The Sultanate of Oman Business Guide

Compiled by:

Swiss Business Hub Middle East

Dubai, August 2017

ARRIVAL AND DEPARTURE

A valid passport and visa are required for entry into Oman, and Swiss citizens may obtain a 90-day visa on arrival at all Oman entry points (at the airport or a land border). The validity period of the applicant's passport should not be less than six months. This visa can be extended only for an extra one month by the Directorate General of Passports and Residence, or at its branches at regional Royal Oman Police offices. Work visa is available for two years, but it must be arranged in advance through an Omani sponsor.

Every traveller is permitted to bring the following with them into Oman: - 2 litres of alcohol per family (non-Muslim) - Meat and meat products (with halal certification) - 8 video tapes per person - Pets (with an import license)

Prohibited items: - Bees - Dates - Firearms, toy weapons, swords or knives, and flammable materials - Obscene books - Non-canned foodstuffs

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LANGUAGES USED FOR BUSINESS

The official language is Arabic, although English is widely spoken in business circles, particularly in the urban areas. Generally, correspondence with the Omani ministries and official organisations is in Arabic.

PUBLIC HOLIDAYS

The Sultanate of Oman officially celebrates the following occasions:

Public Holidays in Oman* Date 2017 Date 2018 No. of Days Holiday 1 January 1 January 1 New Year's Day 24 April 13 April 1 Isra’a Wal Miraj (The Prophet's Ascension) 26 June 15 June 4 Eid Al Fitr 23 July 23 July 1 Renaissance Day 2 September 22 August 4 Eid Al Adha 22 September 11 September 1 Al Hijra (Islamic New Year) 18 November 19 November 1 Birthday of HM Sultan Qaboos 18 November 18 November 1 Oman National Day 1 December 20 November 1 Milad Un Nabi (The Prophet's Birthday)

*some holidays may shift depending on the moon sightings

HEALTH AND INOCULATIONS

Visitors to Oman should be immunised against all normal childhood diseases, as well as hepatitis A, hepatitis B, and typhoid.

TIME ZONES

Time zone abbreviation: GST - Gulf Standard Time.

TIME DIFFERENCE BETWEEN SWITZERLAND AND OMAN

GMT +4 (+2 & +3 hours respectively from Switzerland). No Daylight Saving Time (DST) adjustments in the Oman.

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ELECTRICITY SUPPLY

Oman’s residential electric power system is 110/220 volts AC, 60Hz.

METHODS OF PAYMENT

Oman has a number of international and local banks, and the average exchange rate is 1CHF = OR0.4 (0.3866 on 28.07.2016). The Omani riyal is pegged to the US dollar and is freely convertible. All major credit cards are accepted as payment across major outlets in Oman, including debit cards. However, it is advised that cash is also carried around.

TRANSPORTATION

BY AIR

Besides the daily direct flight from Muscat to Zurich with Swiss International Airlines, a number of European and Middle Eastern airlines companies provide flights to Oman through their respective European and Middle Eastern airports. The international airports in the Sultanate of Oman are Muscat, Seeb and Salalah. The national airlines company, Oman Air, offers a wide range of domestic routes that operate between the main cities of the country, as well as to some international destinations.

BY SEA

Oman is very accessible by sea and has a number of logistics sea ports; Sohar Port, Port of Muscat, Port Sultan Qaboos, Port Qalbat, Port Salalah and Khasab Port. Even though the Port of Muscat has become more of a tourist attraction, port Sohar has started to develop itself as a growing logistics hub together with a free zone.

BY ROAD

Omani cities are also connected by a network of modern highways and express buses. It is suggested for visitors to use taxis for travel within cities. Authorised taxis are all metered and widely available. However, outside of the capital area, public transport is rarely found off main highways. Car rental companies are also widely available.

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BY RAIL

Oman Rail is currently in the works of building its rail network across Oman. The total length of the Oman National railway network will be 2135km. The railway is designed to serve both mixed freight as well as passenger traffic.

HOTELS

Oman is a very popular tourist destination, and offers a range of both local and unbranded hotels, as well as international brands (for the higher standard hotels). The majority of the supply is of low quality and has widely varied service standards. However, Oman announced a forthcoming supply increase of hotel options across different standard categories.

COMMUNICATION

The Sultanate of Oman has a relatively modern and efficient telephone system provided by Oman’s dominant fixed-line carrier, Omantel. Practically all businesses have fax machines. The international code for Oman is +968. Omantel and Nawras also provide reliable broadband Internet services. Full email and internet facilities are available across Oman.

