Category: Law Updates

His Majesty issued last week a royal decree establishing the International Financial Centre of Oman (IFCO) as a new financial free zone. IFCO will operate as an independent legal jurisdiction with its own executive authority, regulatory body, and court system that is not subject to oversight by the Council of Ministers, the Council of Oman, or the Omani judiciary. The location of IFCO is designated by royal decree as Madinat Al-Irfan. This blog post explains what a financial free zone is, the criteria for registering a company in IFCO, why companies might wish to register there, the key limitations for operating out of IFCO, and the next steps before this new financial free zone actually operates.

The Ministry of Labour published in this week’s of the Official Gazette Ministerial Decision 574/2025 Issuing the Governance Regulation for the Work of Domestic Workers and Their Equivalent, which marks a significant regulatory shift, enlarges the scope of protection, and enhances the rights of domestic workers. This decision replaces the former Ministerial Decision 189/2004 regarding the Terms and Conditions of Employment for Domestic Workers.

A new amendment to the Law of the Official Gazette was published in this week’s issue of the Official Gazette that makes changes to the law to reflect the current practices of the Ministry of Justice and Legal Affairs.

The amendment makes it clear that the Official Gazette is to be published electronically, and that the MJLA can, if it wishes, publish it in a paper format as well. The amendment also stipulates that the MJLA may published certain items from the Official Gazette before the full publication of the issue. These two practices are already adopted by the MJLA and these amendments merely add a legal basis for the practices of the ministry.

Another change that is not based on current practices is the removal of the mention of the Directorate General of the Official Gazette from the law and its replacement with a generic term for the “competent division”. This suggests that the MJLA might be in the process of a restructuring that would move the mandates relating to the Official Gazette into another administrative division within the ministry.

You can read the full text of the new amendments to the Law of the Official Gazette on the link below:

You can also read the consolidated version of the Law of the Official Gazette on this link:

The Ministry of Commerce, Industry and Investment Promotion published in this week’s issue of the Official Gazette an amendment to the Executive Regulation of the Foreign Capital Investment Law that makes it an obligation for every company established by a foreign investor to recruit at least one Omani employee.

Companies subject to this law are required to comply with this obligation within a year from the date of the commencement of the commercial activity of such company.

Existing companies have up to 6 months to comply with this obligation starting from the date of renewal of the commercial register, or the issuance or renewal of the work license, whichever occurs first.

It is worth-noting that even though this is a new obligation under the Executive Regulation of the Foreign Capital Investment Law, the Ministry of Labour has previously issued instructions in the form of a circular requiring both foreign investor companies and local companies to employ at least a single Omani national.

The new amendment to the Executive Regulation of the Foreign Capital Investment Law enters into force today. You can read it full in English on the link below:

You can also view the consolidated version of the Executive Regulation of the Foreign Capital Investment Law on the link below:

The Ministry of Heritage and Tourism published in this week’s issue of the Official Gazette the Regulation of the Rules and Systems of Real Estate in Jebel Sifah Resort.

This regulation supplements the Executive Regulation of the System of the Ownership of Real Estate in Integrated Tourism Complexes by adding new obligations to developers, buyers, and owners in Jebel Sifah Resort. Some of the new key obligation for developers under the new regulation include obligations to use an escrow account, appoint an independent audit office, and insure all units.

This new Jebel Sifah Resort Regulation enters into force tomorrow. You can read it in full in English on the link below:

A new Law Combatting Human Trafficking was issued in this week’s issue of the Official Gazette replacing the Law Combatting Human Trafficking of 2008.

The Law Combatting Human Trafficking of 2025 adds new detailed definitions for human trafficking concepts that were not defined in the previous law, such as sexual exploitation and forced labour. The law also criminalises new trafficking activities such as deporting and detaining of humans in the context of human trafficking. The punishments under the law have also been increased so that the maximum prison sentence for general offences is increased from 7 to 10 years.

The Law Combatting Human Trafficking of 2025 has already entered into force. You can read it in full in English on the link below:

The Ministry of Labour published in yesterday’s issue of the Official Gazette Ministerial Decision 523/2025 Regarding the Governance of Remote Work which sets the general rules for remote work in Oman.

The Ministry of Labour published in this week’s issue of the Official Gazette Decision 317/2025 Determining the Minimum Periodic Allowance and Governing Its Disbursement to Omanis Working in the Private Sector. This new decision sets new mandatory rules for determining the minimum annual pay increment that employees subject to the Labour Law are entitled to.

Prior to this new decision, employees subject to the Labour Law were entitled to a 3% annual increment on their basic wage as long as the performance of the employee is not deemed “poor”.

Under the new decision, the percentage of the annual increment can range between 5% and 2% depending on the performance of the employee, and can be withheld completely if the performance of the employee is deemed “poor”.

This obligation is imposed in relation to Omani employees only. Employers found in violation of this decision are to be fined 50 Rial Omani for each employee against whom a violation is committed.

The decision also provides some grounds for suspending the implementation of the annual increment in general as we all rules for withholding the increment for individual employees.

This new decision enters into force tomorrow. You can read it in full in English on the link below:

His Majesty issued today Royal Decree 60/2025 amending Royal Decree 52/2023 to delay the implementation of certain branches of the Social Protection Law.

Under the original royal decree the branch of insurance against work injuries and occupational diseases for non-Omani workers was supposed to enter into force in July 2026, today’s royal decree pushed this date to July 2028. Similarly, the branch of insurance of sick leave and extraordinary sick leave was supposed to enter into force in July 2025, it has now been pushed to July 2026. Finally, the savings system was supposed to enter into force in July 2026, and now it will enter into force in July 2027.

You can read Royal Decree 60/2025 in English in full on the link below:

The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) published in this week’s issue of the Official Gazette Decision 245/2025 Amending Some Provisions of the Commercial Companies Regulation.

The amendment created a new requirement for authorised signatories to fall under specific categories of individuals who can take this role, such as partners in the company, members of the board of directors, and administrative and finance staff. Notably it appears that it is now not possible to appoint an employee of another company who does not fall under any of the categories specified as authorised signatory.

This amendment of the Commercial Companies Regulation enters into force tomorrow. You can read the full text of this amendment in English on the link below: