Sezad issues new rules to support small businesses
The decision, which came into force this week, stipulates that the Department of Partnership and Development will determine possible business opportunities for SMEs in government projects in SEZD.
MUSCAT: New regulations have been issued to maximise the participation of Small and Medium Enterprises (SMEs) in the development project of the Special Economic Zone in Duqm (SEZD) by the Special Economic Zone Authority in Duqm (Sezad).
The issuance of these controls comes in light of Sezad’s keenness for SMEs to benefit from the projects under implementation by SEZD. The new regulations rely on the decisions of the Small and Medium Enterprises Development Symposium held in Seeh Al Shamikhat on January 21 to 23, 2013. The decision, which came into force this week, stipulates that the Department of Partnership and Development will determine possible business opportunities for SMEs in government projects in SEZD.
Direct coordination
The decision obligates the contractors to advertise works available to SMEs in the daily newspapers in direct coordination with the Partnership and Development Department. The Department, in coordination with the project managers and the consultant for each project, will follow up with the contractors to make sure that opportunities for SMEs are announced during the project implementation period.
The decision also obligates contractors to lease the necessary machinery and equipment for the implementation of the project from citizens in accordance with the regulations adopted by Sezad, giving priority to the citizens of the Wilayat of Duqm and the citizens of the other Wilayats in AlWusta Governorate by announcing them in local newspapers.
The contractors can also purchase machinery and equipment from the local market in the Sultanate.
If they are unavailable from the citizens or in the local market, the contractors may import machinery and equipment from outside the Sultanate in coordination with the Partnership and Development Department.
The decision also stressed the need for contractors to abide by the new controls, pointing out that the violators of its provisions would be subject to the penalties stated under Article (20) of the Regulation on Investment Environment in Special Economic Zone in Duqm , which states that Sezad may suspend the license issued for the project or impose an administrative fine as per the regulation.
Omanisation percentage
On the other hand, Sezad issued a decision on the executive mechanisms for decision No. (90/2014) on determining the Omanisation percentage in SEZD projects.
The decision, which falls within the framework of Sezad efforts to ensure that the companies operating in SEZD will meet the Omanisation rate estimated at 10 per cent, stipulates that the competent authorities would coordinate among themselves towards the following: For companies implementing government projects in SEZD, their commitment to the specific Omanisation rate shall be verified in coordination between the Projects Department and the Partnership and Development Department.
For companies registered in SEZD, their compliance with the specific Omanisation rates shall be verified in coordination between the single-window station and the partnership and Partnership and Development Department.
The decision also tasked the Partnership and Development Department with coordinating with the companies addressed by the previous items (1 and 2) to announce vacancies in the projects currently implemented in SEZD. It also mandated the Partnership and Development Department to coordinate with the Manpower Register Authority to know the statistics of labour force and job seekers in Duqm and develop employment-oriented training programmes in coordination with companies operating in SEZD.