Saturday 14 / February / 2026
Muscat: The Ministry of Commerce, Industry and Investment Promotion announced that the Unified Industrial Regulation Law (System) for the Gulf Cooperation Council (GCC) countries, issued by Royal Decree No. (27/2026), aims to enhance the industrial environment, encourage investment, ensure compliance with health and environmental standards, and strengthen industrial integration among GCC member states.
The ministry stated that the law regulates the industrial sector, promotes industrial development, increases its contribution to national income, and aligns with GCC economic policies toward manufacturing. It also supports the implementation of economic development plans and enhances cooperation and integration in industrial affairs among GCC countries.
The law seeks to stimulate innovation, adopt advanced technologies, boost competitiveness, and support the qualification of the national workforce in the industrial sector. It also encourages digital transformation, the development of manufacturing technologies, alignment with the Fourth Industrial Revolution, and the use of energy-efficient machinery and equipment. Furthermore, it emphasizes adherence to security, health and safety standards, environmental protection, and respect for public order and customs observed in GCC countries.
Ghalib bin Said Al Maamari, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, affirmed that the Gulf Industrial Regulation Law represents a strategic step toward enhancing industrial integration among GCC countries. He noted that unifying regulatory and legislative frameworks will help attract investments and improve regional and international competitiveness.
He added that the law will facilitate the transfer of investments, expertise, and industrial technologies between member states, raising production efficiency and strengthening the industrial sector’s role in economic diversification and achieving national strategic objectives.
Eng. Khalid bin Salim Al Qasabi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion, said that implementing the law constitutes a key pillar for supporting sustainable industrial growth through a unified framework that enhances transparency, stimulates innovation, and improves the quality and competitiveness of Gulf industrial products.
He highlighted that the next phase will provide quality opportunities for manufacturers and investors to benefit from complementary advantages across markets and supply chains. He stressed the importance of coordination between government entities, the private sector, and strategic partners to achieve industrial targets efficiently and sustainably.
The ministry confirmed that the unified law includes seven chapters and 28 articles defining the regulatory framework for industrial activities in GCC countries, including manufacturing, service, and modern technology industries. It applies to all existing and new establishments—public or private, and local or foreign-owned.
Article Four requires obtaining a prior industrial license before establishing, expanding, merging, relocating, or modifying an industrial project. The license is subject to controls related to location, engineering design, production capacity, and safety standards to ensure alignment with industrial development plans.
Article Five outlines the procedures for obtaining an industrial license, allowing applicants to secure initial approval from the competent authority in accordance with executive regulations. The initial approval is valid for one year and renewable.
Article Six specifies cases for canceling initial approval or an industrial license, including at the request of the project owner, failure to complete procedures, non-implementation within the specified period, provision of incorrect data, deviation from approved project details, or failure to meet required standards.
Regarding incentives, the law exempts imports necessary for commencing industrial production from taxes and customs duties, in line with GCC regulations on exempting industrial inputs. Competent authorities may also grant incentives and benefits in accordance with national regulations, provided they do not conflict with obligations to the World Trade Organization. Special attention is given to small and medium enterprises, as well as support for innovation, research, and development.
The law obliges industrial facilities to comply with environmental and health standards, prevent pollution, reduce harmful emissions, implement occupational safety programs, and manage industrial waste according to approved regulations. Competent authorities are empowered to conduct periodic inspections and monitoring to ensure compliance.
In terms of administrative penalties, the law allows for issuing reasoned decisions imposing penalties on violators without prejudice to criminal or civil liability. These include warnings to rectify violations within 30 days, temporary suspension for up to 90 days, daily administrative fines, total fines, closure of the project, or cancellation of the industrial license.
Each GCC country will determine minimum and maximum fine limits in accordance with its regulations, ensuring penalties are proportionate to the seriousness of the violation, benefits gained, and harm caused.
