Hidden trade is a big hurdle in Oman’s growth’

MUSCAT: Omani businesspersons and citizens have wholeheartedly welcomed the recent ministerial decision to combat hidden trade practice in the Sultanate of Oman.

The decision by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) is part of the government’s proactive approach to stem the economic and social fallout from hidden trade practices, which have been undermining the national economy and destabilising local markets, according to an Omani businessman Hazza bin Saleh Al Balushi.

Saleh Al Balushi said: “The hidden trade led to a sense of fear among Omanis, who were keen to start up business as they felt that they couldn’t compete with the expatriates. It was a big hurdle in the growth of Oman’s economy.

“This sort of climate was so negative that it also created a difficult and challenging environment for Omani job seekers.”

Hidden trade led to a host of negative consequences, including commercial fraud, unfair competition, tax evasion, and circumvention of established procedures.

Al Balushi added: “Lot of Omanis felt the pinch and took up the matter with the concerned authorities to introduce a new regulation to combat this practice that was damaging Oman’s economic growth.”

Hidden trade practices include diverting an establishment’s revenues, profits, or contract proceeds to personal or unregistered accounts, providing inaccurate data or information during the establishment setup or license application, or granting expatriates absolute disposal power over a facility.

Omani citizen, Mohammed Al Aufi, said: “Following the implementation of the new regulations, a much better and conducive business environment will be in place as the resolution introduces stricter measures for repeat violations. fine but also result in the suspension of the activity for three months. A third violation will lead to a fine, along with the activity being removed from the commercial register for a year.”

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 keeps pace with national policies to build a promising economy and a stable national labour market.