The Oman American Business Center kicked off a full fall lineup of networking and informational events for Muscat’s business community, starting with Cosmic Bowling at the Kempinski Hotel Muscat in early September. Over 70 executives from dozens of companies in Oman enjoyed friendly competition and opportunities to connect with each other and discuss business while participating in a unique activity.
| On Tuesday September 17, 2017, Rebecca Olson, Executive Director of OABC; Marla Valdez, Partner, Clyde and Co and OABC Board Member; and Sami Nusair, Country Manager for Saba IP, Corporate Member of OABC met over lunch with Mr. Vishal Amin, the Intellectual Property Enforcement Coordinator at the Executive Office of the President of the United States.
OABC members explained to the guest and his accompanying delegation of six other DC-based political and trade representatives, about the provisions of Omani legislations which grant protection for the intellectual property right holders, local authorities concerned and related procedures. The members also briefly updated the delegation about Oman efforts to attract investment, in order to create a streamlined and favorable regulatory environment for business. OABC would like to thank Andy Barwig and United States Embassy in Muscat for the generous and kind invitation to discuss these matters. |
Interest in Corporate Governance has increased markedly in the past decades with headline-grabbing scandals such as WorldCom and Enron and more recently the subprime mortgage crisis of 2008. One of the recurring themes in these cases was the failure of corporate governance. Lack of corporate governance can lead to bankruptcy, fines, or even worse a lengthy jail sentence. Committed to strong corporate governance principles and in an effort to continue to comply with international standards, the Sultanate of Oman has seen major changes to its legal framework in 2019, which include a New Commercial Companies Law (hereinafter the “New Law”). Not only are these laws designed to promote business in the Sultanate, but they are also in line with Oman’s Vision 2040. One of the key pillars of Vision 2040 is Governance, which will lead to greater transparency, accountability, consumer confidence, and foreign investment. As such, this article will highlight some of the key changes to the Commercial Companies Law with respect to Corporate Governance.
New Commercial Companies Law & Corporate Governance
The New Law seeks to build on a tradition that already embraces robust Corporate Governance Principles as indicated in the Code of Corporate Governance for Public Listed Companies (hereinafter “the Code”) 2015, Ministerial Decision 92/2003 regarding Closed Joint Stock Companies, as well as the Royal Decree 4/1974. As such, there are several new articles and amendments that specifically apply to the Board of Directors, Executive Management, and Minority Shareholders:
The New Law also expands the role of the CMA in the field of corporate governance, which will be discussed in future articles. It is clear that the New Law provides additional checks and balances among the various stakeholders including the Board of Directors, Executive Management, minority shareholders, and the CMA. As such, this will lead to greater responsibility and accountability within the realm of Corporate Governance. Please be advised that the aforementioned is not legal advice and is not an exhaustive list of the changes to the new law.
The Role of a Corporate Lawyer with respect to Corporate Governance
Each company is unique and therefore we provide tailored advice to meet your company’s needs including the following:
About the Author
C. Ann Whalen, Esq. is a Corporate Lawyer & Head of Global Business Development at Rajab Al-Kathiri & Associates. A native of the United States and qualified to practice law in the State of New York, Ms. Whalen brings close to a decade of legal experience from New York City, the GCC, and Singaporean markets. A proud recipient of Fulbright and Boren Fellowships, Ms. Whalen has been in Oman since 2015 and is enjoying using her Arabic to write legal opinions and to train the next generation of Omani lawyers. Ms. Whalen will be publishing a similar article in Arabic on the OABC website in the coming weeks.
Rajab Al-Kathiri & Associates is a full-service law firm located in the center of Muscat at the Jasmine Complex with a branch in Sohar. Rajab Al-Kathiri opened its doors more than thirty years ago and today has more than twenty-five members on its legal team. Rajab Al-Kathiri & Associates has teams dedicated to Litigation, Corporate, and Alternative Dispute Resolution. For inquiries as to how the firm can advise your company, please contact Ms. Whalen at cwhalen@rajbasso.com.
After Oman and the US announced a new scheme which allows the citizens of both the countries to get ten-year multiple-entry visas replacing the earlier system where the visas were valid for only two years, Omanis and Americans alike have welcomed the decision saying it will further boost trade relations and open up more opportunities between the two countries.
While Omanis have been getting ten-year visas since January this year, US citizens started getting the same from last week onwards. In remarks to Muscat Daily, Rebecca Olson, executive director Oman American Business Center (OABC), said, “As the international affiliate of the US Chamber of Commerce in Oman, the Oman American Business Center is pleased with this move to further facilitate trade and commercial development between the US and the sultanate.
