Oman Implements Key Regulatory Changes as It Welcomes 2025
Muscat, The Gulf Observer: As Oman enters 2025, the nation is ushering in a series of transformative regulatory changes aimed at modernizing its financial systems, promoting environmental sustainability, and enhancing regional cooperation.
One of the most significant developments is the Central Bank of Oman’s (CBO) decision to withdraw several currency denominations from circulation. As of January 1, certain banknotes, including those from the fifth issue (1995), upgraded versions from 2000, 2011, and 2012, as well as select commemorative notes issued in 2005, 2010, and 2019, will no longer be valid for transactions. This move marks a significant shift in Oman’s financial landscape, with the CBO having previously urged residents to exchange these outdated notes for newer versions through a coordinated campaign. Banks across Oman accepted the withdrawn notes until December 31, ensuring a smooth transition. “These changes are part of our efforts to modernise the currency system and enhance financial efficiency,” a CBO spokesperson confirmed.
In line with efforts to streamline trade within the region, Oman has adopted a unified customs tariff system, effective January 1. As part of the Gulf Cooperation Council (GCC) initiative, the new system introduces 12-digit codes, replacing the previous 8-digit format, to standardize customs procedures across GCC member states. This move is expected to improve the efficiency of trade operations and further strengthen economic collaboration across the Gulf region.
Oman has also taken bold steps towards environmental sustainability by expanding its ban on single-use plastic bags. The Environment Authority (EA) has initiated the second phase of the ban, now including additional thin plastic bags that pose environmental risks. This expansion is part of Oman’s commitment to reducing pollution affecting soil, marine life, and wildlife. The government has pledged to enforce the ban through inspections and fines for violators. “The long-term benefits of adopting reusable bags far outweigh the convenience of single-use plastics,” the EA stated, encouraging both businesses and individuals to comply with the initiative.
Finally, the introduction of cost-reflective electricity tariffs marks a major change in Oman’s utilities sector. Effective from January 1, consumers—both residential and non-residential—will have the option to choose from a range of tariffs, including variable, fixed seasonal, or year-round rates, depending on their consumption patterns. The new rates are designed to promote energy efficiency, ensure transparency, and provide competitive options for consumers.
With these regulatory changes, Oman is signaling its commitment to sustainability, modernization, and enhanced cooperation as it steps into 2025, laying the groundwork for continued growth and progress in the new year.
