Oman Labour Ministry outlines practical mechanisms for new Omanisation policy; Check here

Following the launch of the new Omanisation policy in May 2025, the Ministry of Labour has shared practical mechanisms for private sector employers to hire Omani talent.

The Ministry further stated that the new employment policy mandating Omanisation is applicable to private sector companies, with the following provisions to be followed based on the size and nature of the businesses.

In a conversation on these mechanisms, H.E. Ammar bin Salem Al-Saadi, Director General of the General Directorate of Labour and official spokesperson for the Labor Affairs Sector at the Ministry of Labor said, “This decision was issued based on a previous decision issued by the Ministry of Labour on July 24, 2020. It’s part of a series of decisions aimed at regulating the labor market. Clause 3 of that decision specifically mandates the employment of Omanis, while the Ministry was to develop mechanisms for its implementation.”

“Over the past period, the Ministry has taken into account the challenges faced by companies, particularly in recovering from the impact of the COVID-19 pandemic. In May 2025, the Ministry began sending official notices to targeted commercial records, over 205,000, advising them to prepare and submit a plan within the Ministry’s system to hire Omanis.”

The goal is to regulate the labor market and ensure that all commercial registrations—whether foreign-owned or Omani—contribute to the employment of Omanis.”

#1 Foreign investment establishments

What? All foreign-owned businesses with a commercial registration in the Sultanate older than one year must submit an employment plan to hire at least one Omani national within three months.

How? Hiring of Omani nationals can either be completed directly or through a clear employment plan that results in actual hiring.

Consequences of non-compliance: A total ban on issuing new work permits will apply to any non-compliant establishment, regardless of employee count.

Relaxation available: The employers will get a grace period only up to three months from the date of official notification to comply with the new policy. 

H.E Al-Saadi underlined, “Currently, there are 69,000 such foreign investment records. Among them, there are more than 160,000 expatriate workers—and no Omanis. These foreign-owned records fall under a previous decision issued by the Ministry of Commerce, which mandates hiring at least one Omani after one year of establishment. The Ministry of Labor has granted these businesses a three-month grace period to prepare and submit their employment plans. If they fail to comply, they may face penalties—such as suspension from Ministry services. 

In each of these registered companies, we expect 69,000 Omanis to be hired. Providing local value is key—not just to benefit from investing in the Omani market, but also to contribute to national development, he added. 

#2 Establishments employing 10+ workers

What? All such companies must submit an employment plan to recruit at least one Omani national within three months.

How? All hirings must happen either directly or through a practical employment plan. All notifications will be sent to them through the Ministry's electronic system. 

Consequences of non-compliance: If the employer fails to implement the submitted employment plan, the Ministry’s electronic system will automatically impose a ban on issuing new work permits.

#3 Establishments employing less than 10 workers

What? All the employers under this category must submit an employment plan to hire at least one Omani national within six months.

How? All such companies will undergo “a case review within six months to assess their contribution to local value addition.” And “compliance can be achieved through direct hiring, a viable employment plan, or, if value addition is demonstrated, a temporary exemption.”

Consequences of non-compliance: All the companies failing to comply will get an automatic ban on new license issuance via the Ministry’s system.

#4 Entrepreneurs and full-time business owners

What? All such companies owned by entrepreneurs or full-time business owners will be given a one-year grace period to meet the Omanisation requirement.

How? The Ministry will conduct a case review within six months to evaluate the entity’s local economic contribution.

Relaxation available: All entrepreneurs who do not currently hold a Riyada Card may apply through the Small and Medium Enterprises Development Authority to obtain one and benefit from associated exemptions and facilities.

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The Labour Ministry has shared these mechanisms in six languages, as previously announced, to cater to the diversity of the Sultanate's labour market. Also, the new Omanisation policy for 2025 has been effective since May 2025, and all applicable employers must now take action to comply with the new rules.