Overview
The Ministry of Labour (MOL) is responsible for Oman’s labour market regulation — covering both Omani national workers and the large expatriate workforce that comprises approximately 60% of Oman’s total labour force.
The Ministry’s core responsibilities include:
- Labour law administration: Enforcement of the Labour Law (Royal Decree 35/2003 and subsequent amendments), including working conditions, wages, leave entitlements, and dispute resolution
- Omanisation quotas: Setting and enforcing sector-specific Omanisation percentage requirements for private sector employers
- Work permit approvals: Issuing and renewing work visas for expatriate workers — a significant revenue source and regulatory control mechanism
- Employment programmes: Operating Tashgheel and coordinating with the National Centre for Employment on job matching
- Labour dispute resolution: Labour courts and mediation services for employer-employee disputes
Omanisation Enforcement
The Ministry sets Omanisation targets by economic sector — different minimum percentages of Omani nationals in the workforce for retail, hospitality, banking, oil services, construction, and other sectors. Enforcement mechanisms include:
- Inspections: Labour inspectors visit workplaces to verify Omanisation compliance
- Penalties: Fines for non-compliance with Omanisation requirements
- Visa restrictions: Restrictions on new expatriate work permit approvals for employers below Omanisation targets
The practical effectiveness of quota enforcement is debated. Employers have found ways to achieve nominal compliance (employing Omanis in low-activity roles) while maintaining expatriate-dominated workforces in operational roles.
Tawteen Platform
Launched in 2024, the Tawteen platform is a Ministry of Labour initiative (operated by the National Centre for Employment) that digitises job matching between Omani job seekers and private sector vacancies. The platform represents an attempt to modernise the labour market intermediation function and reduce the information asymmetries that contribute to the Omanisation gap.
Expatriate Labour Management
The Ministry manages Oman’s large expatriate workforce (approximately 1.8-2.0 million workers) through the work permit system. Kafala-style sponsorship requirements link expatriate workers to specific employers — a system that has faced international criticism for worker vulnerability, though Oman has progressively introduced reforms to improve portability.
Labour reforms under Vision 2040 include streamlining permit processes for high-skill workers while maintaining controls on low-skill immigration.