Latest news with #Omanisation
Observer
an hour ago
- Business
- Observer
Calls for Omanisation freeze counterproductive
While relevant authorities are working to employ, train, and qualify Omanis for work in various available economic sectors, and to raise the percentage of "Omanisation" among qualified personnel in required specialties, today we find some countries attempting to distort this national and sovereign demand by proposing the idea of freezing "Omanisation" in some companies established through foreign investments. For more than three weeks, numerous messages and appeals have been circulating in the social media from citizens addressing government officials not to accept any condition restricting the employment of national workers in these companies in the event of bilateral trade agreements. This would lead to a doubling of the number of foreign employees in commercial establishments operating in the Sultanate, which would increase their control over the fate of Omanis and their ability to decide. This will also lead to a decline in the qualification opportunities for Omanis in these institutions. And ultimately will lead to an increase in annual remittances of expatriates to their home countries, thereby reducing liquidity in the domestic market. Many people view this country's request to freeze the "Omanisation" policy in the free trade agreement as a form of guardianship over the Omani labour market. When a country seeks to permanently guarantee its labour in vital sectors in another country, this sets a dangerous precedent that undermines the sovereignty of national decision-making. We know that foreign investment in any country seeks economic freedom, even in hiring its own workers, to reduce the final cost of any product or service. However, each country has its own laws, particularly regarding the employment of a certain percentage of national workers in these institutions, and Oman is no exception. However, I do not believe that the goal of freezing Omanisation will create chaos in the Omani market, as some suggest. However, there is a possibility that this could lead to some diplomatic tensions in specific commercial areas, which could be avoided by clarifying the country's policies. The world has experienced some problems resulting from the presence of its workers in other countries over the past decades. In certain cases, the issue of national labour or economic policies was used as a means to strain relations or improve a particular domestic situation. In international relations, there are solutions to resolve such disputes, and countries work to resolve them diplomatically to avoid escalation. We must view these issues and matters objectively, because governments typically seek to protect their national interests, and disputes related to labour and economic policies are often resolved through dialogue and agreements. The volume of Oman's foreign trade with countries around the world is increasing annually, and the quality of foreign investment projects is also increasing. Oman imports numerous products and goods, from around the world. And any demand to freeze the "Omanisation" policy will lead to a decline in demand from these countries. Furthermore, such a demand will lead to a decline in demand for joint big projects from such countries. All of these projects are part of efforts to enhance economic cooperation between countries, especially since recent years have witnessed an increase in the volume of investments and joint projects between Oman and these countries. Therefore, the presence of national labour alongside expatriate labor is a matter of sovereignty, and no country can propose a vision that excludes national labour from working in its country.
Observer
a day ago
- Business
- Observer
Digital banks get green light in Oman
MUSCAT: The Central Bank of Oman (CBO) has issued a regulatory framework for the licensing and supervision of digital banks, marking a major step toward modernising the country's financial sector. The framework comes into effect on June 1, 2025, and is aligned with Oman Vision 2040. The framework allows digital banks to operate as either locally incorporated joint-stock companies (SAOC or SAOG) or as branches of foreign banks, subject to regulatory approval in their home jurisdictions. Two types of licenses will be offered. Category 1 requires a minimum paid-up capital of OMR 30 million and allows full operations. Category 2 requires OMR 10 million but comes with business limitations, including caps on customer deposits and corporate lending, and a prohibition on proprietary trading. These limits are waived during the first two years of operation. All digital banks must maintain a physical head or registered office in Oman. They may open administrative offices for customer support, but not traditional branches for transactions. Shareholding limits apply: individuals and their affiliates may hold up to 15 percent of voting shares; corporate bodies up to 25 percent; and holding companies up to 35 percent. Cross-ownership in multiple banks is restricted to 15 percent. Applicants must present a detailed five-year business plan covering digital services, target segments, profitability projections, and a financial inclusion strategy. The plan must outline IT architecture, cybersecurity readiness, and disaster recovery procedures. Digital banks are expected to adopt modern technologies such as AI, open banking, blockchain, and cloud computing. Omanisation targets start at 50 percent and rise to 90 percent by Year 5. The CBO mandates the submission of an exit plan alongside the license application. It must define conditions under which the bank would voluntarily cease operations, such as capital or profitability deterioration. The plan should address customer protection, risk triggers, and exit funding without regulatory assistance. Licensed digital banks must comply with the Banking Law 02/2025, National Payment Systems Law 08/2018, and AML Law 30/2016. They are also subject to digital onboarding rules, cybersecurity frameworks, consumer protection regulations, and fraud prevention protocols. The CBO may require independent technical assessments at the applicant's expense. Non-compliance could trigger enforcement measures, including license revocation. The CBO reserves the right to reject incomplete applications or withdraw approvals if information is found to be inaccurate. The new framework is expected to pave the way for digital-first banking models, improve access to finance, and foster innovation in Oman's financial sector.
