Stringent actions have been taken against 410 firms for violating trade regulations, according to the National Team for Combating Illicit Trade.
Inspections were carried out across 581 commercial companies operating in Muscat, Dhofar, and North Al Batinah — regions selected for their high concentration of commercial records. Muscat alone registered 20,244 records, followed by North Al Batinah with 16,094 and Dhofar with 10,290.
Administrative penalties were imposed on 410 establishments, while 77 companies complied with audit requirements by submitting key documents such as bank statements and lease agreements — bringing the compliance response rate to 13.2%. The audit targeted 106 commercial activities, particularly those restricted from foreign investment. Limited exemptions were granted to sectors like tailoring, car repairs, salons, and veterinary services — provided the businesses had been operational for more than five years.
Hidden trade is defined as enabling an expatriate to engage in business activities without authorisation, using licences, commercial registrations, and approvals issued to a citizen or their company.
Nasra bint Sultan Al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion, and Head of the National Taskforce, emphasised the campaign’s objective: eliminating hidden trade, restoring market integrity, and boosting investor confidence. She noted that unchecked practices such as licence misuse, tax evasion, and labour violations pose serious threats to the national economy and fair competition.
“The campaign began with regulatory groundwork and coordination meetings, followed by on-ground inspections and public awareness initiatives. A visual guide was launched in November 2023, along with an online reporting platform for citizens to report commercial violations,” she said.
In July 2023, the ministry introduced new regulations to combat commercial concealment — defined as enabling unlicenced individuals to operate a business, either independently or in partnership. Under these regulations, offenders face fines ranging from OMR 5,000 to OMR 15,000, and repeat violators risk permanent license revocation. The resolution forms part of the government’s proactive strategy to mitigate the economic and social impacts of hidden trade practices, which have been undermining the national economy and destabilising local markets.
Hidden trade practices include diverting an establishment’s revenue, profits, or contract proceeds to personal or unregistered accounts; providing false information during company registration or licence application; or granting expatriates full control over a business.
To ensure effective enforcement, the Ministry may deploy special teams to monitor businesses, conduct inspections, and take necessary action against violations. Both citizens and residents are required to report suspected breaches, while voluntary disclosure may result in reduced penalties.
