MUSCAT: A number of officials, business leaders and commentators in the Sultanate of Oman praised the Ministerial Decision No. 412/2023 on combating hidden trade activities, stressing that the measures enshrined in the Decision will have a positive impact on the wider economy.
They noted that the Decision will significantly contribute to minimizing the adverse effects of hidden trade on the national economy and local markets, which include the increasing cases of commercial fraud, distortions to the labour market, unequal competition with entrepreneurs and small and medium enterprises, tax evasion, and other deleterious effects.
The Decision will also strengthen the implementation of the executive regulations of the Foreign Capital Investment Law, which supports the creation of a attractive investment environment and appropriate conditions for driving investment inflows in the country.
Dr Rajab bin Ali al Owaisi, an expert in social and educational studies at the State Council, stressed that the decision to combat hidden trade is considered as an ambitious direction that keeps pace with national policies to build a promising economy and a stable national labour market.
Issued by the Ministry of Commerce, Industry and Investment Promotion, the Decision comes into force after 90 days from the date of its publishing in the Official Gazette. It strengthens the enforcement of the provisions of the Labour Law (53/2023) and its role in stabilizing the business environment in the Sultanate of Oman in creating an attractive investment environment and appropriate conditions for it in the Omani labour market.
As the result of the Decision, efforts to localize some professions and jobs in the labour market and private sector companies will be further strengthened, he said.
Al-Owaisi pointed out that the decision to combat hidden trade is in response to appeals from citizens over the past years to address the phenomenon. He welcomed the resolve of the government to fight the practice by clearly spelling out penalties, while providing specific tools to the authorities to unearth all concealed commercial activities.
According to Eng Said bin Nasser al Rashdi, CEO of Insurance House, the hidden trade is a deep-rooted phenomenon that requires serious efforts to eradicate. He called all on stakeholders, including local traders, particularly small shops, to blow the whistle on concealed commercial activities which negatively impact their business.
The measures, he said, will help address fight the illegal lease of CR registries for hidden trade practices, and also curb the practice of certain foreigners who operate without a local sponsor or guarantee and then leave with sums of money, leaving behind customers who have been scammed.
Hazza bin Saleh al Balushi described the hidden trade as an incurable disease afflicting various economies globally. It is a scourge that negatively affects the country's economy.
The Ministerial Decision, he said, is a bold and effective step that will contribute to fighting the practice notably through robust monitoring, evaluation of licenses and business data, better awareness, and stringent penalties.
In this regard, he called on citizens to assist the authorities in uncovering hidden trade activities, which have been taking jobs away from Omanis and hurting entrepreneurs.
Abdullah bin Ahmed al Dhuhli, a businessman, said: “Without doubt, the hidden trade practised by some foreign individuals in cooperation with some citizens has multiple negative effects. This phenomenon has grown in the recent period across various commercial activities and has had a clear impact on work output and quality, while competing unfairly with businesses that operate in accordance with the law,” he said.
Al-Dhuhli emphasized that it has become necessary for every individual in this society to be responsible and has an important role to play in combating such wrong practices. He also urged citizens not to allow foreigners to use their commercial register to practice hidden trade.
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