Posted by: amj_admin on February 8, 2024 - 12:53 pm

We are pleased to announce the appointment of Yousuf Nasim as a senior associate in AMJ’s Banking and Finance team. Yousuf has over fourteen years of experience handling matters in a wide variety of subject areas. Yousuf’s area of expertise include banking & finance, corporate and M&A, projects, and Tax. He has advised and represented Fortune 500 companies, multinational corporations, major industrial and financial conglomerates, several statutory and government-owned bodies, and high-net-worth individuals. He is a Legal 500 Asia Pacific Recommended Lawyer.

Mr. Mansoor Jamal Malik , Managing Partner said: “I am delighted to welcome Yousuf Nasim to our banking and finance team and wish him all the best for his new role in AMJ”

Posted by: amj_admin on February 8, 2024 - 6:33 am

The eagerly anticipated Executive Regulations to the Oman Data Protection Law Royal Decree 6/2022 (“PDPL”) were recently issued on 28 January 2024 through Ministerial Decision 34/2024 (“Executive Regulations”).

Some of the key provisions of the Executive Regulations are as follows:

1. Article 10 of the PDPL requires the express consent of data owners to be obtained before the processing of their personal data and stipulates that such data must be processed within a framework of transparency, honesty, and respect for human dignity, whereby “personal data” is defined as data that makes a natural person identifiable, or capable of being identified directly or indirectly, by reference to one or more identifiers, such as name, ID number, electronic identification data, location data, or by reference to one or more factors related to genetic, physical, mental, psychological, social, cultural, or economic identity.

   Article 4 of the Executive Regulations further sheds light on the requirements for the consent to be a valid consent, such requirements being, the consent (i) is issued by a person with full capacity; (ii) is given in a clear manner and without coercion and (iii) issued in writing, electronically, or by any other means specified by the data controller.

2. Article 5 of PDPL provides that the processing of sensitive personal data relating to genetic, biometric, heath data or data relating to ethnic origin, sexual life, political or religious opinions, beliefs, criminal convictions, or related security measures is prohibited unless a permit is obtained from the Ministry of Transport, Communications and Information Technology (“MTCIT”).

   The Executive Regulations now provide guidelines regarding information that is required to be submitted by data processors applying for such permits, provided for under Article 5 of the PDPL and states that the MTCIT has 45 days to decide on the application. If the MTCIT fails to respond within this time limit, the application will be deemed to be automatically rejected. The applicant has the right to appeal such rejection within 60 days from the date of being notified of such rejection before the Minister of MTCIT (“Minister”), but if the Minister fails to respond within 30 days, the appeal will be deemed to be rejected.

3. Article 11 of the PDPL provides for data owners right to have their personal data erased, retrieved, or transferred to another entity by the data controller. The Executive Regulations provide that data controllers have a duty to respond to requests from data owner within 45 days. If the data controller fails to respond to the request or denies it, the data owner has the right to complain to the MTCIT, and if the MTCIT fails to respond within 60 days, the complaint will be deemed to be rejected.

   Article 17 of the Executive Regulations provides for two grounds based on which a data controller may refuse to fulfil a request of the above nature, these being i) if a request is unjustifiably repetitive, and (ii) if a request requires extraordinary effort to fulfil. This in our view, may be seen as unreasonable for data owners who have genuine reasons to request the data controller to erase or transfer their personal data.

