Definition
Omanisation (also written Omanization) is the policy of increasing the proportion of Omani nationals employed in Oman’s private sector — replacing expatriate workers with local employees through a combination of quotas, incentives, and training investments.
The concept is equivalent to similar policies in other Gulf states: Saudi Arabia’s Saudisation (Nitaqat), UAE’s Emiratisation, and Qatar’s Qatarisation.
Historical Context
Oman’s private sector has historically been dominated by expatriate workers — primarily from India, Pakistan, Bangladesh, and the Philippines — because:
- Cost differential: Expatriate workers accept lower wages than Omanis
- Skills mismatch: Many private sector roles require skills not widely found in the Omani graduate pool
- Cultural preferences: Omanis have historically preferred government employment
- Employer preferences: Private sector employers prefer workers without Omanisation obligations
Vision 2040 Targets
| Year | Omanis in Private Sector |
|---|---|
| 2016 (Baseline) | 11.6% |
| 2024 (Estimate) | ~18.5% |
| 2030 (Target) | 35% |
| 2040 (Target) | 40% |
Current Progress
Approximately 18.5% Omani private sector employment in 2024 — up from 11.6% (2016) but well behind the trajectory required for 35% by 2030. Achieving the target requires approximately 90,000+ additional Omani private sector jobs per year for the remaining 16 years.
Policy Mechanisms
- Sector-specific Omanisation quotas (Ministry of Labour)
- Work permit restrictions on expatriate hiring by non-compliant employers
- Wage subsidies for Omani employees in specific sectors
- Tashgheel employment programme
- Tawteen digital job matching platform (2024)
- Vocational education reform for technical skills development
Structural Challenges
Omanisation faces structural constraints that quotas alone cannot overcome: the cost differential between Omani and expatriate workers, the skills mismatch in technical roles, and cultural preferences for government employment. Vision 2040 addresses these through economic diversification (creating new private sector sectors where Omanis can compete) and education reform (improving practical skills).