Muscat – The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) will launch the third phase of its national campaign to combat hidden trade in the third quarter of this year, as part of efforts to strengthen market regulation, improve transparency and safeguard Oman’s business environment.

Speaking to Muscat Daily, Mohammed bin Salim Al Hashmi, Director of the Department of Commercial Establishments Control at MoCIIP, said the National Team for Combating Hidden Trade is preparing to review the framework for the next phase at its upcoming meeting. The phase is scheduled to run from the beginning of third quarter till the end of the year.

He said the upcoming phase will cover all commercial activities where foreign investment is prohibited, in addition to sectors where concealed trading practices have been identified.

“Combating hidden trade plays a key role in maintaining market stability and strengthening compliance,” Al Hashmi said. “It also supports the competitiveness of Oman’s investment environment.”

He said the ministry remains focused on regulating the local market and preventing economic distortions, adding that the campaign is part of broader efforts to ensure fair competition and sustainable growth.

Al Hashmi noted that 696 establishments have already regularised their status under earlier phases of the campaign. He said continued compliance is mandatory. “Any return to non-compliant practices will not be tolerated.”

He added that the ministry continuously monitors updates in commercial registrations in coordination with relevant authorities, while legislative amendments are being reviewed to close regulatory gaps and strengthen enforcement tools.

According to Al Hashmi, monitoring efficiency has improved through digital integration and data sharing with the Tax Authority, Central Bank of Oman, Royal Oman Police and the Ministry of Labour. The system enables faster detection of violations and supports coordinated enforcement action.

On penalties, he said MoCIIP follows a phased approach aimed primarily at correcting violations. Measures begin with notices and warnings, followed by fines proportionate to the offence. In serious cases, sanctions may include temporary suspension of activity or removal from the Commercial Register, in line with regulations.

Al Hashmi stressed that procedures are governed by clear legal frameworks and timelines to ensure consistency and fairness in implementation.

He clarified that the campaign is not directed at any specific sector and applies to all establishments. However, the current focus on small and medium enterprises follows a request from the Authority for Small and Medium Enterprises Development to protect government support programmes.

“The objective is to ensure that incentives and support reach eligible Omani entrepreneurs and are not misused.”

Al Hashmi said MoCIIP is seeking to balance enforcement with business continuity, stressing that compliance remains central to maintaining a competitive and stable market environment.