Starting April 1, 2025, all foreign-owned companies (100%) operating in Oman will be required to employ at least one Omani national within the first year of their commercial activity.
This regulation is part of the broader Omanization policy, aimed at expanding job opportunities for Omani citizens and reducing dependency on foreign labor.
Table 1: Key Requirements of the Mandatory Employment Law
| Requirement | Details | Effective Date |
|---|---|---|
| Hiring Omani Employee | At least one Omani national in companies with 100% foreign ownership | Within one year of starting operations |
| Registration with Social Protection Fund | Official registration of the Omani employee with the insurance entity | Upon hiring |
| Deadline | Final deadline for full compliance with the law | April 2025 |
Enforcement and Oversight
The law will block administrative transactions for non-compliant companies via the Invest Easy platform. Infringements may result in the suspension of the commercial registration.
Table 2: Penalties for Non-Compliance
| Penalty Type | Description | Responsible Authority |
|---|---|---|
| Transaction Restriction | Prohibition of performing transactions (procedures and requests) on the Oman Business Platform | MoCIIP |
| Commercial Registration Suspension | Temporary blocking of the company’s legal activity | MoCIIP |
| Monitoring Flag | Monitoring the company via digital alerts | MoCIIP and Ministry of Labour |
Conclusion: This law forms a key part of Oman’s strategy to strengthen the national workforce. Foreign companies should view this regulation as an opportunity to engage with local talent and contribute to Oman’s long-term economic development.
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