if the worker chooses not to have a lunch break.

Conclusion

The mandatory lunch break serves important legal and practical purposes: Protecting employee health and well-being, preventing excessive working hours, ensuring proper overtime calculation, supporting fair labour practices and promoting structured and humane working conditions. However, one can argue that making this hour mandatory can remove flexibility in the workplace if certain workers choose not to have lunch or agree to a shorter lunch break so that they can leave work early.

You can read the full text of the Labour Law in English on the link below:

Written by:

Wedd Al-Zadjali

Wedd is a legal intern at Decree. She has previously interned in a local law firm as well as in a telecom company. She holds a BSc in Criminal Justice and Criminology from the University of Portsmouth.

The Legal Framework for Enforcement

The enforcement of foreign arbitral awards in Oman is governed by article 353 of the Civil and Commercial Procedures Law. This article stipulates that the rules for enforcing foreign court judgments apply equally to awards issued by foreign arbitrators. To be enforceable, the award must pertain to a matter that is capable of being arbitrated under Omani law and must be final and enforceable in the country where it was issued.

The specific conditions for such enforcement are further detailed in article 352. Before issuing an enforcement order, the competent Omani court must verify that the award was rendered by a competent authority and that the parties were properly summoned and legally represented. Furthermore, the court ensures that the award was not obtained through fraudulent means, does not conflict with a prior final judgment issued by Omani courts, and strictly complies with the Sultanate’s public order and morals.

Procedural Requirements for Enforcement

The process of enforcing a foreign arbitral award begins with the submission of a formal request to the primary court. The claimant must provide the original award or a signed copy, a copy of the arbitration agreement, and a certified Arabic translation of these documents if they were issued in a foreign language. Furthermore, the petitioner must provide evidence that the award is final and enforceable in the country where it was rendered. Critically, the court’s role is limited to a procedural review to ensure compliance with the law, rather than a re-examination of the merits of the dispute.

Conclusion

In conclusion, there is a framework in Oman that makes enforcing foreign arbitral awards efficient and reliable. By following the required procedures and ensuring proper documentation, awards can be executed promptly while preserving the integrity of the arbitration process.

For more detailed information, you may refer to:

Written by:

Yasmeen Al-Habsi

Yasmeen is a legal intern at Decree. She has previously interned in the Government of the Sultanate of Oman as well as in a local law firm. She is interested in corporate law. She holds an LLB from Leeds Beckett University.

Formation

An SPC is a limited liability company in which 100% of the share capital is held by a single natural person (an individual) or a juristic person (a corporate entity). To maintain market transparency and prevent overly complex corporate webs, the law states that an individual may not establish more than one SPC, and that an SPC cannot establish another SPC of its own.

Limited Liability

The defining feature of an SPC is the limited liability shield provided to the owner, which caps their financial responsibility to the amount of the capital invested. This safeguards the owner’s personal assets from company debts. However, article 296 of the law provides that the owner would be held personally liable if he, acting in bad faith, liquidates it or discontinues its activity before the expiry of its duration, or if he does not separate the company’s business from his private business.

Dissolution

Article 295 of the law governs the dissolution of an SPC and provides that this occurs automatically upon the death of the sole natural owner unless the heirs consolidate the shares in one person or elect to continue the business in another legal form within 180 days, and the company likewise ceases if the juristic owner itself is dissolved.

Conclusion

SPC is one of the most popular company forms that are used for doing business in Oman. It is highly recommended that you read the text of the Commercial Companies Law to learn more about its attributes on the link below:

Written by:

Arwa Al-Zadjali

Arwa is a legal intern at Decree. She has previously interned in international and local law firms in Muscat. She is interested in corporate law and intellectual property. She holds an LLB from Cardiff University.

Minimum Annual Leave Entitlement

Article 78 of the Labour Law states that after completing at least 6 months of employment, a worker is entitled to paid annual leave for no less than 30 (thirty) days. Taking into consideration the interest of work, this annual leave may be divided, combined, or deferred for a later date.

It is important to note that the annual leave balance is distinct from weekly rest days, official holidays, special leave, and sick leave, which are separately regulated under article 79 to 83 of the Labour Law.

The employment contract may grant more annual leave days than the statutory minimum but cannot provide fewer than the law requires, as any agreement reducing this entitlement would be void under article 3 of the Labour Law.

The timing of the annual leave is generally agreed upon between the employer and the employee, taking into account operational requirement. While employers may organise leave schedules to ensure the continuity of business operation, they cannot unreasonably prevent employees from taking their entitled leave.

Carry-over and Postponement

As a general principle under Labour Law, annual leave should be taken within the year in which it accrues. However, article 78 of the Labour Law stipulates that a worker who does not utilise his annual leave has the right to retain the leave for a balance not exceeding 30 days.

Article 81 of the Labour Law also stipulates that the employer may postpone the annual leave of the worker if the interest of the work so requires for a period not exceeding six months.

Compensation Principles for Annual Leave

According to article 81 of the law, the employer may pay the worker the basic wage for the days of annual leave that he does not take, if the worker agrees to this in writing. The worker is also entitled to the gross wage for his annual leave balance if his service ends before exhausting it.

