The Sultanate of Oman (Oman) has recently published the implementing regulations (Decision No. 4/2020 of the Public Authority for Privatisation and Partnership (the PAPP) (the Implementing Regulations) for Decree No. 51/2019 (the Privatisation Law) regulating the privatisation of state assets in Oman. Following the recent major restructuring of the Omani government, Royal Decree No. 110/2020 subsequently abolished the Public Authority for Privatisation and Partnerships (the PAPP), thereby transferring its competencies, assets, rights, obligations and holdings to the Ministry of Finance whilst replacing all references of the PAPP wherever it occurs in the laws to the Ministry of Finance (the Authority).
The Privatisation Law represents a huge step forward in the modernisation of Oman's economy in line with the Oman Vision 2040. One way in which the Privatisation Law can help modernise Oman's economy is to reduce Oman's reliance on the oil & gas industry- currently, the oil & gas industry contributes almost half of Oman's GDP, however Oman's plan to diversify the sources of its GDP will be greatly aided by the cash freed up by privatising state assets to enable other investments.
This article considers the provisions of the Privatisation Law and the Implementing Regulations and key points to note.
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