Oman targets 10% nationalisation in construction firms
Proposal from Oman Society of Contractors will see a gradual increase to 15% Omanisation by 2020
A senior Omani official has said that the Sultanate is working on a proposal to make it mandatory for construction companies to have an Omanisation rate of 10%, with the ruling likely to come into effect by the end of June 2017.
A report by the Times of Oman said that the proposal had been drafted by the Oman Society of Contractors (OSC) in December 2016, and that it was in the advanced stages of approvals, citing Shashwar Al Balushi, CEO of the society.
“There are a lot of processes involved before the law is passed. We have reached a good position. The ministerial decree has been drafted and is being looked into by legal affairs. There is permission required by the cabinet,” Al Balushi remarked.
“It is all being done now and we are expecting the law to be out in the first half of this year, if not sooner,” he said during an interview with the newspaper.
Furthermore, the proposal from OSC will reflect a gradual increase in the nationalisation rate in companies, from 10% in 2017, to 15% by 2020, he added.
Earlier this year, Oman’s Ministry of Commerce and Industry issued new regulations which make it simple for businesses to start companies and establishments in the contracting sector across the Sultanate, as per new guidelines posted on its website.
Under the new rules, companies will no longer be required to show proof of capital when registering a new construction or contracting establishment. Also, contracting activities will not require different commercial licences for different contracts.
The decision was taken by the Minister of Commerce and Industry, Dr Ali Masoud Ali Al Sunaidi, to help create new local jobs.
