Role of Cooperative Societies in Oman: Key Insights from OEA Seminar for Investors and Business Owners
FAISAL AL AJMI
MUSCAT, OCT 22
The Oman Economic Association (OEA) held its 28th Economic Council seminar on October 21, 2025, at Omantel headquarters, focusing on the theme "Cooperative Societies: Reality and Aspirations." The event was organized under the patronage of Dr. Nasser bin Rashid al Maawali, Under-Secretary of the Ministry of Economy, and gathered distinguished scholars, economists, and media professionals.
Notable participants included Mohammed bin Hasan al Ansi, Majlis Ash’shura representative for the Wilayat of Salalah; Nasrah bint Sultan al Habsiyah, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion; and Naji bin Darb Ghashm al Shaqri, former General Manager at Spinneys and an active entrepreneur.
Dr. Khalid bin Said al Amri, Chairman of the Oman Economic Association, highlighted the significant global role of cooperatives. He noted that cooperatives, which began with the Rochdale Pioneers in 18th-century England, have grown to number around three million worldwide with over a billion members. The largest 300 cooperatives generate $2.2 trillion in sales and provide employment for over 100 million people, surpassing many multinational corporations in scale. Dr. Al Amri stressed that cooperatives serve not only as powerful economic entities but also as vital social institutions that foster local community empowerment and contribute to global economic stability.
Abdullah bin Mohammed al Abri, a member of the Oman Economic Association, emphasized the vital role of consumer cooperatives in bolstering the national economy. He pointed out their substantial contribution to local value addition and their role in providing local producers access to broader markets. Al Abri described these cooperatives as "people-owned initiatives" that ensure financial circulation remains within the country, thereby driving local economic growth.
Addressing the challenges faced by consumer cooperatives, Al Abri mentioned that, despite existing legal frameworks, they often lack sufficient advantages or benefits. He underscored the critical need for preferential treatment to enable these cooperatives to thrive competitively. Furthermore, he highlighted governance as a key issue, emphasizing the necessity for clear decision-making processes, accountability, and transparent management structures to ensure sustainability and development.
Mohammed bin Hasan al Ansi reiterated the importance of consumer cooperatives in stabilizing prices during crises, supporting local producers and small enterprises, and retaining economic value within communities. He added that cooperatives empower citizens as both consumers and shareholders, promoting job creation, curbing unofficial trade, and fostering sustainable local development.
Nasrah bint Sultan al Habsiyah presented the recently introduced executive regulation on consumer cooperatives, published in 2023. The regulation details licensing procedures, cooperative obligations, and member participation frameworks, specifying that partner contributions must range between 5% and 25%. She also outlined the incentives and facilities provided to consumer cooperatives alongside supervisory and regulatory measures intended to ensure their effective, transparent operation.
Special Analysis by Omanet | Navigate Oman’s Market
The growing emphasis on consumer cooperatives in Oman signals a strategic opportunity for businesses to harness local community engagement and economic inclusion while stabilizing markets and supporting local producers. However, to fully capitalize on this potential, entrepreneurs and investors must prioritize strong governance frameworks and advocate for enhanced legal incentives that foster competitive advantages. Smart stakeholders should also consider cooperatives as a vehicle for sustainable development and job creation, aligning their strategies with national economic goals and regulatory frameworks to maximize impact.
