Overview
Both Oman and Saudi Arabia face the challenge of employing growing national populations in economies historically dependent on expatriate labour. Omanisation and Saudisation policies share similar objectives but differ in scale, approach, and outcomes.
Oman’s Employment Landscape
Oman’s working-age population is approximately 2.8 million, with nationals comprising roughly 40 percent of the workforce. Omanisation policies set sector-specific quotas for national employment, and the government has invested in vocational training through institutions like the National Training Fund. Youth unemployment among Omanis remains a concern, particularly for university graduates.
Saudi Arabia’s Employment Landscape
Saudi Arabia’s workforce numbers over 15 million, with the Nitaqat system categorising companies by their Saudisation rates. Saudi Arabia has invested heavily in the Human Resources Development Fund (HADAF) and technical education through TVTC. Female labour force participation has risen sharply, from 17 percent in 2017 to over 30 percent, driven by Vision 2030 reforms.
Key Differences
Saudi Arabia’s labour market is much larger, and the Nitaqat system is more sophisticated than Oman’s quota-based approach. Saudi Arabia has made greater progress on female workforce participation. Oman’s smaller population makes the employment challenge more manageable in absolute terms but no less urgent. Both countries struggle with private sector wage expectations among nationals.
Verdict / Bottom Line
Both countries must address the structural mismatch between national workforce expectations and private sector requirements. Oman’s smaller scale allows for more targeted interventions. Saudi Arabia’s rapid progress on female employment offers a model. Success for both hinges on education reform, skills development, and creating genuinely attractive private sector career paths for nationals.