Under this new decision, for a transfer to be legal, the worker must consent to the transfer, the profession to which the worker is transferred must not be an Omanised profession, and the two entities involved in the transfer must comply with Omanisation percentages. There are also other requirements relating to the visa of the worker, the duration of the transfer, and the overall percentage of workers transferred between the entities involved. Other matters governed by this new decision include pay, the nature of the new position, and other general rights and obligations.

It is important to note that there is a legal requirement to register the transfer of the worker with the Ministry of Labour.

This new decision has already entered into force. You can read it in full in English on the link below:

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:

The Omani Basic Statute of the State was first promulgated in 1996 by Sultan Qaboos by Royal Decree 101/96, as a gift to the people of Oman. The Basic Statute of the State provided a general legal framework upon which Oman operates, establishing its status and role as a constitution in Oman. However, since it is not formally called a constitution (or a Dostour in Arabic) and was promulgated merely by royal decree, some may doubt its legal status as the constitution.

To answer this question, this post will examine the Basic Statute of the State from a number of dimensions, namely, its name, its supremacy over other documents, its content, and its entrenchment, all of which are key attributes of constitutional documents.

Name of the Basic Statute of the State

Constitutions are commonly titled as constitutions, or the Dostour in Arab countries, to clarify their legal status. Therefore, since the Basic Statute of the State is not labelled as the Omani constitution, it can be perceived as a regular law. Nonetheless, this on its own should not be the determining factor for denying the Basic Statute of the State its constitutional status as not all internationally recognised constitutions are formally named as constitutions. For example, in Germany, the constitution is called the Basic Law for the Federal Republic of Germany. Furthermore, the term Dostour originates from the Farsi language, not Arabic, and therefore it is not unreasonable for an Arab country to choose not to name its constitution as a Dostour and use an alternative Arabic name for it.

Supremacy of the Basic Statute of the State

A key aspect of any constitution is that it is the most supreme document of the land. Oman’s Basic Statute of the State declares itself as the supreme legal authority in Oman in article 96 which explicitly mandates that all laws, decrees, and regulations must conform to its provisions, and in article 97 which mandates that no entity can issue any form of law that contradict the Basic Statute of the State. This is also confirmed in practice as every single royal decree that was issued after the promulgation of the Basic Statute of the State starts by referencing the Basic Statute of the State as the legal basis for issuing these royal decrees.

Contents of the Basic Statute of the State

Constitutions around the world are meant to outline the governance framework by which a government operates and set the fundamental rights that are guaranteed to the people. In Oman, the Basic Statute of the State carries out this exact function. Across the different Books of the statute, the Omani framework of governance and the branches of the state and their powers have been detailed to include the Sultan, Council of Ministers, Majlis Oman, and the judiciary. Each of these bodies echoes similar functions as the three main branches of the state (the executive, the legislature, and the judiciary) found in traditional constitutional charters. Furthermore, Book Three of the Basic Statute of the State grants the people various fundamental rights such as the right to life and dignity, the right to equality and security of life, the right not to be arrested, searched, detained, or imprisoned, the right not to be subject to torture, the right to freedom of religion, the right to freedom of opinion and expression, the right to private life, and many more. These elements reflect the key elements found in other constitutions around the world.

Entrenchment of the Basic Statute of the State

Constitutions are traditionally entrenched, i.e. difficult to change, by highly demanding repeal or amendment requirements to ensure the stability of the foundations of the legal system. The Omani Basic Statute of the State appears to lack this attribute, since article 98 of the Basic Statute of the State provides that its articles can be amended the same way they were promulgated, which is merely by a royal decree without any requirements for the change to go through Majlis Oman. However, even though issuing a royal decree can be seen as an easy thing to do, history demonstrates that the Omani Basic Statute of the State is not easy to amend since it has only been amended twice since its promulgation in 1996, the first was in 2011 when the entire Arab World was going through a massive wave of change during the Arab Spring, and in 2021 after Sultan Haitham came into power. Accordingly, even though the Basic Statute of the State might appear to be capable of amendment at any time, the history of Oman demonstrates that it is rarely ever amended and only in extreme circumstances.

Conclusion

To conclude, even though the Basic Statute of the State is not officially labelled as the Omani constitution, it enjoys many of the attributes of formal constitutions recognised around the world, especially in regard to the supremacy and contents of the document.

Being the most important legal document in the country, I highly recommend that everyone reads the Omani Basic Statute of the State, which is available for free in English at this link:

Written by:

Azza Al-Abri

Azza a legal intern at Decree. She has previously interned in the banking sector and in private practice. She is interested in corporate law. She holds a LLB from the University of Leeds.

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:

A key change in the new regulation is that it no longer requires the application for the Omani quality mark to be an Omani entity. Furthermore, the scope to which the quality mark can be obtained has been expanded from applying only to goods to applying to services and processes as well. There is also a new provision in the regulation that gives the ministry the authority to make a requirement for certain establishments to obtain a quality mark as a pre-requisite for offering certain goods.

It is also worth noting that the new regulation also provides additional details regarding the required information for the application, and creates a two-step process for obtaining the licence involving a preliminary approval followed by a final approval that is issued after inspecting the quality management system of the applicant.

The new regulation also adopts technology by mandating that a QR code is included along with the quality mark logo and requiring that the ministry publishes the details of all products licensed through a dedicated government platform.

