A construction company’s capital should not be less than OMR25,000, and one of the shareholders should be dedicated to the management of the company, according to new regulations.
The new regulations have been devised for the construction companies by the Ministry of Commerce and Industry, in collaboration with a number of organisations to regularise the sector and limit illicit trade and duplication of records.
If none of the shareholders is employed in the company’s management, an Omani manager should be appointed and registered with the Public Authority for Social Insurance.
Also, the company’s business should be limited to construction, being an independent commercial registration from other businesses.
Other work associated with construction may be added to the construction business, as per the approved economic classification for commercial activities.
Additionally, the company should have a fixed head office and its financial data and construction contracts should be kept in a record to be submitted to the respective authority upon demand.
The new regulation will provide Omani entrepreneurs who are dedicated to the management of their companies with many business opportunities and also provide job opportunities for Omani job seekers.
Recent statistics point out that the number of expatriates working in the construction sector, as of the end of March 2015, stood at 992,963, compared to 970,660 in May 2014, an increase of 22,303 workers.
It was also noted that 44 per cent of the total number of expatriates in the Sultanate work in the construction sector, which has an Omanisation rate of not higher than 8 per cent.
Further, the number of Omanis working in the construction sector at the end of March 2015 decreased to 56,265, compared to 58,731 at the end of May 2014, being a 0.6 per cent decrease.
The Omanisation rate at third and fourth grade companies, at which 300,000 expatriates work, is 0.9 per cent.