Overview
The energy sector in Oman employs ~55,000 direct, ~120,000 indirect workers with an Omanisation rate of ~88% in PDO, ~72% sector-wide. Workforce development is a critical enabler of Vision 2040 objectives, requiring targeted interventions in skills training, career pathway development, and nationalisation policies tailored to sector-specific needs.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Direct Employment | ~55,000 direct, ~120,000 indirect | See 2040 targets |
| Omanisation Rate | ~88% in PDO, ~72% sector-wide | See 2040 targets |
| Key Employers | PDO, OQ Group, Shell, BP, TotalEnergies,… | Expanding |
Analysis
Workforce composition in Oman’s energy sector reflects both historical development patterns and emerging skill requirements. The current Omanisation rate of ~88% in PDO, ~72% sector-wide indicates strong progress toward nationalisation targets. Key employers including PDO, OQ Group, Shell, BP, TotalEnergies, OPAL are implementing structured training programmes. However, skills gaps persist in technical specialisations, middle management, and digital competencies. The sector must balance rapid Omanisation with maintaining operational excellence and international competitiveness.
Challenges
Skills mismatch between education outputs and sector requirements remains the primary workforce challenge. Oil price volatility, reserve depletion risk, high breakeven cost (~USD 75/bbl), slow progress on enhanced oil recovery, and the need to pivot toward green hydrogen at scale. Additionally, retaining Omani talent in the face of competition from government and higher-paying sectors requires innovative compensation and career development frameworks.
Opportunities
Structured apprenticeship programmes, industry-academia partnerships, and TVET alignment with sector needs can accelerate workforce readiness. Green hydrogen mega-projects (HYPORT Duqm, 25 GW), solar irradiance advantage (>2,000 kWh/m2/yr), carbon capture and storage potential in depleted reservoirs, and downstream petrochemical expansion.
Vision 2040 Targets
Reduce hydrocarbon GDP share to below 20 percent; achieve 30 percent renewable energy in the electricity mix; become a top-three global exporter of green hydrogen by 2040; increase Omanisation to 90 percent.