What Is Omanisation?
Short Answer
Omanisation is the government’s policy of replacing expatriate workers with Omani nationals in the private and public sectors. It involves mandatory employment quotas, training programmes, and incentive structures designed to increase the participation of Omani citizens in the workforce.
Detailed Answer
Omanisation was introduced in the 1990s to address a structural imbalance in the labour market where expatriates dominated private-sector employment while many Omani citizens remained unemployed or were concentrated in the public sector. The policy establishes minimum percentages of Omani employees that companies must maintain, with quotas varying by industry and company size.
Sectors with higher Omanisation targets include banking, insurance, telecommunications, and government contracting. Companies that fail to meet their quotas face penalties including restrictions on obtaining work permits for expatriate employees and exclusion from government tenders.
To support implementation, the government has invested heavily in education and vocational training programmes to equip Omani nationals with the skills demanded by private-sector employers. The National Training Fund subsidises training costs for companies that hire and develop Omani talent. Universities and technical colleges have aligned curricula with labour market requirements.
The policy has achieved notable successes, particularly in banking and finance where Omanisation rates exceed ninety percent. However, challenges persist in sectors requiring specialised technical skills, and some critics argue that aggressive quotas can reduce competitiveness. Balancing national employment objectives with economic efficiency remains an ongoing policy challenge.