The Royal Decrees promulgating laws on bankruptcy, public-private partnership, privatisation and foreign capital investment will create a favourable regulatory environment for investment, in line with the future vision of the sultanate.

This was communicated by the Government Communication Center (GCC) in a statement issued in cooperation with the Ministry of Finance, the Ministry of Commerce and Industry and the Public Authority for Investment Promotion & Export Development (Ithraa). 'The Royal Decrees are part of the government's efforts to promote competitiveness of the national economy globally. Furthermore, these laws reflect the government's desire for the private sector to play a role in Oman's development and create better job opportunities for the national workforce,' GCC stated.

With world-class infrastructure, such as roads, ports, airports and special economic zones already in place coupled with sultanate's growing reputation as a logistics hub, the new regulatory environment is bound to get the attention of foreign investors, expediting the overall development in the country.

Foreign Capital Investment Law

Some of the objectives of the law, as underlined by GCC, include promoting the sultanate's position as an investment destination capable of attracting

foreign capital, enhance competitiveness in line with international indicators through the legislative system that governs business. Also, the aim is to streamline procedures and issue permits necessary for foreign investment within the country through the Investment Services Centre of the Ministry of Commerce and Industry.

The law will help offer incentives to attract foreign investment and grant the investor necessary guarantees for the project. 'For example, provide the foreign investment project with all advantages, incentives and guarantees granted to the national project in accordance with the applicable laws in the sultanate. A decision by the Council of Ministers may decide preferential treatment for foreign investors in accordance with the reciprocity principle,' it said.

Land and real estate required for the investment project may be allocated by way of a long-term lease or usufruct over the same, without being subject to the provisions of Royal Decree 5/81 regulating usufruct over Oman's land and the Land Law in accordance with the rules and provisions set out by the regulations after coordination with the relevant authorities.

Public-Private Partnership Law

The law will improve the national economy by encouraging the private sector to invest in infrastructure projects and public services, as well as contribute in the diversification of national income sources.

It will help lay out a regulatory framework to manage the process of public-private partnership in a transparent manner as well as improve the quality of public services and reduce their establishment and operation costs, which contributes to relieving the financial burden on the state's budget.

The law lays down all the parameters for establishing, launching and awarding public-private partnership projects.

Privatisation Law

The law aims to encourage the implementation of government policies relating to expanding the role of the private sector in ownership and management of various economic activities.

The GCC expects that it will also encourage attracting investment, expertise, technology and knowledge as well as raise resource management efficiency, improve services and create high-quality job opportunities.

Bankruptcy Law

The law will create a legislative and legal framework that promotes the business environment by restructuring the procedures that enable business people to overcome the debt stage.

It will also cover foreign companies operating in the sultanate as well as support distressed businesses to revive and resume their economic activity.

It will help set a 'pre-preventive' composition stage called 'Restructuring' through which the concerned parties cooperate with distressed business people aiming to support them to re-structure their business as well as encourage investment and entrepreneurship.

Source: menafn