Urgent Statement on Enhancing the Cost of Living Allowance in Light of Current Geopolitical and Economic Developments
Shura Council Approves Double Taxation Elimination Agreement with the Republic of Azerbaijan
The Sitting Approved Nine Proposals, Including:
•    Including health insurance benefits for senior citizens within the benefits of the Social Protection Fund.
•    Developing the social housing programme and subsidised housing loan system.
•    Evaluating Omanisation policies and programmes in the tourism sector.
•    Future agricultural cities: opportunities and challenges.
The Shura Council held its Twenty-Second Regular Sitting this morning (Monday), 29 June 2026, as part of the Third Annual Session (2025–2026) of the Tenth Term (2023–2027), under the chairmanship of H.E. Khalid bin Hilal Al Maawali, Chairman of the Shura Council, in the presence of Their Excellencies the Council Members and H.E. Ahmed bin Mohammed Al Nadabi, Secretary-General of the Shura Council.
The sitting witnessed extensive deliberations on a number of legislative and development matters listed on its agenda, in addition to discussing and approving several proposals, draft laws and international agreements referred to the Council. These deliberations formed part of the Council's exercise of its legislative competencies and its role in supporting the Sultanate of Oman’s comprehensive development process, strengthening the efficiency of the legislative framework in line with the objectives of Oman Vision 2040, and contributing to the advancement of the economic, social and service sectors in accordance with the powers vested in the Council under the Oman Council Law.

Urgent Statement on Enhancing the Cost of Living Allowance
The Council commenced its sitting by listening to an urgent statement delivered by H.E. Sultan bin Humaid Al Hosni, Member of the Shura Council representing Al Khabourah Wilayat, concerning the enhancement of the cost of living allowance in light of the current geopolitical and economic developments.
The statement stemmed from the Council's national responsibility to discuss issues that directly affect citizens' daily lives, particularly in view of the rapid geopolitical developments witnessed across the region, which have had repercussions on the global economy, international trade, supply chains, shipping and insurance costs, consequently transmitting part of the inflationary pressures to domestic markets and increasing living costs.
H.E. emphasised that, under the wise leadership of His Majesty Sultan Haitham bin Tarik, the Sultan of Oman, the Sultanate has successfully maintained the stability of trade flows and strengthened its regional and economic standing, supported by its strategic location and advanced logistics infrastructure. He noted, however, that these economic achievements should be accompanied by the continued enhancement of social protection measures to safeguard citizens' living standards amid the prevailing economic conditions.
He further stressed that the success of economic development is ultimately measured by its direct impact on citizens' well-being, as they remain the centre and objective of the development process. Maintaining an adequate standard of living, he said, represents an investment in social stability and sustainable development. He also observed that the value of the cost of living allowance has not been reviewed in line with the economic changes experienced over recent years, despite the noticeable increase in living expenses, thereby necessitating a reassessment of the allowance to achieve an appropriate balance between economic objectives and social protection requirements while strengthening Omani families' capacity to cope with rising living costs.
The statement also called for the continuation of government policies and programmes aimed at alleviating the financial burdens on citizens and strengthening social protection mechanisms in a manner consistent with regional and international economic developments. Such measures, it noted, would preserve the economic and developmental gains achieved by the Sultanate of Oman over recent years while ensuring the sustainability of citizens' living standards.




Discussion and Approval of the Double Taxation Elimination Agreement with the Republic of Azerbaijan
The Council subsequently discussed the draft Agreement between the Government of the Sultanate of Oman and the Government of the Republic of Azerbaijan for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.
H.E. Ahmed bin Said Al Sharqi, Chairman of the Economic and Financial Committee and Rapporteur of the Committee during the sitting, presented the Committee's report on the draft agreement. He explained that the agreement forms part of ongoing efforts to improve the investment environment, strengthen bilateral economic relations, and establish a clear legal and regulatory framework that protects investors and reinforces confidence in the investment climate.
H.E. noted that the agreement represents an important instrument for promoting foreign direct investment, facilitating capital flows, and expanding economic and commercial cooperation between the Sultanate of Oman and the Republic of Azerbaijan by eliminating double taxation and limiting tax evasion and avoidance practices. He added that the agreement would contribute to achieving tax fairness, enhancing the competitiveness of the national economy, and creating broader opportunities for investors and business communities in both countries.
He further explained that the agreement would provide greater certainty and stability in tax treatment, thereby improving the business environment and encouraging joint ventures. It is also consistent with the Sultanate's policy of expanding its network of international economic agreements, strengthening its presence in global markets, and attracting high-quality investments that support the objectives of economic diversification.
The draft agreement prompted a number of interventions from Their Excellencies the Council Members, who addressed its economic and investment dimensions and highlighted the importance of making full use of the agreement to increase bilateral trade, strengthen economic relations, and provide a stable and attractive investment environment. At the conclusion of the discussion, the Council approved the draft agreement and referred it to the Council of Ministers in accordance with Article (45) of the Oman Council Law.







