Muscat: Oman steps into 2025 with a series of impactful regulatory changes, headlined by the withdrawal of specific currency denominations, the strengthening of the ban on single-use plastics, and the introduction of cost-reflective electricity tariffs.

The Central Bank of Oman (CBO) has officially withdrawn several banknotes from circulation, marking a significant shift in the country’s financial landscape.

As of January 1, select notes will no longer be valid for transactions, ending their legal tender status. Affected denominations include banknotes from the fifth issue (1995), upgraded issues (2000, 2011, and 2012), and select commemorative notes issued in 2005, 2010, and 2019.

In a campaign that lasted a few months leading up to the deadline, the CBO urged residents to exchange these notes for newer versions, ensuring a smooth transition.

Banks across Oman facilitated this process, accepting the withdrawn notes until December 31.

“These changes are part of our efforts to modernise the currency system and enhance financial efficiency,” a CBO spokesperson had reported at the time of the announcement.

Institutions and retailers were also directed to accept the outdated denominations during the exchange period, which officially ended on December 31 (Tuesday).

In an effort to enhance regional trade, Oman has also adopted a unified customs tariff as part of the Gulf Cooperation Council (GCC) initiative. Effective January 1, this new system introduces 12-digit codes, replacing the previous 8-digit format, to standardise customs procedures across GCC member states. This development is expected to facilitate smoother trade operations and strengthen economic collaboration within the region.

Complementing these reforms, Oman has taken another significant step towards environmental sustainability with the second phase of its ban on single-use plastic bags from January 1.

The Environment Authority (EA) has expanded the scope of the ban to include additional types of thin plastic bags, known for their environmental harm.

The initiative aims to reduce pollution affecting soil, marine life, and wildlife while promoting the use of sustainable alternatives such as cloth and paper bags. To ensure compliance, inspection campaigns and fines for violators will be implemented. “The long-term benefits of adopting reusable bags far outweigh the convenience of single-use plastics,” the EA said, urging businesses and individuals to align with the initiative.

Also, the introduction of cost-reflective electricity tariffs marks a significant shift in Oman’s utilities sector.
Residential and non-residential consumers can now choose from variable, fixed seasonal, or year-round tariffs based on their consumption. The rates are designed to promote energy efficiency and transparency while offering competitive options for different usage categories.

With these sweeping reforms, Oman signals its dedication to sustainability, economic modernisation, and regional cooperation as it embarks on a promising new year.

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