Labour Ministry outlines mechanism to ensure Omanisation requirements

Times of Oman

10 hours ago

Muscat: The Ministry of Labour has announced the implementation mechanism for the decision requiring each commercial registration that has completed one year of establishment to employ at least one Omani citizen.
The new policy, which supports national workforce development and labour market regulation, was first outlined in a Ministry statement issued on 5 May 2025. The mechanism applies to all commercial establishments, with specific provisions based on the nature and size of the entity.
A. Foreign Investment Establishments
1. Foreign-owned businesses with a commercial registration older than one year must submit an employment plan to hire at least one Omani citizen within three months.
2. Recruitment may be completed either directly or through a clear employment plan that results in actual hiring.
3. A total ban on issuing new work permits will apply to any non-compliant establishment, regardless of employee count.
4. A grace period of no more than three months will be given from the date of official notification.
5. This mechanism has been developed in coordination with the Ministry of Commerce, Industry and Investment Promotion.
B. Establishments Employing More Than 10 Workers
1. These businesses must submit an employment plan to recruit at least one Omani within three months.
2. Recruitment may occur either directly or through a viable employment plan.
3. Notifications will be sent through the Ministry's electronic system.
4. If the business fails to comply, the system will automatically impose a ban on issuing new work permits.
C. Establishments Employing Fewer Than 10 Workers
1. These entities must submit a plan to employ one Omani citizen within six months.
2. All such businesses will undergo a case review within six months to assess their contribution to local value addition.
3. Compliance can be achieved through direct hiring, a viable employment plan, or, if value addition is demonstrated, a temporary exemption.
4. Non-compliance will trigger an automatic ban on new license issuance via the Ministry's system.
D. Entrepreneurs and Full-Time Business Owners
1. Establishments owned by entrepreneurs or full-time business owners will be given a one-year grace period to meet the Omanisation requirement.
2. A case review will be conducted within six months to evaluate the entity's local economic contribution.
3. 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.