The Current Model’s Limitations
Omanisation in its current form relies primarily on sector-specific quotas mandating minimum percentages of Omani employees. This approach has achieved numerical targets in some sectors while failing to create genuine, sustainable employment. Companies game the system through ghost employment, token positions, and minimum-compliance hiring. The result is a policy that imposes costs on businesses, distorts labour markets, and often fails to provide meaningful careers for the Omanis it is supposed to benefit. After decades of implementation, the fundamental structure of the labour market – nationals in government, expatriates in the private sector – has changed less than the policy demands.
Why Quotas Alone Fail
Quotas address symptoms rather than causes. The root causes of limited Omani private-sector participation include: an education system that does not produce the skills employers need; a public-private wage gap that makes government employment rationally preferable; a business model in many sectors built around low-cost labour that cannot economically sustain Omani wage levels; and cultural perceptions that devalue private-sector work, particularly in manual, retail, and service roles. Quotas force square pegs into round holes without reshaping either the pegs or the holes.
A Skills-First Alternative
A more effective approach would prioritise skills development over numerical quotas. This means: redesigning education from primary through tertiary to produce graduates with employable competencies; creating world-class vocational training that carries social respect equivalent to university education; funding extensive apprenticeship programmes where employers co-invest in training; and targeting Omanisation in specific high-value roles rather than across-the-board percentages. The goal should be Omanis competing for private-sector positions on merit, not being imposed on reluctant employers.
The Political Challenge
Rethinking Omanisation is politically challenging because quotas provide visible, measurable action that demonstrates government commitment to national employment. Moving to a skills-first model requires patience – the payoff takes years, not months. Citizens demand jobs now, not training programmes that may lead to jobs later. Political leaders must communicate honestly that sustainable employment requires investment in human capital, not just mandates on employers. The current system provides the illusion of progress; genuine progress requires harder policy choices.