“Many of our members often travel back and forth and this will make things easier for all. There are still many opportunities for those who wish to take advantage of the US-Oman Free Trade Agreement, which will continue to benefit both nations after this ten-year mark.”
As Oman’s free trade agreement with the US marks ten years, the move is a complementary step towards good relations.
Talal al Subhi, executive director of Rohn Products International Arabia, said, “The new system will obviously bring more businesses between both the countries. It is a good move because before we used to get visas every two years but now we will do so once in ten years.”
However, Subhi informed that even though the visa is issued and valid for ten years, entry to the US is not fully guaranteed as a few questions will be asked at immigration there.
“First-timers need to understand that entry is not guaranteed even if they have visas and the entry is subject to the approval of immigration officers at the port of entry who will ask a few questions,” he said.
Subhi and his American partners in tower manufacturing plant in Sohar have suggested that Oman Air should start direct flights to the US.
“Oman Air should consider starting direct flights to two or three cities in the US and this will boost further the businesses between both countries. And by having direct Oman Air flights, this means there would be counters to cater to the vetting of travelers from Oman and in case of anything, they would be informed before departing to the US,” he said.
Rhon is one of the American Omani partnership companies and has set up 10,000 towers. It has also constructed the tallest tower in Oman at a height of 279m.
Marla Valdez, an American lawyer based in Oman, said, “I believe this new ten-year visa extension is a significant milestone in the longstanding relationship between the US and Oman and a development that should further extend the bilateral cooperation at many levels.”
She added, “As a board member of the Oman American Business Center, as well as being both a US citizen and an Oman resident, I obviously feel very proud of this achievement. I am confident that it will encourage tourism and business between the two countries, and that it will lead to other positive measures going forward.”
Mundhir al Alawi, who fell in love with American donuts during his studies in the US, and later founded 3rd Street Donuts in Muscat, said, “I travel to the US three times a year and this move is great and our travels to the US are now hassle-free. The move will enhance many other business opportunities. It will be a complement to the free trade agreement with the US.”
The Oman American Business Center (OABC), in a bid to foster closer relationships and business partnerships between regional AmChams (American Chambers of Commerce), hosted the first-ever GCC Regional AmCham Summit at Anantara Jebel Akhdar Resort on June 14 and 15.
“As AmCham affiliates in the GCC, we share one vision and mission. Of course, we also face similar challenges,” said Rebecca Olson, Executive Director of the OABC. “At what we trust will be the first of several meetings to come, we discovered several new ways to overcome these challenges as well as support each other and partner within the region.”
Olson continued, “When we invited regional AmCham leaders to attend this, the first-ever summit of its kind in the region, it was encouraging to see that not a single one hesitated.”
The GCC AmChams represent over 1,000 member companies and millions of dollars of US investment in the region. They are the go to organisations in each country for anything US trade and opportunities related.
Mary McGinnis, Executive Director, American Chamber of Commerce in Bahrain, stated that, “AmCham Bahrain is pleased to participate in this, the first Gulf Regional AmCham Summit. We recognise the power of communication and collaboration and look forward to building closer ties with our neighboring AmChams. In doing so we can bring more value to our members and increase regional, as well as US-Bahrain, trade.”
The two-day event brought together executive directors and board members representing AmChams in Oman, Abu Dhabi, Dubai, Kuwait and Bahrain, to discuss opportunities for increased collaboration. This included partnering on joint trade missions to and from the US and bringing key speakers to the region for business events. The delegates also discussed best practices across several key points of interest that could further support member companies, ranging from communication and digital platforms to event planning and benefit programs.
Esra Cavdarli Menke, Executive Director of AmCham Kuwait said, “The event was a tremendous opportunity to learn what best practices other AmChams are using to promote greater US business relationships with our allies in the region.”
The Oman American Business Center is now finalizing its 2019-2020 calendar of events. Last year the organisation hosted 27 events in line with its mission to help support the Oman business community and to increase trade and commercial development between the Sultanate and the United States. At each event, executives and decision-makers in Oman meet, build relationships, learn and discuss key matters of interest to the business community.
We would like to thank the Kempinski Hotel Muscat for inviting OABC’s Premium Membership* to Soi Soi Restaurant’s launch of “Bangkok By Night” last Saturday, June 15th.
The event continues every week — Diners experience all-you-can-eat signature delicacies inspired by Thailand’s street food, from 6:30 to 11 PM: OMR 12 Per Person, OMR 10 House Beverages Package.
