Oman has announced new employment regulations aimed at increasing the number of Omani citizens in the private sector. As part of the ongoing Omanisation strategy, the Ministry of Labour now requires companies that have operated for over a year without employing any Omanis to submit an employment plan within one month of receiving notification.

The ministry emphasized that the goal is to balance business sustainability with job localization by requiring firms to hire at least one Omani citizen after one year of operation. To support this, the government has introduced a package of incentives and flexible compliance options.

This decision comes in response to significant disparities in Omanisation rates. Data shows that around 1,000 large firms employ nearly 200,000 Omanis alongside 245,000 expatriates, achieving an Omanisation rate of 44%—an average of 200 nationals per company compared to 245 expatriates.

In contrast, approximately 19,000 establishments employ 60,000 Omanis and 300,000 expatriates, resulting in an Omanisation rate below 17%, or roughly three Omanis for every 15 expatriates. Most notably, over 245,000 businesses do not employ a single Omani, despite relying on more than 1.1 million foreign workers.

“The wide variation in Omanisation rates highlights an imbalance that necessitates corrective measures,” the ministry stated.

To address this, the ministry has introduced employment packages aligned with market needs, including training-linked job programmes, wage support schemes, and recognition of part-time and self-employed workers toward Omanisation quotas.

The implementation is flexible: Companies with more than 10 employees must comply within three months, smaller businesses have six months, and sole proprietors are exempt for one year. A dedicated committee will oversee appeals, assess special cases, and monitor the policy’s impact to ensure fair and effective enforcement.