Oman enforces new rule for foreign investors

MUSCAT: The Sultanate of Oman has introduced a new requirement mandating all foreign-owned businesses to hire at least one Omani employee within a year of commencing commercial operations, according to a report by Atheer newspaper.

The directive comes under Ministerial Resolution No. 411/2025, issued by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), which adds Article (12) bis to the executive regulations of the Foreign Capital Investment Law.

Under the new rule, every foreign-owned company or establishment operating in Oman must employ an Omani national who is registered with the Social Protection Fund.

The ministry stated that the amendment aims to enhance local workforce participation in the private sector and ensure stronger compliance with Omanisation policies set by relevant authorities.

Existing foreign-invested companies that have been operating for more than a year are required to regularize their employment status within six months of the resolution’s enforcement.

The adjustment must be made at the time of commercial registration renewal or when applying for a new or renewed work permit, whichever occurs first.

The ministry clarified that all conflicting provisions stand repealed and that the new regulation will take effect the day after its publication in the Official Gazette.