4. Article 23 of the PDPL provides that personal data may be transferred outside Oman subject to the standards and procedures to be set out in the Executive Regulations. The Executive Regulations provide clarity on such international transfers of personal data. Article 37 of the Executive Regulations provide that the data owner’s consent is sufficient to transfer its personal data outside borders of Oman provided such transfer of data shall not prejudice national security or the higher interests of the country and there are no requirements to obtain the approval of the MTCIT before doing so. Further, Article 38 also provides that it is the responsibility of the data controller to ensure that the external processing entity i.e outside of Oman to whom such data has been transferred to, has adequate protection in place for such personal data, which may not be less than the level of protection prescribed in PDPL and Executive Regulations. Personal data may be transferred internationally without the consent of the data owner if (i) it is in implementation of an international obligation under an agreement to which the Sultanate of Oman is a party, or (ii) if the transfer was carried out in such a way as to conceal the identity of the data owner, not linking the data to him/her, and is not identifiable in any way whatsoever.
5. According to the PDPL, a number of obligations are imposed on data controllers and processors, which include the obligation to appoint a data protection officer, the selection controls and criteria for which were to be determined by the Executive Regulations. Whilst Article 35 of the Executive Regulations provide for a number of responsibilities which are required to be fulfilled by a data protection officer, it does not provide for the categories of data controllers who are required to appoint a data protection officer, which essentially means that any data controller who is holding personal data of any nature, is required to appoint a data protection officer.
6. Article 44 of the Executive Regulations provides for the imposition of penalties in case of non-compliance with the Executive Regulations. When considering the imposition of any of the penalties, the Minister may in the exercise of his discretion (i) issue an official warning; (ii) suspend the permit until the violation is remediated; (iii) impose a fine not exceeding 2,000 (two thousand) Omani Rials for each violation, and (iv) cancel the permit.

As these Executive Regulations have only recently been issued, much will depend upon their interpretation and application by the MTCIT with reference to the PDPL.

Author details

Anjali Kotak

Associate 

Commercial and Capital Markets 

Al Busaidy, Mansoor Jamal & Co

Tel: +968 24829200

Email: anjali.kotak@amjoman.com

Posted by: amj_admin on December 20, 2023 - 4:06 am

AMJ is delighted to announce that it has acted as a sole counsel for Taageer Finance’s Bond issuance which has been successfully completed. It is the second bond issuance of Taageer Finance in the last two years on which AMJ’s Capital Market Team has worked on with Ahli Bank and Taageer Finance teams.

Details of the deal can be found here.

Posted by: amj_admin on September 2, 2023 - 9:17 pm

Double taxation Avoidance Agreements (“DTAAs”) as a tool for attracting foreign investors to Oman as a result of the investors being able to reduce the additional tax burdens. DTAAs also provide concessional withholding tax rates in certain cases. The provisions of DTAAs having been ratified by Omani Sultan Decrees override the local Income Tax Law. 

Oman has signed comprehensive double taxation avoidance agreements with more than 30 countries inclusive of India, UK, Turkey, France, Canada, Singapore and Pakistan. Some of the treaties are yet to be ratified or have not yet come into force.

Recently, Oman signed 2 DTAAs: with Egypt in May 2023 and Russia in June 2023 respectively. The DTAA with Egypt has been ratified by Oman but is yet to be ratified by Egypt. These tax treaties will mark a significant step between the signatory countries in boosting foreign investment, cross border trade and strengthening of commercial ties between the nations.

Author details

Angad Ahuja Associate  Commercial & Projects Al Busaidy, Mansoor Jamal & Co Tel: +968 24829200 Email: angad.ahuja@amjoman.com

Posted by: amj_admin on September 2, 2023 - 9:16 pm

Whilst existing businesses which are well established in an economy choose to model their transactions in the most tax efficient manner, the potential tax exposure in an economy is an important consideration for any business planning to enter into a new market.  In this regard, an important factor to be considered by foreign entities entering the Omani market, is the implications of any withholding tax or other tax deducted as source, under the Oman Tax Law.

Withholding tax, as the name suggests, is a tax on payments made by an Omani taxpayer to a foreign entity, where the foreign entity has no “permanent establishment” or taxable presence in Oman, and the income received by it overseas falls into the ambit of any one of the categories, discussed below.

Withholding tax at the rate of 10% in Oman is applicable on the following categories of income accrued:

1. royalties (consideration for the use or right to use intellectual or proprietary rights for literary, artistic or scientific work; patents, trademarks, design, drawings; leasing of industrial commercial or scientific equipment; consideration for granting rights of exploitation of mining; consideration for information concerning industrial, commercial or scientific experience);
2. payments for research and development;
3. payments for the use of or right to use computer software; 
4. management fees; and
5. fees for the performance of services.