The new regulation enters into force next month. You can read it 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:

Royal Decrees

This month, ten royal decrees were issued, including significant ones Establishing the National Records Centre and Determining its Competences, Promulgating the National Records Law, Promulgating the Media Law, and Promulgating the System of Signing Contracts and Financial Commitments of the State. Other notable decrees ratified international agreements, such as the Agreement with Venezuela on the Exemption of Visa Requirements for Diplomatic, Special, and Service Passports, the agreements with Suriname and Bulgaria on Mutual Visa Exemptions, and the Agreement with Ireland for the Elimination of Double Taxation and Prevention of Tax Evasion. Additionally, royal decrees appointed a Permanent Representative to the United Nations in New York and appointed Judges to the Supreme Court.

Ministerial Decisions

This month, eight ministerial decisions were published in the Official Gazette. Key decisions include Issuing MOSD’s Governance Regulation of Licences for Money Collection from the Public, MAFW Determining the Fees for Services and Prices Collected by the Ministry of Agriculture, Fisheries, and Water Resources, MOSD’s Governance Regulation for Day Care Centres for the Elderly, MAFW Banning the Import of Live Birds from Some States, and SJC’s Controls and Procedures for the Use of Remote Audio and Video Communication in the Proceedings of the Public Notary. Other decisions include MOHT Amending Some Provisions of Ministerial Decision 136/2021 Forming the Government Committee for Licensing Integrated Tourism Complexes and Its Working System, and SMEDA Determining the Fees and Financial Consideration for the Services Provided by the Small and Medium Enterprises Development Authority.

Blog Updates

Our blog featured articles by Riyadh Al-Balushi titled “New Data Sharing Requirements Under the National Records Law“, “New Omani Media Law Issued“, and “New System for Signing Omani Government Contracts“. Aram Al-Bahri wrote about “MOSD’s New Elderly Day Care Centres Regulation“.

Intel

Decree Intel was updated with an overview of the Ministry of Labour and an overview of the Public Authority for Special Economic Zones and Free Zones, along with Fatwa Summary: MJLA Fatwa 222770524 (Application of VAT Prior to Entry into Force of VAT Law or VAT Registration) and Fatwa Summary: MJLA Fatwa 222768811 (Continuation of Process for Allocating Land After the Legal Entitlement Basis Is Repealed).

New Content

Fatwa Summary: MJLA Fatwa 222768811 (Continuation of Process for Allocating Land After the Legal Entitlement Basis Is Repealed): The Ministry of Justice and Legal Affairs (MJLA) held that individuals who have reached the lottery stage of the land allocation process are entitled to obtain a land even after the legislation that establishes the right for the entitlement to this land was repealed.

Fatwa Summary: MJLA Fatwa 222770524 (Application of VAT Prior to Entry into Force of VAT Law or VAT Registration): In a contract that was signed before the entry into force of the Value Added Tax Law, the Ministry of Justice and Legal Affairs (MJLA) held that a contractor was required to pay VAT out of the contract value agreed with the Ministry of Health and that contractor had no basis for adding it as additional charge that the ministry owes to the contractor.

Public Authority for Special Economic Zones and Free Zones: The Public Authority for Special Economic Zones and Free Zones (OPAZ) (الهيئة العامة للمناطق الاقتصادية الخاصة والمناطق الحرة) supervises, regulates, and facilitates the development of special economic zones and free zones to attract foreign investment and promote economic diversification.

Ministry of Labour: The Ministry of Labour (وزارة العمل) is the entity responsible for regulating employment in the public and private sectors in Oman.

The new System of Signing Contracts and Financial Commitments of the State sets the formalities by which a government entity can sign a contract or any financial commitment with a foreign government, an international organisation, or a private natural or legal person in Oman or abroad. This new system simplifies the process of signing government contracts as it removes the requirements previously set by Royal Decree 48/76 to have any contract worth more than 500,000 Rial Omani signed by the Ministry of Finance in addition to the ministry responsible for the contract. The signature of the Ministry of Finance is now only required in regard to the signing of government bonds, government guarantees, and investment projects relating to the economic development of the state outside OIA investments.

The new system also codifies some existing practices that were not previously governed by any specific legal text, such as those relating to the issuance of government guarantees. Chapter Three of the system sets the general rules that government guarantees must comply with, imposes an explicit requirement to have such guarantees reviewed by the MJLA, and specifies that the Ministry of Finance has the authority to issue a decision governing the conditions of government guarantees.

Contractors signing contracts with proper government ministries subject to the provision of this system must ensure that the government entities they sign their contracts with comply with the provisions of this system as article 6 of the system stipulates that any contract that does not comply with the provisions of the system will not be enforceable against the government. Article 6 appears to put an unreasonable level of risk on contractors as it also stipulates that a contract will only be enforceable against the government if financial allocations are available for the project in question, which is an internal matter for the government that contractors would not have the ability to verify. However, confusingly enough, article 11 of the system stipulates that signing a government contract in accordance with the provisions of this system is deemed a confirmation that financial allocations are present.

This new system does not apply to government-owned companies, investments made by the OIA, contracts signed by military or security agencies or CBO, contracts signed by public establishments that are not financed or guaranteed by the state, or contracts signed directly by His Majesty or by his written authorisation.

The System of Signing Contracts and Financial Commitments of the State will enter into force after 30 days. You can read it in full in English on the link below: