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Friday, December 27, 2013

OMAN: Royal Decree issues system of Special Economic Zone at Al Duqm – Qualitative leap for investment



Royal Decree issues system of Special Economic Zone at Al Duqm – Qualitative leap for investment
Friday 27th, December 2013 / 00:10 Written by Oman Observer 
Muscat — His Majesty Sultan Qaboos yesterday issued a Royal Decree No 79/2013 issuing the system of the Special Economic Zone at Al Duqm.
Article One: The attached system shall be applied to the Special Economic Zone at Al Duqm.
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Article Two: Cancels all that contravenes with the attached system or contradicts with its provisions.
Article Three: The decree comes into force following the day of its issuing.
Yahya bin Said al Jabri, Chairman of the Special Economic Zone Authority of Duqm (SEZD), said the system of SEZD provides investors with a number of benefits and incentives that secures investment conducive environment.

The system provides the Authority with wide authorities to carry out their businesses and contributes to activating the growth of the national economy, diversifying sources of national economy and enhancing the socio-economic development in the Al Wusta Governorate.
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In a press statement, he expressed deepest thanks and appreciation to His Majesty Sultan Qaboos for issuing the Royal Decree No 79/2013 issuing the system of SEZD.
He said the decree is a qualitative leap in promoting local investments in the area and attracting foreign investments to it.

The decree provides incentives, facilities and guarantees for the projects that will be set up in the area, such as tax exemptions, foreign freehold up to 100 per cent, exemption of minimum capital requirements stipulated in the Commercial Companies Law and other laws, exemption on the handling and transfering of foreign currencies and exemption of the Commercial Agency Law application.
He added that the projects under way in the zone are not subject to any limitations on transfer of capital and profits outside the area. The tax exemption stated in the Royal Decree is for 30 years from the date of starting business. This term is renewable for similar periods.
He affirmed that the investment in the zone would be as per usufruct system. As per the Royal Decree, the usufruct right may be for 50 years, renewable for similar period.


The Authority may not terminate the usufruct agreement except if the projects violated the terms stipulated in the agreement or the regulations or the license permits or the considerations of public interest. At the same time, the projects may not transfer the rights without prior written approval from the Authority, except for other projects and with a written approval from SEZAD.
He also pointed out that except for the legally banned imports, the projects may import all commodities to the region without any prior license. The commodities will not be subject to any retention period at the zone. They will not also be subject to any limitations on their transfer inside the Sultanate or to any free or special economic zone in the Sultanate.
He also pointed out that the royal decree stipulated that all these services are provided by the one-window station and that the Authority will establish an electronic portal in the coming days to provide all necessary information on the zone.
He also said that the one-window would issue all licenses, permits, approvals and visas. It will also complete the registration of the projects and apply all regulations and systems issued by the Authority.
Al Jabri affirmed that the Royal Decree granted SEZD with the authority to register the projects inside the zone as per the Commercial Registration Law, registration at the industrial register, issue necessary licenses for the tourist projects and issue environmental permits for the projects, as well as take the necessary environmental measures to implement the environment protection and anti-pollution law. The Royal Decree also provided the Authority with the powers of the ministries in charge of enforcing labour, mining and food safety laws inside the boundary of SEZD.
With regard to the provision of foreign workforce necessary for projects implemented in the Special Economic Zone Authority at Duqm (SEZAD), he said that the Royal Decree stipulated that a labour Office should be opened in SEZAD by a ministerial decision from the Minister of Manpower.
The office is responsible for issuing licenses for foreign workforce in accordance with procedures that are featured by quickness and competence by a decision from SEZAD in coordination with the Ministry of Manpower.
The Royal Decree also stipulated to open a branch for the Directorate General of Immigration and Passports, responsible for issuing entry visas and residence to foreign workforce to work at SEZAD and for their families to visit it, adding that the Royal Decree stressed the need for licensing foreign workforce in a period not exceeding five working days from the date of submission of applications.
Al Jabri said that the Royal Decree provided for the establishment of a Customs Office at SEZAD by a decision of the Inspector-General of Police and Customs operating according to a system of customs which will be issued by SEZAD Board, which ensures a customs inspection quickly and effectively, with clear and open basics of valuation and shorten customs clearance procedures that does not affect its efficiency, in addition to the comprehensive and accurate examination of controlled samples at one site. Al Jabri invited foreign and local investors to invest at SEZAD.
He said the government has heavily invested in the infrastructure of SEZAD and these investments have contributed to the attraction of strategic investors in various projects.
He said that he looks forward to attracting more investors, since SEZAD is characterised by the diversity of investment areas in various economic sectors, stressing that SEZAD will initiate the implementation of Royal Decree No 79/2013 in order to contribute to the achievement of national goals for which it was formed. —
ONA

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