Practical Tips for Managing Annual Leave

Proper management of annual leave is essential to avoid disputes and ensure smooth workplace operations. In practice, many issues arise not from the law itself, but from poor planning or unclear processes. The following practical steps can help employers manage annual leave effectively and prevent common problems:

• Plan leave in advance: Employers should establish a clear leave policy and maintain a system to track leave balances, ensuring entitlements are properly monitored and recorded.
• Balance business needs with fairness: While operational requirements may influence leave timing, employees should not be unreasonably prevented from taking their annual leave.
• Monitor carry-over and postponement: Annual leave should generally be taken in the year it accrues, any postponement or carry-over should be limited and clearly documented.
• Communicate decisions clearly: Leave approvals, postponements, or recalls should be confirmed in writing to avoid misunderstandings.

These practices minimise disruptions, uphold employee satisfaction, and reduce legal risks.

It is highly recommended for all employers and employees to make themselves familiar with the leave related provisions of the Labour Law, which is available in full in English on the link below:

Written by:

Yasmeen Al-Habsi

Yasmeen is a legal intern at Decree. She has previously interned in the Government of the Sultanate of Oman as well as in a local law firm. She is interested in corporate law. She holds an LLB from Leeds Beckett University.

UBO Regulations in Oman

UBO requirements in Oman are predominantly sub-regulations of the Commercial Companies Law and accordingly fall under the mandate of the Ministry of Commerce, Industry, and Investment Promotion. The first UBO regulation in Oman was issued in 2022, and was quickly replaced by the second UBO regulation of 2023.

Identifying the Ultimate Beneficial Owner

The key objective of the UBO regulation is to identify the person who owns or exercises ultimate effective control over the entity in question or on whose behalf the transaction is made. The technical definition for this concept in the Regulation Governing the Procedures for Identifying the Beneficial Owner of 2023 is “A person who owns or exercises ultimate effective control over a client, directly or indirectly, including the natural person on whose behalf the transaction is conducted, as well as the natural person who exercises ultimate effective control over the legal person or legal arrangement.”

Registration Requirements

The key obligation for companies in Oman under this regulation is that they are required to keep a register providing detailed information of each UBO who holds 25% or more of the shares of the company. This obligation applies to all types of companies other than SAOGs, which are governed by special rules for publicly traded companies.

This must be kept at the company’s main headquarters and maintained for a minimum period of ten years from either the date of registration or from the date of dissolution or liquidation of the company.

When no individual can be identified as a UBO, the most senior management officer of the company is deemed the UBO for the purposes of the provisions of this regulation.

Focal Point Obligations

To facilitate regulatory coordination, companies must appoint a natural person resident in the Sultanate of Oman to serve as the designated liaison for coordinating on matters relating to all beneficial ownership data with the Ministry of Commerce, Industry, and Investment Promotion.

Compliance and Penalties

Failure to comply with these requirements may lead to administrative penalties, including warnings, fines up to 1,000 Rial Omani, suspension of commercial registration for up to three months, or cancellation of registration.

Conclusion

Identifying the UBO of a company and maintaining the UBO register is now considered an essential transparency measure that all companies need to comply with. We highly recommend that all companies familiarise themselves with the full details of the Regulation Governing the Procedures for Identifying the Beneficial Owner of 2023, which is available in full in English on the link below:

Written by:

Arwa Al-Zadjali

Arwa is a legal intern at Decree. She has previously interned in international and local law firms in Muscat. She is interested in corporate law and intellectual property. She holds an LLB from Cardiff University.

Maximum Overtime Working Hours

Under articles 70 and 71 of the Labour Law, the maximum regular working hours are capped at 8 hours per day and 40 hours per week. The law also caps the number of regular hours plus overtime to 12 hours.

It is important to note that these hours are “actual” working hours hence, they do not include the mandatory daily rest and lunch break. The law stipulates that a continuous working period must not exceed 6 hours without a break, which is generally one hour.

This distinction that rest periods are not working hours has been reinforced by the Omani judiciary. A notable principle from Supreme Court Contestation 766/2017 confirms that rest time is excluded from overtime calculations, ensuring that compensation is based strictly on time spent working.

Consent is Required for Overtime Work

A primary requirement is that employers must obtain the worker’s written consent before assigning overtime, ensuring the employee agrees to the extra work.

Despite the general requirement for consent, there are specific exceptions under article 72 of the Labour Law. For example, article 72(1) permits the employer to require the employee to work overtime in cases such as annual inventory work, budget preparation, liquidation, and the closing of accounts. Article 72(2) also permits the employer to require the employee to work overtime if it is required to prevent the occurrence of an accident or other similar emergencies. However, in this case the employer is required to inform the Ministry of Labour of this.

Calculating Overtime Compensation

When employees agree to overtime, they are entitled to their basic wage plus a surcharge that scales based on when the work is performed. For instance, daytime overtime commands a minimum 25% increase, while night work which is defined as 9pm to 5am that requires at least a 50% surcharge. Work on weekends and official holidays is compensated with a 100% surcharge or a compensatory rest day. However, in mandatory emergency situations where consent is waived, these rates are 50% for daytime hours, 75% for night hours, and 200% for work performed on rest days or holidays.