CELL PHONES

Like the rest of the GCC countries, cellular phones are widely used and available in Oman. The networks for mobiles are operated by the telecommunications giants in Oman, Nawras (www.nawras.com.om) and Omantel (www.omantel.net.om).

BUSINESS HOURS

Business hours vary widely by businesses. But in general, numerous companies mainly split their working hours into two shifts: 08:30 – 13:00 and 16:00– 18:30, Sunday through Thursday. Since 2008, and under the recommendation of the Oman Chamber of Commerce and Industry, many companies adopted the five-day workweek of Sunday through Thursday with official hours of business, with the weekend resting on Friday and Saturday.

Official working hours for Government offices are from 7:30 to 14:30 PM, Saturday through Thursday. The Central Bank of Oman and commercial banks operate from Sunday to Thursday. Commercial banks are open to the public from 8:00 to 14:00. Friday is usually a day of rest for all establishments, although certain shops may be open for restricted hours such as in shopping malls and restaurants. During Ramadan, the holy month of fasting, business hours differ.

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ADDRESSES AND OPENING HOURS OF THE EMBASSY OF THE SULTANATE OF OMAN IN SWITZERLAND

Consulate General of the Sultanate of Oman Chemin de Roilbot 3a 1292 Chambésy 1200 Genève Switzerland

ADDRESSES OF THE SWISS EMBASSY AND CONSULATES

Embassy of Switzerland Villa 1366, Way 3017, Shatti Al Qurum Muscat Oman Tel: +968 2460 3267 Fax: +968 2460 3298 Email: [email protected] Opening hours: 08:30am – 03:30pm

TIPS FOR INITIATING BUSINESS CONTACTS

- As in the rest of the GCC countries, to do business in the Sultanate of Oman, a Swiss company should be patient and perseverant in order to enlarge its appropriate local contacts and to pamper hindrances of the market; - An on-the-ground presence in Oman is an advantage; - Agents are not always required. Nevertheless, because of the characteristics of the Omani market, it is recommended to deal with local distributors/importers, especially in the retail business; - Importers must be registered with the Ministry of Commerce and be a member of the Omani Chamber of Commerce and Industry; - Agreements generally require significant lead time and follow-up before finalisation; - Likewise, government contracts oftentimes take many months (sometimes a couple of years) before they are awarded.

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BUSINESS PRACTICES

Most Omani businesspeople are familiar with Western business practices, but more traditional local habits still exist in Oman:

- In some cases, it is not possible to make appointments from outside of Oman; - It is common in Oman that the businessman has an appointment with two people at the same time, or that other businessmen come in unexpectedly and “participate” in the meeting. It is common that the meeting is interrupted by telephone calls or offers of coffee, tea, or soft drinks; - It is recommended to be on time, particularly for government appointments; - It may happen that businessmen break off a discussion for prayer at noon and at sunset, which falls during business hours; - Politeness is highly valued; blunt statements should be recast into constructive, balanced terms; - Sometimes Omani partners come late to an appointment or are in meeting with other businessmen. It is suggested to wait and plan enough time between meetings; - Since Oman is a conservative society, it is advisable to respect local traditions, i.e. not to offer or receive an object with the left hand. Sitting crossed-legged with a foot pointing towards the other person is considered offending; - Gifts are habitual and are appreciated, especially when representing the other culture (i.e. Swiss chocolate without alcohol).

SPECIAL FEATURES ON THE MARKET

It is recommended for a Swiss company before intending to do business in Oman or with a Omani company to learn about Oman’s distinctive culture. For instance:

- Personal relationships are essential for finding and keeping a partner; - Agents are commonly used, although not always required; - Agreements generally require significant time and follow-up before finalisation; - Raw materials imported for industrial production are exempted from customs duty; - Local products benefit from 10% advantage over imported goods on government purchases; Foreigners are now allowed to own land or property in Oman, within specified integrate tourism complexes and for a lease period of 99 years. Modern housing, often with large living spaces, is generally available for rent in Muscat and the surrounding areas. In light of the considerable increase in property rents in the Sultanate, the council of ministers has stipulated that the owner shall not increase the rent of residential, commercial and industrial premises except after the lapse of three years from the date of commencement of the lease contract or from the date of the last contracted increase.

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Date: August 2017 Author: Lamia Damerje Trade Advisor Author’s address: Swiss Business Hub Middle East C/o Consulate General of Switzerland P.O. Box 9300 Dubai, United Arab Emirates Tel: +971 4 329 0564 Fax: +971 4 331 3679 Email: [email protected]

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