Commerce Ministry takes action against companies engaged in hidden trade

Times of Oman

15-07-2025

Muscat: Qais Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, met on Tuesday at the Ministry's headquarters with a number of entrepreneurs working in the vehicle repair and maintenance sector.
This meeting is part of a series of direct engagements conducted by the Ministry to enhance communication with small and medium enterprise (SME) owners, in line with its efforts to empower entrepreneurs and strengthen the business environment in the Sultanate of Oman.
The initiative is carried out in collaboration with partners, including the SMEs Development Authority (Riyada), Oman Chamber of Commerce and Industry, and Khazaen Economic City.
The meeting addressed key challenges facing workshop owners and businesses in this vital sector, including unfair competition under the guise of concealed trade.
The Ministry confirmed that it has taken several legal measures against violating companies by implementing the first phase of Ministerial Decision No. 412/2023 on combating hidden trade, which covered three governorates (Muscat, Dhofar, and North Al Batinah). The second phase of the decision will be rolled out in the coming period.
The discussion also touched on challenges related to obtaining land usufruct rights for conducting economic activities in vehicle repair and maintenance, as well as financing difficulties for projects in this sector, including personal and housing loans for entrepreneurs. The importance of digitizing all government services was also highlighted.
For his part, Mubarak Mohammed Al Dohani, Director General of Planning at the Ministry of Commerce, Industry, and Investment Promotion, emphasized that this meeting aligns with the Ministry's policy of opening direct dialogue channels with economic activity owners.
A series of meetings will be held in the coming period with entrepreneurs from various sectors to understand their challenges and proposals for developing and enhancing the national economy. He noted that the vehicle repair and maintenance sector represents a key link in the value chain of Oman's automotive market, offering vast opportunities for entrepreneurship and self-employment.
He added that the Ministry is keen on activating the business environment and improving the competitiveness of service activities, including vehicle repair, in which citizens account for over 93% of participation. The Ministry, in coordination with its partners in industrial cities such as Khazaen, is working to facilitate the transition to organized and sustainable work environments that enable SMEs to grow and thrive.
Entrepreneur Nasser Nasrallah Al Fahdi presented a working paper detailing his personal experience in establishing and managing a vehicle repair workshop, along with the challenges he faced since starting in 2016. He also shared his success story and continuous efforts to develop his workshop to keep pace with market advancements, despite financial and regulatory hurdles.
Additionally, representatives of Khazaen Economic City delivered a visual presentation highlighting investment opportunities available in the Khazaen Market for vehicle spare parts, repair, and maintenance. This integrated project aims to regulate the sector, provide an ideal and safe environment for workshops and craftsmen, and link services with modern logistical facilities.
The presentation also noted the market's comprehensive infrastructure, which includes dedicated auto repair units, spare parts showrooms, and support services, all within a regulatory framework that accounts for population and urban growth in South Al Batinah Governorate and neighboring areas.
Data released by the Information and Statistics Department at the Ministry of Commerce, Industry, and Investment Promotion indicates that the number of licensed companies in vehicle repair and maintenance activities exceeded 13,500 by June 2025, distributed across various governorates of Oman. Muscat Governorate leads with 3,690 establishments, followed by North Al Batinah (2,226 establishments) and Dhofar (1,941 establishments).
The data also reveals that the most common activities are vehicle electrical repair (3,651 establishments), vehicle mechanics (2,363 establishments), and oil change services (1,441 establishments). Meanwhile, full Omani ownership accounts for over 95% in most of these activities.