Automatic approval of licences to attract investors

The Ministry of Commerce, Industry and Investment Promotion launched an automatic approval service for licences as an essential initiative to build an investment environment and ‘Ease of Doing Business’ in the Sultanate. The initiative is part of the government’s stimulus plan to allow local or foreign investors to practice economic activities by obtaining an automatic licence without waiting for manual approvals. The stimulus plan got the approval of the Council of Ministers to support economic recovery efforts, enhance the performance of economic activities and attract investments. The plan is seen as an aid to medium-term fiscal balance measures (2020-2024) to improve the financial position, reduce public debt and improve the Sultanate’s credit ratings. “Investors will benefit from this service through Invest Easy portal, as the system will provide several facilities, the most important of which is obtaining all kind of licences related to economic activities automatically to achieve the principles of transparency, speed, trust and commitment, as well as to facilitate registration and activate subsequent government control’’, the ministry said. Dr Saleh bin Said Masan, Under-Secretary of the Ministry for Commerce, Industry and Investment Promotion for Commerce and Industry, said: “Automatic approval is a quantum leap as all licences and approvals have been merged into one. The investor will be able to start work on his project directly once he obtains the commercial register within hours’’, he said. The ministry, according to him, is preparing a feasibility study for ‘100 industrial ready-to-invest opportunities’ that is to be launched soon. “We aspire, during the next phase, to move from paper transactions to digital, as we seek to automate all services to provide quick and easy electronic services’’, Masan noted. He further added that the most prominent industrial strategy features are the transition from industries based on natural resources (oil, gas and mining) to industries, based on knowledge and innovation such as the medical, environmental, electro-mechanical, transportation and communications industries. ECONOMIC ACTIVITIES As far as this stage is concerned, more than 1,500 economic activities have been approved, constituting about 88 per cent of all activities, which include agriculture, animal production, fishing, manufacturing, repair and installation of machinery, equipment and devices, electrical and water supplies, construction, vehicle maintenance and repair, wholesale and retail sales, commercial activities, transportation and storage. As for the economic activities not included in the service in this preliminary stage, they constitute 12 per cent of the total economic activities and need prior approval by the government agencies. These activities are represented by mining, education, health, insurance and financial activities, hotel and accommodation and hotels, oil and gas, security, consulting and professional activities. All the authorities associated with issuing licences, have set requirements and conditions in the system. The investor is responsible for adhering to the terms and conditions of the licence he has obtained. The government institutions have the responsibility to monitor the activities after licences are issued. Suppose the conditions and controls are not fully or partially adhered. In that case, these authorities shall take their usual control measures and follow up the progression in implanting the law (notifying — follow-up — warning — violation). SEVERAL BENEFITS This service achieves several benefits, including stimulating the business environment in the Sultanate, strengthening the private sector as a partner in the development and leading the competitive Omani economy, enhancing domestic and foreign investment, encouraging entrepreneurship, small and medium enterprises, and enhancing the Sultanate’s international indicators regarding ease of doing business. The ministry also said that an electronic integration has been activated to issue a municipal licence, such as those issued by Muscat Municipality, Musandam Municipality, and the municipalities of the Ministry of Interior in addition to the civil protection licence issued by the Public Authority for Civil Defence and Ambulance. All of these licences are merged into one issued from the Invest Easy portal. The local and foreign investor will obtain one licence for the project, including all concerned authorities’ approvals.