PHOTO
06 February 2016
Muscat - The new Foreign Direct Investment (FDI) law, prepared in coordination with the World Bank, will offer more assurances and incentives to the investors. Speaking to the Observer, Redha Juma Mohammed Ali al Saleh, Vice Chairman for administration and finance affairs, OCCI, welcomed the initiatives and said it will offer a favourable climate for investment in the country. According to Ahmed bin Hassan al Dheeb, Under-Secretary, MOCI: "We have finished the draft and have been receiving feedback from government agencies and the private sector. The draft is also been reviewed by our legal experts."
He added that several provisions in the law will offer assurances and protection to foreign investors. "It will offer a clear picture on what type of projects will (or can) have 100 per cent foreign ownership."
Al Saleh said that small investors need not worry about the abolition of the minimum capital requirement of RO 150,000 to start a business in Oman. "It is absolutely unfounded as foreign investors generally have their areas of interest and new investors will only add value to the economy of Oman. As businesses grow it will create more job opportunities too," he said.
He said there is no need for apprehensions as all security related issues will be taken care of by the concerned agencies at the time of processing the application.
Al Saleh said it is a fact that some big investors shy away as they do not feel comfortable working with a local partner. "With a more flexible law they will have the freedom to do business 100 per cent on their own."
The law is aimed at attracting more Omani investors to the market.
On labour issues, he said Omanisation is a national issue and all investors will naturally have to respect government policies.
"I hope the new law will offer a level-playing ground to both Omani and foreign investors. I have not studied the draft yet, so it will be difficult for me to comment in detail," said the chairman of an Omani group with a diversified business.
Al Saleh is not sure about the right time to initiate right steps on such bold reforms. "I am not sure if it should be when the economy is growing steadily or during challenging times as it is now."
According to the Under-Secretary, the final draft of the Investment Law will be submitted to various government institutions, including the Ministry of Legal Affairs, Majlis Ash'shura and State Council for approval within two months. The law will come into effect through a Royal decree.
Muscat - The new Foreign Direct Investment (FDI) law, prepared in coordination with the World Bank, will offer more assurances and incentives to the investors. Speaking to the Observer, Redha Juma Mohammed Ali al Saleh, Vice Chairman for administration and finance affairs, OCCI, welcomed the initiatives and said it will offer a favourable climate for investment in the country. According to Ahmed bin Hassan al Dheeb, Under-Secretary, MOCI: "We have finished the draft and have been receiving feedback from government agencies and the private sector. The draft is also been reviewed by our legal experts."
He added that several provisions in the law will offer assurances and protection to foreign investors. "It will offer a clear picture on what type of projects will (or can) have 100 per cent foreign ownership."
Al Saleh said that small investors need not worry about the abolition of the minimum capital requirement of RO 150,000 to start a business in Oman. "It is absolutely unfounded as foreign investors generally have their areas of interest and new investors will only add value to the economy of Oman. As businesses grow it will create more job opportunities too," he said.
He said there is no need for apprehensions as all security related issues will be taken care of by the concerned agencies at the time of processing the application.
Al Saleh said it is a fact that some big investors shy away as they do not feel comfortable working with a local partner. "With a more flexible law they will have the freedom to do business 100 per cent on their own."
The law is aimed at attracting more Omani investors to the market.
On labour issues, he said Omanisation is a national issue and all investors will naturally have to respect government policies.
"I hope the new law will offer a level-playing ground to both Omani and foreign investors. I have not studied the draft yet, so it will be difficult for me to comment in detail," said the chairman of an Omani group with a diversified business.
Al Saleh is not sure about the right time to initiate right steps on such bold reforms. "I am not sure if it should be when the economy is growing steadily or during challenging times as it is now."
According to the Under-Secretary, the final draft of the Investment Law will be submitted to various government institutions, including the Ministry of Legal Affairs, Majlis Ash'shura and State Council for approval within two months. The law will come into effect through a Royal decree.
© Oman Daily Observer 2016
