Muscat: The ministry stated that the law aims to enhance the industrial environment, attract investment, ensure compliance with health and environmental standards, and promote industrial integration among GCC member states. It seeks to regulate the industrial sector, advance industrial development, increase its contribution to national income, and align manufacturing with the broader economic policies and development plans of GCC countries.
The unified framework also focuses on stimulating innovation, adopting advanced technologies, supporting digital transformation, and keeping pace with the Fourth Industrial Revolution. In addition, it promotes energy-efficient machinery, environmental protection, occupational health and safety standards, and respect for public order and customs observed across the GCC.
His Excellency Engineer Ghalib bin Saeed Al Maamari, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Trade and Industry, described the law as a strategic step toward enhancing industrial integration among GCC countries. He noted that harmonising regulatory and legislative frameworks will help attract investments and strengthen competitiveness at both regional and international levels.
His Excellency Al Maamari added that the law will facilitate the transfer of investments, expertise and industrial technologies among member states, thereby increasing production efficiency and reinforcing the industrial sector’s role in economic diversification and the achievement of national strategic objectives. He emphasised that the law’s implementation reflects the government’s continued commitment to positioning industry as a key driver of economic growth.
Engineer Khalid bin Salim Al-Qasabi, Director General of Industry at the ministry, said the application of the law represents a fundamental pillar in supporting sustainable industrial growth. He explained that the unified framework enhances transparency, stimulates innovation, and elevates the quality and competitiveness of Gulf industrial products.
Al-Qasabi noted that the upcoming phase will create quality opportunities for manufacturers and investors to leverage complementary advantages across GCC markets and supply chains. He stressed the importance of coordinated efforts between government entities, the private sector, and strategic partners to achieve industrial goals efficiently and sustainably.
The unified law comprises seven chapters and 28 articles, defining the regulatory framework for industrial activities across the GCC, including manufacturing, service industries, and modern technology sectors. It applies to all existing and new establishments, whether publicly or privately owned, and covers both local and foreign investors.
Article Four of the law requires obtaining a prior industrial license before establishing any industrial project or making changes such as expansion, development, merger, division, relocation, or disposal of the project. Licensing approvals are subject to controls related to location, engineering design, production capacity and safety standards to ensure alignment with industrial development plans.
Article Five outlines procedures for obtaining an industrial license, allowing applicants to secure initial approval from the competent authority in accordance with executive regulations. The initial approval is valid for one year and may be renewed.
Article Six specifies cases for cancellation of initial approval or an industrial license, including at the request of the project owner, failure to complete procedures within the specified period, submission of incorrect data, non-compliance with approved requirements, or failure to implement the project as licensed.
The law also introduces incentives to stimulate industrial growth. Imports necessary to commence industrial production for projects established in GCC countries will be exempt from taxes and customs duties, in line with agreed regulations on industrial input exemptions. Competent authorities may also grant incentives and benefits in accordance with national regulations, provided they comply with GCC obligations to the World Trade Organization, with special support directed toward small and medium enterprises, innovation, research and development.
Environmental and safety compliance is a central component of the law. All industrial establishments are required to adhere to environmental and health standards, prevent pollution, reduce harmful emissions, implement occupational safety programmes, and manage industrial waste in accordance with approved regulations. Authorities are granted powers to conduct periodic inspections and monitoring to ensure compliance.
Regarding administrative penalties, the law provides for a range of measures, without prejudice to criminal or civil liability, including warnings to rectify violations within 30 days, temporary suspension of operations for up to 90 days, daily administrative fines, total fines, project closure, or cancellation of the industrial license.
Each GCC country will determine minimum and maximum fine limits under its applicable regulations, ensuring that penalties are proportionate to the seriousness of the violation, the benefits gained by the project, and the harm caused.
Oman has adopted a GCC-wide industrial law aimed at enhancing competitiveness and diversifying the economy. The law seeks to improve the industrial environment, attract investment, and ensure compliance with health and environmental standards. It promotes industrial integration among GCC states, supports digital transformation, and aligns manufacturing with broader economic policies, positioning industry as a key driver of economic growth.