Legal Framework
From The Report: Oman 2015
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This chapter contains an outline of the legal framework in which local and foreign investors operate in Oman. This chapter includes an interview with Paul Sheridan, Partner, Dentons.

Articles from this Chapter

Overview

Legislation governing companies in Oman
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The 1996 Basic Statute of the State (also referred to as the Basic Law) sets out the legal structure of Oman and the respective functions of the executive and the judiciary, as well as citizen’s personal liberties and public obligations. It provides that Oman’s basic principles include free market economics, cooperation between the public and private sectors, the protection of private property (with expropriation only in cases provided for by law and against fair compensation) and taxation in…

Analysis

Amendments to the Commercial Agencies Law took effect in mid-2014
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The Commercial Agency Law (Sultani Decree 26/1977, CAL) was enacted to provide a means for foreign principals to sell goods and services in Oman without a local presence, while providing protection to the investment made by Omani agents. Prior to the amendments, the CAL was protective of Omani agents with regards to renewal and termination of agency agreements. Agent Compensation When a foreign principal terminated or did not renew an otherwise viable, profitable agency without showing a specific…

Interview

Paul Sheridan, Partner, Dentons: Interview
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Interview: Paul Sheridan How do you assess the legislative process in Oman, and what sort of changes would encourage more participation from foreign firms? PAUL SHERIDAN: First, we must remember that the current legislative process has developed over just 44 years. Every country has issues with its legislative system and development is always on-going. Two areas where Oman can improve are clarity and certainty. It needs more clarity in the drafting of some laws and more certainty as to what a new…