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BUSS 1004 Business Law Assignment - Middle East College, Oman

Learning Outcomes of the Module - On completion of this module the student should be able to:

1. Critically analyse the implications of national and international legal environments of businesses in the Sultanate of Oman.

2. Analyse the key features of the judicial system of Oman.

3. Use appropriate sources for general legal analysis by identifying information, legal issues and reaching conclusions based on analysis.


Legal and other issues in businesses of Oman -

Q1. You are required to interview Ithraa staff (or Oman Chamber of Commerce and Industry, or Ministry of Industry and Commerce or Tanfeeth or ASYAD), to explain the status of these issues in Oman and what is the way forward for excellence in Oman?

Solution - In order to make diversification of businesses and its planning, there are a lot of legal and easy business issues in Oman according to the provided business scenario in Oman. These legal issues are mainly labour law of Oman (Palalic, Dana, & Ramadani, 2019). It is mentioned in the given case study that, age for recruiting a person as labour is 18 years which is costly. Foreign labours are cheaper than they but foreign employees get their visa to enter in Oman at their 21 years age. Such superannuation in the aspect of age has made a great issue for getting adequate labours. Excluding such an issue there are problems of employees termination related issues, pollution-related legal norms violation issues and many others. To get a vivid picture of these issues an interview is done with the employee of Ithraa, named Zara Hayat Khan. During this interview with Zara, a lot of information are gathered about the issues. Removal of such issues can help Tanfeeth Diversification plan to be completed successfully. Interview oriented questions are answers are provided below.

Student: What are the customs clearance turnaround issues affect business in Oman?

Zara: Basic custom clearances turnaround issues are found o be present as the charged duties on American and other foreign goods which are transshipped to or through Dubai. Sometimes, certificates of business and other commercial papers are checked in ships which are not enlisted right now in the legal norms of FTA (Mihajat, 2019). Due to Omanization procedure, in most of the cases, Oman peoples are recruited in foreign-invested companies in sectoral basis. But due to vigorous government charges they did not get their payments timely.

Student: What are the obligation of new business formation and turnaround issues for a businessman?

Zara: For new business formation in Oman for both of the omanian and Non -Oman based investors it is a great issue. As Government of Oman is highly reluctant on the reduction of taxes. Due to enhancing corporate taxes, levies, duties charges, along with reducing oil prices are other new business organizations are now not will to do so.

Student: What is buerocratic business issues in Oman?

Zara: Buerocratic business issues are prevalent in Oman due to having lots of in-house money to peoples. Oman is a small one having a GDP of $80 million. As people have money right now so they have no need to chase behind money. Al khonjee and Genesis are two very crucial entrepreship based business in Oman.

Student: How to cut red tape barriers for Omani small business?

Zara: Red tape barriers in Oman to start new businesses are getting easy loans for starting a business, making many licenses for the continuation of businesses along with paying rents for livelihoods or businesses. In Oman, home-based business owners are happy as they need no such things for the continuation of businesses according to the laws of International labour organizations.

Student: Wha is the effect of One step shop OSS Concept of investment processing in Oman business?

Zara: One step shop businesses have snatched the customers from the specialized business. On the other hand, most such businesses use digital technologies like digital payments and others which attracts peoples more and other businesses like retails, transports suffer from this concept.

Student: How the tax holidays are going on Oman?

Zara: Tax holidays are indicati8ng towards redemption of taxes from business. In Oman, corporate taxes and business taxes are very low.

Student: How the status of port handling capacity of Oman?

Zara: Port handling capacity of Oman is very attractive and nowadays it has reached 85% efficiency level due to the presence of Sohar, Salalah and other ports in this country.

Student: How the clearance issues are going at Sohar port after shipping was moved from Muscat to Sohar?

Zara: After changing the shipping from Muscat from Sohar port there are issues in supply chain management and inconsistencies in activities. Due to being the capital, Muscat has many advantages which are not available in Sohar. It is the reason behind such issues.


Q2. Business ethics, corporate social responsibility and corporate governance create the human face of organisations. Critically explain these concepts and use an applied Oman company example to demonstrate good corporate governance.

Solution - Business-related ethics, corporate social responsibilities and corporate governances are very crucial facets of all business organizations to continue their business in a smooth flair. In this aspect, Oman Oil Company S.A.O.C (OOC) is taken to describe the same along with related business issues (Al-Matari, Al-Dhaafri & Al-Swidi, 2019).

Social corporate responsibilities of this Oman based oil companies is very high. In this aspect, it is observed that OOC is highly dedicated to society. To fulfil their social obligations this organization has taken the responsibilities to donate in the fields of sports, health, educations and welfare of human beings. In this way, this company donates huge amounts of money for treatment of AIDS, genetic diseases and other fatal diseases, mainly found in children. For women, welfare education is a great step from this company (Anwer et al., 2019). Business ethics is here highly emphasized. Ethics-related problems of previous times were mainly discrimination-related issues. Such issues included the discriminations between Oman and Non-oman employees, or on the basis of colour, nation, gender, races and others. In this aspect, the board of directors of this company has helped the meeting to make a clear assessment of the issues. After that, they provided the training of business ethics to all their employees. It has helped them to get a proper analysis of the issues and to mitigate them. Corporate related governances are also highly crucial in their activities. Through such steps, there are implementations of new technologies along with new business deals to create more sources of employment in Oman. From all of these aspects, there are the examples that how business company OOC has mitigated their issues of business ethics and made their reputation in the business world through corporate governances, social corporate responsibility maintenances and others (Ghouse, McElwee,& Durrah, 2019).


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