Zawya
a day ago
- Business
- Zawya
No contracts with firms not meeting Omanisation rates: Tender Board
Muscat: The General Secretariat of the Tender Board has issued Circular No. (2025/2), directing all ministries and government units subject to the Tender Law to refrain entirely from contracting with private sector companies that fail to meet government-approved Omanisation rates. As per the circular, government entities are required to take the following measures: A mandatory clause related to Omanisation compliance and the employment of the national workforce must be incorporated into all tender documents prior to issuance, following the official template provided. Before awarding any contract, entities must verify that the bidding companies meet the Omanisation requirements through the electronic tendering system (Isnad), which is directly linked to the Ministry of Labour's database. For international companies and institutions not registered in the Sultanate of Oman but participating in international tenders, compliance with Omanisation obligations will be monitored post-award and during contract execution, in alignment with the local content plan. The circular underscores the government's commitment to enhancing employment opportunities for Omani nationals and ensuring that public procurement supports the country's strategic workforce 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Times of Oman
2 days ago
- Business
- Times of Oman
Oman bans government contracts for firms failing Omanisation targets
MUSCAT: In a sweeping move to tighten enforcement of its national employment policy, the Sultanate of Oman's Tender Board has made it mandatory for all private sector companies to comply with approved Omanisation rates in order to be eligible for government contracts. The directive, issued under Circular No. 2025/2, instructs all ministries and government entities governed by the Tender Law to refrain from awarding contracts to companies that fail to meet the stipulated Omanisation levels, marking a significant shift toward safeguarding jobs for Omani nationals. The circular, issued by the General Secretariat of the Tender Board, aims to ensure that the employment of Omani citizens becomes a non-negotiable requirement in public sector contracting. It instructs government bodies to include a clause related to Omanisation compliance in all tender documents before the tender is floated. This clause is to be inserted in accordance with the official format provided and must make clear that non-compliance with national workforce targets will result in disqualification from the bidding process. In a move that streamlines compliance and enhances transparency, the circular also mandates that government entities verify a company's adherence to Omanisation targets through the Esnad electronic tendering system. This verification is to be carried out prior to awarding any contract, with Esnad drawing real-time employment data directly from the Ministry of Labour. The integration of this digital system ensures that non-compliant companies are screened out at an early stage, minimising the possibility of circumvention. Further, the new rules extend to international companies and institutions that are not registered within the Sultanate but participate in tenders for large-scale or strategic government projects. While such companies may not be immediately subject to pre-award Omanisation verification, their compliance will be closely monitored post-award and during contract implementation. This oversight forms part of the broader local content strategy, which includes evaluating how effectively these companies contribute to Oman's workforce development and national economic goals throughout the lifecycle of a project. The Tender Board has called on all ministries and public sector units to fully comply with the provisions of the circular 'in the public interest,' underlining the importance of the directive in advancing national priorities. The move is aligned with the goals of Oman Vision 2040, which places a strong emphasis on empowering the national workforce, enhancing economic sustainability, and reducing dependence on expat labour in key sectors. The policy is expected to significantly impact the way private and foreign companies approach public tenders in Oman, compelling them to prioritise the recruitment, training, and retention of Omani nationals as part of their operational strategy. Industry analysts believe the move will not only create more job opportunities for Omanis but also push companies to invest in long-term human capital development within the country.
2 days ago
- Business
Firms not meeting Omanisation targets to lose govt contracts
By OUR CORRESPONDENT Muscat – In a move aimed at bolstering employment opportunities for Omani nationals, the Secretariat General of Tender Board has issued a circular directing all government entities to stop awarding contracts to private companies that fail to meet government-approved Omanisation levels. 'All entities subject to the provisions of the Tender Law must refrain from contracting with companies that do not comply with the Omanisation rates approved by the government,' the circular stated. To ensure effective implementation, the circular mandates that all government tender documents must now include a clause requiring compliance with Omanisation targets and the employment of Omani nationals, following a standard format. Prior to issuing any tender, government entities must verify that companies meet the stipulated Omanisation levels. This verification process will be carried out through the Isnad electronic tendering system, which is directly integrated with Ministry of Labour data. The circular extends these compliance requirements to foreign companies participating in international tenders. Although not registered in Oman, such companies must still adhere to local Omanisation commitments. Their compliance will be monitored after contracts are awarded and throughout the duration of project implementation in line with the broader local content plan. The directive reinforces the government's long-standing policy to enhance participation of Omanis in the private sector workforce.
