GCC Industrial Law Enhances Integration: Key Implications for Businesses in Oman
MUSCAT: Oman has commenced the implementation of the GCC Unified Industrial Regulation Law, as outlined in Royal Decree No 27/2026. This initiative aims to enhance regional industrial integration, boost competitiveness, and attract investment among member states.
The Ministry of Commerce, Industry, and Investment Promotion has indicated that the law establishes a unified regulatory framework applicable to manufacturing, service, and advanced technology sectors. It requires prior industrial licensing for new or modified projects and lays out explicit provisions regarding approvals, revocations, and compliance.
Ghalib bin Said al Maamari, Under-Secretary of the Ministry of Commerce, Industry, and Investment Promotion for Commerce and Industry, characterized the law as a significant move towards harmonizing legislative frameworks. He emphasized its role in facilitating cross-border investment and supporting economic diversification efforts.
Engineer Khalid bin Salim al Qasabi, Director General of Industry, noted that the framework is designed to enhance transparency, foster innovation, and improve the quality and competitiveness of industrial products across the Gulf region.
The law also includes customs and tax exemptions for approved industrial inputs and empowers national authorities to grant incentives in accordance with World Trade Organization commitments, with a particular focus on small and medium-sized enterprises (SMEs), research and development, and digital transformation.
Spanning seven chapters and 28 articles, the legislation enforces stringent environmental, health, and safety standards, supported by inspection authority and administrative penalties. By aligning industrial policies throughout the GCC, this regulation is anticipated to contribute to a more integrated and resilient regional manufacturing landscape.
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The implementation of the GCC Unified Industrial Regulation Law represents a pivotal shift for Oman’s business landscape, fostering regional integration and enhancing competitiveness. This creates opportunities for investors by providing a more predictable regulatory environment and customs benefits, particularly for SMEs focusing on innovation and digital transformation. However, businesses must also navigate the potential risks of compliance, including stringent environmental and safety standards, making strategic partnerships and thorough regulatory knowledge essential for success.
