On the 26th of June 2024, His Majesty Sultan Haitham bin Tarik of Oman issued two Royal decrees, which are now officially in effect. The first decree, Royal Decree No. 47/2024, introduces a new Law on Protection of Bank Deposits. This law aims to safeguard bank deposits in licensed establishments of conventional origin. It also transfers all rights and obligations related to the previous system of insurance of bank deposits to the newly established “insurance fund for the protection of deposits”. The Governor of the Central Bank of Oman has been instructed to issue the Executive Regulation of this law to ensure its proper enforcement.
Furthermore, the Royal Decree No. 47/2024 annuls the previous Law on Bank Deposits Insurance Scheme, which was promulgated by Royal Decree No. 9/95. This move is intended to streamline the protection of bank deposits and eliminate any discrepancies or contradictions between the old and new regulations. The decree also specifies that until the Executive Regulation is issued, existing regulations and decisions will continue to be enforced without compromising the provisions of the new law. The implementation of this new law is expected to enhance trust in the banking sector and provide greater security for depositors.
In addition, Royal Decree No. 48/2024 ratifies an agreement between the Government of Oman and the Government of Uzbekistan on mutual visa waiver for holders of Diplomatic, Special, and Service passports. This agreement, signed in Muscat, aims to facilitate travel between the two countries for individuals holding these specific types of passports. The decree ratifies this agreement and instructs its publication in the Official Gazette for immediate enforcement. This move reflects the efforts of Oman to strengthen diplomatic ties and promote ease of travel for officials and diplomatic staff between the two nations.
Both Royal decrees demonstrate the commitment of Oman to enhance its regulatory framework and strengthen international relations. The Law on Protection of Bank Deposits underscores the importance of ensuring the security and stability of the banking sector, while the agreement with Uzbekistan reflects Oman’s dedication to facilitating diplomatic exchanges and mutual cooperation. By issuing these decrees, His Majesty Sultan Haitham bin Tarik is signaling a progressive approach towards governance and international relations, aimed at fostering economic growth and diplomatic engagement.
The issuance of Royal Decree No. 47/2024 and Royal Decree No. 48/2024 marks significant milestones in the legal and diplomatic landscape of Oman. The introduction of the Law on Protection of Bank Deposits is a crucial step towards enhancing the resilience of the banking sector and protecting the interests of depositors. By centralizing the insurance of bank deposits under a new fund, Oman is taking proactive measures to ensure financial stability and investor confidence in the country’s banking system. Similarly, the ratification of the agreement with Uzbekistan on visa waivers for diplomatic passport holders signifies Oman’s commitment to fostering bilateral relations and facilitating diplomatic exchanges with other nations.
In conclusion, the issuance of these Royal decrees reflects the progressive and forward-thinking approach of Oman under the leadership of His Majesty Sultan Haitham bin Tarik. By enacting laws and agreements that prioritize financial security and international cooperation, Oman is positioning itself as a key player in the global arena. The implementation of the Law on Protection of Bank Deposits and the agreement with Uzbekistan on visa waivers not only demonstrate Oman’s commitment to transparency and efficiency but also underscore its willingness to engage in mutually beneficial relationships with other countries. These decrees are a testament to Oman’s dedication to fostering economic growth, promoting diplomatic ties, and ensuring the well-being of its citizens and residents.
