The Special Economic Zone Authority in Duqm (SEZAD) has issued new regulations to enhance the participation of small and medium enterprises (SMEs) in the development of the SEZ. This is in accordance with the recommendations of the SME Development Symposium held in Seeh Al Shamikhat in January 2013, the Authority said in a statement.
The new guidelines, which came into force earlier this week, tasks the newly established Department of Partnership and Development (DPD) with ensuring that Omani SMEs benefit from government contracts and projects implemented within the SEZ.
Under the new regulations, contractors are obliged to place advertisements in local daily newspapers featuring details of the subcontracts earmarked exclusively for SME contractors and vendors. The Partnership and Development Department, for its part, will work in coordination with the consultant and project manager of each project to ensure that contracting opportunities reserved for SMEs are suitably publicised during the implementation phase.
Additionally, contractors are obligated to source their requirement of construction machinery and equipment solely by Omani citizens in line with SEZAD regulations. In this regard, priority shall be given to local inhabitants of the Wilayat of Al Duqm, followed by those of other Wilayats in Wusta Governorate. Likewise, equipment and machinery required for any contract may be procured from the local market. If unavailable locally, imports will be permitted only in coordination with the Partnership and Development Department.
Those found in breach of the regulations are liable to penalties set out under Article (20) of the Regulation of the Investment Environment in SEZAD, which calls for the suspension of the contract license or the imposition of a fine in lieu.
A separate directive issued by SEZAD also affixes Omanisation percentages for projects implemented within the SEZ. It is set at a minimum of 10 per cent for companies executing government contracts in the SEZ.
The decision also requires the Partnership and Development Department to coordinate with the Manpower Register Authority the collection and tabulation of labour related statistics, as well as ascertain the need for training and skills development, in collaboration with companies operating in the SEZ.
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