Shura discusses draft foreign investment, bankruptcy laws

Muscat, May 27 - The Majlis Ash’shura’s session on Monday discussed the Economic and Financial Committee’s report regarding the draft Foreign Capital Investment Bill which was referred to shura by the government. The council members began discussion on the draft Bankruptcy and Insolvency Bill which will continue on Tuesday. Dr Said bin Salih Masan, Chairman of the Economic and Financial Committee, said: “There were five draft bills under discussion by the committee during the past days and the committee has been working hard to finalise them before the end of the current term. These bills are so important for finding an attractive atmosphere for investments. The bills under discussion are: The Foreign Capital Investment Bill, the Bankruptcy and Insolvency Bill, Public-Private Partnership Bill, the Privatisation Bill and the Development Planning Bill.

“The committee took into consideration that the Foreign Capital Investment Bill involves many incentives and prerogatives as well as financial and legislative guarantees with a view to providing protection to the foreign investment. One of the major goals with regard to foreign investments is the creation of new jobs because the big investments are supposed to stimulate the economic sectors thereby create job opportunities for Omanis. Besides, the opening of competitive markets will boost production, provide options for the consumers and reduce the prices of commodities. Another advantage is the transfer of knowledge and technologies, and access to international markets. The Foreign Capital Investment Bill gives foreign investors the right to fully possess a capital otherwise foreign investors may share capital with local investors.”

Regarding the Bankruptcy and Insolvency Bill, Dr Masan said: “There have been requests for an independent law that governs bankruptcy. The proposed law took into consideration such demands as its provisions involved a balanced framework involving rights of the bankrupt, the creditors and the public interest. The bill included advanced provisions that stipulate precautionary stages prior to the declaration of bankruptcy. These stages include restructuring where the relevant authorities cooperate with the insolvent to help them overcome their financial difficulties.”