Oman sets RO100M annual budget for national employment, With flexible & remote work among key labour reforms

The Sultanate of Oman has committed approximately RO100 million per year to its National Employment Programme as part of the newly unveiled Eleventh Five-Year Development Plan (2026–2030), underscoring the government’s push to align economic growth more closely with job creation.

The announcement was made at a press briefing in Muscat by the Ministry of Finance and the Ministry of Economy, where Dr Nasser bin Rashid al Maawali, Under-Secretary at the Ministry of Economy, outlined a new labour-market framework that sits at the heart of the plan.

“For the first time, a standalone framework for the labour market and employment has been introduced,” Dr al Maawali said. “Improving the efficiency of the labour market and employment is one of the challenges we were keen to address clearly and in an achievement-oriented manner.”

At the core of the framework are 21 strategic programmes designed to tackle structural labour-market challenges while ensuring that economic indicators translate into tangible social outcomes. “This objective ensures that economic indicators are reflected in the social dimension of development, so that growth and employment progress along parallel tracks,” he added.

According to official projections, the Eleventh Five-Year Development Plan is expected to generate around 700,000 job opportunities over its five-year duration. Of these, 301,000 are direct employment opportunities for Omanis across the public and private sectors, averaging roughly 60,000 jobs per year.

The private sector is expected to play a central role in absorbing national talent. “Retail is projected to account for the largest share of new private-sector jobs for Omanis, representing 34.2 per cent of total opportunities during the plan period. Construction follows closely at 29.8 per cent, reflecting ongoing infrastructure and urban development initiatives. Industry, tourism and transport are also set to contribute, with shares of 10.6 per cent, 8.7 per cent and 5.5 per cent, respectively.”

Funding for the employment framework will come through a dedicated mechanism, with 1.2 per cent allocated from the value of contracts and procurement invoices issued by government units, companies affiliated with the Oman Investment Authority (OIA), and oil and gas firms.

Beyond job creation targets, the framework outlines a broad set of policy measures aimed at improving labour-market quality and sustainability. 

These include regulating and strengthening on-the-job training, promoting a positive work culture, accelerating the placement of job seekers, and introducing professional standards across key economic sectors. 

Additional measures focus on empowering national talent within private-sector institutions, reforming the labour market by: .

• Regulating and expanding on-the-job training

• Promoting a positive and productive work culture

• Accelerating job placement for job seekers

• Developing professional standards across economic sectors

• Empowering national talent in private-sector institutions

• Reforming labour recruitment systems

• Designing targeted employment programmes for specific groups

• Regulating flexible and remote work arrangements

And along with 2026 priorities, the ministry plans alignment of budget and the development plan with Oman Vision 2040, focusing on:

• Economic diversification

• Human capital development

• Private-sector leadership

• Governance and institutional efficiency

• Long-term fiscal sustainability

Together, officials say, these initiatives are intended to modernise Oman’s labour market, strengthen private-sector participation, and ensure that employment growth keeps pace with the country’s wider economic ambitions through 2030