Legal Developments in Oman

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Analysis

In this latest client update on legal developments in Oman from Curtis, Mallet-Prevost, the impact of Oman Ministerial Decision No 174/2014 on construction businesses in the Sultanate, amongst other things are examined.

Construction Sector Update: How Oman Ministerial Decision No. 174/2014 May Affect Your Business

The Regulation of the Works of Institutions and Companies Operating in the Contracting Field (the “Regulation”), enacted pursuant to Oman Ministerial Decision No. 174/2014, came into force on the 19 June 2014 with the aim to supervise construction companies and monitor their activities more closely and, in particular, with regards to ensuring that construction companies adhere to health and safety obligations as set out in the Regulation.

Registration requirements of new construction companies

Registration of a new company operating in the construction industry is now conditional on submitting the following documents to the Ministry of Commerce and Industry (“MOCI”):

  1. The permitted activities of the company shall be limited to that of contracting.

  2. The company's capital shall not be less than RO 25,000 (this is an immediate and upfront requirement).