Though payments in the nature of dividends and interest also attract withholding tax, as per the Income Tax law, withholding tax on payments of dividends and interest is presently suspended for an indefinite period pursuant to a Royal Directive issued on 11 January 2023 by His Majesty Sultan Haitham bin Tarik. 

In 2019, the Executive Regulations of the Income Tax law were amended and, the following payments categorized under “performance of services” were exempted from the application of withholding tax:

1. participation in organizations, conferences, seminars or exhibitions;
2. training;
3. transportation and shipment of merchandise and its insurance;
4. air tickets and boarding cost abroad;
5. meetings of Boards of Directors;
6. reinsurance payments; and
7. any services provided linked to a business or property located outside Oman.

Further, the Tax Authority, has also clarified that regardless of where the service has been performed, withholding tax is applicable on the payments made to a foreign person in respect of services. The foreign person will be entitled to a Tax Deduction Certificate issued by the Tax Authority, based on which credit for tax can be claimed subject to the laws of the foreign jurisdiction.

While withholding tax is the tax of the foreign person, it is the responsibility of the Omani party to deduct and pay the withholding tax to the Tax Authority in Oman. Therefore, it is important to ensure that all contracts have a tax clause that clearly define who bears the withholding tax, in order to correctly be able to determine the amount of tax to be paid.  

Author details

Angad Ahuja Associate  Commercial & Projects Al Busaidy, Mansoor Jamal & Co Tel: +968 24829200 Email: angad.ahuja@amjoman.com

Posted by: amj_admin on August 28, 2023 - 5:46 pm

AMJ is pleased to announce that it has acted for HSBC Bank Oman in its successful merger by incorporation with Sohar International Bank. The merger of the two banks has placed the surviving entity, Sohar International Bank, as one of the largest banks in Oman.

Work on the merger deal commenced in mid-2022 and AMJ supported and advised HSBC Bank Oman in all aspects of the deal mechanics and process. The merger was successfully completed on Thursday, 17th August 2023 whereupon Sohar International Bank acquired all assets, liabilities, rights and obligations of HSBC Bank Oman. This constitutes one of the largest M&A deals to successfully conclude in Oman in the preceding year.

The AMJ team that led this deal comprised Mansoor Jamal Malik (Partner), Zarrar Mir (Associate), Ahmed Al Busaidy (Senior Associate) and Iman Al Maqbali (Associate).

Posted by: amj_admin on November 8, 2021 - 5:37 pm

We are proud to announce that AMJ has won the prestigious ‘Oman National Law Firm of the Year’ award at the International Financial Law Review (IFLR) Middle East Awards held in Dubai on October 27, 2021. This accolade brings AMJ’s tally of IFLR’s ‘National Law Firm of the Year’ awards to an impressive and unrivalled 13th time in Oman. The Award recognises the best law firms in each jurisdiction based on the innovation and the complexity of deals completed.  AMJ was also shortlisted for M&A Deal of Year, a highly competitive category, for its work alongside international counsel on the Omantel/Helios Tower Infrastructure transaction which involved the structuring of the sale of Omantel’s passive infrastructure tower assets to the UK-based Helios Tower Plc. 

The annual IFLR Awards brings together leading global and regional corporate law firms to celebrate the most outstanding legal deals that have taken place in the region in the past 12 months.  AMJ’s nomination and achievements highlight the resilience of the Omani market in terms of the quality of transactions and projects being undertaken in the country, particularly given the tough market conditions of the past few years and the challenging pandemic situation.

This latest achievement reaffirms AMJ’s position as a leading Omani law firm, and highlights the benefits of the firms near 40 years of practice in the Sultanate, and involvement in many, ‘first of a kind’ deals and landmark projects that have taken place in Oman and the region.  Its resident team of lawyers includes many of Oman’s most senior and experienced practitioners, recognised as leaders in their fields. The firm’s success is based largely on its ability to draw on expertise gained in multiple innovative deals over the last four decades to respond to changing market conditions and the evolving commercial and legal needs of business and the Omani government.

