People welcome ministerial decision to combat hidden trade in Oman

Muscat: Officials, Businessmen, and Writers Praise Ministerial Decision on Combating Hidden Trade

A number of officials, businessmen, and writers in the Sultanate of Oman have praised Ministerial decision No. 412/2023 on combating hidden trade in the country. The decision, made in cooperation with various government entities, has significant economic and social repercussions on business and society in Oman. It is a response to the appeals of citizens over the past years to combat this phenomenon.

Impact on Economy and Local Markets

The decision to combat hidden trade will contribute to avoiding the adverse effects it has on the national economy and local markets. These effects include increasing cases of commercial fraud, impact on the labor market organization, unequal competition with entrepreneurs and small and medium enterprises, tax evasion, and scamming of existing procedures.

Implementation of Foreign Capital Investment Law

The decision also aims to contribute to the implementation of the executive regulations of the Foreign Capital Investment Law. This will create an attractive investment environment in Oman by detailing necessary procedures for registering foreign institutions and companies, as well as determining conditions, controls, and dates for issuing approvals, permits, or licenses related to investment projects.

Regulating Commercial Businesses

The ministerial decision aims to regulate commercial businesses and create a suitable business environment for Omani and foreign investors. It also aims to organize financial transfers outside Oman, reduce unequal competition for entrepreneurs and small and medium enterprises, and reduce cases resulting from hidden trade activities. Additionally, it will contribute to finding a clear definition of hidden trade in order to curb and reduce prohibited economic activities, create a business environment based on fair competition and equal opportunities, support small and medium enterprises, and limit the acquisition of expatriate labor for certain economic activities.

Expert Opinions

Dr. Rajab bin Ali Al-Owaisi

Dr. Rajab bin Ali Al-Owaisi, an expert in social and educational studies at the State Council, emphasized that the decision to combat hidden trade aligns with national policies to build a promising economy and a stable national labor market. It is in line with the government’s directions regarding the issuance of Labor Law No. (53/2023) and its role in stabilizing the business environment and creating an attractive investment environment in Oman.

He added that the decision also aligns with national efforts to localize some professions and jobs in the labor market and private sector companies exclusively for Omanis. The Ministry of Commerce, Industry, and Investment Promotion has previously issued a ministerial decision prohibiting foreign investment in many economic activities.

Dr. Rajab Al-Owaisi highlighted the importance of combating hidden trade to eliminate its negative effects on the business environment, stability of the work environment, and its economic and social repercussions on national employees, entrepreneurs, and Omani society as a whole.

Engineer Said bin Nasser Al-Rashdi

Engineer Said bin Nasser Al-Rashdi, CEO of the Insurance House, stated that hidden trade is an old and continuous phenomenon that requires a serious firm decision followed by effective implementation. The decision to combat hidden trade will support local traders, particularly small shops, which have been negatively affected by this phenomenon.

He also mentioned that this decision, along with previous decisions facilitating the registration of foreign investors, will rid Oman of violations related to illegally leasing commercial records. Transparent dealings between consumers and merchants will be ensured, in accordance with the laws and regulations in force in Oman.

Hazza bin Saleh Al-Balushi

Hazza bin Saleh Al-Balushi highlighted the seriousness of hidden trade as a global phenomenon that negatively affects countries’ economies. He praised the decision to combat hidden trade as a bold and effective step that will contribute to addressing and eliminating this issue. The decision will work to preserve Omani society from the effects of hidden trade by implementing comprehensive monitoring of activities and establishments, ensuring the validity of data and information, and educating the community about hidden trade and its penalties.

Abdullah bin Ahmed Al-Dhuhli

Abdullah bin Ahmed Al-Dhuhli, a businessman, emphasized the negative effects of hidden trade on work output, quality, and institutions operating in accordance with the law. He called for combined efforts among society members to combat this phenomenon and preserve the country’s economy. Al-Dhuhli also stressed the importance of individual responsibility in not allowing foreigners to use their names or commercial registers for hidden trade.

The hidden trade leads to unfair competition for small and medium enterprises and enhances the monopoly of foreigners in certain commercial activities. It also results in the transfer of profits abroad and an increase in cases of commercial fraud.

SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.
   • Indicator 8.7.1: Proportion and number of children aged 5-17 years engaged in child labor, by sex and age group (relevant to the impact on the organizing of the labor market)

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
   • Indicator 9.1.2: Proportion of the rural population who live within 2 km of an all-season road (relevant to creating a suitable business environment for investors)

3. SDG 16: Peace, Justice, and Strong Institutions

   • Target 16.5: Substantially reduce corruption and bribery in all their forms.
   • Indicator 16.5.1: Proportion of persons who had at least one contact with a public official and who paid a bribe to a public official, or were asked for a bribe by those public officials, during the previous 12 months (relevant to reducing cases of commercial fraud and tax evasion)

Table: SDGs, Targets, and Indicators

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Source: timesofoman.com

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