Latest news with #OmaniWorkforce
Zawya
3 days ago
- Business
- Zawya
220,000 new Omani jobs required by 2030 to meet growth targets: IMF
MUSCAT: The Omani economy must generate over 220 thousand jobs for its national workforce by 2032 to meet the country's national growth demands, according to the International Monetary Fund (IMF). The figure is based on projections that 550,000 nationals will enter working age within the next year, with participation rates expected to remain around 67%. Published in the IMF's Selected Issues Paper, 'Labour Market Dynamics in Oman,' April 2025, the report underscores that relying on the public sector as the primary source of employment is no longer feasible amidst efforts to ensure medium-term fiscal sustainability and reducing reliance on hydrocarbon revenues. According to the report, while 56% of the Omani workforce is in the private sector, the public sector remains a favorable destination for Omanis due to job security, higher compensation, and more relaxed work arrangement. The private sector, however, remains dominated by expatriates, which make up 86% of the workforce with wages significantly lower on average, particularly in low- and medium-skilled jobs, creating a wage disparity that deters private firms from hiring nationals without government intervention. Furthermore, the IMF notes that Oman's education system, despite improvements, is not sufficiently aligned with the needs of a diversifying economy, causing a discrepancy in the skills required by the private sector and those available in the labour market. According to the report, a large share of educational paths chosen by Omanis are still tilted towards humanities and business administration rather than science, engineering, and technology fields. Additionally, enrollment rates in vocational education represents less than 2% of enrollment in higher education. Another identified challenge is the female labour participation rate which stands at 32%, in comparison to 89% for men. Omani women hold fewer senior and managerial roles, which could discourage them further from entering the labor market, despite higher academic performance among women, the report notes. Finally, another key restraint to the labour market is limited mobility, especially for expatriate workers. Until recently, labour regulations required expatriates to remain with their initial employer for 12 months before qualifying for an unconditional job transfer. This restriction indirectly encouraged firms to favour expatriates over nationals, as their limited bargaining power contributed to lower wage expectations. In turn, this dynamic reduced the attractiveness of private sector roles for low-skilled Omanis. The IMF hailed the new Social Protection and Labour Laws as a step in the right direction toward addressing longstanding challenges in the Omani labour market, while also recommending complementary policies to amplify their impact. These include strengthening and scaling up active labor market programmes to reduce the skill mismatch with private sector needs, as well as adopting dual-education systems that integrate vocational training with on-site experience. The Fund also calls for accelerating efforts to increase the participation of women in the workforce. In addition, aligning wages in the public and private sectors more closely with productivity is seen as a key measure to enhance the appeal of private sector employment for nationals. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
26-05-2025
- Business
- Zawya
Oman: The nexus of ICV, human capital development
Oman 2040 strives to dynamically shift the limb of Oman's economic structure towards a diverse knowledge-based economy alongside social development. Another goal is to fulfill the objectives of Vision 2040 which has, in turn, resulted in Oman setting new bounds for productivity and innovation. A central element, for now, is mobilized towards a strategic policy called ICV (In-Country Value) which aims to cultivate the local economy by restricting the outflow of economic value from Oman, enabled through sustainable job creation and localized employment. Alongside this is the Human Capital Development which strives to build an innovative Omani workforce capable of sustaining the nation's long term growth. This powerful synergy between ICV and Human Capital Initiatives serves to yield immense value for Oman through nurturing the local talent to eradicate over dependency on foreign labor. Not having to spend externally on essential profits that come through employment results in an economically self sustaining country. This serves, alongside capturing the cores of capital depletion, to cultivate the intellect Oman needs to stay relevant competitively in the future. This text analyzes the intricate relationships of ICV and Human Capital Development in Oman, which examines how policies, strategies for specific sectors, and education systems are integrating to achieve sustainable and inclusive growth. By addressing the gaps, highlighting the success stories, and offering strategic insights, we aspire to demonstrate how Oman can optimally utilize ICV to emerge as a leading regional human-centered economic development hub. The pillars of ICV include: Employment and training of Omani nationals; Retention of expenditure within Oman; Retention of local service providers and suppliers; and Omani goods and services. All of these pillars support Oman Vision 2040 which states that there is a need for a highly productive and empowered workforce to sustain a diversified and sustainable economy. There exists a legal framework to regulate and monitor the ICV delivery of a company's ICV initiatives through tendering processes where they have to submit ICV plans