Mechanism for Sick Leave for Employees with Chronic Diseases
The Council also discussed the proposal submitted by H.E. Khalid bin Hilal Al Maawali, Chairman of the Shura Council, regarding the establishment of a dedicated sick leave mechanism for employees suffering from chronic diseases, in light of the report prepared by the Health and Social Committee.
H.E. presented the Committee's report, outlining its observations and recommendations following a comprehensive study that examined the legislative, administrative and regulatory frameworks governing sick leave in both the public and private sectors.
He explained that the proposal was introduced in response to the challenges faced by many individuals living with chronic illnesses, who require regular medical consultations, continuous treatment programmes or rehabilitation sessions. Such circumstances often result in the depletion of their annual leave entitlement or the need to repeatedly apply for sick leave, which may adversely affect their job stability and professional performance.
H.E. stressed the importance of introducing a more flexible regulatory framework that takes into account the nature of chronic diseases while balancing operational requirements with employees' right to receive the healthcare they require. Such a framework would preserve productivity, reduce administrative burdens on employers and standardise procedures across government entities and private sector institutions.
He added that the proposal seeks to establish a clear mechanism governing sick leave for individuals with chronic diseases, based on certified medical reports, specifying eligible cases, leave entitlements and approval procedures. This would simplify administrative processes, improve the quality of healthcare and administrative services provided to this category, enhance job stability and ultimately improve quality of life.
The proposal prompted extensive deliberations among Their Excellencies the Council Members, who underscored the importance of developing relevant administrative regulations in a manner that accommodates the health conditions of employees with chronic illnesses, ensures fairness in the workplace and standardises sick leave procedures, thereby contributing positively to workplace productivity and the continuity of public services.
At the conclusion of the discussions, the Council approved the proposal and referred it to the Council of Ministers for the necessary action, reaffirming the importance of advancing health and administrative policies that strengthen the social protection system and enhance quality of life in the Sultanate of Oman.



Independence of the Supreme Medical Committee Responsible for Medical Malpractice Cases
The Council also discussed the proposal concerning the independence of the Supreme Medical Committee responsible for examining medical malpractice cases, based on the report submitted by the Legislative and Legal Committee.
H.E. Dr Ahmed bin Ali Al Saadi, Chairman of the Committee and Rapporteur during the sitting, presented the Committee's report, explaining that the proposal followed a comprehensive legal and technical study assessing the current mechanisms for reviewing medical malpractice cases and examining the need to strengthen the institutional independence of the competent authority in order to ensure fairness, impartiality and transparency in adjudicating such cases.
H.E. noted that the Committee's study was based on a number of legal and practical considerations, foremost among them strengthening public confidence in the healthcare system and ensuring the independence of procedures relating to the investigation of medical complaints, while maintaining an appropriate balance between safeguarding patients' rights and protecting the professional rights of healthcare practitioners.
He added that the proposal seeks to reinforce the organisational and procedural independence of the Supreme Medical Committee, enabling it to discharge its responsibilities in accordance with the principles of impartiality and transparency, while providing the necessary legal safeguards to ensure the timely resolution of cases and the engagement of specialised medical expertise according to the nature of each case. Such measures would contribute to enhancing the efficiency of the medical accountability system and strengthening confidence in its outcomes.
The discussion featured a number of interventions from Their Excellencies the Council Members, who addressed the technical and procedural aspects of the proposal and stressed the importance of having an independent, competent and highly qualified body to examine medical malpractice cases in a manner that safeguards the rights of all parties, strengthens public confidence in healthcare institutions and supports the continuous improvement of healthcare services in accordance with international best practices.
Following the deliberations, the Council approved the proposal, paving the way for its referral to the Council of Ministers to complete the required procedures.





