Sultanate of Oman Business Guide

Transcription

1 Sultanate of Oman Business Guide Compiled by: Embassy of Switzerland Riyadh, September 2011 I. Arrival/Departure: A valid passport and visa are required for entry into Oman, with the exception of the other Gulf Cooperation Council nationals (the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain and Qatar). The official Omani representations issue two-year, multiple-entry tourist and/or business visas to qualified persons. As some European and American citizens, Swiss citizens may obtain a 30-day visa 1 on arrival at all Oman entry points (at the airport or a land border). The validity period of the applicant's passport should not be less than six months. It is strongly recommended to have a proof of adequate funds and of a return ticket; while visiting Oman. This visa can be extended only for an extra one month by the Directorate General of Passports and Residence, or by its branches at regional Royal Oman Police offices. Work visa is available for two years, but it must be arranged in advance through an Omani sponsor. According to the new Omani regulations, a single entry visit visa has replaced the tourist visa, business visa and short visit visa which cease to exist. This visa is issued upon arrival whether individually or as part of a group, despite of the applicant s sex or age. In all cases, there is an overstay penalty of RO 10 per day beyond the validity of the visa. II. Languages used for business and the resolution of disputes The official language is Arabic, although English is widely spoken in business circles, particularly in the capital area. Generally, correspondence with the Omani ministries and official organisations is in Arabic. However, if needed, translation services are offered by a number of local service providers. It is worthy to know that the written Arabic text of a contract governs employment and business agreements under Omani law. Before signing a contract, it is recommended to obtain 1 The visa may be renewed up to two times for a 20 Omani Rial fee for each renewal. A multiple-entry tourist or business visa that is valid for one year, costs 50 Omani Rials. The visa may be obtained upon arrival at the airport. Visas can also be obtained in advance through application to an Omani embassy, consulate, or trade representative abroad. 1 / 5

2 an independent translation to ensure a full understanding of the contract's terms, limits, and agreements. As in the other countries of the GCC countries, verbal assurances or side letters are not binding under Omani law. In the event of any contract dispute, the Omani authorities refer to the written contract. Since the Omani sponsor controls the issuance of exit permits, foreigners cannot simply leave Oman in the event of a labour or business dispute. Breaking a business contract or replacing a local agent may not be easy. Thus and before signing a contract with a local company; a Swiss company might make some research about its potential partner before appointing one. The Embassy of Switzerland in Saudi Arabia and the General Consulate of Switzerland in Oman can provide a list of local law firms to help Swiss companies resolve business disputes. III. Public Holidays Sultanate of Oman officially celebrates the following festivals: - New Year's Day (1 st of January) - Eid-Al-Adha* - Muharram (Islamic New Year) - Prophet's Birthday* - Ascension of Mohammed* - End of Ramadan* (3 days) - Eid al Adha (Feast of the Sacrifice) - National Day (18 th of November) - Birthday of HM Sultan Qaboos (19 th of November) IV. Health and inoculations Proof of yellow fever immunisation is required if the traveller enters from an infected area. Visitors to Oman should be immunised against all normal childhood diseases, as well as hepatitis A, hepatitis B, and typhoid. If required, a booster dosage of tetanus-diphtheria is also recommended. V. Time Zone Oman s time zone is four hours ahead of Greenwich Mean Time (GMT+4). Oman does not observe Daylight Saving Time. VI. Electricity supply 110/220 volts AC, 60Hz VII. Methods of payment Generally, imports of goods in Oman are received on the basis of an irrevocable letter of credit (L/C), although other arrangements such as open account, cash in advance and doc- Muslim festivals are timed according to local sightings of various phases of the moon. During the lunar month of Ramadan that precedes Eid Al-Fitr (end of Ramadan), Muslims fast during the day and feast at night and normal business patterns may be interrupted. During the day, many restaurants are closed and there may be restrictions on smoking and drinking. Some disruption may continue into Eid Al-Fitr itself. Before planning any business travel during this time of the year, it is recommended to get more information. 2 / 5