and mandatory ICV reports. In the oil and gas spheres, there is new legislation that requires companies to budget for mandatory spending on training Omanis, local SME support, and funding community development projects. This has resulted in the establishment of training and certification centers, and even working with local schools to develop programs valued by the workforce. This is how ICV has transformed from a policy instrument into a tool that strategically drives socio-economic development by ensuring that Oman's natural resources and industrial projects result in sustainable national value. DEVELOPING HUMAN CAPITAL (HCD) IN OMAN The term 'Human Capital Development' describes the enhancement of skills, knowledge and competence of an individual so that productivity and contribution to the economy improves. In regard to Oman, human capital development is crucial for achieving the objectives put forth in Vision 2040 where innovation, inclusivity and human empowerment forms the basis of human society. During the past two decades Oman has significantly improved its education, vocational training and general workforce development. There has been a remarkable improvement in the access to primary and secondary education and an increase in the number of higher education and technical colleges. Sultan Qaboos University and the University of Technology and Applied Sciences along with several private colleges have played a significant role in providing a workforce of skilled graduates. The Omanisation policy is one of the main elements of Oman's human capital strategy. The Omanisation policy is meant to reduce the reliance on foreign labor by putting up minimum hiring quotas for Omani nationals in all sectors and industries. Employment opportunities for nationals are guaranteed while at the same time boosting citizens' participation in economic are on-going, but problems remain. There is still a gap between qualifications and actual jobs because the available education does not match opportunity, which businesses regard as having sufficient soft skills, technical skills, and work experience. Hence, there appears to be greater focus on real-world applications through curriculum reforms, strengthening STEM fields, and initiatives supporting education. Consequently, a number of new government initiatives have been implemented, including: The National Training Fund (NTF), which finances training activities within specific industries for employers; Educational scholarships which, accompanied by internships, enhance career prospects through tangible, real-life engagements; and Creative self-employment innovation and entrepreneurship hubs for schools designated to advance innovation and guide students in setting up their businesses. Additionally, training is being provided through public-private partnerships to improve quality and relevance. For example, several leading companies in energy have collaborated with vocational training schools to develop and implement vocational training programs tailored to industry expectations. This ensures that the development of human capital is not only through government policy but also from the current requirements of the economy. Introducing sustainability to economic policies, human capital is regarded as a key element of international competitiveness and productivity. Oman is focused on improving the skills and capabilities of its people, which in turn lays the groundwork for sustainable growth of the country's economy for years to come. COMBINATION OF ICV WITH HUMAN CAPITAL DEVELOPMENT Merging ICV with human capital development gives rise to an economic opportunity in Oman that is planned and executed to achieve inclusivity. This approach fulfills the objective that economic integration should not simply raise revenue, but also provide more value through positive and constructive participation by Omanis as leaders. ICV strategies are often implemented as a follow-up to human capital strategies, as they incorporate workforce creation into procurement and operational policies of the business. For instance, there is a general obligation for companies in Oman to train their staff, create Omani national employee retention strategies, and sponsor local universities by assisting with teacher appointment and building school facilities. Various leaders in the oil and gas industry such as Petroleum Development Oman (PDO) undertake comprehensive ICV strategies, giving rise to large-scale workforce development projects. These include vocational training, leadership training and in most cases the provision of the required prerequisites with Omanis having the needed technical and non-technical skills to compete in the industries. In the same manner, the ICV policies have been implemented in the health sector through clinical trainings, medical teaching programs, and research partnerships. These initiatives improve health services within the country and also ensure that Omanis have a key role in the development and governance of the sector. Targeted ICV interventions also benefit the Information and Communication Technology (ICT) sector which is considered to have high potential under Vision 2040. Such measures include coding boot camps, digital skills training, and technology-focused business incubators directed at enabling young Omanis to contribute to the digital economy. Oman's integrated approach relies heavily on public-private collaborations. Direct involvement of companies in talent management ensures that Oman is providing relevant and modern skills. This provides Oman with a competent and engaged local workforce, improving the company's productivity, and social acceptance to work in that region. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
