Oman moves towards private sector Omanisation through new labour regulations

At a glance

• Oman’s Labour Ministry has introduced new labour market regulations to enhance Omanisation in the private sector.
• Private sector establishments must certify their compliance with labour standards and Omanisation requirements.
• Over 30 new professions have been added to the list of jobs reserved for Omani citizens.
• Financial incentives will be provided to companies hiring Omanis, with potential government contributions to salaries.
• Increased inspections will be conducted to ensure compliance, with further details to be released before implementation in September 2024.

Oman has unveiled a comprehensive set of stringent labor market regulations aimed at boosting Omanisation in the private sector. The Labour Ministry has issued a statement outlining several measures to be implemented:

• all government entities and state-owned companies will be prohibited from contracting with private sector establishments that fail to comply with the prescribed Omanisation percentages;
• private sector establishments must obtain an electronic certificate from the Ministry of Labour, confirming their compliance to labour standards and Omanisation requirements; and
• the Ministry has added more than 30 new professions to the list of jobs restricted for non-Omanis. 
  All private sector establishments will be mandated to employ at least one Omani citizen at each level for the 30 professions, subject to forthcoming guidelines from the Ministry. A financial package has also been approved to support the Ministry's initiatives aimed at increasing Omanisation rates.

Some financial incentives will be awarded to companies who recruit Omanis. However, it is not clear if they will be paid to the company or the Omani national. It is likely that there will be some government contribution to the salary for the Omani, but further regulations will clarify this. There will also be a reduction in the permit fees for employment of Omanis and a doubling of fees where private companies are not recruiting Omani nationals. Further, intensified inspection campaigns will be conducted to ensure private sector compliance with labour market regulations. 

There will be increased supervision and visits / inspections of workplaces to see if entities are complying with the Omani employment requirements. 

The Ministry will provide further details on these decisions before their implementation in September 2024 and has urged all stakeholders to cooperate in the national interest.