Oman announces new workforce rules for foreign investors

MUSCAT: Oman’s Ministry of Labour (MoL) has officially introduced new workforce regulations requiring all businesses—including foreign investment entities—to hire at least one Omani national once their commercial registration reaches one year of operation, Times of Oman reported.

This directive is part of broader labour market reforms announced in May 2025. Under the new rules, foreign-owned businesses must employ at least one Omani within three months of completing their first year in business.

The Labour Ministry warned that non-compliance will lead to a comprehensive ban on the business, regardless of the number of expatriate workers employed. Companies may either directly hire an Omani national or submit an actionable employment plan to achieve this target within the required timeframe.

Firms will be granted a grace period of up to three months from the date of notification to comply.

For larger businesses employing more than ten workers, the ministry has outlined additional measures. These companies must either hire an Omani or submit a detailed employment plan within three months of notification. Non-compliance will result in automatic restrictions on the issuance of new licenses, enforced through the ministry’s digital platform.

Smaller businesses with fewer than ten employees have been given a six-month window to comply. These establishments can recruit an Omani, submit a viable employment plan, or undergo an assessment to evaluate their contribution to local value addition. Businesses showing tangible contributions may qualify for temporary exemptions, but those failing to comply will face similar licensing bans as larger firms.

Entrepreneurs and full-time business owners have been granted a one-year grace period to meet these Omanisation requirements. Within six months of notification, these businesses will undergo a value addition review.

The Ministry has also encouraged business owners who do not yet possess a Riyada Card to register with the Small and Medium Enterprises Development Authority to benefit from incentives and potential exemptions tied to Omanisation targets.