Special exclusive offer for OABC: Kempinski Hotel Muscat would like to offer a ‘Complimentary Welcome Drink’ for every OABC member who attends. Offer is valid upon using a valid OABC membership card.
*OABC Premium members enjoy exclusive events, regular OABC events, complimentary products and promotions, advertising to business-focused email lists, invitations to trade shows, sponsorship opportunities, and special invitations to meet VIPs and stakeholders.
The Oman American Business Center (OABC) hosted its annual Ramadan art exhibition and Iftar in honor of Adatee Hyattee,a Omani group of artists with disabilities. Sponsored by Boeing Middle East, this event is an annual initiative focused on encouraging diversity, understanding and inclusion between communities.
Approximately 100 guests attended, including OABC members, business executives, Omani artists, and US Ambassador Marc Sievers. The event provided a networking platform within an artistic and creative environment. The talented men and women shared their personal journey of pain, hope and inspiration through an impressive display of over 30 works of art.
Rebecca Olson, Executive Director of OABC said, “The Annual Iftar is a favorite event for many OABC members because of the spirit of thankfulness and respect present in the community during the month of Ramadan. Spending time with the artists, seeing their work, and enjoying a meal together creates a space for more than just business networking. We thank each artist who attended, as well as OABC Corporate Member since 2016, Boeing Middle East, for their annual sponsorship of this very memorable event.”
Bernard Dunn, president of Boeing Middle East, North Africa and Turkey said: “Boeing is extremely proud to be a member of the OABC and to spend the evening with Adatee Hyattee and their beautiful art. We know that uniting communities and bringing diverse groups together in an inclusive environment, is essential to the betterment of the global community and economy. We will continue our support for initiatives that build bridges and empower communities here in Oman.”
The OABC not only prioritizes bringing the business community together, but values the participation and involvement from local members of the community, in order to provide its members with new and authentic experiences. Through this year’s event, attendees were able to appreciate more than the artwork on display— they were also given an opportunity to focus on the artists’ own determination; creating opportunity out of their personal struggles.
Find more photos here.
Following completion of a study conducted by the Omani Ministry of Health and an international insurance company, the Council of Ministers of the Sultanate of Oman issued its decision number 26/2017 and tasked the Capital Market Authority of Oman (the “CMA”) to prepare and implement a compulsory unified medical insurance scheme regulation to govern the medical insurance granted to all private sector employees in Oman. In implementation of the aforementioned decision, the CMA issued the Unified Health Insurance Policy (the “UHIP”) on 24 March 2019 by virtue of its decision no. 34/2019.
The CMA provided that the new insurance scheme will emphasise on the fairness of the insurance clause for all parties involved in the insurance process, and ensure that the insurance premium will not cause additional burden or expensive financial cost on the employers through the limitation of the insurance companies’ profit margins; thus making the scheme more affordable for a wider base of employers. In this respect, Moody’s stated that due to the possible limitation of insurers’ profit margins, it is likely that, following implementation of the compulsory health insurance scheme, a number of such insurers may lose high profit margin business opportunities.
The UHIP constitutes part of the mandatory health insurance plans being rolled out by the government of Oman for private sector workers in Oman, and will be governed by and subjected to special regulations the preparation of which is currently being undertaken by the CMA. It is not yet clear what impact will the implementation of the new health insurance scheme have on existing private insurance schemes that offer benefits higher than those provided under such a new scheme, however it is possible that a downsizing of the insurance benefits would be interpreted as amendment to employment agreements which employers will not be able to implement without obtaining their employees’ approval. The situation will become clearer following issuance of the regulations governing the UHIP, which is expected to take place this year.
The article has been prepared by Al Busaidy, Mansoor Jamal & Co.
Over 130 members and guests enjoyed the OABC’s largest-ever Taco Tuesday at the Deputy Chief of Mission‘s Residence on April 16th. Ms. Stephanie Hallett graciously hosted the annual event. In her opening remarks, the DCM discussed the Embassy’s connection with the OABC and the growth of the OABC over the past year.
The Kempinski Hotel Muscat generously supplied the tacos and a team of expert chefs, as well as 5 raffle vouchers for lucky members. Other sponsors included Oman United Agencies, Häagan-Dazs Oman (what a hit!), Grand Hyatt Muscat (margarita machine), Sundus Rotana Muscat, Al Falaj Hotel – Muscat, Travel Point Oman (raffling off a one-day luxury yacht rental!), Muscat Pharmacy, Casa Yoga Oman, and BombaBurrito, who generously donated a surprise for all: every attendee present won a “Meal for two voucher” at Bomba Burrito in Muzn Mall.
Thank you to all who attended and especially to our host and sponsors.