Report of the Knowledge Economy Study Team
On the economic front, the Council discussed the report prepared by the Knowledge Economy Study Team, established under the Economic and Financial Committee, concerning the proposal entitled "Enhancing the Knowledge Economy in the Sultanate of Oman."
H.E. Dr Abdulaziz bin Rashid Al Hashmi, Rapporteur of the Study Team, presented the report and its findings and recommendations following an extensive study that included five meetings and four consultation sessions with representatives of relevant government entities and academic institutions.
H.E. explained that the proposal was initiated in recognition of the importance of reviewing the legislative and regulatory frameworks, public policies and national programmes relating to scientific research and innovation within the knowledge economy, while developing recommendations that promote integration between scientific research and productive sectors and facilitate the transformation of innovation into commercially viable, value-added projects that contribute to sustainable economic development.
He added that the study assessed the current state of the knowledge economy in the Sultanate of Oman, examined its contribution to gross domestic product, evaluated the effectiveness of public policies and national programmes relating to scientific research and innovation, and reviewed the Sultanate's performance in international indices, including the Global Innovation Index, the Global Competitiveness Index and the World Digital Competitiveness Ranking.
The study also examined the legislative and financial challenges facing innovators and research institutions, while exploring ways to strengthen integration between scientific research and productive sectors to transform innovation into marketable products and economically valuable projects.
Among its principal recommendations were the introduction of a unified and mandatory regulation governing services provided to innovators and researchers across academic institutions, government entities and the private sector; updating the National Strategy for Scientific Research and Innovation to ensure alignment with national strategies; establishing a National Innovation Platform to facilitate the registration and support of innovations; adopting more flexible financial policies to encourage private-sector expenditure on research and development; introducing national indicators to measure R&D expenditure and the contribution of the knowledge economy to GDP; establishing a National Institute of Technology through public-private partnership; and strengthening the intellectual property framework to facilitate the commercialisation of research and innovation outputs and enhance the Sultanate's international competitiveness in the knowledge economy.
The report generated extensive discussion among Their Excellencies the Council Members, who highlighted the importance of investing in knowledge, innovation and scientific research 


and strengthening cooperation between academic institutions and the private sector to accelerate the transition towards a knowledge-based economy. The Council subsequently approved the proposal.
Linking Corporate Tax Procedures to Government Dues
The Council subsequently reviewed the report of the Economic and Financial Committee on the proposal concerning the establishment of a system linking corporate tax procedures to government dues. The report was presented by H.E. Ahmed bin Said Al Sharqi, Chairman of the Committee, and H.E. Abdullah bin Al Waleed Al Hinai, Member of the Bureau of the Shura Council.
They explained that the Committee had held a series of meetings with representatives of the Ministry of Finance, the Tax Authority and a number of relevant government entities to examine the technical and administrative aspects of the proposal and to review best practices aimed at improving the efficiency of government financial procedures.
They noted that the proposal seeks to establish an integrated electronic system linking companies' tax obligations with government financial dues, thereby accelerating procedures, strengthening tax compliance, improving the efficiency of government revenue collection and enhancing institutional integration across government entities.
During the deliberations, Their Excellencies the Council Members raised a number of observations and enquiries regarding the technical and regulatory aspects of the proposal, stressing the importance of digital transformation in modernising the State's public financial administration. At the conclusion of the discussions, the Council approved the proposal.

