Muscat: The new Omani Consumer Cooperative regulation will stimulate economic growth in the Sultanate of Oman.

The initiative will help in raising the contribution of the manufacturing sector in the gross domestic product (GDP), along with promoting local content and enhancing the presence of the national products in commercial centres and malls.

The regulation governing the practice of the activity of consumer cooperatives was issued by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) with an aim of organising the activity of consumer cooperatives. It will also enhance Omani consumers and producers by creating new supply chains, supporting national industries, developing the governorates, and in providing new investment opportunities in this sector.

“First of all, we appreciate the Ministry of Commerce, Industry and Investment Promotion for this qualitative gesture to address this issue, which represents a response to the demands of citizens and various segments of society in order to find effective cooperative consumer associations that have a presence In the Omani economic and social scene to face the economic challenges and their impact on the life of the citizen,” Dr Rajab bin Ali Al-Owaisi, an expert in social and educational studies at the State Council, a writer and researcher, said.

He explained that it is a well known fact that consumer cooperative is a new horizon to stimulate the economic and commercial movement in the governorates. It will contribute to creating a safe space for the citizens in the face of high prices.

These cooperatives will offer citizens new incentives, alternatives and options for families of low income, insolvent and other families who are within the social security system, he said.

He stressed that these cooperatives will be dealt with in accordance with codified frameworks and clear strategies. They will play a more significant role in controlling consumer practice and in controlling prices. This trend will strengthen consumer confidence in these cooperatives where the consumer will give priority to choose the products that are offered by these cooperatives.

He further stressed that this regulation will also contribute to providing a new group of Omani products with global added value, and will enhance the capability of the Omani products to target new export markets.

Dr Rajab Al -Owaisi added: “We believe that the presence of these consumer cooperatives, represents the way in which it must be followed in light of the future indicators so that it can exercise its pioneering role in light of an integrated community work system, in order to contribute directly to address the challenges and difficult conditions that society faces or some individuals.”

“These consumer cooperatives will also contribute to providing investment and functional opportunities that support the family, and they will also be able to adopt educational and training programmes to prepare young people in families with limited income or social security families and qualify them to engage in productive projects.”

“The success of consumer cooperatives will also contribute to encouraging productive families and employing youth skills and their initiatives, to exercise the role of the facilitator, and the producer by sponsoring or carrying out various community activities by expanding the spread of consumer cooperatives in the governorates,” he said.

Dr. Rajab Al -Owaisi also pointed out that, the success of the role of consumer cooperative in the next stage remains dependent on the level of clarity of policies and organisational, structural, administrative and financial frameworks. It also depends on the presence of an integrated national system for consumer cooperatives, their philosophy, specialisations and work mechanisms, and in the possibility of providing opportunities to enhance their presence in the society.

Its success also depends on the extent of the possibility of building a national system strengthened by institutional references, legislative, organisational, administrative, structural, planning and executive regulations and integrated databases that determine the details of its work and implementation steps, evaluation, monitoring and diagnosis systems.

Eng. Salem bin Saif Al-Abdali, a writer and economic analyst, said: “The idea of consumer cooperatives can benefit the consumer, through the diversity of products that it provides, and through ensuring the quality, since these cooperatives usually focus on the national product, which is well known by its high quality, thus the consumer will have many and varied options of fresh products.”

“In every governorate, at least one main consumer cooperative is required along with its branches across the wilayats of the Governorate, in accordance with the population density of each governorate and the Wilayat, while this will be an opportunity for SMEs to invest in the establishment of these cooperatives in cooperation with private sector companies, through creating specialised private companies in this field,” he added.

He pointed out that the future of these cooperatives can be successful in the Sultanate of Oman, in the event that the necessary support for them is provided through a package of facilities and incentives, including soft loans, granting lands, and exemption from fees and taxes for long periods so that these cooperatives can compete successfully.

Al-Abdali stressed the importance of managing these cooperatives with high experience and efficient people, provided that these cooperatives are subject to accountability, transparency and governance, and must issue annual reports on profits and losses, and they can benefit from the experiences of some countries in the region, such as the State of Kuwait, which has a leading and ancient experience in this field, in order to avoid the negatives and to build on its positives aspects.

© Muscat Media Group Provided by SyndiGate Media Inc. (Syndigate.info).