Some believe that the rise in the number of commercial registrations registered with the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), from 280,793 in 2020 to 441,773 in 2024, is unrealistic. This means that the number has increased by 160,980 commercial registrations over four years, averaging 40,245 registrations annually.

This concern was discussed at the recent annual meeting of Qais al Yousef, Minister of Commerce, Industry and Investment Promotion, with media professionals. The meeting addressed numerous issues related to investment, trade, manufacturing industries, and the efforts of relevant authorities to monitor trade conditions in general.

As we know, the Ministry has cancelled inactive registrations in the past years, but the cumulative number is increasing due to the new procedures required for cancellation. It's not unlikely that many of these records have been inactive, especially since the outbreak of the Covid-19 pandemic, which dealt a devastating blow to commercial, real estate, and financial activities not only in the country but across the globe. However, electronic work and the registration of commercial records through "Sanad" offices may have led to a significant increase in the number of these records.

This has allowed many expatriate investors of all categories to obtain commercial records for commercial activities and enter into commercial competition.

These errors have prompted the relevant authorities to monitor their financial conditions, to fulfill commercial responsibilities towards others, and their ability to employ Omani employees in these institutions. What's important to note is that all of these commercial records are inactive for their owners, especially those registered within the past four years. This requires continuing to cancel them after a year of inactivity, while reminding their owners that the relevant ministry will cancel them if they are not activated for commercial activity. This gives relevant authorities a chance to identify active merchants and business owners, not those seeking to activate their business in hidden trade.

However, the new challenges relate to canceling these records for institutions and individuals, are linked to other relevant entities such as the Ministry of Labour, the Tax Authority, and others. Requesting cancellation also requires relevant authorities to obtain approval from them stating that they do not employ expatriate workers, and are committed to paying annual taxes despite having no local or expatriate workers.

Commercial registration holders must also pay additional fees to Sanad offices and other authorities if they wish to cancel their commercial registration. People cancel their registration due to financial difficulties. It requires the relevant authorities to facilitate the tasks of these merchants so that they do not incur additional financial burdens. This is the responsibility of MoCIIP to monitor registrations annually and cancel inactive registrations, ensuring that the cumulative number of such registrations does not increase over the years.

Everyone hopes that Omanis will continue to engage in commercial activities, due to the lack of job opportunities in government institutions and private sector companies. Meanwhile, we see the number of people laid off from work sometimes increasing due to the closure of commercial establishments because of the financial difficulties they face.

This pushes some Omanis, especially owners of small, fourth-grade establishments, to engage in commercial activities to address their financial difficulties. In my opinion, these small businesses do not need audit data and reports for accounting and tax payment. Rather, they should be encouraged to engage in commercial activities and provided with advice and technical support to enable them to continue and sustain their business.

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