V. MARKETING U.S. PRODUCTS AND SERVICES Foreign companies wishing to distribute their products in Oman must enter into an agreement with a local representative. Business success in Oman comes from assiduous cultivation of clients and a knowledge of local market developments. Tenders are often announced with advance little notice and short deadlines. Government projects sometimes begin suddenly when funds become available. A local agent or local office is needed to monitor and respond to business developments. Despite the government's interest in attracting business to Oman, its bureaucratic hurdles can be daunting. A local contact can expedite the flow of paperwork and documents. A policy preference for joint ventures or joint stock companies is reflected in the tax laws, which tax the profits of joint ventures and joint stock companies at a lower rate than those of sponsorships. Significant incentives including subsidies and tariff protection are available to a greater degree to joint stock companies than to companies with other structures. Government regulations require most companies trading in Oman to have a local agent. In special cases, such as when the government has directly approached a foreign firm, this rule is waived. However, an agent must, if an individual, be an Omani and, if a company, be at least 51 percent Omani-owned. The agency contract must be exclusive. Once an agent is appointed, the foreign manufacturer or supplier is not permitted to sell or distribute its products, goods or services itself or through another agent or broker, except for the exemption on bringing goods in through ports or airports. Separate agency agreements for the Northern region (Muscat Area) and the Southern Region (Salalah) are permitted. The manufacturer or supplier may not unilaterally terminate the agency agreement except where there is a justifiable breach of agreement by the agent. Agency agreements must be approved by the Oman Chamber of Commerce and Industry (OCCI) and registered with the Registrar of Agents and Commercial Agencies of the Ministry of Commerce and Industry. The practical effects of this decree on a foreign supplier are substantial: the Ministry of Commerce and Industry may prohibit the importation of goods and merchandise of suppliers who do not have an independent commercial agent registered in Oman. In terms of locating an agent, the Embassy Commercial Section can provide details on major Omani companies. In addition, personal visits to potential agents are recommended. Commercial office space is readily available. Advertising is most commonly done through newspapers and promotional fliers. Oman's English and Arabic language newspapers accept advertising. There are two English language newspapers in which companies can advertise. They are the "Oman Daily Observer" and the "Times of Oman." Both are daily except for Friday. The two Arabic dailies, "Al Watan" and "Oman," are also useful, particularly in that they reach a broader audience and are published on Fridays. Advertising is also possible on Omani television and radio. Turning to intellectual property protection, Oman does have a trademark law. Trademarks must be registered and noted in the Official Gazette. Local legal firms can assist companies in the registration of trademarks. Draft laws covering patents and copyright protection are under consideration by the government. The proposed patent law is based on standards set by the Gulf Cooperation Council (GCC) of which Oman is a member. Some local agents have successfully defended copyrights against pirates by invoking provisions of the exclusive agency agreement law. Oman is not a member of the World Intellectual Property Rights Organization but has coordinated with it in drawing up its draft laws. Due to the complexity of Omani regulations, it is useful to obtain legal counsel before drawing up an agency agreement. Legal counsel is advisable for information on labor, investment and tax laws, licensing procedures and for the resolution of commercial disputes. The Omani government undertakes all major infrastructure projects and is sometimes a joint venture partner in large commercial projects. Design/engineering, construction, and operation and maintenance contracts are generally awarded separately. In 1975 the government established a Tender Board to handle contracts for all large government projects (except those of the Ministry of Defense, the Diwan of Royal Court and Petroleum Development Oman). For contracts over USD 260,000, the Tender Board sets the terms of bidding, issues invitations for bids and selects firms for awards. In most instances, there is no formal prequalification process. In order to submit a bid, firms must have an Omani sponsor or partner and must be registered with the Ministry of Commerce and Industry and with the Tender Board. A temporary deposit in the form of a bank guarantee for 2 percent of the tender is required. Contracts are generally, but not necessarily, awarded to the lowest bidder. The Tender Board takes into account factors other than price such as past performance, financial responsibility and compliance with registration procedures. After notification is given of an award, final negotiations concerning clarifications and adjustments take place before the contract is executed. Sixty days usually pass from selection through award notification to signing of the contract.