Muscat – The initiative, in response to royal directives and new economic regulations, will require LLCs to meet specific criteria, including a market value of at least RO 500,000 and a minimum of three partners.
H.E. Qais bin Mohammed Al Yousef, Minister of Commerce, Industry, and Investment Promotion, highlighted that the initiative reflects the government’s commitment to encourage family-owned businesses to transition to joint-stock companies. This move is intended to ensure the continuity of these companies, which play a significant role in the Omani economy, while also enhancing oversight, governance, and transparency.

In his statement to the Oman News Agency, the Minister emphasized that converting to a closed joint-stock company will offer several benefits, including increased managerial flexibility, faster performance, and easier share trading. This transformation is expected to boost investor, creditor, and customer confidence by reinforcing the company’s financial stability and continuity.

Dr. Saleh bin Said Masan, Undersecretary for Commerce and Industry at the Ministry, reiterated these sentiments, noting that the royal endorsement for capital market development will stimulate growth in the trade and industry sectors. The conversion will foster better oversight and governance while ensuring that companies can adapt to institutional work, ensuring their sustainability and generational transmission. The Ministry is committed to simplifying the conversion process to support this transition.

Mubarak bin Mohammed Al Dohani, Director General of Commerce at the Ministry, confirmed that detailed procedures and requirements for the conversion will be announced soon. Companies wishing to convert must meet specific criteria, including a minimum market value of RO 500,000 and a minimum of three partners. Currently, there are 118,052 limited liability companies registered with the Ministry’s Commercial Registry.