Analysis
Offset obligations ("Offsets") are required by most of
the GCC governments from their foreign service and product
providers ("Contractors"). In short, as a matter of
public policy, GCC governments will never contract with foreign
corporate entities without any specific offset agreement which will
provide an economic benefit from their expenditure.
This article, explores the legal framework of offsets in place
within the United Arab Emirates and the Sultanate of Oman.
1. The notion of Offsets in the UAE and Oman
1.1 The Principle:
Offsets aim to create long-term projects that diversify and
support strategic economic sectors so as to optimize a state's
national capabilities. These obligations are regulated and
monitored by the Tawazun Economic Council in the UAE ("Tawazun
UAE") and the Oman Authority of Partnership for Development
("Oman OAPFD") in the Sultanate of Oman.
