Dubai: Oman’s Ministry of Commerce, Industry and Investment Promotion has issued a resolution stipulating hefty fines for ‘hidden trade’ practices.
According to the resolution, first-time offenders will be slapped with an administrative fine of OMR5,000 (about Dh47,700), escalating to OMR10,000 for repeat offences, and tripling to OMR15,000 for third-time offenders.
The resolution is part of the government’s proactive strategy to stem the economic and social fallout from hidden trade practices, which have been undermining the national economy and destabilising local markets.
Hidden trade can lead to a host of negative consequences, including commercial fraud, unfair competition, tax evasion, and circumvention of established procedures.
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.
The resolution also introduces stricter measures for repeat violations. A second offence will not only carry a 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.
The introduction of the resolution is aligned with the Ministry’s goal of implementing the executive regulations of the Foreign Capital Investment Law. It aims to foster an attractive investment environment and conducive conditions for registering foreign institutions and companies.
To ensure the effective implementation of these measures, the Ministry may deploy special teams to monitor establishments, conduct inspections, and take necessary action against any identified violations.
Moreover, the public is encouraged to report any instances of hidden trade to the Ministry.
The resolution, which comes in response to successive appeals from citizens to curb such practices, will come into effect 90 days after its publication in the Official Gazette.
