Labour Ministry Issues Warning to Over 205,000 Businesses to Employ Omani Nationals; Implementation Mechanism Detailed

Work permit bans for non-compliance; exemptions available for SMEs and entrepreneurs under case review

June 19, 2025, Oman’s Ministry of Labour has issued official notifications to more than 205,000 commercial establishments across the Sultanate, instructing them to begin implementation of the mandatory Omani employment policy. The directive requires businesses with active commercial registrations to employ at least one Omani citizen.

According to Ammar bin Salim Al Saadi, Director General of Employment at the Ministry, the notifications mark the first step in a phased rollout. Detailed instructions and implementation timelines are being delivered in subsequent communications.

The policy, initially announced on May 5, 2025, aims to restructure the labour market and ensure that the economic benefits of commercial activity contribute directly to the livelihoods of Omani citizens.

In this context, Ammar bin Salim Al Saadi also noted that businesses with limited financial capacity may fulfill the Omanisation requirement by hiring Omani nationals on a part-time (freelance) basis. He clarified:

“The minimum monthly wage for a part-time Omani worker is OMR 270, and this option is particularly suitable for small or low-resource enterprises.”

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📌 Implementation Mechanism Announced by the Ministry Following the Employment Warning:

🟩 1. Foreign Investment Establishments

• Must employ at least one Omani citizen or submit a concrete employment plan within three months of notification.
• Failure to comply will result in a total ban on new work permits, regardless of workforce size.
• Developed in coordination with the Ministry of Commerce, Industry, and Investment Promotion.

🟨 2. Establishments Employing More Than 10 Workers

• Required to submit a hiring plan and recruit at least one Omani within three months.
• Non-compliance will trigger automatic permit suspension via the Ministry’s system.

🟦 3. Establishments with Fewer Than 10 Workers

• Have six months to hire or submit a viable plan.
• Subject to individual case review to assess local value contribution.
• Temporary exemptions may apply if justified; otherwise, licensing will be suspended.

🟫 4. Entrepreneurs and Full-Time Business Owners

• Granted a one-year grace period to comply.
• Subject to review within six months.
• Those without a Riyada Card may apply through the SME Development Authority to access benefits and exemptions.

The Ministry urged all businesses to comply within the stated deadlines, emphasizing that the policy supports national employment goals and long-term economic sustainability.