Omanization of corporate structures

The key Goals of omanization are:

• Reducing unemployment among Omanis
• Decreasing the economy's dependence on foreign labor (expats make up about 43% of Oman’s population)
• Improving the skills of local talent through training and employer incentives

Starting April 1, 2024, the Omani government requires companies wholly owned by foreign investors to hire at least one Omani citizen and register them with the Social Protection Fund within a year of starting operations. Failure to comply is met with a warning, then suspension of preliminary work-permit services, then a 50 OMR fine that doubles on repeat.

The required Omanization percentage depends on the economic sector, business activity, and the availability of qualified Omani workers.

Economic Sectors

Different sectors have specific Omanization targets.

• Banking sector: the Central Bank of Oman sets Omanization targets for banks separately by staff category and revises them periodically — check the current figures with the regulator before you plan hiring.
• Transport & Logistics sector: The Ministry of Transport, Communications, and Information Technology (MTCIT) set Omanization targets ranging from 20% to 50% starting in 2025, with annual increases until reaching 100%.

Types of Activities

In September 2024, the Ministry of Labor expanded the list of professions reserved exclusively for Omani citizens.

From January 1, 2025: Restrictions apply to

• System analysts
• Information systems network specialists
• Computer maintenance technicians

From January 1, 2026: Restrictions apply to

• Programmers
• Electronics and computer engineering specialists
• Computer operators

From January 1, 2027: Restrictions apply to

• Web designers
• Operations analysts

Omanization Reporting

Employers are required to maintain a special register of Omani citizens employed in the company and submit an annual Omanization plan to the Ministry of Labor. The plan must include:

• The number of Omani employees
• Their salaries
• Gender distribution
• Information about vacancies

Vacancy and quota compliance information must be posted publicly in the company’s office.

Penalties for Violations

• If an employer fails to meet Omanization quotas or does not replace expats with local workers, they face fines of 250–500 OMR (650–1,300 USD) per employee who should have been hired.
• Repeat violations result in higher fines and may lead to license revocation.

Sources: Labour Law, penalties for Omanisation quotas — Royal Decree 53/2023; reserved professions and the 2025–2027 waves — Ministerial Decision 501/2024; transport and logistics targets — MTCIT.