3 umentary collection are also permitted. Swiss exporters are advised to obtain payment from Omani clients only by confirmed L/C or advance payment. It is worthy to know that the imports do not require mandatory, maximum or minimum credit terms. Oman has four debt collection agencies: Debt Recovery Service, Fort Travel and Tours, United Finance Company and United International Recovery. There are no credit rating agencies or bureaus currently established in Oman. VIII. Transportation Besides the regular flights from Zurich to Muscat with Swiss International Airlines, a number of European and Middle Eastern airlines companies provide flights to Oman through their respective European and Middle Eastern airports. The international airports in the Sultanate of Oman are Muscat, Seeb and Salalah. The national airlines company, Oman Air, offers a wide range of domestic routes that operate between the main cities in the country. Omani cities are also connected by a network of modern highways and express busses. It is suggested to visitors to use taxis for travel within cities. Authorised taxis are all metered and widely available. However, outside of the capital area, public transport is rarely found off main highways. IX. Hotels It is possible to book hotel rooms via internet or by fax. The following link provides one room reservation possibility: X. Telecommunication The Sultanate of Oman has a relatively modern and efficient telephone system provided by Oman s dominant fixed-line carrier, Omantel. Practically all businesses have fax machines. Likewise the rest of the GCC countries, cellular phones are widely used in Oman. Roaming arrangements already cover the GCC, the United States of America., the United Kingdom, and European countries. The networks for mobile are operated by the telecommunications giants in Oman, Nawras ( and Omantel ( Although other competitors like FRiENDi, Renna, Mazoon Mobile, and Samatel have recently entered the market. Omantel and Nawras also provide broadband Internet services. XI. Business hours Business hours vary widely by business. But in general, numerous companies mainly split their working hours into two shifts: 08:00 13:00 and 16:00 18:30 Saturday through Wednesday with a half working day on Thursday (08:00 13:00). Since 2008 and under the recommendation of the Oman Chamber of Commerce and Industry, many companies adopted the five-day workweek of Sunday through Thursday with official hours of business. Official working hours for Government offices are from 7:30 to 14:30 PM Saturday through Wednesday. The Central Bank of Oman and commercial banks operate from Sunday to Thursday. Commercial banks are open to the public from 8:00 to 14:00. Friday is usually a day of rest for all establishments, although certain shops may be open for restricted hours. During Ramadan, the holy month of fasting, business hours are restricted. 3 / 5

4 XII. Tips for initiating business contacts - As in the rest of the GCC countries, to do business in Sultanate of Oman, a Swiss company should be patient and perseverant in order to enlarge its appropriate local contacts and to pamper hindrances of the market; - An on-the-ground presence in Oman is an advantage; - Agents are not always required. Nevertheless, because of the characteristics of the Omani market, it is recommended to deal with local distributors/importers especially in the retail business; - Importer must be registered with the Ministry of Commerce and be a member of an Omani Chamber of Commerce and Industry; - Agreements generally require significant lead time and follow-up before finalisation; and - Likewise, government contracts oftentimes take many months (sometimes a couple of years) before they are awarded. XIII. Business practices Most Omani businesspeople are familiar with Western business practices, but more traditional local habits still exist in Oman: In some cases, it is not possible to make appointments from outside of Oman; It is common in Oman that the businessman has an appointment with two people at the same time, or that other businessmen come in unexpectedly and participate in the meeting. It is common that the meeting is interrupted by telephone calls or offers 2 of coffee, tea, or soft drinks; It is recommended to be on time, particularly for government appointments; It happens that businessmen break off a discussion for prayer at noon and at sunset, which falls during business hours; Politeness is highly valued; blunt statements should be recast into constructive, balanced terms; Sometimes Omani partners come late to an appointment or are in meeting with other businessmen. It is suggested to wait and plan enough time between meetings; Since Oman is a conservative society, it is advisable to respect local traditions, i.e. not to offer or receive an object with the left hand. Sitting crossed-legged with a foot pointing towards the other person is considered offending; and Gifts are habitual and are appreciated, especially when representing the other culture (i.e. Swiss chocolate without alcohol). XIV. Special features of the market It is recommended for a Swiss company before intending to do business in Oman or with an Omani company to learn about Oman s distinctive culture. For instance: Personal relationships are essential for finding and keeping a partner; Agents are commonly used, although not always required; Agreements generally require significant time and follow-up before finalisation; Raw materials imported for industrial production are exempted from customs duty; 2 Offers should be accepted 4 / 5

5 Local products benefit from 10% advantage over imported goods on government purchases; Among the whole GCC countries, Oman is the only country to have its own National Credit Guarantee Agency (NCGA); Foreigners are now allowed to own land or property in Oman, within specified integrate tourism complexes and for a lease period of 99 years. Modern housing, often with large living spaces, is generally available for rent in Muscat and the surrounding areas. In light of the considerable increase in property rents in the Sultanate, the council of ministers has stipulated that the owner shall not increase the rent of residential, commercial and industrial premises except after the lapse of three years from the date of commencement of the lease contract or from the date of the last contracted increase. XV- Opening hours of Swiss official representations a/ Embassy of Switzerland in Riyadh The Embassy of Switzerland in Riyadh is open for the public from Saturday to Wednesday from 08:00 to 11:30. It is closed on weekends (Thursdays and Fridays). b/ Consulate of Switzerland in Muscat The Consulate of Switzerland in Muscat (Oman) is open from Saturday to Wednesday from 08:00 to 16:00. It is closed on weekends (Thursday afternoon and Friday). Date: 11 th August, 2011 Larbi Elattari Embassy of Switzerland P.O. Box 94311, Riyadh Saudi Arabia Tel: Fax: Tel. from Switzerland ext. 207 rya.vertretung@eda.admin.ch 5 / 5