MOCIIP issues decision on commercial loans
Published: 10:09 AM,Sep 29,2024 | EDITED : 01:09 PM,Sep 29,2024
MOCIIP
The Ministry of Commerce, Industry and Investment Promotion (MOCIIP) has issued Ministerial Decision 456/2024, which sets the return due for obtaining a commercial loan or debt at 6 percent unless a lower percentage is agreed upon.
The decision was made based on the Commercial Law issued by Royal Decree No. 55/90, and based on a letter from the Oman Chamber of Commerce and Industry, in response to what the public interest requires.
The decision, issued by His Excellency Qais bin Mohammed bin Musa Al Yousef, Minister of Commerce, Industry and Investment Promotion, stated that this percentage may be exceeded in exceptional cases, in coordination with the Oman Chamber of Commerce and Industry, such as cases of long-term loans or loans directed to projects that contribute to achieving economic development or that are associated with a high degree of risk.
The decision also indicated that this return does not apply to loans provided by banks, finance companies, and asset leasing companies licensed by the Central Bank of Oman.
Article 3 of the decision stipulated that it shall be published in the Official Gazette and shall be effective for one year from the date of its publication.
The decision comes within the framework of the government’s efforts to ensure the flexibility of finance for businesses while enhancing the principle of governance and regulating the investment environment in the Sultanate of Oman.
The decision was made based on the Commercial Law issued by Royal Decree No. 55/90, and based on a letter from the Oman Chamber of Commerce and Industry, in response to what the public interest requires.
The decision, issued by His Excellency Qais bin Mohammed bin Musa Al Yousef, Minister of Commerce, Industry and Investment Promotion, stated that this percentage may be exceeded in exceptional cases, in coordination with the Oman Chamber of Commerce and Industry, such as cases of long-term loans or loans directed to projects that contribute to achieving economic development or that are associated with a high degree of risk.
The decision also indicated that this return does not apply to loans provided by banks, finance companies, and asset leasing companies licensed by the Central Bank of Oman.
Article 3 of the decision stipulated that it shall be published in the Official Gazette and shall be effective for one year from the date of its publication.
The decision comes within the framework of the government’s efforts to ensure the flexibility of finance for businesses while enhancing the principle of governance and regulating the investment environment in the Sultanate of Oman.