Overview
Omanisation and Saudisation are the labour nationalisation programmes of Oman and Saudi Arabia, respectively. Both aim to increase national employment in the private sector and reduce dependence on expatriate workers, but they employ different mechanisms and face unique challenges.
Omanisation
Omanisation, established in the 1990s, sets sector-specific quotas for Omani employment in private companies. Targets vary by industry, with banking and insurance achieving the highest nationalisation rates. The programme is supported by the National Training Fund, in-country value requirements, and recently, the Tashgheel job placement programme. Enforcement has intensified under Vision 2040.
Saudisation
Saudisation, implemented through the Nitaqat points system, classifies companies into colour-coded bands based on their Saudi employee ratios. Companies in the green and platinum bands receive preferential treatment for visas and government services, while those in the red band face restrictions. Saudi Arabia has also restricted certain occupations exclusively to nationals, including retail sales and security services.
Key Differences
Nitaqat is a more nuanced system than Oman’s quota approach, offering graduated incentives and penalties. Saudi Arabia has been more aggressive in reserving entire occupations for nationals. Oman’s programme faces the challenge of a smaller private sector with fewer large employers. Both programmes struggle with companies hiring nationals in nominal roles to meet quotas.
Verdict / Bottom Line
Both programmes have achieved meaningful progress but face the same fundamental challenge: making private sector employment genuinely attractive to nationals. Future success requires improving education-to-employment pipelines, aligning wages with productivity, and creating career progression pathways that make private sector work a genuine choice rather than a last resort.