Oman announces fresh Omanisation Mechanism for companies

MUSCAT: In a major step, the Ministry of Labour in Oman has made an announcement regarding a well-defined system to impose Omanisation requirements, to ensure that every commercial registration older than one year appoints at least one Omani employee since its establishment.

The Oman labour policy, introduced initially in a government announcement on 5 May 2025, focuses on enhancing national workforce development and regulating the labour market.

Main Implementation Strategies:

Multinational companies with foreign investment

Required to submit an employment strategy for hiring at least one Omani citizen within three months.
A structured employment plan may be used to direct recruitment.
A ban will be imposed on non-compliant businesses on new work permits.
A grace period of three months will be decided before enforcement.
Developed in collaboration with the Ministry of Commerce, Industry and Investment Promotion.

Companies with a substantial workforce

Required to submit an employment strategy within three months.
Notifications will be sent via the Ministry’s electronic system.
Failure to comply will result in an automatic ban on new work permits.

Small and Medium-sized Enterprises

Must submit a plan to employ one Omani citizen within six months.
Businesses will undergo a case review to assess local value addition.
Compliance can be achieved through direct hiring or an employment plan.
Non-compliance will trigger an automatic ban on new license issuance.

Entrepreneurs and Full-Time Business Owners

Granted a one-year grace period to meet Omanisation requirements.
A case review will be conducted within six months to evaluate economic contribution.
Entrepreneurs without a Riyada Card can apply through the Small and Medium Enterprises Development Authority for exemptions and benefits.

This initiative aims to introduce new employment regulations to increase local talent workforce participation in the private sector.

The Ministry urges all businesses to comply with Omanisation requirements and Oman Labour policy to avoid penalties and contribute to national employment goals.