Commerce Ministry Takes Action Against Companies Engaged In Hidden Trade

Commerce Ministry Takes Action Against Companies Engaged In Hidden Trade

Muscat: On Tuesday, Qais Mohammed Al Yousef, Minister of Commerce, Industry, and Investment Promotion, met with several entrepreneurs who operate in the car repair and maintenance industry at the ministry's headquarters.

This conference is one of a series of direct engagements conducted by the Ministry to improve engagement with small and medium-sized enterprise (SME) owners, in accordance with its attempts to empower entrepreneurs and strengthen the commercial climate in the Sultanate of Oman.

The effort is being undertaken in conjunction with partners such as the SME Development Authority (Riyada), the Oman Chamber of Commerce and Industry, and Khazaen Economic City.

The meeting discussed significant challenges facing workshop owners and firms in this important sector, such as unethical competition disguised as concealed trade.

The Ministry has taken various legal actions against offenders by implementing the first phase of Ministerial Decision No. 412/2023 on combating covert trade, which covered three governorates (Muscat, Dhofar, and North Al Batinah). The decision's second phase will be implemented in the next period.

The debate also addressed issues such as gaining land usufruct rights to undertake commercial activities in vehicle repair and maintenance, as well as financing obstacles for sector projects, including personal and house loans for entrepreneurs. The value of digitizing all government services was also emphasized.

Mubarak Mohammed Al Dohani, the Ministry of Commerce, Industry, and Investment Promotion's Director General of Planning, highlighted that this meeting is consistent with the Ministry's strategy of establishing direct communication lines with economic stakeholders.

A series of meetings with entrepreneurs from various industries will be organized in the coming days to learn about their issues and recommendations for growing and improving the national economy. He emphasized that the vehicle repair and maintenance sector is an important element of Oman's automotive market value chain, providing numerous prospects for entrepreneurship and self-employment.

He stated that the Ministry is committed to fostering the business environment and increasing the competitiveness of service operations, including car repair, in which citizens account for more than 93% of engagement. The Ministry, in collaboration with its partners in industrial cities such as Khazaen, is working to facilitate the shift to organized and sustainable work environments that allow SMEs to develop and prosper.

Entrepreneur Nasser Nasrallah Al Fahdi gave a working paper outlining his personal experience in establishing and managing a car repair business, as well as the obstacles he has encountered since beginning in 2016. He also told his success story, as well as his ongoing efforts to improve his workshop to keep up with market developments, despite financial and legislative challenges.

Furthermore, representatives from Khazaen Economic City gave a video presentation outlining the investment opportunities in the Khazaen Market for vehicle spare components, repairs, and maintenance. This integrated approach seeks to regulate the business, build a welcoming and safe atmosphere for workshops and artisans, and connect services with contemporary logistical infrastructure.

The presentation also emphasized the market's extensive infrastructure, which includes dedicated vehicle repair centers, spare parts showrooms, and support services, all within a regulatory framework that accounts for population and urban expansion in South Al Batinah Governorate and neighboring areas.

According to data from the Ministry of Commerce, Industry, and Investment Promotion's Information and Statistics Department, the number of registered firms engaged in vehicle repair and maintenance activities exceeded 13,500 by June 2025, spread across Oman's various governorates. Muscat Governorate leads with 3,690 businesses, followed by North Al Batinah (2,226 establishments) and Dhofar (1,941 establishments).

According to the statistics, the most frequent activities are vehicle electrical repair (3,651 establishments), vehicle mechanics (2,363 establishments), and oil change services (1,441 establishments). In the majority of these businesses, full Omani ownership accounts for more than 95% of the total.

This meeting is part of the Ministry's continuing effort to promote entrepreneurs and create a flexible, fair business environment that adapts to market changes while also supporting Omani citizens' economic ambitions.

 

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