Business in Oman

Omanization of corporate structures

Omanization is a government policy aimed at increasing the share of Omani citizens in the private sector.

Objectives of Omanization

The main goals of Omanization

Decrease in unemployment among Omanis.
Reducing the economy's dependence on foreign labor (expatriates make up about 40% of Oman's population).
Improving the skills of local personnel through training and incentives for employers.

Effective April 1, 2024, the Omani government will require all foreign companies in Oman to employ at least one Omani citizen within one year of commencing operations and register with the Social Protection Fund.

The rate of Omanization depends on the economic sector, the types of activities and the availability of the necessary labor force among Omanis.

Sectors and Professions

Sectors of the economy

Different sectors have set different Omanisation targets.

For example, the banking sector must achieve 95% Omanization in clerical positions and 75% in senior and middle management positions.

The Ministry of Transport, Communications and Information Technology (MTCIT) has set Omanisation targets for the transport and logistics sector, ranging from 20% to 50% starting in 2025. These targets will gradually increase annually until they reach 100%.

Activities

In September 2024, the Ministry of Labor expanded the list of professions reserved exclusively for Omani citizens.

From January 1, 2025, restrictions apply to:

Systems analysts
Information systems network specialists
Computer service technicians

From January 1, 2026, the following will be subject to restrictions:

Programmers
Electronic and Computer Engineers
Computer operators

From January 1, 2027, restrictions will be introduced for:

Web designers
Operations Analysts

Reporting and sanctions

Reporting on Imanization

Employers are required to maintain a special register of Omani citizens employed by the company.
Employers are required to submit an annual Omanisation plan to the Ministry of Labour. The plan must include information on the number of Omani employees, their salaries, gender distribution and vacancies.
Information about vacancies and quota fulfillment must be posted in a prominent place in the company office.

Sanctions for violations

If an employer fails to meet the quota for employing Omanis or fails to replace expats with local workers, they face a fine of 500-1,000 OMR (1,300-2,600 USD) for each employee who should have been employed.

For repeated violations, fines increase and the company may lose its license.

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