Overview
Labour market reform in Oman addresses the structural challenge of transitioning a young, growing national workforce into productive private-sector employment. The Omanisation policy, which sets minimum quotas for Omani nationals across economic sectors, has been complemented by skills-development programmes, wage-support schemes, and labour-mobility regulations. These reforms aim to balance the needs of a competitive economy with the social imperative of providing meaningful employment opportunities for citizens.
Key Points
The Tawteen programme launched in 2024 modernises Omanisation by introducing sector-specific targets based on economic analysis rather than blanket quotas. Minimum wage regulations for Omani workers in the private sector have been updated to ensure decent living standards. Labour-mobility reforms allow workers to change employers without a no-objection certificate, improving market flexibility. The National Employment Centre provides matching services, career counselling, and training referrals to jobseekers through a digital platform.
Current Status
Private-sector employment of Omanis has increased markedly, with new registrations in sectors such as information technology, tourism, and logistics showing strong growth. Youth unemployment remains a policy priority, though rates have declined from their peak. Employer incentive schemes, including wage subsidies and training grants, have encouraged firms to invest in Omani talent. The government monitors compliance through real-time data systems linked to social insurance records.
Vision 2040 Context
Vision 2040 aspires to create a knowledge-based economy with a highly skilled national workforce that competes globally. Labour market reform is essential to this goal, ensuring that education and training outputs align with private-sector demand. By fostering a flexible, inclusive, and productive labour market, Oman can harness its demographic dividend and reduce dependence on expatriate labour in strategic sectors.