Muscat: The Omani Ministry of Labour has rolled out a new enforcement mechanism to strengthen Omanisation across the private sector, requiring all commercial entities older than one year to hire at least one Omani national.
The policy, first announced on 5 May 2025, is aimed at improving national workforce participation and regulating the labour market through stricter compliance and structured employment strategies.
The mechanism applies to businesses of all sizes, with tailored requirements and deadlines depending on the type of establishment:
Implementation Details by Business Type
1. Foreign Investment Companies
Businesses with foreign ownership and a valid commercial registration exceeding one year must submit a recruitment strategy to employ at least one Omani within three months. Companies that fail to comply will face a suspension of new work permit issuance.
A ministry official noted: “Recruitment may be completed either directly or through a clear employment plan that results in actual hiring.”
The enforcement will be done in coordination with the Ministry of Commerce, Industry and Investment Promotion.
2. Firms with More Than 10 Employees
These establishments must also submit a hiring plan within three months. The Ministry stated: “Notifications will be sent through the Ministry’s electronic system.” If businesses do not meet the requirement, a system-generated ban will restrict them from applying for new work permits.
3. Small and Micro Enterprises
For entities with fewer than 10 workers, the deadline to present an employment plan extends to six months. They will also undergo a case review to evaluate their local value addition. Non-compliant businesses will automatically face license issuance restrictions.
4. Entrepreneurs and Full-Time Business Owners
Such individuals have a one-year grace period. Within six months, the Ministry will conduct a case review to assess the enterprise’s economic contribution. Those lacking a Riyada Card can apply through the Small and Medium Enterprises Development Authority for special exemptions and support.
The Ministry urged timely compliance: “The mechanism is designed to ensure that each commercial registration that has completed one year of establishment employs at least one Omani citizen.”
Authorities emphasize that this initiative is a key pillar of the Sultanate’s drive to promote sustainable employment and economic diversification by enhancing local talent participation in the private sector.