03-05-2025
Oman penalises 410 firms in crackdown on hidden trade
Muscat – The National Team to Combat Hidden Trade has conducted audits in 581 commercial companies in the governorates of Muscat, Dhofar and North Batinah, resulting in administrative penalties on 410 establishments found in violation of trade regulations.
The inspections were part of an ongoing government campaign to tackle illegal commercial practices and strengthen the business environment in the sultanate.
According to the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), 77 companies complied with audit requirements by submitting supporting documents, including bank statements and lease contracts. The overall response rate stood at 13.2%.
The three governorates were selected due to their high volume of commercial records – 20,244 in Muscat, 16,094 in North Batinah and 10,290 in Dhofar. Nasra bint Sultan al Habsi
Nasra bint Sultan al Habsi, Director General of Commerce at MoCIIP and Head of the National Team, said the campaign is focused on combating unauthorised trade activities and enhancing economic integrity.
'Our goal is to address the misuse of licences and professions, raise confidence in the economic system, and boost tax revenues,' she said.
She noted that 106 types of commercial activities are subject to supervision, including those prohibited for foreign investment, with the exception of 20 specific activities.
The campaign is being implemented in line with Ministerial Decision No 412/2023. Hidden trade is defined as any commercial activity conducted without proper authorisation under Omani law, whether by individuals or in partnership. The effort involves coordination with several entities, including the Royal Oman Police, Ministry of Labour, Consumer Protection Authority, Central Bank of Oman, Tax Authority, and the Authority for Small and Medium Enterprises Development.
'Hidden trade distorts the labour market, increases commercial fraud, creates unfair competition for entrepreneurs, and results in tax evasion,' Nasra said.
She added that the national team carries out field visits, reviews complaints, evaluates company compliance, and issues recommendations based on ongoing oversight. The team also receives performance reports from its technical wing and suggests new sectors that require regulation.