Subjecting the Oman Chamber of Commerce and Industry to the Oversight of the State Audit Institution
The Council then discussed the proposal concerning the inclusion of the Oman Chamber of Commerce and Industry and its branches under the oversight of the State Audit Institution.
Presenting the Committee's report, H.E. Ahmed bin Said Al Sharqi, Chairman of the Economic and Financial Committee, explained that the proposal aims to reinforce the principles of governance, transparency and integrity in the management of the Chamber's affairs, given its pivotal role in representing the private sector and supporting the national economy.
H.E. noted that the proposal was based on several considerations, foremost among them the Chamber's public-interest functions and its representation of the various business sectors. He added that the Chamber's financial resources are derived primarily from membership fees, subscriptions and revenues directly linked to its members, which justifies subjecting it to 



independent financial and administrative oversight to strengthen expenditure efficiency, ensure the proper management of financial resources and reinforce the principles of integrity and transparency across its operations.
He further explained that the proposal also seeks to enhance confidence between the Chamber and its members by establishing an independent and impartial oversight framework that contributes to improving financial discipline, strengthening internal controls, promoting best practices in financial management, ensuring fairness and transparency in contracts, procurement and recruitment, and reinforcing the preventive role of the State Audit Institution in safeguarding public funds and improving the performance of institutions with an economic mandate.
The sitting witnessed extensive deliberations among Their Excellencies the Council Members, who discussed the Chamber's institutional role and the impact of effective oversight on strengthening confidence in the business environment, improving corporate governance indicators and enhancing administrative and financial performance in support of the private sector and national economic development.
Members further emphasised that the application of the highest standards of transparency and institutional oversight has become one of the fundamental pillars for enhancing the competitiveness of the national economy. They noted that the proposal is fully aligned with the State's efforts to strengthen governance, optimise the management of financial and administrative resources and improve institutional efficiency. The Council subsequently approved the proposal and referred it to the Council of Ministers for the necessary action.

Economic Diplomacy: Impact, Outcomes and Performance Indicators
During the sitting, the Council also discussed the report of the Economic and Financial Committee on the proposal entitled "Economic Diplomacy: Impact, Outcomes and Performance Indicators."
H.E. Ahmed bin Said Al Sharqi explained that the Committee had attached considerable importance to the subject in view of the growing role of economic diplomacy in supporting the national economy, enhancing the Sultanate of Oman's competitiveness in attracting foreign investment and expanding international trade partnerships.
He noted that the Committee had consulted the Ministry of Foreign Affairs and a number of relevant entities to assess the current state of economic diplomacy, the mechanisms used to measure its impact, and the extent to which its outcomes are linked to national performance indicators. He stressed the importance of developing scientific methodologies for measuring the outcomes of the Sultanate's external economic engagement and aligning them with the 


objectives of Oman Vision 2040 and the directives of His Majesty Sultan Haitham bin Tarik in supporting the national economy and strengthening international investment partnerships.
The report prompted extensive deliberations among Their Excellencies the Council Members, who highlighted the importance of utilising Omani diplomatic missions to attract investment, facilitate knowledge and technology transfer, promote national exports and open new markets for Omani products. Following the discussions, the Council approved the proposal.
Developing the Social Housing Programme and Subsidised Housing Loan System
The Council also discussed the report of the Public Services and Utilities Committee on the proposal concerning the development of the social housing programme and subsidised housing loan system.
Presenting the report, H.E. Dr Hamoud bin Ahmed Al Yahyaei, Chairman of the Committee and Rapporteur during the sitting, outlined the Committee's findings and recommendations following a comprehensive study of the proposal. The study examined the current housing programmes, assessed their responsiveness to evolving economic and social conditions and explored ways to enhance them in line with citizens' growing housing needs.
H.E. explained that the Committee attached particular importance to this issue, recognising that access to adequate housing constitutes a fundamental pillar of family and social stability and a key component of the quality of life envisaged under Oman Vision 2040. He emphasised that housing security represents an essential element of social stability and a fundamental right that should be supported through sustainable housing policies responsive to the needs of all eligible groups.
He added that the Committee examined the principal challenges associated with access to housing, including rising construction costs, increasing demand for housing and the need to modernise housing finance mechanisms to ensure that support programmes reach eligible beneficiaries more efficiently and equitably. The study also reviewed eligibility criteria and the procedures governing subsidised housing loans in light of current economic and demographic developments.
H.E. further explained that the proposal seeks to enhance the efficiency of the social housing system, improve the effectiveness of support programmes in responding to citizens' actual needs, explore innovative financing solutions, strengthen coordination among relevant government entities and encourage greater private-sector participation in housing projects. These measures are intended to expand the availability of diverse and sustainable housing options capable of meeting the needs of different segments of society.
The report generated extensive discussion among Their Excellencies the Council Members, who reaffirmed that strengthening the social housing system represents a key pillar of social stability. Members called for the periodic review of housing policies to ensure equitable access to housing services and to expand home ownership opportunities, particularly for young citizens and low-income families. The Council subsequently approved the report, incorporating the amendments proposed by Members during the sitting.


