Over 245,000 Firms Employ Zero Omani Citizens, Workforce
Relies on 1.1 Million Expatriates

Muscat,
5 May (ONA) —— In a bid to ensure a balance between business sustainability and
job localization, the Ministry of Labour has announced a set of integrated
regulations and incentives to enforce a decision requiring firms and companies
that have completed one year since establishment to employ at least one Omani
citizen. This comes in response to data revealing significant disparities in
Omanization rates across businesses.

While
a limited number of companies employ the majority of Omani nationals, thousands
of others do not hire any locals—despite benefiting from Oman’s business
environment—as follows:

1.
Around 1,000 large firms employ nearly 200,000 Omanis and 245,000 expatriates,
achieving an Omanization rate of 44%, averaging 200 citizens versus 245 expats
per company.

2.
Approximately 19,000 establishments employ about 60,000 Omanis, compared to
300,000 expatriates, with an Omanization rate not exceeding 17%—equivalent to
just 3 Omanis for every 15 expats per firm.

3.
Over 245,000 businesses employ no Omani citizens within their workforce, while
relying on more than 1.1 million expatriates, resulting in a 0% Omanization
rate.

4.
The wide variation in Omanization rates highlights an imbalance that
necessitates corrective measures.

The
decision aims to realign the labour market, curb hidden trade, ensure fair
distribution of opportunities, and promote competitiveness based on sustainable
and equitable principles.

As
part of efforts to empower national talent and boost job localization, the
ministry has launched an employment package tailored to market needs. This
includes: Training-linked employment programs; On-the-job training initiatives;
Wage support schemes; Flexible alternatives to meet Omanization quotas, such as
counting self-employed individuals and part-time workers toward the required
ratios.

The
ministry has adopted a flexible enforcement mechanism, accounting for the
economic realities of businesses of varying sizes, capacities, and sectors.
Firms that have operated for one year without hiring Omanis must submit an
employment plan within one month of notification. Companies with 10+ employees
must comply within 3 months. Smaller firms are granted a 6-month grace period.
Sole proprietors managing their businesses are exempt for one year from the decision’s
effective date.

To
ensure fair implementation and address sector-specific concerns, the ministry
has formed a committee to review appeals, assess exceptional cases affected by
the decision, monitor its impact, and submit observations and recommendations
based on practical outcomes.

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Ends/AH