The Khareef season in Salalah, Oman, is a bustling time for temporary kiosks serving traditional madhbi, grilled meat cooked on hot stones. But amidst the festive atmosphere, a complex issue emerges: the ownership and management of these businesses. While some Omani job seekers are using their Riyada cards to operate madhbi kiosks, others are reportedly employing expatriate workers, raising concerns about hidden trade and the true ownership of these businesses.
The presence of an expatriate employee is not inherently suspicious, but when a permit holder relinquishes control over management, decision-making, and financial risk, it becomes a red flag. This is where the concept of hidden trade comes into play. The investor's concern is valid, as they argue that inspections should go beyond surface-level observations. By examining purchase invoices, meat-supply records, wage transfers, sales records, and banking transactions, authorities can determine whether the permit holder is genuinely operating the business or merely lending their name.
This issue is not new. In 2025, the Dhofar Municipality took action against unlicensed kiosks managed by expatriate workers, emphasizing the importance of citizen supervision. The investor's personal experience further highlights the financial incentives behind such practices. After leaving school without suitable employment, he entered business in 2016, obtaining activity licenses for businesses he didn't personally operate and renting licenses and signboards for fixed monthly payments. This passive income allowed him to start a family and buy a car, but it wasn't genuine entrepreneurship.
Oman has been actively addressing hidden trade through Ministerial Decision 412/2023. The Ministry of Commerce, Industry, and Investment Promotion has conducted extensive inspections, verifying commercial registrations and issuing administrative undertakings. During the first half of 2026, they completed Phase II of their campaign, covering small and medium enterprises with Riyada cards. This initiative resulted in the verification of 27,288 commercial registrations, 409 administrative undertakings, temporary suspensions of 45 registrations, and the regularization of 696 establishments.
However, the success of seasonal licensing cannot be solely measured by the number of permits issued. It's crucial to assess how many outlets are genuinely owner-managed, compliant, and operational. The issue is particularly significant in a short tourism season, as a temporary permit can provide Omani entrepreneurs with income, practical experience, and an opportunity to test a business model. But if effective control passes to another party, this opportunity can be compromised.
The investor's perspective is insightful. He argues that hidden trade will persist unless the project owner actively manages the business. The acceptance of fixed payments by citizens in exchange for using their names and licenses is a systemic issue that needs to be addressed. This situation highlights the need for a comprehensive approach to licensing and enforcement, ensuring that seasonal businesses are genuinely owned and operated by their permit holders.
