OMAN: POST SUPPORT FOR MEPI PROGRAM IMPLEMENTERS

UNCLAS MUSCAT 002011

SIPDIS

STATE FOR NEA/PI, NEA/RA, AND NEA/ARPI
ABU DHABI FOR H. WECHSEL

E.O. 12958: N/A
TAGS: AMGT EAID ECON KDEM KPAO PREL KMPI MU MEPI
SUBJECT: OMAN: POST SUPPORT FOR MEPI PROGRAM IMPLEMENTERS

REF: SECSTATE 238836


1. To date there are no MEPI program implementers with
offices in Oman, although we understand there may be some
considering establishing a full-time presence in Muscat.
Amideast is one such organization, and is currently
consulting with a local law firm on the legalities and
formalities of establishing an office in the Sultanate.


2. As for administrative hurdles to overcome, Omani
regulations and bureaucracy can be daunting to navigate,
particularly for the closely monitored NGOs. Strict banking
regulations typically require legal standing in Oman before a
bank account can be opened, which is a difficulty for many
organizations that would be considered "non-profit" or NGOs
in other countries. Only a handful of NGOs are formally
registered through the Ministry of Social Development in
Oman. Nonetheless, the nascent Muscat American Business
Council (MABC),the new American Chamber of Commerce in Oman,
managed to open an account with an international bank in
Muscat despite its informal status, largely with the help of
government ministers who support the notion of an American
business council, and by the strong backing of the U.S.
Embassy. Other potential hurdles for MEPI implementers exist
in the labor realm, where labor clearances and formal
sponsorships would need to be obtained for any expatriate
employees an implementer would want to hire. Moreover, the
government's Omanization policy could impact the number of
expatriate staff as a proportion of the total payroll.


3. Comment: A full picture of the potential administrative
difficulties that could confront MEPI implementers requires a
more extensive legal analysis. In many ways, this is
uncharted territory in a nation like Oman. As we have seen
with the MABC and other informal groups, however, there is
room for maneuver given the right circumstances and the
appropriate level of backing from the USG. Oman continues to
be fertile ground for MEPI programming, and there are
possibilities in the NGO sector today that did not exist even
a few years ago. We do not believe that MEPI implementers
would find it impossible or impracticable to work here, but
bureaucratic hurdles will need be overcome, particularly for
the first implementers to seek a full-time presence.
BALTIMORE