Conclusion

We highly recommend that both employers and employees make themselves familiar with the legal provisions relating to overtime by reading the full text of the Labour Law on the link below:

Written by:

Nadine Al-Barwani

Nadine is a legal intern at Decree. She has previously interned in several international law firms in Muscat. She is interested in corporate law and energy law. She holds an LLB from Leeds Beckett University.

This blog post will highlight the key provisions relating to probation periods under the Labour Law.

Probation is defined under article 1(21) of the Labour Law as the initial phase of the employment contract during which the employee’s suitability for the job is assessed. The Labour Law sets out the maximum duration of this period: up to three months for workers paid on a monthly basis and up to two months for workers paid by any other method.

The law also makes it clear that a worker may only be placed on probation once with the same employer. Not only does this mean that employers cannot impose a new probation period upon contract renewal or when an employee is promoted internally, but an employee who quits working for an employer after completing their probation period, moves to another employer, and then returns to a new job for the first-mentioned employer does not have a probation period.

The law also provides that the employer may terminate the employment contract during the probation period if the employee is deemed unsuitable to continue without the need to provide any justification, by giving a seven-day written notice. In Supreme Court Contestation 802/2020, the Supreme Court ordered an employer to compensate an employee for terminating his employment during the probation period without giving the seven-day notice. However, the compensation was limited to the equivalent of seven days pay.

We highly recommend that both employers and employees make themselves familiar with the legal provisions relating to probation periods by reading the full text of the Labour Law on the link below:

Written by:

Abdulrahman Al-Farsi

Abdulrahman Al-Farsi is Legal Associate at Decree. He holds an LLB from the University of Liverpool and had previously worked in an Omani law firm.

Oman routinely signs BITs with other countries as part of its strategy for foreign investment and has 30+ agreements with countries such as the UK, Germany, and Japan.

Here are some key investors rights commonly found in BITs:

The Right to “Fair and Equitable” Treatment

To avoid any arbitrary or discriminatory actions that could harm the investors or their investments, the host government must maintain full transparency and uphold a minimum standard of treatment, that is established in the treaty, to be given to the investors and their investments. This right extends beyond simple “fairness”, it obliges the host government to act transparently, consistently, and in good faith towards foreign investors.

Examples of cases brought forward include claims of unfair treatment, abuse of power or bad faith, fundamental changes in the law that contradict expectations, and inconsistent application of legal procedures and regulations that violate the right to fair treatment.

The Right to Compensation for Expropriation

It is important to note that the host government is entitled to expropriate the property of the investors; however, it must be for legitimate public use, non-discriminatory, done in accordance with due process, and followed by an adequate market value compensation paid without delay and freely transferable. The right covers both direct (where the property is physically transferred to the government or it’s entities) and indirect expropriation (where the property isn’t physically transferred but the goverement deprives the investors of the property’s full economic use and enjoyment). For example, implementing excessive regulations and stripping control from the investors.

The Right to Allow Free Transfer of Funds

Another common right under BITs is related to cross-border fund transfer, which allows investors to make transfers in and out of the host country with ease and without delays. This obligation prohibits any hinderance from the host government that might trap profits within the host country. It ensures liquidity and financial stability, which are crucial for international business, as well as reinforcing investor confidence by guaranteeing free flow of funds and smoother economic operations. The guarantee of free transfer typically covers the following types of flows; profits, interest, dividends, proceeds from sales or liquidations (total or partial), capital funds, and loan payments, etc.

This right also prevents the implementation of currency controls by guaranteeing market exchange rates at the time of the transfer. However, the government may also exercise its right to delay or halt transfers, while still acting good faith, in the events of bankruptcy, enforcement of creditor rights, criminal investigations, financial regulatory requirements, or compliance with court orders and judgments.

The Right to Resolve Disputes with the Government

One of the most powerful rights given to investors under BITs is the right of the investor to resolve disputes the investor has with the host state using a variety of dispute resolution venues such as domestic courts and international arbitration. The actual venues that the investor has access to and the process for resolving disputes depends on the actual text of the treaty, however, most treaties require a cooling-off period for negotiations before resorting to a formal dispute resolution mechanism. If no settlement is reached, the investors may then bring a claim before the domestic court, ad hoc arbitration, or the ICSID, which Oman is a member of, insuring independency from domestic courts.

Conlcusion

In summary, Bilateral Investment Treaties, or BITs, are a fundamental tool that protects foreign investors by ensuring fair treatment, compensation for expropriation, and free fund transfers, while allowing direct dispute resolution against host governments. They create a stable legal framework that balances investor rights with legal government actions, developing confidence and promoting cross-border investment.

The Oman-Iran BIT is the most recent BIT that Oman entered into and was singed in Muscat on May 2025.

Written by:

Shiyam Al-Harrasi

Shiyam is a Legal Intern at Decree. She has previously interned in international and Omani law firms. She is interested in commercial and corporate law. She holds an LLB from the Leeds Beckett University.