Oman Omanisation FAQ
What is Omanisation?
Omanisation is the government’s workforce nationalisation policy requiring private sector companies to employ minimum percentages of Omani nationals. The policy aims to reduce dependence on expatriate labour, create employment opportunities for Omanis, and develop national human capital across all economic sectors.
What are the Omanisation quotas by sector?
Quotas vary significantly by sector. Banking and financial services require approximately 90 percent Omanisation. Insurance requires 60 percent. Retail ranges from 20 to 40 percent. Construction is approximately 15 to 20 percent. IT and telecommunications target 35 percent. The Ministry of Labour sets and adjusts quotas periodically.
How is Omanisation compliance monitored?
The Ministry of Labour monitors compliance through the electronic labour clearance system that links work permit approvals to Omanisation performance. Companies that fail to meet quotas may be blocked from obtaining new work permits for expatriate employees.
What penalties apply for non-compliance?
Penalties include suspension of labour clearances (blocking new expatriate work permits), fines, and potential restrictions on government contract eligibility. The severity of penalties depends on the degree and duration of non-compliance.
Are there exemptions to Omanisation requirements?
Certain specialised positions requiring expertise not available locally may be exempted on a case-by-case basis. New companies may receive grace periods to build their Omani workforce. Free zone companies have more flexible Omanisation frameworks than mainland businesses.
What support is available for employers?
The government provides wage subsidies for Omani employees during initial employment periods, training programme funding through the National Training Fund, and recruitment support through the National Employment Centre’s job matching platform.
How are Omanisation percentages calculated?
Omanisation is calculated as the number of registered Omani employees divided by the total workforce. Only employees registered with the Public Authority for Social Insurance (PASI) count toward Omanisation. Part-time employees may be counted on a pro-rata basis.
Does Omanisation apply to senior positions?
Yes, the government encourages Omanisation at all levels including management and leadership positions. Some sectors have specific requirements for Omani representation in senior roles. Training and leadership development programmes support career progression for Omani professionals.
What is the In-Country Value (ICV) connection?
The ICV programme complements Omanisation by scoring government contractors on local content including Omani employment, local procurement, and training investment. High ICV scores improve competitive positioning in government tenders, reinforcing Omanisation objectives.
How is Omanisation evolving under Vision 2040?
Vision 2040 shifts the focus from quantity-based quotas to quality employment. The emphasis is on meaningful positions with career development potential rather than low-skilled roles. Skills alignment between education outputs and labour market needs is a priority to improve Omanisation sustainability.