Oman revokes licences of 17 Sanad service centres for regulatory violations

Oman shuts down 17 Sanad service centres over regulatory breaches following inspections

Oman's Ministry of Commerce, Industry and Investment Promotion has revoked the licences of 17 Sanad Service Centres for breaching regulations, marking the latest enforcement action in an ongoing regulatory crackdown on non-compliant operators within the nationwide network.

The decision followed periodic inspection campaigns conducted by the ministry to assess centre performance and verify compliance with approved regulatory requirements under Ministerial Decision No. 244/2022, which governs the operational framework for Sanad centres.

The affected centres are located across four wilayats: Seeb, Sohar, Salalah and Thumrait, demonstrating that enforcement is geographically distributed rather than concentrated in a single region.

This represents the third major enforcement action in 2026, following the revocation of six licences in June and four in July, indicating sustained regulatory oversight throughout the year.

Scale of the Sanad network

As of mid-2026, Oman operates 922 authorised Sanad Service Centres nationwide, processing over 400,000 transactions in the first half of 2026 alone. The centres provide approximately 400 services through government and private entities, making them a critical component of public service delivery.

Between January and May 2026, the centres processed over 219,000 transactions through their electronic portal, demonstrating high public reliance on these facilities for essential government services.

The revoked licences represent approximately 1.8 per cent of the total network, suggesting targeted enforcement against specific violators rather than systemic failure across the programme.

Entrepreneurial model under scrutiny

Sanad Service Centres are operated by Omani entrepreneurs as small and medium enterprises, rather than government offices. The programme was launched in 2001 to promote entrepreneurship and self-employment among Omani youth.

The network has created more than 2,200 employment opportunities for Omani nationals, with the majority of workers aged between 20 and 39 years, making it a key component of Oman's youth employment strategy.

Centres facilitate critical services including investment licence applications and commercial registration, with individuals able to use them as alternatives to law offices for certain transactions.

Dual approach to quality control

While revoking non-compliant licences, the ministry has simultaneously pursued network expansion. In June 2026, it launched opportunities for 10 new Sanad Service Centre licences based on population density and economic activity in selected wilayats, indicating that enforcement is about quality control rather than reducing the network.

The ministry stressed that all licensed centres must strictly adhere to applicable regulations, rules and operational guidelines, warning that non-compliance could result in penalties including licence revocation.

In April 2026, the ministry issued warnings that some Sanad centres were providing unauthorised legal services without proper licensing, suggesting regulatory concerns extend beyond general administrative compliance to specific scope-of-service violations.

Digital transformation context

The enforcement actions come as Oman advances its digital government services strategy. The country ranks 41st globally in the 2024 United Nations E-Government Survey, up from 50th in 2022, with Sanad centres playing a role in broader digital transformation efforts.

The ministry's inspection campaigns aim to strengthen regulatory oversight, maintain service quality and ensure centres operate in accordance with established standards as the network continues to serve as a primary public service access point for individuals and businesses across Oman.