Evaluating Omanisation Policies and Programmes in the Tourism Sector
As part of its commitment to advancing promising economic sectors, the Council discussed the report of the Media, Tourism and Culture Committee on the proposal concerning the evaluation of Omanisation policies and programmes in the tourism sector.
H.E. Ali bin Khalfan Al Hassani, Deputy Chairman of the Committee and Rapporteur during the sitting, presented the Committee's findings, emphasising that tourism remains one of the strategic sectors upon which the Sultanate of Oman relies to diversify national income sources and increase the contribution of non-oil sectors to the national economy.
He explained that the proposal aims to assess the effectiveness of existing Omanisation policies and programmes in increasing the employment of Omani nationals across various tourism activities, identify the challenges faced by tourism establishments in attracting and developing national talent, and evaluate the extent to which education and training outcomes correspond with the requirements of the tourism labour market.
He added that the proposal seeks to strengthen training and capacity-building programmes, develop incentives that encourage the employment of Omani citizens, motivate tourism establishments to invest in national human capital, enhance the attractiveness of tourism-related professions, improve working conditions and establish clear career pathways that contribute to the sustainability of Omanisation within the sector.
H.E. further noted that the Committee met with specialists and representatives of relevant entities in the tourism sector, reviewed national employment and training initiatives and examined comparative experiences and international best practices before formulating recommendations aimed at increasing the participation of Omani nationals across all tourism activities.
During the deliberations, Their Excellencies the Council Members unanimously emphasised that investment in Omani human capital constitutes the cornerstone of tourism sector development. They stressed the importance of continuously improving training and qualification programmes, aligning them with the needs of tourism establishments and encouraging employers to recruit national talent in order to achieve Omanisation objectives and maximise the sector's added value.
The Council subsequently approved the report.
Future Agricultural Cities: Opportunities and Challenges
The Council concluded its sitting by discussing the report of the Food and Water Security Committee on the proposal entitled "Future Agricultural Cities: Opportunities and Challenges."


Presenting the report, H.E. Humaid bin Juma Al Shamsi, Chairman of the Committee and Rapporteur during the sitting, explained that the proposal reflects the growing national focus on strengthening the food security system and modernising the agricultural sector through sustainable economic and environmental approaches.
He noted that the Committee conducted a comprehensive technical, economic and regulatory assessment of the proposal and held a series of meetings with relevant government entities, experts and specialists in agriculture, food security and agricultural investment to examine the opportunities for establishing integrated agricultural cities and the challenges associated with their implementation.
H.E. explained that the proposal seeks to introduce modern development models based on the integration of agricultural production, food industries, logistics services, scientific research and advanced agricultural technologies. Such an approach would improve productivity, optimise the utilisation of natural resources, strengthen food security and increase the contribution of the agricultural sector to the gross domestic product.
He added that future agricultural cities could serve as integrated investment hubs capable of attracting domestic and foreign investment, creating new opportunities for small and medium-sized enterprises, promoting innovation in agricultural technologies and expanding the adoption of smart farming solutions in response to climate challenges while enhancing the sustainability of natural resources.
The report generated extensive discussion among Their Excellencies the Council Members, who emphasised the importance of maximising the Sultanate's agricultural potential, developing infrastructure that supports agricultural investment, promoting advanced technologies, improving water resource management and strengthening public-private partnerships in the implementation of major agricultural projects.
Members further stressed that developing future agricultural cities represents a strategic step towards achieving greater self-sufficiency in agricultural products, strengthening the resilience of the national food security system, supporting the national economy and creating high-quality employment opportunities for Omani citizens.
At the conclusion of the discussions, the Council approved the report.