Monday 29 / June / 2026
Muscat: Shura The Council commenced its sitting by listening to an urgent statement by 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.
He 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.
The Shura Council held its twenty-second regular sitting on Monday as part of the Third Annual Session (2025–2026) of the Tenth Term (2023–2027), under the chairmanship of Khalid bin Hilal Al Maawali, Chairman of the Shura Council, in the presence of Their Excellencies the Council Members and 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.
Double taxation agreement with 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.
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.
He 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.