Posted by: amj_admin on June 29, 2021 - 8:16 pm

In January 2021 AMJ promoted Ms. Majda Al Riyami, senior associate to partner in the litigation department.  This expanded partnership signals the Firm’s commitment to developing its talent, its continued growth and intent to consolidate its top ranking in the Oman market for legal services. This was in line with AMJ’s policy to promote home-grown talent and reward lawyers who have the winning combination of quality performance and excellent client care.  Majda is the third Omani women to be granted rights of audience before the Omani Supreme Court.   Majda joined the Firm in 2008 as an associate. 

Majda joins AMJ’s existing 6-partner line-up comprising former Supreme Court judge Dr Said Hilall Al Busaidy, elite-ranked Senior Counsel, Mansoor Malik, Ardeshir Patel, Marcus Pery, Dr Mohammed Yousef and Dr Ayman Ali

Majda is team leader of the department’s Arabic commercial and civil disputes practice.   Majda is also specialist in the Oman Labour Law and a well-known litigator before the Primary, Appellate and Supreme Court in Oman. .Majda has extensive experience in handling a wide range of civil, commercial, Sharia law and employment cases.  She represents a large portfolio of leading national and international companies across a broad spectrum of industrial sectors on the settlement, prosecution and defence of claims before the courts and tribunals of Oman. Majda is highly regarded as a specialist in air carrier liability and regulatory law and has developed a niche practice as a defence lawyer for leading international airlines operating in Oman against product liability claims.

Posted by: amj_admin on June 29, 2021 - 8:14 pm

AMJ,  along with Freshfields Bruckhaus Deringer,  have advised Oman Telecommunications Company SAOG Group (Omantel) on the US$ 575 Million sale of its passive infrastructure tower assets to UK-based Helios Tower Plc., a leading infrastructure company listed on the London Stock Exchange, via a locally established SPV, (“Helios SPV”).  

This transaction will involve the sale of 2,890 telecommunications towers, located all over the Sultanate, to Helios SPV, with the transaction also involving Omantel entering into a long-term services agreement with Helios SPV to retain access to the tower assets, while sparing Omantel the associated direct operating costs, and allowing Helios SPV to market the unused capacity of the extensive tower network to other potential customers. This transaction is expected to result in significant cost savings for Omantel, while the sale proceeds from the transaction will be used by Omantel for debt reduction. Omantel will remain the owner of the active transmission equipment to be located on Helios SPV’s towers and remain the controller of its active network, spectrum and software.

This transaction represents an exciting further development in the evolution of Oman’s Telecommunications sector, and along with the granting of the 3^rd Mobile operator’s license to Oman Future Telecommunications Company SAOC, trading under the Vodaphone brand, on the 5^th January 2021, this will further enhance the sectors growth.

AMJ’s team was led by Senior Partner Mansoor Malik supported by Senior Associate Robert Booth.

More about the transaction can be read here: https://www.omanobserver.om/article/1100737/business/omantel-to-sell-tower-infrastructure-for-575-million

Posted by: amj_admin on June 29, 2021 - 8:07 pm

AMJ has recently advised, as local counsel, OQ S.A.O.C. on the launch of its global medium term notes (GMTN) programme valued at USD 2 billion, as well as on the first issuance under the programme valued at USD 750 million at a rate of 5.125% due in 2028. The firm worked together with the lead international counsel, Allen & Overy, to bring the transaction to a successful closure.

The firm has played a crucial role in the transaction by, inter-alia, advising and supporting the issuer with respect to its compliance with matters of Omani law and in particularly with regard to its successful application for regulatory approvals required for the issuance, notably the exemption from the regulatory cap on commercial interest rates imposed by the Ministry of Commerce, Industry and Investment Promotion, and the approval of the Ministry of Finance’s Debt Management Office on the GMTN programme and the issuance thereunder.

The AMJ team advising on the transaction was led by Mansoor Jamal Malik (Senior Partner), who was supported by Hussein Azmy (Associate) and Al Mujahid Al Nabhani (Associate Trainee).