Tuesday 17 / June / 2025
MUSCAT: In a significant move to bolster national employment and strengthen local workforce participation, the Ministry of Labour (MoL) has officially rolled out a comprehensive mechanism mandating the employment of at least one Omani national for every commercial registration that has completed one year of establishment. The directive, which targets various categories of businesses including foreign investment entities, comes as part of the broader labour market regulation reforms announced in early May 2025.
Foreign-owned businesses in Oman are now required to hire at least one Omani national within three months of completing a year of operations.
The MoL emphasised that failure to comply with this regulation will result in a comprehensive ban on these establishments, irrespective of the number of expatriate workers employed. Companies can either directly hire an Omani or submit a structured employment plan that leads to actual recruitment within the designated time frame. The mechanism was developed in collaboration with the Ministry of Commerce, Industry, and Investment Promotion to ensure effective oversight of commercial registrations.
Establishments shall be granted a grace period not exceeding three months from the date of notification to rectify their status in accordance with the decision.
For larger businesses employing more than ten workers, the ministry has issued clear directives. These companies must also submit an employment plan or hire at least one Omani within three months from the date of notification. Non-compliant firms will face automatic restrictions on the issuance of new licenses, with enforcement carried out through the ministry’s digital system.
Businesses employing fewer than ten individuals have been granted a six-month window to comply.
These establishments are expected to either recruit one Omani, submit a feasible employment plan, or undergo an assessment to determine their contribution to local value addition.
Those demonstrating tangible contributions may be temporarily exempted, though non-compliance will result in licensing bans similar to larger businesses.
Entrepreneurs and full-time business owners are being given a one-year grace period to meet the Omanisation needs. Within six months of notification, their businesses will undergo a value addition review. The MoL has encouraged business owners who do not yet hold a Riyada Card to register with the Small and Medium Enterprises Development Authority to access incentives and exemptions related to Omanisation targets.
The MoL’s initiative represents a decisive step in aligning foreign and domestic commercial activities with national workforce development goals. By requiring each business, particularly foreign investment entities, to directly contribute to local employment, the policy underscores Oman’s commitment to economic diversification without sidelining Omani talent.
The new rules also reflect Oman’s Vision 2040 goals, aiming for a sustainable economy supported by an empowered national workforce. Businesses are advised to act promptly to avoid operational disruptions and to demonstrate commitment to the development agenda.
ENDS
