Oman's action on hidden trade enters new phase
Muscat – The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) is intensifying efforts to combat hidden trade practices as part of a broader strategy to improve Oman's business climate and attract long-term investment.
MoCIIP announced it will soon launch nationwide awareness campaigns targeting these practices, following a meeting of the National Team to Combat Hidden Trade held on Thursday.
The team, established under a ministerial decision (No 412/2023), reviewed progress from the first phase of a commercial registration audit. Officials said the audit uncovered several violations, particularly by entities operating in sectors previously restricted to foreign investors.
'The results reflect a clear commitment to addressing these illegal practices that negatively impact the business environment in the sultanate,' the ministry said in a statement.
Hidden trade typically involves foreign individuals or entities operating businesses through local intermediaries without proper licensing or legal oversight. Nasra bint Sultan al Habsi
Nasra bint Sultan al Habsi, Director General of Commerce and head of the national team, said the success of the first phase demonstrated the importance of joint efforts between government and private entities.
'The second phase focuses on developing oversight methodologies and expanding the scope of auditing to include the largest number of governorates, while involving all relevant sectors in these national efforts,' she said.
She added that the next phase will also include awareness campaigns to inform the public and business community about the risks posed by hidden trade, including its negative impact on competitiveness and investor confidence.
MoCIIP's plan includes stricter enforcement of the Foreign Capital Investment Law, outlining conditions, licensing requirements, and procedures for foreign entities to legally operate in Oman.
The national team includes representatives from the Ministry of Labour, the Government Communication Centre at the Ministry of Information, the Tax Authority, the Central Bank of Oman, the Royal Oman Police, the Public Authority for Consumer Protection, and the Authority for Small and Medium Enterprises Development.
The ministry said the goal is to create a fair and competitive commercial environment that protects consumer rights and supports both local and foreign investors.
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