In a major development for Omani businesses, the Ministry of Commerce, Industry, and Investment Promotion is rolling out new regulations to facilitate the conversion of limited liability companies (LLCs) into public joint-stock companies (SAOG). This initiative follows the launch of the Financial Services Authority’s Incentivization Program, aimed at boosting opportunities for small and medium-sized enterprises (SMEs).
Mubarak Mohammed al Dohani, Director General of Commerce, has revealed that the upcoming guidelines will outline the steps required for LLCs to transition to SAOG status. Key among these requirements is a minimum market value of RO 500,000. With 118,252 LLCs currently registered, this change promises to impact a significant portion of the Omani business landscape.
Al Dohani emphasized that the move aligns with recent economic reforms, offering businesses new pathways for growth and investment through the capital market. The forthcoming guidelines will provide a detailed roadmap for LLCs to make this transition, enhancing their access to resources and opportunities.
Qais bin Mohammed al Yousef, Minister of Commerce, Industry, and Investment Promotion, described the initiative as a strategic step by the government to encourage family-owned businesses to evolve into joint-stock entities. This transformation is expected to improve transparency, accountability, and management flexibility, while increasing investor and creditor confidence. The initiative aims to modernize and sustain these businesses, boosting their long-term viability.
Dr. Saleh bin Said Masan, Under-Secretary for Commerce and Industry, noted that the Royal endorsement of this initiative represents a substantial opportunity for business transformation. The new regulations are designed to improve oversight and decision-making processes, ensuring these companies can thrive and contribute to the national economy.
The new program not only incentivizes the conversion of existing companies to public status but also supports the creation of a new market for emerging businesses on the Muscat Stock Exchange (MSX). By enhancing the capital market and financing options, these measures are set to bolster the growth of SMEs and other enterprises across Oman.
